Key Facts
• On July 3, US Treasury bonds saw significant sell-offs, while the dollar strengthened.
• June nonfarm payrolls increased by 147,000, surpassing the forecast of 106,000.
• Unemployment rate dropped to 4.1%, reflecting a resilient labor market.
• S&P 500 rose 0.8%, Nasdaq 100 gained 1%, both closing at record highs.
• Dow Jones Industrial Average climbed 0.8% during shortened trading hours.
• ISM’s June non-manufacturing index rose to 50.8, indicating slight expansion.
• US Treasury 2-year yield rose 10 basis points to 4.35%; 10-year yield increased 7 basis points.
• Dollar index surged 0.5%, marking its largest intraday gain in two weeks.
• Yen weakened to ¥145.23 per dollar, its lowest since July last year.
• Crude oil prices fell, with WTI futures down 0.7% to $67 per barrel.
• Gold prices dropped 0.8% to $3,329.08 per ounce amid reduced rate cut expectations.
• Analysts predict S&P 500 could rise 10.3% over the next 12 months, targeting 6,850 points.
Summary
The US financial markets on July 3 reflected strong economic resilience, driven by robust June employment data. Nonfarm payrolls exceeded expectations, with unemployment falling to 4.1%. This dampened hopes for a July Federal Reserve rate cut, leading to a sell-off in US Treasury bonds and a rise in yields. The S&P 500 and Nasdaq 100 reached record highs, supported by economic optimism. The dollar strengthened, particularly against the yen, which fell to ¥145.23. Crude oil prices declined amid reports of potential US-Iran nuclear talks, while gold prices dropped due to reduced rate cut expectations. Analysts forecast further growth for the S&P 500, projecting a 10.3% increase over the next year. Despite market optimism, concerns over fiscal deficits and trade tensions remain.
