Nasdaq Hits Fresh Highs as Labor Data and Nvidia Drive Tech Surge

The Nasdaq hit a record high on Thursday as stronger-than-expected U.S. labor data underscored economic resilience, propelling technology stocks higher even as traders scaled back immediate Federal Reserve rate-cut expectations.

Nvidia’s continued rally and easing U.S.-China trade tensions provided additional fuel, positioning the Nasdaq for potential gains into Q2 earnings season.

How Did Strong Labor Data Impact Fed Rate-Cut Bets?

Nonfarm payrolls rose by 147,000 in June, easily topping forecasts of 110,000, while unemployment dropped to 4.1% versus expectations of 4.3%. This labor strength prompted traders to reduce expectations for a July Fed rate cut, with CME Fedwatch showing September cut odds easing to 68% from 74% last week. However, the market interpreted the data as a sign of stability rather than overheating, supporting risk sentiment across equities.

Is Nvidia on Track to Become the World’s Most Valuable Company?

Nvidia gained 1.6% to an all-time high, with intraday gains reaching 2.4%, pushing the AI chipmaker closer to the historic $4 trillion market cap milestone. Investors continued to bet on Nvidia’s dominance in AI infrastructure, viewing its leadership as a key driver of the Nasdaq’s rally. The broad semiconductor sector strengthened alongside Nvidia, benefiting from policy developments and strong demand signals.

Did Easing U.S.-China Trade Tensions Lift Chip Stocks?

The U.S. lifted export restrictions on chip design software to China, reducing a key overhang for chip design software firms. Synopsys surged 5.1% and Cadence Design Systems advanced 4.6% in premarket trading on the news, reflecting investor optimism over renewed access to a major growth market. The policy shift also signaled a thaw in trade tensions, reducing geopolitical risk premiums for tech stocks with China exposure.

Which Stocks Added Momentum to the Nasdaq’s Record Run?

Datadog jumped 13.5% after news of its inclusion in the S&P 500, triggering institutional buying. Tripadvisor surged 16.3% as activist investor Starboard Value disclosed a 9% stake, raising hopes of operational improvements.

Market breadth remained strong, with advancing issues outpacing decliners by 1.93-to-1 and the Nasdaq posting 102 new 52-week highs versus 18 lows, signaling broad participation rather than a narrow rally.

What Should Traders Watch Heading into Earnings Season?

The Nasdaq’s record-setting session, backed by strong labor data, easing trade tensions, and Nvidia’s momentum, positions the index for continued strength heading into Q2 earnings.

Holiday-thinned volumes may amplify moves, but sustained breadth and policy tailwinds, including potential corporate tax benefits from pending legislation, suggest the technology sector could maintain leadership if earnings support current valuations.

More Information in our Economic Calendar.