On Friday, the S&P 500 reached a new peak, closing at 5,567.19, spurred by optimism from a robust jobs report that hinted at potential Federal Reserve rate cuts.

The Nasdaq Composite also hit a record high, closing at 18,352.76, while the Dow Jones Industrial Average rose 0.17% to finish at 39,375.87.

This marked the S&P 500’s 34th record close of 2024, with its year-to-date gain reaching 16.7%.

Investors are banking on Fed rate cuts to mitigate future economic softness, fueled by a June jobs report showing a 206,000 increase in nonfarm payrolls alongside a slightly higher unemployment rate of 4.1%, CNBC has reported.

This prompted a decline in Treasury yields as expectations for a September rate cut rose to 77%, up from 64% the previous week.

Written by B.C. Begley