The S&P 500 closed at record highs on Friday as investors bet on potential Federal Reserve rate cuts in the near future. This optimism was fueled by the June monthly jobs report, which indicated a cooling in the labor market.
The S&P 500 gained 0.5% to reach a record high of 5,566.75, while the Dow Jones Industrial Average climbed 0.9% and the Nasdaq rose 0.2%. Treasury yields nosedived after the payrolls report showed a decrease in job gains and a rise in the unemployment rate, strengthening the case for a rate cut in September.
Tech stocks also saw gains, with Meta Platforms Inc leading the way with a more than 4% increase. However, Nvidia stumbled after a downgrade from New Street Research. On the other hand, Tesla stock rose 2% on reports of increased purchases in China.
In other news, Macy’s stock rose over 9% following reports of a potential buyout bid, while Chinese EV stocks took a hit after the European Union proposed increased tariffs on electric vehicles imported from China.
Crypto stocks also saw a recovery, with Bitcoin paring some losses amid fears of a supply wave from the Mt. Gox exchange. The exchange, which declared bankruptcy in 2014, has started making payments to creditors in bitcoin and bitcoin cash, leading to concerns about a potential sell-off.
Overall, the market remains optimistic about potential rate cuts and continues to react to various economic and geopolitical developments.
