2024-07-05 22:54:21
The S&P 500 and Nasdaq indices closed at new record levels in today’s session Wall Street, Finishing another week of earnings.
THE S&P 500 strengthened by 0.54% closing at 5,567.19 units, while o Nasdaq recorded gains of 0.90% to end at 18,352.76 points. This is the S&P 500’s 34th record close during 2024. O Dow Jones closed with a smaller increase of 0.17% at 39,375.87 points.
The S&P 500 has rallied 16.7% this year, capping its fourth week of gains in the past five, as investors bet that a slowing U.S. economy could prompt the Federal Reserve to cut interest rates. The Nasdaq has rallied 22.3% since the beginning of the year.
Employment data showed that 206,000 new jobs were added in the US economy in June, but the unemployment rate rose slightly to 4.1%. Economists had predicted that unemployment would remain at 4%.
U.S. Treasury yields fell amid expectations that the Fed may cut interest rates in the coming months. Investors increased their bets on a cut in September to 77% from 64% a week ago.
“On the one hand, the downward revision of the May data and the increase in unemployment increase the chances of a rate cut by the Fed – bond markets are satisfied on this prospect. On the other hand, these figures paint a picture of a slowdown in the US economy and this causes some concerns,” says Seema Shah, strategic analyst at Principal Asset Management.
Tesla rallied more than 2%, taking this week’s gains to 27%, while Apple also gained more than 2% to hit a new all-time high. However, Nvidia did not follow, falling 2%, following a rare downgrade that cited limited upside for its stock. Despite this, its stock increased by 1.9% in the week.
All three major stock indices closed the week in positive territory. The Nasdaq and S&P 500 gained 3.5% and 2% respectively, while the Dow rose just 0.7%.