US stock indexes end up; Nasdaq, S&P 500 hit record highs on payrolls data
Wall Street stock indexes closed firmer on Friday, with the tech-heavy Nasdaq and benchmark S&P 500 hitting record highs, as megacap stocks rallied on data signaling U.S. labor market weakness and pulled Treasury yields lower.
Microsoft, Meta Platforms, Amazon.com and Apple advanced, pushing the information technology sector to an all-time high.
S&P 500 communication services was the top performing sector, reaching its highest level since 2000.
According to preliminary data, the S&P 500 gained 29.67 points, or 0.54%, to end at 5,566.69 points, while the Nasdaq Composite gained 163.04 points, or 0.90%, to 18,351.34. The Dow Jones Industrial Average rose 64.78 points, or 0.16%, to 39,372.78.
Labor Department data showed U.S. job 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 interest 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.
«The employment data is not indicative of an imminent recession but supports the soft-landing view,» said Jack McIntyre, portfolio manager at Brandywine Global. «This clearly increases the Fed's confidence level that policy rates are too restrictive, and they need to cut.»
Data released earlier this week also pointed to the U.S. economy losing steam, helping the S&P 500 and Nasdaq notch record closing highs during Wednesday's
