U.S. Stocks Rise Amid Mixed Market Trends

On Thursday, most U.S. stocks experienced gains, with the Dow Jones Industrial Average reaching yet another record high. The S&P 500, however, showed little change, rising by less than 0.1%. Despite this, most stocks within the index saw increases. The Dow gained 594 points, marking a 1.1% rise, while the Nasdaq composite fell by 0.8%, reversing an earlier gain.

A new report indicated that U.S. employers added 57,000 jobs last month. While this number reflects growth, it was less than the expected 100,000 jobs and also a decrease from the hiring pace recorded in May. A lower-than-expected job increase has a silver lining; it might ease inflation pressures. With global inflation partly driven by oil price spikes from the war with Iran, current oil prices have dropped below pre-war levels. If inflation decreases, the Federal Reserve might decide against multiple interest rate hikes this year. Lower interest rates are generally favorable for investors as they make borrowing cheaper, which can stimulate economic activity and increase stock and investment prices.

The 10-year Treasury yield reached 4.50% in the morning, rising from 3.97% before the war. Following the job data release, the yield decreased to 4.46% before settling at 4.48%. Traders now predict an 82% probability that the Federal Reserve, under new Chairman Kevin Warsh, will maintain the federal funds rate in their upcoming meeting, marking an increase from a 71% probability the previous day according to CME Group data.

“The labor market isn’t overheating,” commented Brian Jacobsen, chief economic strategist at Annex Wealth Management. This data could permit the Fed to monitor inflation over the summer before making a decision on rate hikes.

Specific stocks showcased notable movements. National Beverage, producer of LaCroix sparkling waters, rose 7.5% upon announcing a special dividend of $3.25 per share. Dollar Tree saw an increase of 2.4% after initiating a $2.5 billion stock repurchase program. Crypto-related stocks were also robust as bitcoin’s price increased by about 2%, following a drop to one of its lowest points since 2024. Robinhood Markets and Coinbase Global increased by 3.8% and 3.9%, respectively.

Conversely, computer chip companies faced declines. Concerns about the sustainability of stock prices amid the AI boom impacted their performance. Memory maker Micron Technology fell 5.5% despite initial gains, following a 10.6% dip the previous day. Nvidia declined 1.4%, and Lam Research dropped 10.2%. These companies exert significant influence on the S&P 500 due to their considerable size, with Nvidia valued at nearly $4.7 trillion.

Overall, the S&P 500 increased slightly to 7,483.24 points. The Dow Jones gained 594.83 points to reach 52,900.07, while the Nasdaq composite decreased by 207.36 to 25,382.67.

Internationally, losses in chip companies drove many Asian markets lower. South Korea’s Kospi index decreased by 7.9%, marking its worst drop since a 10% fall slightly over a week ago. Tokyo’s and Shanghai’s indexes also recorded declines of 2.5% and 2% respectively. In Europe, markets showed more strength, with France’s CAC 40 climbing 1.7%.

In the oil market, prices initially dropped but recovered some losses as the day continued. Brent crude, the benchmark, settled at $71.80 per barrel, up by 0.3%.

AP Business Writers Chan Ho-him and Matt Ott contributed to the coverage.