Megacaps push Nasdaq, S&P 500 to record highs after payrolls data
Fed rate cut debate in view as U.S. job market cools
S&P 500 tech sector hits record high
Banks down ahead of Q2 results next week
Macy's up on report Arkhouse, Brigade Capital raise buyout offer
Indexes: Dow 0.04%, S&P up 0.44%, Nasdaq up 0.83%
Updates to 2:29 p.m. ET/1829 GMT
By Ankika Biswas, Lisa Pauline Mattackal and Saeed Azhar
July 5 (Reuters) -The tech-heavy Nasdaq and benchmark S&P 500 indexes jumped to record highs on Friday, as most megacap stocks hit all-time highs following newdata that signaled U.S. labor market weakness and pulled Treasury yields lower.
The Dow Jones Industrial Average was flat as energy and financial stocks fell.
Microsoft MSFT.O, Meta Platforms META.O, Amazon.com AMZN.O and Apple AAPL.O advanced by 1.2%-4.9%to record peaks.
This pushed information technology .SPLRCT to an all-time high, and madeS&P 500 communication services .SPLRCL the top sector performer with a0.6% rise to its highest level since 2000.
As of 2:29 p.m. ET, the Dow .DJI rose 16.44 points, or 0.04%, to 39,324.44. The S&P 500 .SPX gained 24.44 points, or 0.44%, at 5,561.46 and the Nasdaq Composite .IXIC rose 150.44 points, or 0.83%, to 18,338.74.
All three indexes remain on course for weekly gains.
Labor Department data showed U.S. job growth slowed marginally in June, and the unemployment rate rose to an over 2-1/2-year high, while wage gains slowed.
Investors expect the data could stir more active debate on interest-rate cuts when the Federal Reserve meets later this month.
Odds of the U.S. central bank delivering its first rate cut in September jumped to 79% from 66% seen before the data, CME's FedWatch Tool showed.
"The employment data is not indicative of an imminent recession but supports the soft-landing view," said Jack McIntyre, portfolio manager at Brandywine Global. "This clearly increases the Fed's confidence level that policy rates are too restrictive, and they need to cut."
Data released earlier this week also pointed to the U.S. economy losing steam, helping the S&P 500 and Nasdaq notch record closing highs during Wednesday's holiday-shortened session.
"We're in this kind of stagflation adjacent environment - growth is moderating, inflation is staying where it is for the time being," said Alex McGrath, chief investment officer for NorthEnd Private Wealth.
He said the environment is not great for small caps, which are sensitive to interest rates, but the megacap stocks continue to pump out strong earnings which is keeping the market strong.
The Russell 2000 Small Cap index is down 1.24% for the week.
Major banks fell ahead of second-quarter corporate earnings reports starting next Friday.
Higher interest rates and an uncertain economic environment are casting a cloud over U.S. bank earnings.
Bank of America BAC.N, Wells Fargo WFC.N and JPMorgan & Chase JPM.N fell between 1.2%and nearly 2%, pushing the S&P 500 banks index .SPXBK down 1.5%.
Macy's M.N on Friday jumped 10% after a report said Arkhouse Management and Brigade Capital raised their bid to buy the department store chain for about $6.9 billion.
Declining issues outnumbered advancers by a 1.17-to-1 ratio on the NYSE. On Nasdaq, declining issues outnumbered advancers by a 1.29-to-1 ratio.
The S&P 500 posted 18 new 52-week highs and eight new lows while the Nasdaq Composite recorded 38 new highs and 145 new lows.
Reporting by Ankika Biswas and Lisa Mattackal in Bengaluru and Saeed Azhar in New York; Editing by Saumyadeb Chakrabarty, Shounak Dasgupta, Shinjini Ganguli and Richard Chang
Mga Kaugnay na Asset
Pinakabagong Balita
Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.
Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.
Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.
