Market Surge: S&P 500 and Nasdaq Hit Record Highs Amid Job Growth and Nvidia's Rise

The S&P 500 and Nasdaq closed at record levels following robust U.S. job figures, with Nvidia's valuation approaching $4 trillion. Despite decreased expectations for imminent interest-rate cuts, optimism continues due to better-than-anticipated employment data. Meanwhile, significant fiscal legislation advances in the House amid internal party discussions.

The S&P 500 and Nasdaq climbed to unprecedented highs on Thursday, spurred by an unexpectedly strong U.S. jobs report and Nvidia's valuation surge towards $4 trillion. Despite this, traders reduced the likelihood of a July interest-rate cut, now focusing on a potential cut in September with a probability of 68%, as per CME Group's Fedwatch tool.

According to Kristina Hooper, Chief Market Strategist at Man Group in New York, the market's optimism, though somewhat irrational, is founded on recent positive economic indicators. She highlighted that the employment report provided a level of relief, defying more pessimistic forecasts.

The Dow Jones Industrial Average saw an increase of 344.11 points to close at 44,828.53, while the S&P 500 and Nasdaq Composite rose by 51.94 and 207.97 points respectively. Trading was lighter prior to the early market closure ahead of the Independence Day holiday.

Additionally, data indicated a rise in nonfarm payrolls by 147,000, surpassing expectations of 110,000, along with a drop in unemployment to 4.1%. Despite these gains, the U.S. services sector displayed mixed signals due to policy uncertainties. Furthermore, a major tax-cut bill progressed through the U.S. House of Representatives, reflecting Republican support amid intra-party disputes over its fiscal impact.

The bill, projected to augment national debt by $3.4 trillion over a decade, advances as TripAdvisor stocks rise due to news of activist investor Starboard Value acquiring a significant stake. Concurrently, Datadog shares climbed following its imminent inclusion in the S&P 500, replacing Juniper Networks.

(With inputs from agencies.)