Due to weak non-farm employment data in the United States, expectations of a rate cut as early as September were boosted, and US stocks rose on Friday, with the Nasdaq and S&P 500 hitting new highs.
According to the latest data, the weak non-farm employment market in the United States has boosted expectations of a rate cut as early as September. US stocks rose on Friday. The technology giants were strong, and the Nasdaq composite index and S&P 500 index dominated by technology stocks reached record highs.
The communications services sector of the S&P 500 index performed the best, reaching its highest level since 2000. Large-cap stocks such as Microsoft (MSFT.US) drove the rise, with Microsoft rising nearly 1.5% on Friday to reach a new all-time high at the close. Meta (META.US) also hit a new all-time closing high with a gain of about 5.9%, pushing the information technology sector to a new high.
The Dow rose 67.87 points to close at 39,375.87 points, up 0.17%. The S&P 500 rose 30.17 points to 5,567.19 points, up 0.54%; the Nasdaq composite index rose 164.46 points to 18,352.76 points, up 0.90%.
This week, the S&P 500 index rose 1.95%, the Nasdaq index rose 3.5%, and the Dow Jones index rose 0.66%.
Data from the US Department of Labor on Friday showed that US job growth in June slowed slightly, with the unemployment rate rising to a two-and-a-half year high and wage growth slowing.
Investors expect these data to trigger more positive discussions about rate cuts when the Federal Reserve meets later this month. CME's Fed Watch Tool shows that the probability of the Fed easing monetary policy in September has jumped from 66% before the data release to 79%.
Peter Cardillo, chief market economist at Sparta Capital Securities, said: "This report puts the Fed in a comfortable position." "If this situation continues to next month, with no growth in hourly wages, then I believe the Fed will cut interest rates in September and again in December."
Earlier data released this week also showed that the US economy is losing momentum, helping the S&P 500 index and the Nasdaq composite index hit record closing highs during the holiday. Alex Magliulo, chief investment officer at North End Private Wealth, said: "We are in an environment close to stagflation-growth is slowing and inflation is temporarily staying at current levels."
He said that the environment is not good for small-cap stocks that are sensitive to interest rates, but large-cap stocks with strong profitability have driven strong market performance. The Russell 2000 small-cap index fell 0.95% this week.
Rising interest rates and an uncertain economic environment have cast a shadow over the performance of the US banking industry. Major bank stocks fell, and second-quarter earnings reports will be released next Friday. Bank of America (BAC.US), Wells Fargo & Co (WFC.US) and JPMorgan (JPM.US) fell between 1.2% and 1.7%, pushing the S&P 500 down 1.6%.
Macy's (M.US) rose 9.5% on Friday. There were reports that Arkhouse Management and Brigade Capital raised their acquisition bid for the department store chain to about $6.9 billion.
The ratio of rising stocks to falling stocks on the New York Stock Exchange was 1.04 to 1. On the Nasdaq, the ratio of falling to rising stocks was 1.05 to 1.
The S&P 500 index hit 19 new 52-week highs and 8 new lows, while the Nasdaq composite index hit 46 new highs and 162 new lows.
The trading volume of US stocks was 9.73 billion shares, with an average total volume of 11.57 billion shares over the past 20 trading days.