Dow Jones: US Stocks Rally on Jobs Data as Financials, Tech Lead Today

Dow Climbs 381 Points as Financial and Travel Stocks Take the Lead

The Dow Jones Industrial Average rallied 381 points (0.9%) to fresh record highs, driven by financials and travel-related stocks after a stronger-than-expected June jobs report reduced hopes for a near-term Federal Reserve rate cut.

With 26 of 30 Dow components gaining, traders positioned into sectors benefiting from economic strength and a higher rate environment.

Are Financial Stocks Gaining from Rising Yields and Steady Fed Policy?

Travelers (TRV) led the Dow with a 2.22% jump to $263.06 as the 10-year Treasury yield moved higher, boosting insurers’ investment income prospects.

JPMorgan Chase (JPM) rose 1.68% to $295.48, and Goldman Sachs (GS) added 0.82% to $721.76, with Fed funds futures now pricing only a 5% chance of a July rate cut, down from 25% before the jobs data.

American Express (AXP) advanced 1% to $328.03, reflecting broader confidence in financials as the Fed holds steady, supporting net interest margins.

Can Boeing Maintain Momentum on Trade Policy Progress?

Boeing (BA) climbed 1.88% to $216.03 following optimism around Trump’s trade deal with Vietnam, which cut potential tariffs from 46% to 20%. The agreement is expected to ease supply chain costs for Boeing as it diversifies away from China-dependent suppliers, aligning with its production ramp-up plans while stabilizing margins in its commercial division.

Are Tech Stocks Resilient Despite Sector Rotation?

Technology stocks defied typical rate-sensitive headwinds, with Salesforce (CRM) gaining 1.8% to $274.06, Microsoft (MSFT) up 1.73% to $499.58, and NVIDIA (NVDA) advancing 1.47% to $159.56. Cisco (CSCO) and IBM (IBM) also posted solid gains, reflecting investor confidence in high-cash-flow tech names, even as traders rotate into cyclicals and financials.

Is Healthcare Losing Its Defensive Edge?

Healthcare stocks lagged, with Merck (MRK) down 1.2% to $81.41, as the pending Trump tax megabill proposes $900 billion in Medicaid cuts, overshadowing the potential benefits of lower corporate taxes. UnitedHealth (UNH) rose just 0.79% to $310, with concerns about pressures on government program revenues weighing on sentiment.

Market Outlook: Can Economic Resilience Extend the Rally?

June nonfarm payrolls rose by 147,000, well above the 110,000 forecast, while unemployment dipped to 4.1%. The strong data supports a steady Fed, reducing immediate rate cut bets and reinforcing confidence in sustained economic growth.

Traders will now watch upcoming inflation prints and next week’s trade deadline, with the Vietnam deal seen as a potential framework for further progress.

The Dow’s rally reflects underlying economic resilience, favoring financials, travel, and selective tech, positioning the market for continued strength if policy stability holds.

More Information in our Economic Calendar.