Strong June jobs data (147,000 jobs added, unemployment at 4.1%) boosted US stocks, bonds, and the dollar on Thursday. The Dow jumped 344 points, while the S&P 500 and Nasdaq hit record highs. Despite some concerns about private sector hiring weakness, the positive jobs report lessened investor anxieties about the impact of tariffs. This led to decreased expectations of a Federal Reserve rate cut in July, with traders assigning only a 4.7% probability. Positive market sentiment, however, was tempered by concerns about high valuations and potential negative surprises.

Prepared by Christopher Adams and reviewed by editorial team.