New York – Wall Street closed in historical maximums this Thursday, driven by the progress of Nvidia, which approaches an assessment of 4 billion dollars, and for a solid labor report in the United States that encouraged investors, who reduced importance to the decrease in probabilities of an interest rate cut this month.
The S&P 500 and the NASDAQ registered record closures, accumulating their third consecutive week of profits. The Dow Jones rose 0.77%, leaving only 0.41% of its own historical maximum.
The volume of operations was reduced due to a shorter session on the eve of the Independence Day holiday in the United States.
“We are seeing a true episode of irrational exuberance; the stock market is very biased towards optimism,” said Kristina Hooper, MAN Group market chief strategist in New York.
“But there is a certain basis for it. I think there is a level of relief because the labor report was not as weak as it could have been.”
The rebound has been promoted by retail investors, who are largely ignoring inflationary pressures and uncertainty around tariffs, and “they are focusing on the tangible, which is today’s employment report,” he added.
The S&P 500 (.SPX) won 51.94 points, or 0.83%, to close at 6,279.36 units. The Nasdaq Composite (.ixic) rose 207.97 points, or 1.02%, up to 20.601.10. The industrial average Dow Jones (.dji) advanced 344.11 points, or 0.77%, to close at 44,828.53.
The data showed that non -agricultural payrolls increased by 147,000 jobs last month, 33% more than the 110,000 predicted by economists surveyed by Reuters. The unemployment rate fell to 4.1%, below the 4.3% expected.
The operators quickly ruled out the possibility of a rate cut in July. According to the CME Group Fedwatch tool, the probabilities of a reduction of 25 base points in September fell to 68%, from 74% of a week ago.
After the market closure, the Republicans in the US House of Representatives approved the massive package of fiscal cuts and expenditure of President Donald Trump, a decision expected by analysts.
According to the Congress Budget Office, a non -partisan agency, the legislation will add 3.4 billion dollars to the national debt, which currently amounts to 36.2 billion, and will cause millions of Americans to lose their medical insurance.
Large tax cuts and an increase in public spending can stimulate demand in the economy, but also generate inflationary pressures, especially when there are signs of economic strength such as the recent employment report.
“Some indicators, such as the labor report, are positive and encouraging. But if we take distance, the panorama is not so good,” said Alex Morris, executive director of F/M Investments, a firm that manages 18,000 million dollars in Washington DC
In the week, the S&P 500 rose 1.72%, the Nasdaq won 1.62%and the Dow advanced 2.3%. The Russell 2000 index, which brings together small capitalization companies, rebounded 3.41%.
“It’s something disconcerting,” Morris added. “It feels like the last bullish thrust before all the data begins to align.”
TripAdvisor (Trip.o) rose 16.7% after the Wall Street Journal reported that the Starboard Value activist fund acquired a participation greater than 9% in the online travel company.
Datedag (Ddog.O) shot 14.9% after confirming that he will replace Juniper Networks in the S&P 500 index.
The markets closed at 1 pm east time. The negotiated volume in the US bags was 10.85 billion shares, well below the average of 17.82 billion of the last 20 complete sessions.
With Reuters information.
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