U.S. stocks rallied on Thursday, buoyed by a stronger-than-expected June jobs report, as investors embraced signs of economic resilience despite ongoing trade uncertainties and geopolitical tensions.
The Dow Jones Industrial Average climbed 344.11 points, or 0.77%, closing at 44,828.53. The S&P 500 advanced 0.83% to reach 6,279.35, while the Nasdaq Composite gained 1.02%, finishing at 20,601.10. Both the S&P 500 and Nasdaq ended the session at new all-time highs.
The rally came after the Bureau of Labor Statistics reported that nonfarm payrolls increased by 147,000 in June, surpassing the Dow Jones estimate of 110,000. May’s figure was also revised upward to 144,000. Additionally, the unemployment rate dropped to 4.1%, defying expectations of a rise to 4.3%.
The robust employment data drove Treasury yields higher and tempered hopes for an imminent Federal Reserve interest rate cut. According to the CME Group’s FedWatch tool, traders now assign a 95% probability that the Fed will keep rates unchanged at its upcoming meeting.
“The jobs data suggests there’s little chance of a rate cut in July—and possibly none at all for the remainder of the year,” said Jed Ellerbroek, portfolio manager at Argent Capital Management, in an interview with CNBC.
Thursday’s report followed a Wednesday release from ADP, which showed a decline of 33,000 private-sector jobs in June, initially raising concerns about the economy’s momentum. However, the official government figures helped quell those fears.
Investors are also monitoring progress on the U.S.-Vietnam trade agreement, announced Wednesday by President Donald Trump, as well as potential developments ahead of the early July deadline for the president’s 90-day tariff pause. While heightened market levels increase the risk of volatility, Ellerbroek noted that investors remain cautiously optimistic.
“There will be real effects from tariffs for many companies, but markets appear ready to absorb the impact,” he said.
Meanwhile, attention also turned to progress on Trump’s sweeping tax bill, which passed the Senate on Tuesday. The legislation was sent back to the House and cleared another hurdle on Thursday, setting it up for a final vote.
Thursday marked a shortened trading session ahead of the Independence Day holiday, with markets closing at 1 p.m. ET. U.S. markets will remain closed Friday in observance of the holiday.
For the week, all three major indexes posted gains: the S&P 500 rose 1.7%, the Nasdaq gained 1.6%, and the Dow led with a 2.3% increase.