Wall Street records another session of gains following the NFP report that exceeded most economists’ expectations. The unexpected rise in jobs created and unemployment falling to 4.1% renewed investors’ confidence in the U.S. economy. Nasdaq and DJIA are up around 0.9%, S&P 500 rallies for the 10th consecutive session (+0.7%), Russell 2000 adds 0.65%.
On the other hand, the bond market is selling off as investors reduce their expectations for a rate cut and move away from bets on a July rate cut. Consequently, yields are rising from their recent lows, caused by dovish comments from several Fed officials, Jerome Powell’s statement that a rate cut “is not off the table,” and yesterday’s surprisingly weak ADP report.
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S&P 500 futures have rallied for a 10th straight session, gaining a total of 6.3% throughout its winning streak. The momentum remains strong, even though the RSI is well above the overbought level. Optimism is broad-based, with every sector in the index currently trading higher. However, the streak of new all-time highs could be at risk if the price falls back below the 6245 level — a point where the index paused earlier this week before continuing its upward move.
Source: xStation5
Company news:
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ASML, BE Semiconductor, and ASM International are down between 0.6 and 1.6% after reports that Samsung is delaying its Texas chip plant. The delay, tied to customer demand issues, weighs on European suppliers—ASML gets 14% of revenue from Samsung, BE Semi 4.4%, and ASM is also a key partner. Investors fear softer near-term demand from the Korean tech giant.
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Datadog jumps 13% postmarket after being selected to join the S&P 500, replacing Juniper Networks following its acquisition by HPE. The move boosts investor visibility and fund flows. Meanwhile, Robinhood and AppLovin, previously seen as contenders, each fell over 2% on the news.
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Synopsys and Cadence add 4.5% and 5.1% after the U.S. lifted export curbs on chip design software to China. The move reopens a key market, with Chinese clients making up 14% of Synopsys and 11% of Cadence sales. Ansys also rose 2.3%. Analysts see limited financial damage but caution on future trade uncertainty.
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Xponential Fitness surged up to 23% after the SEC ended its probe with no action. Jefferies sees improved investor sentiment under new leadership and backs the stock with a Buy rating and $26 target. Analysts cite strong brand portfolio, international growth potential, and a franchisee-focused strategy as key drivers for future performance.
