America was welcomed by its first market day after its 250th birthday, with all major stock indices ending in the green. The Dow ticked up 156 points to 53,056. The NASDAQ posted a gain of 1.12% to 26,121. The S&P 500 edged up 0.72% to 7,537. The rally was powered by several technology giants, including most of the so-called “Magnificent 7” and a few chipmakers, signaling that much of the market still believes the AI trade remains alive.
Sectors showed rotation toward riskier assets, with technology shares soaring 1.65%, followed by financials, industrials, consumer discretionary, and communication services. The other sectors ended the day in the red, as they tend to be more defensive.
The bond market held steady. The 5-year U.S. Treasury yield declined by 2 basis points to 4.2%, and the 10-year yield declined by 1 basis point to 4.47%. Gold prices continued to slowly make their way back up and were nearly reaching the 4,200 mark.
The market appears to continue to be driven by Thursday’s unsatisfactory jobs report, which showed much lower hiring and labor force participation than expected, a condition that gives the Federal Reserve more room to hold interest rates steady as opposed to hiking. With a three-day weekend, many traders may have hesitated to buy into the market, considering the current risk environment.
Today’s economic data showed a very small disappointment in the services sector, which continues to be in a state of slow expansion with generally stable employment conditions but much faster price increases.
Some data of moderate importance will be made available tomorrow, and Adams Wealth Advisors will continue to keep you updated.