Dow Notches Record on Soft Jobs Data, Fed Hike Expectations Fade
U.S. nonfarm payrolls rose only 57,000 in June, well below expectations, pushing the Dow Jones to a record high while the dollar weakened and short-term Treasury yields fell.
The U.S. Labor Department reported that nonfarm payrolls increased by just 57,000 in June, sharply below market forecasts. The weak reading reduced expectations for near-term Federal Reserve rate hikes, triggering a rally in equities and a sell-off in the dollar.
The Dow Jones Industrial Average hit a new all-time high, while the S&P 500 ended little changed as semiconductor stocks continued their slide. Short-term Treasury yields declined and the dollar fell against all major developed-market currencies. The unemployment rate dipped to 4.2%, signaling that the labor market is cooling but remains resilient.
Investors now see the Fed staying on hold as both inflation and labor market pressures moderate. Gold surged over 2%, while oil prices were flat as geopolitical tensions eased. Tech stocks remained volatile amid questions about the pace of returns from AI spending.
Source: First Squawk