Boosted by the non-farm payroll data, Nasdaq and S&P 500 both hit new highs

According to the financial news app Zhitong Finance, due to the latest data showing weakness in the US non-farm employment market, boosting expectations of an interest rate cut as early as September, US stocks closed higher on Friday. Technology giants led the way, with the Nasdaq and S&P 500 hitting record highs.

The S&P 500 index's communication services sector performed the best, reaching its highest level since 2000. Large-cap stocks like Microsoft (MSFT.US) drove this rally, with Microsoft rising nearly 1.5% on Friday to close at a historic high. Meta (META.US) also closed at a record high, with a gain of about 5.9%, driving the information technology sector to a new high.

The Dow Jones Industrial Average rose 67.87 points to close at 39,375.87 points, up 0.17%. The S&P 500 index rose 30.17 points to 5,567.19 points, up 0.54%; the Nasdaq Composite Index rose 164.46 points to 18,352.76 points, up 0.90%.

This week, the S&P 500 index rose by 1.95%, the Nasdaq index rose by 3.5%, and the Dow Jones index rose by 0.66%.

Data from the US Department of Labor on Friday showed a slight slowdown in US job growth in June, with the unemployment rate rising to a two-and-a-half-year high and wage growth slowing down.

Investors expect that these data may trigger more positive discussions about interest rate cuts when the Federal Reserve meets later this month. CME's Fed Watch Tool shows that the probability of the Fed easing monetary policy in September has jumped from 66% before the data release to 79%.

Peter Cardillo, Chief Market Economist at Spada Capital Securities, said: "This report puts the Fed in a comfortable position." "If this situation continues next month with no hourly wage growth, then I believe the Fed will cut rates in September and again in December."

Earlier data released this week also showed that the US economy is losing momentum, helping the S&P 500 and Nasdaq hit record closing highs on Wednesday during the holiday market closure. Alex Magrath, Chief Investment Officer at North End Private Wealth, said: "We are in an environment approaching stagflation - growth is slowing down, and inflation is temporarily staying at current levels."

He stated that the environment is not favorable for rate-sensitive small-cap stocks, but large-cap stocks have excellent profitability, driving the market to remain strong. The Russell 2000 small-cap index fell by 0.95% this week.

Rising interest rates and an uncertain economic environment have cast a shadow over the performance of the US banking industry. Major bank stocks declined, with second-quarter earnings reports set to be released next Friday. Bank of America (BAC.US), Wells Fargo (WFC.US), and JPMorgan Chase (JPM.US) all saw declines between 1.2% and 1.7%, leading the S&P 500 index (S&P500) to fall by 1.6% Macy's (M.US) rose 9.5% on Friday, with reports that Arkhouse Management and Brigade Capital have raised their acquisition offer for the department store chain to approximately $6.9 billion.

The ratio of rising stocks to falling stocks on the NYSE is 1.04 to 1. On the Nasdaq, the ratio of falling stocks to rising stocks is 1.05 to 1.

The S&P 500 index hit 19 new 52-week highs and 8 new lows, while the Nasdaq Composite index hit 46 new highs and 162 new lows.

The trading volume in the U.S. stock market was 9.73 billion shares, with an average total volume of 11.57 billion shares over the past 20 trading days