The S&P 500 Index ($SPX) rose by 0.63% today, alongside the Dow Jones Industrials Index ($DOWI) which increased by 0.60%, and the Nasdaq 100 Index ($IUXX) which gained 0.65%. The movements followed a stronger-than-expected U.S. unemployment report, which showed June non-farm payroll growth of 147,000 compared to forecasts of 106,000, and a drop in the unemployment rate to 4.1% from 4.2%. However, market sentiment was dampened by a rise in the 10-year Treasury yield to 4.33% and a decline in the chances of a Federal Reserve rate cut at the upcoming July meeting to 6% from 23% earlier in the week.
Additional economic indicators include initial unemployment claims falling by 4,000 to 233,000, and the May trade deficit widening to $71.5 billion. The consensus forecast for Q2 earnings of S&P 500 companies is a modest increase of 2.8% year-over-year, the smallest growth in two years. In stock movements, FedEx shares rose over 2% following an upgrade, while shares of Olo jumped over 13% due to an acquisition announcement.
The House of Representatives is expected to debate a reconciliation bill that could add nearly $3.3 trillion to U.S. budget deficits over the next decade, as lawmakers work through the final details before the July 4 recess.
