After the S&P 500 and Nasdaq indexes hit record highs in the previous trading day, global stock markets rose while US stock index futures fluctuated on Thursday.
Despite the US market being closed for Independence Day, stock futures remained active. Dow Jones Industrial Average futures rose, Nasdaq 100 index futures fell slightly, and S&P 500 index futures remained flat.
On Wednesday, Tesla’s stock price rose and weak labor market data boosted the S&P 500 and Nasdaq indexes. Investors are now waiting for the release of the 200,000 jobs report on Friday, which is expected to show an addition of 40,000 jobs and an unemployment rate of 4%.
Slowing job growth or an increase in the unemployment rate could indicate an economic slowdown, which may prompt the Federal Reserve to consider an interest rate cut in September.
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In Tokyo, the TOPIX index hit a new high, surpassing the pre-1989 Japanese asset bubble burst record.
In Europe, attention is focused on the UK election, with polls predicting a victory for the Labour Party, leading to an increase in the FTSE 100 index. Meanwhile, in France, the CAC 40 index rose as polls indicated relief for investors with the extreme right-wing party “National Rally” not gaining a majority in Parliament.
The yield spread between French and German bonds narrowed, with strong demand for $11 billion worth of bonds.
Florian Jelpo of Lombard Odier Investment Managers pointed out that increased government spending may put pressure on government bonds, leading to divergent performance between bonds and stocks.
In Asia, the Hang Seng Index in Hong Kong, TOPIX and Nikkei 225 indexes in Japan, and the BSE Sensex index in India hit record highs.