A shrinking service economy and rising jobless claims send stocks to record highs ahead of July 4 holiday
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Stocks hit records as weak economic data reinforce the case for the Federal Reserve to cut rates. The S&P 500 headed towards a fresh record on bets of policy easing. US services sector contracted at the fastest pace in four years. Private payrolls rose at a moderate pace and continuing jobless claims climbed for a ninth straight week. Economists anticipate a 190,000 gain in nonfarm payrolls. Treasury 10-year yields fell nine basis points to 4.34%. Swap traders are projecting almost two rate cuts in 2024. The S&P 500 rose to around 5,520. Fed Chair Jerome Powell said inflation is getting back on a downward path, but more evidence is needed before lowering interest rates. Fed Bank of New York President John Williams pushed back against recent commentary that the natural rate of interest has risen since the pandemic.

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https://fortune.com/2024/07/03/stock-market-record-services-jobless-claims/