U.S. stock futures pared earlier losses to advance on Thursday, as the Dow Jones, Nasdaq 100, and S&P 500 indices rose, following Wednesday's lower close.
Investors digested a cooler-than-expected labor market picture as June nonfarm payrolls increased by a mere 57,000, significantly missing the 100,000 FactSet estimate, while the unemployment rate remained unchanged at 4.2%.
Meanwhile, seasonally adjusted initial jobless claims for the week ending June 27 ticked down slightly to 215,000. Trading volume is expected to remain light as the market will be closed tomorrow, Friday, July 3, in observance of Independence Day.
As U.S. stocks logged their strongest quarter since 2020, the market milestone was celebrated by President Donald Trump following positive developments in indirect U.S.-Iran negotiations in Qatar.
Easing global energy supply fears, Trump told reporters, "As far as things are going, the denuclearization of Iran is moving along well," adding, "They’ve had very good meetings and we’ll see."
Meanwhile, the 10-year Treasury bond yielded 4.49%, and the two-year bond was at 4.17%. The CME Group’s FedWatch tool’s projections show markets pricing a 70.6% likelihood of the Federal Reserve leaving the current interest rates unchanged during July’s meeting.
The SPDR S&P 500 ETF Trust (NYSE: SPY) and Invesco QQQ Trust ETF (NASDAQ: QQQ), which track the S&P 500 and Nasdaq 100, respectively, were higher in premarket on Thursday. The SPY was up 016% at $746.95, while the QQQ advanced by 0.29% to $727.25.
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