US equity indices advanced on Thursday as softer-than-expected labor market data pushed back expectations of further tightening by the Federal Reserve. The S&P 500 climbed 0.5%, while the Dow crossed above 52,500 for the first time on record.
The US economy added a net 57,000 jobs in June, roughly half of consensus forecasts and a clear slowdown from the recent run of strong payroll gains. The weaker print reduced the Fed’s scope to respond aggressively to inflation pressures this year, reinforcing the view that additional rate hikes are unlikely and providing support to rate- and credit-sensitive equities.
Traditional, economically sensitive sectors remained resilient, with Visa and Eli Lilly trading near all-time highs. AI-focused hyperscalers extended the prior session’s rebound, with Oracle and Microsoft moving higher. By contrast, the Nasdaq 100 was little changed, weighed down by continued softness in semiconductor names, as Micron and SanDisk held on to recent losses.
Meta fell about 2%, giving back part of the previous session’s gains that had been sparked by its announcement that it will sell excess compute capacity.
