The Dow Jones Industrial Average closed higher on Thursday, driven by a strong jobs report that alleviated concerns about an economic slowdown. The broader S&P 500 and tech-heavy Nasdaq Composite also rose, with the former closing at fresh record highs.
The June jobs report showed the economy added 147,000 jobs, exceeding expectations, and the unemployment rate ticked lower to 4.1%. This news provided relief for investors, who had been worried about a potential slowdown due to President Trump’s tariffs.
However, some analysts noted caution. Jim Baird, chief investment officer at Plante Moran Financial Advisors, said private sector hiring was weak, which could impact the economy. Additionally, job growth was not widespread across sectors, and the average duration of unemployment rose.
Treasury yields jumped higher as investors dialed back expectations for future rate cuts from the Federal Reserve. The dollar index also gained 0.45%, its largest daily gain in nearly two weeks.
Analysts now expect just a 4.7% chance of a Fed rate cut in July, down from 23.8% earlier this week. Seema Shah, chief global strategist at Principal Asset Management, said the June jobs report signals that rate cuts are unlikely.
Investors were also watching developments on Capitol Hill and the trade front. The market was optimistic about fading tariff uncertainty and optimism over tax cuts and continued economic resilience. However, some analysts, like Chris Zaccarelli, CIO at Northlight Asset Management, expressed concerns about expensive valuations and potential negative surprises.
Overall, the strong jobs report has boosted investor confidence, but analysts remain cautious, highlighting the need for further data to confirm the trend.
Source: https://edition.cnn.com/2025/07/03/economy/us-stock-market