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Nasdaq, S&P 500 hit record highs as payrolls data raises rate cut hopes

06 July 2024 11:02 (UTC +04:00)

Wall Street stock indexes closed firmer on Friday, with the tech-heavy Nasdaq and benchmark S&P 500 hitting record highs, as new data showing U.S. labor market weakness boosted expectations for interest rate cuts as early as September, APA reports citing Reuters.

The rally was fueled by megacap stocks such as Microsoft which rose nearly 1.5% to end at a record high.

Meta Platforms also scored an all-time closing high, gaining around 5.9% to push the information technology sector to a record high.

S&P 500 communication services was the top performing sector, reaching its highest level since 2000.

The Dow Jones Industrial Average rose 67.87 points, or 0.17%, to close at 39,375.87. The S&P 500 gained 30.17 points, or 0.54%, at 5,567.19 and the Nasdaq Composite advanced 164.46 points, or 0.90%, to 18,352.76.

For the week, the S&P 500 gained 1.95%, the Nasdaq rose 3.5% pct, and the Dow climbed 0.66%.

Labor Department data showed U.S. jobs growth slowed marginally in June, and the unemployment rate rose to an over 2-1/2-year high, while wage gains slowed.

Investors expect the data could stir more active debate on rate cuts when the Federal Reserve meets later this month. Odds of the U.S. central bank easing in September jumped to 79% from 66% seen before the data, CME's FedWatch Tool showed.