S&P 500 reaches all-time high amid cooling US jobs market
US stock markets have reached significant milestones, with the S&P 500 hitting a new all-time high of 7,757.64. This rally follows a robust week of gains for major indexes, supported by strong corporate earnings and shifts in economic data.
Recent Labor Department data revealed that the US economy unexpectedly shed 23,000 jobs last month, falling well below economist expectations of an 80,000 increase. While the unemployment rate fell slightly to 4.1% from 4.2% in June, the softening labor market has influenced expectations regarding monetary policy. Consequently, market projections for a Federal Reserve interest rate hike at the upcoming meeting have decreased.
Corporate performance remains a primary driver of market sentiment. Data indicates that approximately 85.1% of S&P 500 companies reporting results thus far have exceeded analyst expectations. However, some analysts warn of high valuations, noting that the S&P 500's Shiller CAPE ratio has reached approximately 41, a level historically associated with significant market volatility.
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Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [DISPUTED] The unemployment rate fell to 4.1% last month from 4.2% in June. (Labor Department)
- [DISPUTED] Nonfarm payrolls decreased by 23,000 jobs last month. (Labor Department)
- [○ 1 SOURCE] Market expectations for a Federal Reserve rate hike at the next meeting dropped to approximately 44%. (CME FedWatch)
- [○ 1 SOURCE] 85.1% of the 436 companies in the S&P 500 that have reported results topped analyst expectations. (LSEG data)
- [○ 1 SOURCE] The US job market is grinding to a halt. (Scotiabank)
- [● 3 SOURCES] The S&P 500 reached a new all-time high, closing at 7,757.64. (S&P 500)