US stocks rose on Thursday, with the S&P 500 and Nasdaq Composite notching fresh record highs as a stronger-than-expected jobs report reinforced confidence in the resilience of the US economy despite ongoing trade and geopolitical uncertainties.
The S&P 500 advanced 0.4%, while the Nasdaq Composite climbed 0.5%. The Dow Jones Industrial Average added 182 points, or 0.4%.
Nonfarm payrolls increased by 147,000 in June, beating the consensus estimate of 110,000.
The unemployment rate fell to 4.1%, against forecasts for a rise to 4.3%, according to data released by the Bureau of Labor Statistics.
While the upbeat labor report bolstered optimism about economic strength, it also sparked a rise in Treasury yields, tempering expectations for near-term rate cuts.
According to the CME FedWatch tool, markets are now pricing in a 93% probability that the Federal Reserve will hold rates steady at its next meeting later this month.
Investors are also watching developments around President Donald Trump’s sweeping tax package.
The bill passed the Senate earlier this week and cleared a procedural hurdle in the House on Thursday, setting up a final vote.
The president has also announced that he will be speaking to Russian President Vladimir Putin later in the day.
Thursday will see a shortened trading session ahead of the July 4 holiday, with US equity markets set to remain closed on Friday.
All three major indices are tracking weekly gains. The S&P 500 and Nasdaq are up 1.3% and 1.1%, respectively, while the Dow has advanced 1.9% so far this week.
US job growth tops forecasts in June
Job growth in the US economy exceeded expectations in June, reflecting continued labour market resilience.
Nonfarm payrolls rose by a seasonally adjusted 147,000 during the month, ahead of the 110,000 gain forecast by economists and slightly above May’s upwardly revised figure of 144,000, according to data released Thursday by the Bureau of Labor Statistics.
April’s tally was also revised higher by 11,000 to 158,000.
The unemployment rate fell to 4.1%—the lowest since February—beating expectations for a slight uptick to 4.3%.
The broader underemployment rate, which includes discouraged workers and part-timers for economic reasons, declined to 7.7%.
However, the decline in jobless rates came against a backdrop of falling labor force participation.
The participation rate slipped to 62.3%, its lowest level since late 2022, as the number of people not counted in the labour force grew by 329,000.
The separate household survey showed a modest employment increase of 93,000.
Average hourly earnings rose 0.2% in June and 3.7% year-on-year, while the average workweek edged down to 34.2 hours.
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