NEW YORK (AP) 鈥� U.S. stocks climbed further into record heights after a report showed the U.S. job market looks stronger than Wall Street expected. The S&P 500 rose 0.8% Thursday and set an all-time high for the fourth time in five days. The Dow Jones Industrial Average added 0.8%, and the Nasdaq composite rallied 1%. The reaction was bigger in the bond market, where Treasury yields jumped. The strong U.S. jobs data pushed traders to erase bets that the Federal Reserve could cut interest rates at its next meeting later this month. U.S. markets closed early on Thursday in advance of Independence Day.
THIS IS A BREAKING NEWS UPDATE. AP鈥檚 earlier story follows below.
NEW YORK (AP) 鈥� U.S. stocks are climbing further into on Thursday after a report showed the than Wall Street expected.
The S&P 500 was up 0.8% in midday trading and on track to set an all-time high for the fourth time in five days. The Dow Jones Industrial Average was up 334 points, or 0.8%, as of 11:35 a.m. Eastern time, and the Nasdaq composite was 1% higher.
Stocks of companies whose profits can get the biggest boosts when workers are feeling confident helped lead the way, including travel providers. Expedia climbed 4.1%, United Airlines rose 2.1% and Norwegian Cruise Line steamed 3.2% higher.
Bank stocks were also strong, with Wells Fargo up 1.6%, and JPMorgan Chase up 1.6%.
The reaction was bigger in the bond market following the report from the U.S. government, which said employers added 147,000 more jobs to their payrolls last month than they cut. The unexpected acceleration in hiring signals the U.S. job market is holding up despite worries about how may hurt the economy and inflation.
鈥淭here is nothing to complain about here,鈥� according to Carl Weinberg, chief economist at High Frequency Economics. 鈥淵ou cannot find any evidence of a nascent recession in these figures.鈥�
A separate report, meanwhile, said , an indication of easing layoffs.
Yields jumped in the bond market as investors bet the better-than-expected data could keep the Federal Reserve on hold when it comes to interest rates, instead of cutting them like Trump has been loudly calling for.
Traders in the futures market now see less than a 5% chance that the Fed could cut its main interest rate at its next meeting later this month. That鈥檚 down sharply from the nearly 24% chance they saw just a day earlier, according to data from CME Group.
The Fed鈥檚 chair, Jerome Powell, has been insisting that he wants to wait and see how Trump鈥檚 tariffs affect the economy and inflation before making its next move. While lower rates give a boost to the economy by making it easier to borrow money, they can also give inflation more fuel. And that could be dangerous if Trump鈥檚 tariffs are about to send inflation higher.
Many of Trump鈥檚 stiff proposed taxes on imports are currently on pause, but they鈥檙e scheduled to kick into effect next week unless Trump reaches deals with other countries to lower them.
Many U.S. companies in the services industries are still saying they're concerned about the impacts of tariffs, even if they returned to growth last month following May's contraction, according to the most recent survey by the Institute for Supply Management.
鈥淚ncreased cost from tariffs and the potential for tariffs is impacting cost increases," one company in the agriculture, forestry, fishing and hunting industry said in the survey.
The yield on the 10-year Treasury rose to 4.33% from 4.30% late Wednesday. The two-year Treasury yield, which moves more closely with expectations for the Fed, jumped even more. It climbed to 3.87% from 3.78%.
On Wall Street, Datadog rallied 15% after learning that its stock will join the widely followed S&P 500 index before trading begins on Wednesday. Many managers of funds either directly mimic or at least compare themselves against the S&P 500, which drives investment into any stock that joins the index.
Datadog will replace Juniper Networks, which combined with Hewlett Packard Enterprise in a merger.
On the losing side of Wall Street were companies that can feel pain from interest rates staying high.
Homebuilders would like rates to fall in order to make mortgages cheaper to get, for example, and Lennar sank 3.7%, while D.R. Horton dropped 2.7%.
In stock markets abroad, indexes rose across much of Europe and Asia. 麻豆传媒AV Korea鈥檚 Kospi climbed 1.3%, and Hong Kong鈥檚 Hang Seng fell 0.6% for two of the bigger moves.
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AP Writers Teresa Cerojano and Matt Ott contributed.
Stan Choe, The Associated Press
