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Stocks have moved notably higher during trading on Thursday, adding to the gains posted in the previous session. With the continued upward move, the Nasdaq and the S&P 500 have reached new record intraday highs.<\/p>\n
Currently, the major averages are just off their highs of the session. The Nasdaq is up 179.30 points or 0.9 percent at 20,572.43, the S&P 500 is up 47.22 points or 0.8 percent at 6,274.64 and the Dow is up 365.28 points or 0.8 percent at 44,849.70.<\/p>\n
The continued strength on Wall Street comes following the release of a closely watched Labor Department report showing employment in the U.S. increased by more than expected in the month of June.<\/p>\n
The Labor Department said non-farm payroll employment shot up by 147,000 jobs in June after jumping by an upwardly revised 144,000 jobs in May.<\/p>\n
Economists had expected employment to increase by 110,000 jobs compared to the addition of 139,000 jobs originally reported for the previous month.<\/p>\n
The report also said the unemployment rate edged down to 4.1 percent in June from 4.2 percent in May. The unemployment rate was expected to inch up to 4.3 percent.<\/p>\n
Traders have reacted positively to the data even the stronger than expected job growth is likely to reduce the chances of a near-term interest rate cut by the Federal Reserve.<\/p>\n
“If businesses keep expanding payrolls like they’ve done so far this year, the Fed can comfortably sit in ‘wait and see’ mode at the upcoming policy meeting,” said Jeffrey Roach, Chief Economist for LPL Financial. “Uncertainty around tariffs and trade have apparently not spooked businesses into shedding workers.” <\/p>\n
He added, “One note of caution: the administration is still actively negotiating details with several major trading partners and the eventual business<\/span> impacts are unknown.”<\/p>\n Positive sentiment may also have been generated in reaction to a report from the Institute for Supply Management showing the service sector returned to growth in the month of June.<\/p>\n The ISM said its services PMI rose to 50.8 in June from 49.9 in May, with a reading above 50 indicating growth. Economists had expected the index to inch up to 50.5.<\/p>\n Sector News<\/p>\n Networking stocks are turning in some of the market’s best performances, with the NYSE Arca Networking Index climbed by 1.7 percent to a record intraday high.<\/p>\n Considerable strength is also visible among software stocks, as reflected by the 1.7 percent gain being posted by the Dow Jones U.S. Software Index.<\/p>\n Airline and banking stocks are also seeing notable strength on the day, while housing stocks have moved back to the downside.<\/p>\n Other Markets<\/p>\n In overseas trading, stock markets<\/span> across the Asia-Pacific region turned in a mixed performance on Thursday. Japan’s Nikkei 225 Index inched up by 0.1 percent and China’s Shanghai Composite Index edged up by 0.2 percent, while Hong Kong’s Hang Seng Index fell by 0.6 percent.<\/p>\n Meanwhile, the major European markets have all moved to the upside on the day. While the German DAX Index is up by 0.5 percent, the U.K.’s FTSE 100 Index is up by 0.4 percent and the French CAC 40 Index is up by 0.2 percent.<\/p>\n In the bond market, treasuries are seeing continued weakness in reaction to the stronger than expected jobs data. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 4.3 basis points at 4.334 percent. <\/p>\n<\/p>\n Business News<\/p>\n<\/div>\n