Kristina Roberts
The U.S. stock market celebrated another big win as the S&P 500 and Nasdaq closed at all-time highs, thanks to strong job growth and a surge in tech stocks. Investors were in a cheerful mood after the latest jobs report showed more people were hired in June than expected, easing worries about the economy slowing down. Meanwhile, Nvidia, the chipmaking giant, saw its value climb closer to an unbelievable $4 trillion, making it one of the most valuable companies in history.
The trading day was shorter than usual because of the upcoming Independence Day holiday, but that didn’t stop the market from rising. The S&P 500 jumped by 0.83%, while the Nasdaq gained 1.02%, and the Dow Jones Industrial Average rose by 0.77%. Even though fewer people were trading, the excitement was clear as stocks continued their winning streak for the third week in a row.
Nvidia was one of the stars of the day, with its shares going up by 1.3%, pushing its total market value to $3.89 trillion. The company is now just a step away from overtaking Apple’s record as the most valuable company ever. Investors have been pouring money into Nvidia, believing in its role in artificial intelligence and advanced computing.
The positive mood was also fueled by the latest jobs report, which showed that U.S. employers added 147,000 jobs in June—way more than the 110,000 jobs experts had predicted. The unemployment rate also dropped to 4.1%, which was better than expected. This strong job growth made investors feel more confident about the economy, even though it also reduced the chances of an interest rate cut in July.
Kristina Hooper, Chief Market Strategist at Man Group, shared her thoughts, saying, “We are seeing a real bout of irrational exuberance; the stock market is very biased towards optimism. But there’s some basis for it. I think there is some level of relief because the jobs report was not as weak as it could have been.” She explained that many retail investors are focusing on the good news from the jobs report rather than worrying about inflation or trade uncertainties.
The strong jobs numbers also changed what people expect from the Federal Reserve. Before the report, many thought the Fed might cut interest rates soon to help the economy. But now, the chances of a rate cut in July have dropped, and traders believe there’s only a 68% chance of a small rate cut in September, down from 74% a week ago.
After the market closed, another big piece of news came out. Republicans in the U.S. House of Representatives passed a major tax and spending bill proposed by President Donald Trump. While this could boost the economy by putting more money in people’s pockets, it also means the country’s debt will grow by $3.4 trillion, according to experts. Some worry this could lead to higher inflation if the economy keeps growing strongly.
Alex Morris, CEO of F/m Investments, had a cautious view, saying, “Some data points, like the jobs report, are positive and charming. But if we just take a step back, the picture is not that great.” He pointed out that while the market is celebrating now, there are still risks ahead, like rising debt and possible inflation.
For the week, the S&P 500 gained 1.72%, the Nasdaq rose 1.62%, and the Dow climbed 2.3%. Smaller companies, tracked by the Russell 2000 index, did even better, jumping 3.41%. Morris found this surprising, saying, “It’s kind of perplexing. This feels like that last bull rush before all of the data really comes together.”
Despite the excitement, some experts warn that the market might be getting too optimistic. With inflation still a concern and the government adding more debt, there could be challenges ahead. But for now, investors are enjoying the ride as stocks keep reaching new heights.
The strong jobs report, combined with the unstoppable rise of tech giants like Nvidia, has kept the market in good spirits. Whether this rally will continue or face a slowdown remains to be seen, but for the moment, Wall Street is celebrating another record-breaking day.
