Wall Street hits record highs on jobs report; Nvidia nears $4 trillion market cap.

Wall Street hit record highs as chipmaker Nvidia neared a $4 trillion valuation and a strong U.S. jobs report boosted investor confidence. The S&P 500 and Nasdaq closed at record highs, with the Dow close to its own record. Nvidia’s market cap reached $3.89 trillion, close to overtaking Apple. Trading volume was light ahead of the Independence Day holiday.

The rally was driven by retail investors focusing on the positive jobs report, ignoring inflation and tariff concerns. The S&P 500 gained 0.83% to 6,279.36, the Nasdaq rose 1.02% to 20,601.10, and the Dow climbed 0.77% to 44,828.53. Nonfarm payrolls rose by 147,000 jobs, beating expectations, and unemployment fell to 4.1%.

Traders discounted a July interest-rate cut after the strong jobs report, with odds of a September cut at 68%. Republicans in the House approved Trump’s tax-cut and spending bill, adding $3.4 trillion to the national debt and causing millions to lose health insurance. Tax cuts and spending can boost demand and inflation, especially during economic strength.

The S&P 500, Nasdaq, and Dow all posted gains for the week, with the Russell 2000 Small Cap index rising 3.41%. Tripadvisor surged 16.7% after activist investor Starboard Value acquired a stake, and Datadog climbed 14.9% following its S&P 500 inclusion. Markets closed early at 1 p.m. ET with lighter trading volume.

Overall, the market showed signs of optimism fueled by positive data, but concerns remain about potential inflation and economic challenges.

Read more at Yahoo Finance: S&P 500, Nasdaq close at records on jobs data; Nvidia market cap nears $4 trillion