After reaching new highs in the previous trading day, the S&P 500 and Nasdaq indexes, global stock markets rose, while US stock index futures fluctuated on Thursday.
Despite the US market being closed for Independence Day, stock futures remained active. Dow Jones Industrial Average futures rose, Nasdaq 100 futures fell slightly, and S&P 500 futures remained flat.
On Wednesday, Tesla’s stock price rise and weak labor market data boosted the S&P 500 and Nasdaq indexes. Investors are now awaiting the release of the 200,000 job report on Friday, which is expected to show the addition of 40,000 jobs and an unemployment rate of 5%.
Slow job growth or an increase in the unemployment rate could indicate an economic slowdown, prompting the Federal Reserve to consider a rate cut in September.
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In Tokyo, the Nikkei index reached a new high, surpassing the peak before the burst of the 1989 Japanese asset bubble.
In Europe, attention is focused on the UK election, with polls predicting a victory for the Labour Party and the FTSE 100 index rising. Meanwhile, in France, the CAC 40 index rose as polls showed relief for investors with the far-right party “National Assembly” not gaining a majority in parliament.
The yield spread between French and German bonds narrowed, with strong demand for $1.1 billion worth of bonds.
Florian Jelpo of Lombard Odier Investment Managers pointed out that increased government spending could put pressure on government bonds, leading to divergence in the performance of bonds and stocks.
In Asia, the Hang Seng Index in Hong Kong, the Nikkei 225 Index and the BSE Sensex Index in India reached new highs.