S&P 500 hits one other document excessive after a better-than-expected job report in June

Shares rose at the opening and the S&P 500 hit another record high after the June job report showed an accelerating recovery in the US labor market.

The broad market index rose 0.3% while the tech-heavy Nasdaq Composite climbed 0.3% to hit its own intraday all-time high. The Dow Jones Industrial Average added a modest 41 points.

The economy created 850,000 jobs last month, according to the Bureau of Labor Statistics. Economists polled by Dow Jones expected an increase of 706,000. The pressure surpassed the 559,000 jobs created in May.

“This is a strong report and should be taken as a sign of an accelerating labor market,” Aberdeen Standard Investments’ deputy chief economist James McCann said in a statement.

“Today’s data will not change the Fed’s view. An acceleration in the labor market, as signaled in this report, is exactly what they expected,” added McCann. “The increase in hiring should show the central bank that companies are more successful in finding work, which will allay concerns about a prolonged period of rising wages.”

Angelo Kourkafas, an investment strategist at Edward Jones, agreed that the report would not change the course of the Fed.

“I think it was one of those Goldilocks reports because hiring is speeding up – which is a positive sign for the second half and recovery – but not so much that it would spark a response to an accelerated schedule for the federal government reserve.” to start tapering, “said Kourkafas.

In addition to the increase in employment, average hourly wages increased 0.3% for the month and 3.6% year-over-year, in line with expectations.

“Data over the past few months suggests that rising labor demand linked to recovery from the pandemic may have put wages under pressure,” his Bureau of Labor Statistics report said.

Goldman Sachs chief economist Jan Hatzius said the report alleviated concerns about labor shortages.

“I think we also learned that the explanations for the weaker April and May numbers – namely that the seasonal likelihood weighs on employment growth and likely some of the effects of unemployment benefits on labor supply – were pretty good explanations – it was comforting in that sense” said Hatzius, adding that the higher than expected unemployment rate shows that the recovery is a long way off.

The market was bolstered in early trading by strong starts in semiconductor stocks and software names, including Salesforce. Tesla rose more than 3% after reporting a record for quarterly deliveries.

Boeing shares fell 2%, which weighed on the Dow after a 737 cargo plane crashed off the coast of Honolulu.

Despite the uncertainty creeping into the job report, stock markets have been strong for the past few days and continued to record highs on Thursday.

The S&P 500 rose 0.5% during Thursday’s regular session to hit its sixth record high in a row, finishing above 4,300 for the first time at 4,319.94. The Dow Jones Industrial Average rose 131 points to close at 34,633.53 while the tech-heavy Nasdaq Composite climbed 0.1% to 14,522.38.

These gains contributed to the already robust market returns in 2021.

The economic recovery, sparked by vaccine use and looser Covid-19 restrictions, helped the S&P 500 jump more than 14% in the first half of the year. The Dow and Nasdaq also saw double-digit percentage gains for the six months ended June 30.

For the week, the Nasdaq Composite was up 1.1% at Thursday’s close. The S&P 500 and the Dow gained 0.9% and 0.6%, respectively.

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