US markets closed out the holiday-shortened week with solid gains, as investors responded positively to strong jobs data and signs of resilience in the American economy. Both the S&P 500 and Nasdaq Composite notched new record highs on Thursday, buoyed by tech strength and easing fears over a slowdown.
Record-setting session for U.S. equities
The S&P 500 climbed 0.83% to close at 6,279.35, while the Nasdaq rose 1.02% to 20,601.10—both resetting their record closes. The Dow Jones added 344 points, or 0.77%, finishing at 44,828.53. All three major indices ended the week in positive territory, with the Dow leading at 2.3% up for the period.
Driving the rally was another wave of gains in big tech, led by Amazon, Microsoft and Nvidia. Six of the seven so-called “magnificent” mega-cap stocks closed higher, continuing to dominate market momentum.
Jobs report surprises to the upside
The latest nonfarm payrolls report added fuel to the rally. The U.S. economy added 147,000 jobs in June, beating expectations for 110,000 and outpacing the revised 144,000 figure for May. The unemployment rate unexpectedly ticked down to 4.1%, while economists had forecast a rise to 4.3%.
The strong labour data eased concerns sparked by Wednesday’s ADP report, which showed a 33,000 drop in private payrolls. Treasury yields rose as traders pulled back on expectations for near-term Federal Reserve rate cuts. According to CME Group’s FedWatch tool, markets now price in a 95% chance the Fed holds steady this month.
Trade and tax policy in focus
President Donald Trump’s trade negotiations and domestic tax legislation also remain on investor watchlists. His recent U.S.–Vietnam trade deal has raised hopes of further agreements ahead of next week’s deadline on a 90-day tariff pause.
Meanwhile, Trump’s wide-reaching tax megabill cleared the Senate on Tuesday and advanced through the House on Thursday, heading for a final vote.
ASX outlook
Australian shares are set to open higher on Friday, following the strength in US markets. The SPI futures are pointing to a 0.3% rise, signalling early gains for the local market. Iron ore rose 1.5% overnight to US$96.55 a tonne, while the Australian dollar slipped 0.2% to US65.70¢.
