Reported by Tahir Ishaq Shehu
Wall Street closed sharply higher on Thursday as a stronger-than-expected U.S. jobs report for June sparked a broad-based rally, propelling major indexes to fresh record highs just ahead of the Independence Day holiday.
The Dow Jones Industrial Average jumped 344 points or 0.8 percent, while the S&P 500 also gained 0.8 percent, marking another all-time closing high. The Nasdaq Composite led the rally with a 1 percent advance, likewise finishing at a new record. The Russell 2000, a key gauge of small-cap stocks, rose 1 percent, and the Innovator IBD 50 ETF (FFTY), which tracks top-performing growth stocks, climbed 2.2 percent, signaling strong investor appetite for risk.
Trading ended early at 1 p.m. ET due to the July Fourth holiday, but volume picked up across both the Nasdaq and NYSE. Market breadth was broadly positive, with advancing stocks outnumbering decliners by more than 2-to-1, underscoring bullish sentiment across sectors.
Amid the upbeat tone, four individual stocks staged significant breakouts, a classic indicator of institutional buying and renewed confidence ahead of the second-quarter earnings season. The robust jobs data appeared to ease recession fears while also tempering expectations for aggressive Federal Reserve rate cuts in the near term.
In the bond market, the 10-year U.S. Treasury yield rose five basis points to 4.34 percent, reflecting improved investor sentiment and recalibrated monetary policy expectations. Meanwhile, crude oil prices slipped modestly to 66.83 dollars per barrel amid stable supply and demand forecasts.
On the policy front, Atlanta Federal Reserve President Raphael Bostic cautioned against swift monetary adjustments, emphasizing a slow and steady approach to inflation management. Speaking at an event in Frankfurt, Bostic noted that while sharp spikes in inflation appear unlikely, the path toward the Fed’s 2 percent target could take time.
“This increasingly looks like a process that may take a year or more to fully play out,” Bostic said. “I wouldn’t expect dramatic spikes, but rather a steady progression to the end-state inflation level.”
His remarks reinforced the view that the Fed may keep interest rates elevated for longer than initially expected, particularly as global economic conditions evolve.
Markets will remain closed on Friday in observance of the Independence Day holiday and resume trading on Monday. Investors are now turning their attention to a packed economic calendar and the kickoff of the second-quarter corporate earnings season, both of which could shape the next leg of the market’s direction.
