The U.S. stock market achieved its highest point on Thursday after the stronger-than-expected jobs data demonstrated labor market strength while Nvidia reached a $4 trillion market capitalization record.
The S&P 500 together with the Nasdaq reached their highest points after the Labor Department announced 147,000 new nonfarm payrolls in June which exceeded the predicted 110,000 jobs added. The unemployment rate decreased to 4.1% while economists predicted it would increase to 4.3%.
Cetera Investment Management expert Brian Klimke stated that the labor market performs better than expected predictions. The Federal Reserve now has additional time to delay rate adjustments.
Market reaction was swift. The July interest-rate cut probability decreased significantly as traders now expect a 68% chance of a September cut according to CME Group’s FedWatch.
The stock price of Nvidia rose 1.6% to reach its highest point ever. The market expects AI chip supply leadership to continue because tech companies dedicate increasing funds to build AI infrastructure.
The jobless claims data revealed a six-week minimum while services activity returned to normal but employment in that sector maintained its downward trend. Trading volumes remained low before the July 4 holiday because markets operated with early closures.
