Global stocks hit record highs, US dollar strengthens after strong U.S. jobs report

Global stocks reached a record high for the second consecutive day, with the dollar also strengthening after a strong U.S. payrolls report showed 147,000 new jobs in June, exceeding expectations. Rate cut expectations dropped significantly, pushing major indices like the S&P 500 and Nasdaq to new records.

The Labor Department’s report also revealed an increase in U.S. services sector activity, although employment declined for the third time this year. In response, the Dow Jones Industrial Average rose by 344.11 points, the S&P 500 by 51.93 points, and the Nasdaq Composite by 207.97 points.

The S&P 500, Nasdaq, and Dow all saw gains for the week, while MSCI’s global stocks index rose slightly. The STOXX 600 index in Europe closed up, led by bank stocks. The dollar strengthened, with the dollar index rising and the euro falling.

Following the payrolls data, U.S. Treasury yields surged before easing slightly. The yield on 10-year notes rose by 5.3 basis points, while the 2-year note yield jumped by 9.7 basis points. U.S. crude prices fell slightly to $67.01 a barrel.

Against the Japanese yen, the dollar strengthened, and sterling also saw a slight increase. Bank of Japan board member Hajime Takata suggested a resumption of interest rate hikes, showing optimism in the country’s economic progress.

Read more at Yahoo Finance: Stocks hit record, US dollar strengthens after jobs data