US Major indices notch record highs

The S&P 500 surpassed the 5,500 mark while the Nasdaq hit 20,000.

By Nadia Elbilassy | @Nadia Elbilassy | 4 July 2024

Market close
  • The lack of significant pullbacks strengthens bullish investor confidence but also adds uncertainty about an impending correction.

  • June's US ISM Services PMI dropped to 48.8 from 52.6 and 53.8 previously, signaling weakening price pressures.

  • ADP Non-farm employment change fell to 150K in June, down from 157K in May and below the expected 163K.

In data

Weaker-than-anticipated ADP employment data and a poor reading on the non-manufacturing activity purchasing managers index have increased expectations of a slowing U.S. economy. Traders now believe this will prompt the Federal Reserve to cut interest rates sooner.

  • The US ISM Services PMI for June slumped to 48.8 vs 52.6 and 53.8 previous. Which further indicates that price pressures are indeed weakening.
  • The ADP Non-farm employment change also cooled to 150K vs 157K in May and 163K expected.

In stocks

For the first time in its history, the S&P 500 surpassed the 5,500 marks on Tuesday, continuing its impressive rally in 2024, The Nasdaq 100 hit the 20,000 mark, notching a record high too. Additionally, the absence of any significant pullbacks has bolstered the confidence of bullish investors but also creating a sort of uncertainty when it comes to when a correction is due.

Momentum from Powell’s dovish speech kept the market cheerful and capping the dollar’s strength.