Nasdaq 100 and S&P500: Tech Stocks Drive US Indices to Uncharted Territory

Broad Market Performance

Thursday delivered a robust rally across all major indices, with the S&P 500 and Nasdaq hitting fresh record highs.

The S&P 500 surged 0.83% to close at 6,279.35, while the Nasdaq jumped 1.02% to 20,601.10. The Dow Jones gained 344 points (0.77%) to finish at 44,828.53, just 0.41% away from its own record.

All three indices posted strong weekly gains, with the Dow leading at 2.3%, followed by the S&P 500 at 1.7% and Nasdaq at 1.6%.

Economic Catalyst

The market’s strength was driven by a surprisingly robust June jobs report that exceeded expectations across the board. Nonfarm payrolls increased by 147,000 jobs, well above the forecasted 110,000, while unemployment dropped to 4.1% versus the expected 4.3%.

This strong employment data dispelled fears that the economy was weakening under policy uncertainty, particularly after Wednesday’s disappointing ADP report showed private payrolls declining by 33,000.

Federal Reserve Implications

The solid jobs numbers dramatically shifted Fed expectations, with traders now pricing in a 95% chance that rates will remain unchanged at the July meeting.

September rate cut odds fell to 68% from 74% a week earlier, as the strong labor market reduces pressure on the Fed to ease monetary policy. Treasury yields spiked in response to the diminished rate cut expectations.

Individual Stock Highlights

Nvidia continued its march toward a $4 trillion valuation, gaining 1.3% to reach a market cap of $3.89 trillion, edging closer to Apple’s all-time record.

Individual movers included Tripadvisor, which soared 16.7% after activist investor Starboard Value disclosed a 9% stake, and Datadog, which jumped 14.9% on news of its addition to the S&P 500.

Market Internals and Outlook

Trading volume was lighter than usual at 10.85 billion shares due to the shortened session ahead of Independence Day. The Russell 2000 small-cap index outperformed with a 3.41% weekly gain, suggesting broad-based optimism.

Looking at the charts, all three indices are trading well above their moving averages and have broken through key resistance levels. The S&P 500 is approaching its “2025 Target Zone” between 6,400-6,800, suggesting further upside potential.

However, some analysts express caution about the current “irrational exuberance,” particularly with Trump’s tariff deadline approaching next week and the massive $3.4 trillion tax bill adding to national debt concerns. While the market appears positioned for continued gains, investors should remain vigilant for potential volatility as policy uncertainties unfold.

More Information in our Economic Calendar.