NEW YORK: Wall Street stocks opened higher Thursday, adding to records following US jobs data that beat expectations and as Congress neared passage of President Donald Trump’s sweeping budget package.
The US economy added 147,000 jobs in June while unemployment dipped to 4.1 percent from 4.2 percent, a sign of US labor market resilience despite the White House’s wave of tariffs.
The report “proves that we have a persistently solid labor market,” said Art Hogan from B. Riley Wealth Management, adding that the figures diminish the odds Federal Reserve officials will cut interest rates in July.
About 10 minutes into trading, the Dow Jones Industrial Average rose 0.4 percent to 44,643.90.
Wall St edges down after ADP shock; focus on trade talks, payrolls data
The broad-based S&P 500 Index jumped 0.5 percent to 6,256.69, while the tech-rich Nasdaq Composite Index climbed 0.6 percent to 20,513.92.
Both the S&P 500 and Nasdaq finished at records on Wednesday after Trump unveiled a trade accord with Vietnam.
The House looked poised to approve Trump’s package of tax cut extensions and deep spending cuts to the low-income Medicaid program.
House Speaker Mike Johnson struggled through the night to corral his rank-and-file members after the package scraped through a series of “test” votes.
The package honors many of Trump’s campaign promises, including the funding of a mass migrant deportation drive, but it is expected to pile an extra $3.4 trillion over a decade onto the country’s fast-growing deficits.
Exchanges will close early Thursday for the July 4th Independence Day holiday, when US markets will be closed.