The stronger-than-expected U.S. jobs report boosted both the dollar value and Wall Street performance on Thursday while British bond markets showed stability following their recent market fluctuations. The U.S.-Vietnam trade agreement created positive market sentiment which intensified after the agreement was announced before multiple tariff deadlines approached.
The June nonfarm payrolls exceeded expectations by reaching 147,000 while matching the previous month’s 144,000 increase. The positive employment statistics caused U.S. Treasury yields to rise which strengthened the expectation that the Federal Reserve would maintain its interest rate stability. The two-year yield increased by almost 9 basis points to 3.88% and the 10-year yield reached 4.34%.
Principal Asset Management’s chief global strategist Seema Shah stated that the combination of better job numbers and decreasing unemployment and fewer unemployment claims makes it less likely for the Federal Reserve to cut interest rates. According to her analysis there will be no interest rate reductions until the end of the year.
The S&P 500 and Nasdaq achieved new record highs after U.S. equities showed immediate market reaction.
