Market Commentary - Foreign Markets
US Equities Extend Winning Streak; S&P 500, Nasdaq Hit New Records As on : 08-Jul-24  10:58

The Nasdaq and the S&P 500 closed higher for the fourth straight session, once again reaching new record closing highs on Friday. The major averages reached new highs for the session going into the close of trading. The Nasdaq jumped 164.46 points or 0.9 percent to 18,352.76, the S&P 500 climbed 30.17 points or 0.5 percent to 5,567.19 and the Dow rose 67.87 points or 0.2 percent to 39,375.87. For the holiday-interrupted week, the Nasdaq spiked by 3.5 percent, the S&P 500 surged by 2.0 percent and the Dow advanced by 0.7 percent.

Market sentiment was bolstered by data showing a slowdown in US hiring in June and an increase in the unemployment rate to its highest level since late 2021, which put downward pressure on Treasury yields and increased speculation about a potential rate cut in September. The Labor Department said non-farm payroll employment shot up by 206,000 jobs in June compared to economist estimates for an increase of about 190,000 jobs. The unemployment rate also rose for the third straight month, inching up to 4.1 percent in June from 4.0 percent in May.

Treasury yields moved lower following the release of the report amid optimism the continued increase by the unemployment rate will convince the Federal Reserve to lower interest rates in the near future. Inflation data returns to the spotlight next week, with the Labor Department due to release its reports on consumer and producer prices in June. Traders are also likely to keep an eye on congressional testimony by Fed Chair Jerome Powell.

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