US Job Growth Surpasses Expectations as S&P 500, Nasdaq Hit Record Highs

The U.S. economy showed robust job growth in June, with nonfarm payrolls increasing by 147,000, surpassing economists' expectations and lowering the unemployment rate to 4.1%. This strong employment data contributed to major U.S. stock indexes reaching record highs, with the S&P 500 and Nasdaq hitting all-time closes and the Dow Jones rising significantly. Treasury Secretary Scott Bessent and other economic leaders credited President Trump's policies on trade, taxes, and deregulation for the positive job market performance and overall economic strength. Despite the upbeat headline numbers, some analysts noted signs of labor market cooling, including weak private sector hiring and a decline in labor force participation, along with concerns about the impact of ongoing trade negotiations and tariffs. The strong job report also reduced market expectations for near-term interest rate cuts by the Federal Reserve, which is now viewed as likely to maintain a wait-and-see approach. While investor sentiment improved, caution remains due to uneven job growth across sectors and uncertainties related to trade policy.