S&P500: First Solar, Cadence Boost Index as AI, Clean Energy Stocks Rally

S&P 500 Hits Record as Strong Jobs Data Tempers Fed Rate Cut Bets

The S&P 500 closed at a fresh record Thursday, lifted by stronger-than-expected jobs data that eased recession fears while reinforcing expectations the Federal Reserve will hold rates steady this month. The index rose 0.8%, boosted by gains in technology and financials, while traders balanced optimism over the resilient labor market with caution on trade policy signals from Washington.

Will the Federal Reserve Hold Rates as Treasury Yields React?

Nonfarm payrolls rose by 147,000 in June, surpassing estimates for 110,000 and an upwardly revised 144,000 in May. The unemployment rate ticked down to 4.1%, defying projections of an increase to 4.3%.

Treasury yields spiked following the report, with Fed funds futures now pricing a 95% probability the central bank will keep rates steady at its upcoming meeting, per CME FedWatch data. This removes near-term rate cut expectations while indicating economic resilience despite policy uncertainties.

How Did Technology and Financials Drive S&P 500 Gains?

Technology led sector gains, climbing 1.29% as the sector closed at 5,036.65. Key contributors included Cadence Design Systems (+5.10%), Synopsys (+4.90%), and ServiceNow (+3.46%), supported by continued institutional demand for AI and cloud-related names. Financials advanced 1.08%, with the sector closing at 885.22, as higher yields provided a supportive backdrop for bank margins.

Industrials (+0.82%) and consumer discretionary (+0.75%) also supported the index, while materials were unchanged, reflecting selective sector participation at record index levels.

What Company Moves Stood Out in the S&P 500?

First Solar surged 8.5% to lead the index as traders reacted to favorable policy expectations and sector momentum. Quanta Services (+3.50%), CrowdStrike (+3.62%), and Enphase Energy (+3.90%) also posted notable gains. On the downside, Lennar (-4.08%), Bunge Global (-3.62%), and D.R. Horton (-2.73%) were among the weakest, with homebuilders seeing profit-taking after recent strength.

What Should Traders Watch Next for the S&P 500?

With the S&P 500 at record highs, traders are monitoring upcoming developments on the U.S.-Vietnam trade agreement and potential tariff decisions, as President Trump’s deadline on the 90-day pause nears. Additionally, progress on the tax bill, which cleared the Senate and is pending a House vote, may influence sector-specific positioning.

While elevated valuations leave the S&P 500 sensitive to policy headlines, Thursday’s strong labor data supports a constructive market outlook in the near term, with traders positioning for a steady Fed and continued economic resilience.

More Information in our Economic Calendar.