Wall Street hits new highs

US equity markets closed Thursday at fresh all-time highs. Investors enthusiastically responded to an unexpected surge in US employment and the ongoing rally in Nvidia shares, despite the low likelihood of an imminent interest rate cut.

Nvidia on track to set historic record

Shares of tech giant Nvidia rose by 1.3%, lifting the company's market capitalization to $3.89 trillion. If momentum persists, Nvidia could surpass Apple to become the most valuable company in history.

Hope comes from jobs data

Robust employment data beat all expectations: in June, 147,000 nonfarm jobs were created, 33% above analysts' forecasts. The unemployment rate declined to 4.1%, better than the market consensus of 4.3%.

Short but vibrant session

The trading session was shortened ahead of Independence Day, but that did not prevent major indices from extending their gains.

Index closing levels:

• S&P 500: up 51.94 points (0.83%) to 6,279.36;
• Nasdaq Composite: up 207.97 points (1.02%) to 20,601.10;
• Dow Jones Industrial Average: up 344.11 points (0.77%) to 44,828.53.

Market lowers July rate cut expectations

Financial participants adjusted their forecasts: the probability that the Federal Reserve would cut its benchmark rate in July fell sharply. According to CME Group's FedWatch tool, the odds of a quarter-point cut in September now stand at 68%, down from 74% recorded a week earlier.

Trump's new bill passes vote

After the close of trading, the Republican majority in the US House of Representatives approved President Donald Trump's ambitious initiative that envisions sweeping tax cuts and reductions in government spending. The expected move, however, sparked controversy.

The nonpartisan Congressional Budget Office estimated that the new bill would increase the national debt by $3.4 trillion, adding to the existing level of $36.2 trillion. In addition, millions of citizens could lose access to health insurance.

Tripadvisor and Datadog ride news wave

Shares of online service Tripadvisor surged 16.7 percent after the Wall Street Journal reported that investment fund Starboard Value acquired more than a nine percent stake in the company. Even more impressive gains were posted by Datadog shares, which jumped 14.9 percent. The rally was triggered by news that the company will replace Juniper Networks in the prestigious S&P 500 index.

Shortened trading and weak activity

The trading session ended earlier than usual, at 1 p.m. Eastern Time. Total trading volume across US exchanges reached 10.85 billion shares, well below the 20-day average of 17.82 billion.

Asia reacts cautiously despite Wall Street's success

Asia-Pacific equity markets finished Friday mixed. While record highs on Wall Street could have provided a positive boost, regional investors remained cautious amid the looming deadline for trade agreements initiated by Donald Trump.

Dollar edges up amid US trading pause

The US currency regained some ground lost on Thursday. The move came as American trading floors entered an extended break and investors focused on the impending presidential signing of a major budget bill.

Japan gains, rest of Asia slips

Regional markets reacted unevenly. Japan's Nikkei index rose by 0.3% after a volatile start to the session.

Meanwhile:

• Hong Kong's Hang Seng fell by 1.3%;
• China's CSI300 index of major companies posted a slight decline;
• Taiwan lost its morning gains and closed down 0.2%;
• South Korea dropped by more than 1%.

Congress approves bill adding trillions to national debt

Late in the evening, the US House of Representatives passed Donald Trump's sweeping financial plan by a narrow majority. The 869-page bill will increase the country's national debt by $3.4 trillion, according to data from the independent Congressional Budget Office. Total US debt will now exceed $36.2 trillion.

New letters and trade promises

The president also announced that in the coming days he will send letters to trade partners outlining updated tariff terms. The deadline for implementing the agreements is approaching — the final date is set for July 9.

Trump expressed confidence that several more deals lie ahead. He emphasized that after Wednesday's agreement with Vietnam, the US has active framework agreements with China and the United Kingdom, which so far remain the only documented successes in trade policy.

Talks with India in progress, but Asia overall raises questions

US Treasury Secretary Scott Bessent stated that arrangements with India are in the final stages. However, negotiations with Japan and South Korea, previously described by the White House as top priorities, are now at risk of collapse. These countries appear to be slipping out of the circle of Washington's most likely trade partners.

US economy surprises with resilience

Fresh labor market data released on Thursday showed unexpectedly strong momentum. According to a Sycamore analyst, the US economy is displaying much greater strength than most observers had assumed,which in turn creates potential for further market gains.

Hopes for rate cuts fading

After the jobs report, market participants revised their expectations. The possibility of the Federal Reserve cutting interest rates in the near term is now virtually off the table.

Dollar gains, but with reservations

The US currency strengthened against major global counterparts, climbing by 0.7% on Thursday before paring back gains to finish the day up 0.4%.

On Friday morning, the dollar edged slightly lower:

• it slipped by 0.2% to 144.62 yen;
• it fell by 0.1% to 0.7942 Swiss francs.

Meanwhile:

• the euro added 0.1% to $1.1766;
• the British pound traded at $1.3650.

Gold and oil prices edge higher

Gold prices inched up by 0.1% to $3,329.54 per ounce.

Oil futures also recorded modest gains:

• Brent crude added 1 cent to reach $68.81 a barrel;
• US WTI rose by 3 cents to settle at $67.03 a barrel.