US stock markets soared to record highs on Thursday after stronger-than-expected labour market data highlighted the resilience of the US economy. Nonfarm payrolls exceeded forecasts, and the unemployment rate fell to its lowest level since February. The S&P 500 and Nasdaq-100 both reached new peaks, while Asian markets traded mixed on Friday amid ongoing tariff concerns. European stocks also posted moderate gains as the euro area’s services sector showed signs of recovery. Gold was steady around USD 3340, while US Treasury yields spiked across the curve, with the 10-year yield trading around 4.3% and the 2-year yield at 3.9%. US markets are closed on Friday for a holiday.
US stock markets reached new heights on Thursday following robust labour market data. The S&P 500 climbed 0.8% to 6279.35 points, while the Nasdaq-100 gained 1% to 22,866.97 points, both hitting record levels. The Dow Jones Industrial rose 0.8% to 44,828.53 points, ending the shortened trading week with a 2.3% gain. Nonfarm payrolls in the US increased by 147,000 in June, surpassing the forecast of 110,000 and slightly above May’s revised figure of 144,000, according to data released on Thursday. The unemployment rate fell to 4.1%, its lowest level since February, despite a decline in labour force participation to 62.3%. Market participants reduced the likelihood of a July interest rate cut following the release of the data, as the labour market’s resilience offsets concerns about broader economic headwinds.
The Republican-controlled US Congress narrowly approved President Donald Trump’s tax-cut and spending bill on Thursday, marking a major legislative victory for the administration. The bill, which makes Trump’s 2017 tax cuts permanent, introduces new tax breaks, and funds key domestic priorities, is projected to add USD 3.4 trillion to the national debt over a decade. The bill is set to be signed into law on Friday.
Asia-Pacific markets showed mixed performance on Friday as investors awaited developments on US President Donald Trump’s deadline for higher tariffs next week. Japan’s Nikkei 225 was little changed, up 0.1%, while Korea’s Kospi dropped sharply by 1.7% amid broad-based selling. Australia’s S&P/ASX 200 was trading flat, while Hong Kong’s Hang Seng Index slipped 0.3%. Meanwhile, mainland China’s CSI 300 climbed 0.7%.
Swiss consumer prices rose by 0.2% in June 2025 compared to the previous month, driven by higher costs for international holidays, hotels, and certain vegetables, according to the Federal Statistical Office. Annual inflation stood at just 0.1%, reflecting subdued price pressures. Core inflation, which excludes volatile items like energy and fresh food, increased by 0.1% month-on-month and 0.6% year-on-year. Imported goods prices fell by 1.9% year-on-year, while domestic product prices rose by 0.7%. The Swiss National Bank recently lowered its key interest rate to 0% in an effort to keep inflation within its target range of 0% to 2%. The Swiss Market Index (SMI) slipped 0.2% on Thursday.
The euro area's services sector returned to growth in June, with the Eurozone Services PMI rising to 50.5 from May's 49.7, indicating modest expansion after a brief contraction. Despite weak demand, business confidence improved to its highest level this year, and employment growth persisted for the fourth consecutive month. Among major economies, Ireland led growth, while Germany returned to expansion, but France remained in contraction for the tenth month. Input price inflation eased to a seven-month low, though higher service charges could complicate the European Central Bank's inflation strategy despite recent rate cuts. European stock markets posted moderate gains on Thursday. The Euro Stoxx 50 rose 0.5%, while Germany’s DAX gained 0.6% to close at 23,934.13 points. France’s CAC 40 added 0.2%.
Corporate news in focus: There is no major corporate news scheduled today.
Economic data in focus: Swiss unemployment rate (07:45), German factory orders (08:00), euro-area Producer Price Index (11:00).
Global economic and market trends at a glance
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Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: Alessandro Fezzi
Source: LGT Bank (Switzerland) Ltd.