Fixed Income Market Overview
On Friday, U.S. Treasury yields dropped following an unexpected rise in the unemployment rate. The 10-year Treasury yield fell over 6 basis points to 4.29%, while the 2-year Treasury yield declined 7 basis points to 4.64%. The unemployment rate rose to 4.1%, the highest since October 2021, against expectations of it holding steady at 4%. Nonfarm payrolls increased by 206,000, slightly above forecasts but below the previous month’s revised figure. This jobs data might prompt the Federal Reserve to consider an earlier-than-expected rate cut in September. Fed Chairman Jerome Powell emphasized the need for more inflation progress before policy changes, with new inflation data expected next week.
Energy giant Shell to take up to a $2 billion impairment hit on Rotterdam, Singapore plants.
Goldman Sachs upgrades UK growth forecast after huge Labour election win.
U.S. crude oil heads for fourth straight weekly gain on solid demand outlook.
Revolut CEO to sell part of stake in $500 million share sale.
U.S. economy added 206,000 jobs in June, unemployment rate rises to 4.1%.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 39,375.87 | 67.87 | 0.17%↑ |
| NASDAQ | 20,391.97 | 205.34 | 1.02%↑ |
| S&P 500 | 5,567.19 | 30.17 | 0.54%↑ |
| NIKKEI | 40,912.37 | -1.28 | 0.00%↓ |
| HSI | 17,799.61 | -228.67 | -1.27%↓ |
| VIX | 12.48 | 0.39 | 3.23%↑ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 4.29% | -0.08 |
| US 30-YR | 4.49% | -0.04 |
| US 5-YR | 4.23% | -0.10 |
| JPN 10-YR | 1.07% | -0.01 |
| UK 10-YR | 4.13% | -0.08 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 83.16 | -0.72 | -0.86%↓ |
| NAT GAS | 2.350 | -0.097 | -3.96%↓ |
| GOLD | 2,397.70 | 28.30 | 1.19%↑ |
| SILVER | 31.69 | 0.85 | 2.75%↑ |
| COPPER | 4.652 | 0.119 | 2.61%↑ |
Equity Market Overview
The S&P 500 reached a record high on Friday, closing at 5,567.19, driven by renewed hopes for Federal Reserve rate cuts following the latest jobs report. The index gained 0.54%, while the Nasdaq Composite rose 0.90% to 18,352.76, both achieving all-time highs. The Dow Jones Industrial Average added 0.17%, closing at 39,375.87. The labor report showed a 206,000 increase in nonfarm payrolls and a slight rise in the unemployment rate to 4.1%, spurring expectations of a rate cut. Investors now see a 77% chance of a rate cut in September. Tesla surged over 2%, and Apple hit a new high, while Nvidia slipped nearly 2% after a downgrade. The S&P 500 has gained 16.7% this year, with the Nasdaq up 22.3%. This positive trend reflects investor confidence in the resilience of the economy and the potential for further growth despite recent uncertainties.
