U.S. stocks experienced an uptick on Thursday, as the S&P 500 and Nasdaq Composite reached new record highs, driven by a stronger-than-anticipated jobs report that bolstered confidence in the resilience of the U.S. economy amidst rapidly evolving trade policies and geopolitical dynamics. The Dow Jones Industrial Average increased by 344.11 points, representing a rise of 0.77%, concluding at 44,828.53. The S&P 500 experienced an increase of 0.83%, concluding at 6,279.35, whereas the Nasdaq saw a rise of 1.02%, finishing at 20,601.10. Both the S&P 500 and the Nasdaq Composite reached new record closing levels.

In June, the Bureau of Labor Statistics reported an increase of 147,000 in nonfarm payrolls. This figure exceeds the Dow Jones projection from economists of 110,000 and the upwardly adjusted 144,000 for May. The unemployment rate declined to 4.1%, contrary to economists’ expectations of a rise to 4.3%. The robust jobs report prompted an increase in Treasury yields and diminished anticipations regarding a near-term reduction in interest rates by the Federal Reserve.

Traders in Fed funds futures are presently estimating a nearly 95% probability that the central bank will maintain its current interest rates at the upcoming meeting later this month, according to the FedWatch tool from CME Group. “The biggest implication from the employment report would seem to be there’s no way the Fed’s cutting rates in July, and it’s a question mark as to whether rates are cut at all this year,” stated Jed Ellerbroek, portfolio manager at Argent Capital Management, during an interview with CNBC. Thursday’s report follows the release of ADP data indicating a decline of 33,000 in private payrolls last month, heightening concerns that the economy may be faltering due to the swift policy shifts emanating from Washington. Thursday’s official government data dispelled that notion.

In the wake of President Donald Trump’s announcement regarding the U.S.-Vietnam trade agreement on Wednesday, investors are keenly anticipating any forthcoming deal announcements, particularly as the president’s early July deadline for his 90-day tariff pause draws near next week. Although the market is trading at unprecedented highs, which exposes it to potential declines—particularly if Trump opts for a stringent approach in negotiations—Ellerbroek contends that the market is fundamentally adopting a more optimistic perspective. “We will observe a tangible tariff impact for numerous businesses, yet the market is likely to absorb that without significant difficulty,” he also stated.

Investors are closely monitoring the developments regarding Trump’s tax megabill, which successfully passed the Senate on Tuesday and has now been sent back to the House. The legislation has progressed to a final vote following its advancement by the Republican-controlled House on Thursday.

Thursday featured a truncated trading session, as both the New York Stock Exchange and the Nasdaq concluded operations at 1 p.m. ET. The U.S. markets will remain closed on Friday in observance of Independence Day. All three major U.S. averages concluded the week in positive territory. The S&P 500 and Nasdaq Composite recorded increases of 1.7% and 1.6% week to date, respectively, whereas the Dow achieved a gain of 2.3% during the same timeframe.