Stock indexes surged on strong payroll report, but concerns remain about T-note yields and healthcare stocks

From Nasdaq Inc.: 2024-07-05 11:45:57

Stock indexes surged to new highs with the S&P 500 and Nasdaq 100 leading the way. The June payroll report indicated a stronger labor market, but concerns remain as T-note yields fell and healthcare stocks slipped. Bitcoin hit a 4-month low due to selling pressures from creditors and governments.

The US Jun nonfarm payrolls exceeded expectations, but an unexpected rise in the unemployment rate caused concern. Average hourly earnings slowed to a 3-year low. New York Fed President Williams’ comments hinted at a hawkish tone regarding inflation and interest rates. Markets are pricing in a rate cut by the Fed.

Overseas markets were mixed, with the Euro Stoxx 50 reaching a 3-week high, while China’s Shanghai Composite dropped to a 4-1/2 month low. Interest rates fell after the US employment report, prompting T-notes to rally. European government bond yields declined as well.

Stock movers included chip stocks rising on Samsung’s strong earnings, pushing ARM Holdings and AMD higher. Mega-cap tech stocks like Amazon and Meta Platforms led the broader market. Macy’s soared after a buyout offer increase, while Golar LNG signed a deal with Pan American Energy.

Mining stocks climbed as copper and precious metals prices rose. Broadcom surged on a positive analyst recommendation. Cryptocurrency-related stocks dropped alongside Bitcoin. Nvidia slipped after a downgrade, and healthcare stocks like Molina and Cigna were under pressure.

Upcoming earnings reports include Amer Sports Inc and Park Aerospace Corp on 7/5/2024. The market outlook remains positive as stocks hit new records and analysts keep a close eye on economic indicators and global developments.



Read more at Nasdaq Inc.: Stocks Rally as US June Payroll Report Boosts Rate Cut Chances