Stock market today: US stocks close at record highs after dovish June jobs report

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    US stocks closed at record highs, led by the technology sector’s strong performance.The June jobs report showed 206,000 jobs added to the economy, slightly above estimates.”To us, the message is the labor market is slowing,” Fundstrat’s Tom Lee said of the June jobs report.

    US stocks closed at fresh record highs on Friday after a dovish June jobs report.

    The gains were led by the technology sector, with the Nasdaq 100 closing up nearly 1%, while the S&P 500 rose about a half-percent.

    Both indexes finished the week at record highs, while the Dow Jones Industrial Average has yet to hit its record high reached in May.

    The US economy added 206,000 jobs in June, which was slightly ahead of economist estimates of 200,000, but below the May jobs report, which was revised lower to 218,000 from 272,000.

    The April jobs report was also revised lower to 108,000 jobs added that month, down from the initial reading of 165,000.

    The job revisions, combined with the unemployment rate ticking higher to 4.1% from 4.0% in June, sent bond yields tumbling and renewed hopes for interest rate cuts from the Federal Reserve.

    “The tale told by June employment data and sharp (not unexpected) downward revisions is that it is time for the Fed to cut,” economist Steven Blitz of GlobalData TS Lombard said in a Friday note.

    “To us, the message is the labor market is slowing,” Fundstrat’s Tom Lee said on Friday. “Previously, the Fed was reluctant to reduce interest rates, despite the softer inflation, because of the perceived strong labor market. This is less and less the case, arguably, given the softening of jobs.”

    Market watchers think the path to a September rate cut looks smoother after the report, and the likelihood of two cuts may be rising. According to JPMorgan’s David Kelly, a cut in September and one in December is now looking like a good bet, though investors still need to be cautious about adding exposure to stocks with valuations so high.

    Here’s where US indexes stood shortly after the 9:30 a.m. opening bell on Friday:

    S&P 500: 5,567.19, up 0.54% Dow Jones Industrial Average: 39,375.87, up 0.17% (+67.87 points)Nasdaq composite: 18,352.76, up 0.90%

    Here’s what else is going on today:

    Nvidia stock received a rare downgrade from Wall Street on Friday due to concerns about its valuation.

    Tesla short-sellers have lost $3.5 billion after the electric vehicle maker beat second-quarter vehicle deliveries.Bitcoin plunged to $55,000 after experiencing a sharp decline on Thursday, and it could signal more downside ahead.

    The soaring power demand for AI technologies is pushing America’s power grid to its limit.

    In commodities, bonds, and crypto:

    West Texas Intermediate crude oil dropped 0.88% to $83.14 a barrel. Brent crude, the international benchmark, was lower by 0.89% to $86.65 a barrel.Gold surged 1.22% to $2,398.30 per ounce.The 10-year Treasury yield dropped eight basis points to 4.28%.Bitcoin dropped 1.04% to $56,449.

    Read the original article on Business Insider


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