S&P 500, Nasdaq Stretch Record Closing Runs After Jobs Report

02:04 PM EDT, 07/03/2025 (MT Newswires) -- The S&P 500 and the Nasdaq Composite reached fresh record highs in a shortened trading session Thursday after official data showed the economy added more jobs than expected in June.

The technology-heavy Nasdaq jumped 1% to 20,601.1, while the S&P 500 and the Dow Jones Industrial Average rose 0.8% each to 6,279.4 and 44,828.5, respectively. Barring materials -- which was little changed -- all sectors closed higher, led by tech.

The Nasdaq and the S&P 500 clinched all-time highs on Wednesday.

US markets closed at 1 pm ET, ahead of the Independence Day holiday on Friday.

For the week through Thursday, the Dow rose 2.3%, while the S&P 500 added 1.7%. The Nasdaq gained 1.6%.

In economic news, total US nonfarm payrolls grew by 147,000 last month, the Bureau of Labor Statistics reported. The consensus was for a 106,000 increase, according to a survey compiled by Bloomberg. The unemployment rate moved down to 4.1% in June from 4.2%, compared with Wall Street's view for an increase to 4.3%.

The latest employment report is strong enough for the Federal Reserve to stay put as it evaluates the impact of tariffs on inflation, Oxford Economics said. "We expect the inflationary impact of tariffs to have peaked by the fourth quarter, allowing the Fed to start cutting rates in December," the brokerage wrote.

Separately, Atlanta Fed President Raphael Bostic said policymakers "must await more clarity rather than move in a policy direction that it might need to quickly reverse."

Weekly applications for unemployment insurance unexpectedly declined as continuing claims held steady, according to a separate US government report.

The US services sector swung back into expansion territory last month, Institute for Supply Management data showed, while an S&P Global (SPGI) survey indicated a slowdown in momentum.

"June's (purchasing managers' index) level is a welcome return to expansion, although slow growth and economic uncertainty were frequently referenced by respondents," said Steve Miller, chair of the ISM's services business survey committee. "The most common topic among survey panelists continued to be concerns about impacts related to tariffs."

The US trade deficit widened more than projected in May amid falling exports, government data showed.

US two-year Treasury yield jumped 9.7 basis points to 3.89% Thursday, while the 10-year rate advanced 5.3 basis points to 4.35%.

In company news, Cadence Design Systems (CDNS) and Synopsys (SNPS) shares increased 5.1% and 4.9%, respectively, among the best S&P 500 performers. The companies said that the US rescinded export restrictions on electronic design automation software to China.

Datadog (DDOG) shares jumped nearly 15%. The software maker will join the S&P 500 July 9, S&P Global (SPGI) division S&P Dow Jones Indices said late Wednesday.

West Texas Intermediate crude oil fell 0.7% to $66.96 a barrel. "Oil prices ticked lower as demand concerns lingered," D.A. Davidson said in a client note.

Gold dropped 0.5% to $3,343.1 per troy ounce, while silver increased 0.9% to $37.05 per ounce.

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