Global stocks rose while U.S. index futures showed mixed results on Thursday following record highs for the S&P 500 and Nasdaq Composite in the previous session. Despite U.S. markets being closed for Independence Day, stock futures remained active. Dow industrials futures rose, Nasdaq-100 futures dipped slightly, and S&P 500 futures remained stable. Tesla’s stock surge and weaker labor market data boosted the S&P 500 and Nasdaq on Wednesday. Now, investors are awaiting the June jobs report, set to be released on Friday, which is expected to show the creation of 200,000 jobs and an unemployment rate holding at 4%.
A slower increase in job numbers or a rise in unemployment could indicate economic cooling, potentially prompting the Federal Reserve to consider cutting interest rates in September.
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In Tokyo, the Topix index hit a new peak, surpassing its 1989 high before the Japanese asset bubble burst. In Europe, attention was on the UK parliamentary elections, with polls predicting a win for the Labour Party and the FTSE 100 index rising. Meanwhile, in France, the CAC 40 index climbed amid investor relief over polls suggesting that the far-right “National Rally” party would not secure a parliamentary majority. The yield spread between French and German bonds narrowed, and a $11 billion bond sale saw strong demand. Florian Ielpo from Lombard Odier Investment Managers noted that increased government spending could pressure government bonds, leading to a divergence in bond and stock performance. In Asia, indices such as Hong Kong’s Hang Seng, Japan’s Topix and Nikkei 225, and India’s BSE Sensex reached record highs.