(Bloomberg) — The stock market headed toward fresh all-time highs, with traders looking past signals of an economic slowdown to focus on prospects for Federal Reserve rate cuts.
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Equities rebounded, following a series of twists and turns in the immediate aftermath of data showing US hiring moderated as the jobless rate hit the highest since late 2021. The S&P 500 was poised for its 34th record this year. Treasury yields dropped across the curve. Swaps fully projected two Fed reductions in 2024 — and bets have been building around a September cut.
Nonfarm payrolls rose by 206,000 in June and job growth in the prior two months was revised down by 111,000. The median forecast in a Bloomberg survey of economists called for a 190,000 increase. The unemployment rate rose to 4.1%, and average hourly earnings cooled.
“Get on with it,” said Neil Dutta at Renaissance Macro Research. “Today’s employment report…
