U.S. June employment figures surpassed market expectations, and the New York Stock Exchange started on an upward trend. The Standard and Poor's (S&P) 500 index and the Nasdaq Composite index reached all-time highs.
As of 9:37 a.m. Eastern Time on the 3rd, the Dow Jones Industrial Average was trading at 44,693.06, up 208.64 points from the previous close at the New York Stock Exchange (NYSE). The S&P 500 index increased by 27.84 points to 6,255.26, while the Nasdaq index recorded a rise of 125.10 points (0.61%) to 20,518.23.
Earlier, the U.S. Department of Labor announced a 147,000 increase in nonfarm sector employment for June. This figure exceeds the market forecast of 110,000. The unemployment rate also fell to 4.1%, below the previous expectation of 4.3%.
While the strength of the employment market confirmed expectations for U.S. economic recovery, expectations for interest rate cuts receded, limiting the extent of the index's rise. This is because the Federal Reserve (Fed) is increasingly likely to hold interest rates steady at its monetary policy meeting scheduled for the end of this month. According to the CME FedWatch, the federal funds rate futures market raised the probability of the Fed keeping rates steady in July from 76% the previous day to 95%.
The number of new unemployment claims in the U.S. for the week announced on the same day was 233,000, falling short of the market estimate of 240,000. This suggests that the labor market continues to show a robust trend. The U.S. trade deficit for May, released simultaneously, stood at $71.5 billion, increasing by $11.3 billion from the previous month but slightly lower than the market estimate of $71 billion.
Meanwhile, investors are also paying attention to the legislative process of a significant tax cut bill spearheaded by U.S. President Donald Trump. This bill passed the Senate on the 1st and is now awaiting a final vote in the House.
The New York Stock Exchange will close early at 1 p.m. (Eastern Time) today ahead of Independence Day (July 4) and will remain closed on Friday, the 4th.
By sector, most are on an upward trend. Consumer discretionary increased by 0.7%, and technology rose by 0.6%, while consumer staples fell by 0.1%.
In individual stocks, cloud monitoring service provider Datadog saw its share price rise by 10% following news that it will be added to the S&P 500 index on the 9th. Online travel company Tripadvisor soared 17% as it was reported that activist investor Starboard acquired a 9% equity stake in the company.
Additionally, reports indicate that the U.S. government has lifted restrictions on the export of semiconductor design software to China, boosting shares of Silicon Valley-based semiconductor design software companies. Synopsys rose by 3%, while Cadence Design Systems increased by 4%.
European stock markets are also on the rise. The Euro Stoxx 50 index is up 0.26% compared to the previous day. Germany's DAX index increased by 0.41%, the UK's FTSE index rose by 0.52%, and France's CAC 40 index is up 0.26%.
International oil prices are on a downward trend. As of 9:47 a.m., the price of West Texas Intermediate (WTI) crude for August delivery, the nearest month contract, decreased by 0.68% to $66.99 per barrel, while the global benchmark Brent crude for September delivery recorded a drop of 0.56% to $68.72 per barrel.