S&P 500 and Nasdaq 100 hit record highs on speculation of rate cut

From Nasdaq: 2024-07-05 18:09:34

Stock indexes closed higher Friday, with the S&P 500 and Nasdaq 100 hitting record highs. The US Jun nonfarm payrolls beat expectations at +206,000, but May numbers were revised lower by -54,000. T-note yields fell after wages rose slower than expected. Energy and airline stocks dipped, while tech stocks like Meta Platforms and ARM Holdings rallied.

Bitcoin fell -3% to a 4-month low amid concerns about potential selling by creditors. The failed Mt Gox exchange is returning $8 billion of Bitcoin to creditors, with uncertainty over selling weighing on the market. German authorities may sell seized Bitcoin, pressuring the cryptocurrency. Confidence in a -25 bp rate cut at the next FOMC meeting is at 7%.

Overseas, the Euro Stoxx 50, China’s Shanghai Composite, and Japan’s Nikkei Stock 225 slipped. Interest rates fell as speculation of a rate cut grew after the US Jun payroll report. European government bond yields dropped. Eurozone retail sales missed expectations. Swaps are pricing in a -25 bp rate cut by the ECB in July.

In US stock news, tech stocks like Meta Platforms and Alphabet led gains. Chip stocks rallied, Macy’s rose after a buyout offer report, and Baxter International surged on acquisition talks. Constellation Brands bounced back from weakness after earnings. Golar LNG signed a deal in Argentina. Airline stocks like LUV and energy stocks like VLO dipped. Healthcare stocks like UHS and MOH were under pressure. Jacobs Solutions fell on inside selling. Earnings reports are expected on 7/8/2024.



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