Dow Hits Record 52,750 as June Payrolls Miss by 58,000
Updated
Updated · Detroit Free Press · Jul 4
Dow Hits Record 52,750 as June Payrolls Miss by 58,000
3 articles · Updated · Detroit Free Press · Jul 4
Summary
The Dow rose to fresh record highs above 52,750 on Thursday after June nonfarm payrolls increased only 57,000, far below the 115,000 consensus and down from a revised 129,000 in May.
That slowdown cut fears of near-term Fed tightening: July hike odds fell to about 20%, traders pushed the next fully priced hike to December, and the 2-year Treasury yield dropped to 4.13%.
Labor-market details were weaker than the headline unemployment rate suggested, with April and May revisions totaling a net 74,000 cut and labor-force participation slipping to 61.5%, the lowest since March 2021.
Fed Chair Kevin Warsh, in his first international appearance, said markets should not expect tolerance for inflation above 2%, though he noted inflation expectations have moderated.
Cooling inflation pressure was reinforced by WTI crude at $67 a barrel, erasing the Hormuz war premium and helping fuel a rotation into blue-chip industrials while big tech also rebounded.