IXIC: Nasdaq Composite Jumps to New All-Time High, S&P 500 Joins Record Run

Duo of Wall Street darlings whizzed through a “just ok” jobs report on Friday as traders returned from Fourth of July holiday break.

• The Nasdaq Composite IXIC surged to another fresh all-time high Friday, joined by the broad-based S&P 500. Both Wall Street indexes have been riding on elevated investor mood over the prospects of artificial intelligence. But also recent economic data has highlighted more favorable conditions for the Federal Reserve to consider cutting its benchmark interest rate. Stock futures Monday morning were in the red.
• Jobs data on Friday showed America’s employers added 206,000 new workers in June, sliding below the 218,000 in May, which was revised from 272,000. Still, the number flew above expectations for 189,000 but that wasn’t much of a worry. The labor market is cooling and that’s what matters to Fed officials who are looking for more signs of economic struggle in order to chop down rates.
• More data coming ahead. Fed boss Jerome Powell is preparing to testify before lawmakers on Tuesday and Wednesday. He’s likely to say that central bankers need further proof that inflation is in the rearview mirror before they’re confident enough to trim down borrowing costs. Inflation data — a market-moving news release — is coming on Thursday. The CPI for June is expected to show price growth eased to 3.1% from 3.3% in May.