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Stocks mixed as US jobs growth slows

US stocks ended mixed on Thursday after a sharply weaker-than-expected US payrolls report for June eased concerns about further Federal Reserve tightening, helping lift the Dow while the Nasdaq came under pressure. European equities also rallied on Thursday, while Asian markets traded broadly higher on Friday as chipmakers recovered from this week’s sell-off. The softer labour data suggested less immediate pressure on Federal Reserve Chair Kevin Warsh to raise rates, with US Treasury mixed at the end of the week: 2-year yields were around 4.1% and 10-year yields were near 4.5%. The US Dollar Index was weaker, while Gold rebounded from recent weakness and was trading around USD 4180 per ounce. Bitcoin was also trading modestly higher around USD 61,700.

  • Date
  • Author Shane Strowmatt, Senior Investment Writer
  • Reading time 5 minutes

Jobs sign
© Schutterstock

US stocks ended mixed on Thursday as the Dow Jones Industrial Average climbed 1.1% to 52,900.07 after much weaker-than-expected US employment data for June eased concerns about higher interest rates. The S&P 500 finished essentially flat at 7483.24, while the Nasdaq 100 fell 1.6% to 29,329.21 as a sharp retreat in semiconductor shares offset early gains. Investors took comfort from June payroll growth coming in at only about half the expected pace, which market participants said reduced the immediate pressure on Federal Reserve Chair Kevin Warsh to tighten policy. US nonfarm payrolls rose by 57,000 in June, slowing from a downwardly revised 129,000 in May and falling short of market expectations, according to data released on Thursday. The unemployment rate eased to 4.2% from 4.3% in May, though it remained above 4.1% a year earlier, as labour force participation fell to 61.5%, its lowest since March 2021.

Asian shares recover on chip rebound

Asian equities rebounded on Friday as investors bought back technology stocks after this week’s sell-off, with South Korea’s KOSPI rising 6% after sharp losses over the previous two sessions. Japan’s Nikkei 225 gained 1.2%, Australia’s S&P/ASX 200 was 1.4% higher, Hong Kong’s Hang Seng Index jumped 1.1%, and mainland China’s CSI 300 was up 1%. Samsung Electronics rose 8% and SK Hynix gained 10% in a recovery across the region’s chip sector. Sentiment was also supported by subdued oil prices after US President Donald Trump said on Thursday that tensions with Iran had eased and Tehran appeared willing to return to talks. Brent crude oil and West Texas Intermediate (WTI) were trading around USD 72.32 and USD 69.10 per barrel, respectively.

Swiss inflation steady in June

Swiss consumer price inflation edged down to 0.5% year on year in June from 0.6% in April and May, according to data released on Thursday. The consumer price index was unchanged from May at 101.3 points, as higher prices for fruit and stem vegetables, hotels, car rentals and car sharing were offset by lower costs for air travel, heating oil and diesel. Core inflation, which excludes energy, fuels and fresh seasonal products, remained at 0.3%, underscoring that price pressures in Switzerland are still subdued. Switzerland’s Swiss Market Index advanced 1.7% on Thursday.

Euro-area unemployment stable in May

Euro-area unemployment held at 6.2% in May, unchanged from April and down from 6.3% a year earlier, according to data released by Eurostat on Thursday. The number of unemployed people in the euro area fell to 10.986 million from 11.041 million in April and 11.144 million in May 2025. European stock indices closed sharply higher on Thursday. The Euro Stoxx 50 gained 1.4%, while Germany’s DAX rose 2.2% and France’s CAC 40 added 1.7%.

Corporate and economic calendar

Corporate news in focus: There is no major corporate news scheduled today.

Economic data in focus: French manufacturing production (08:45), Italian Purchasing Managers’ Index (09:45), French Purchasing Managers’ Index (09:50), German Purchasing Managers’ Index (09:55), euro-area Purchasing Managers’ Index (10:00), European Central Bank President Christine Lagarde speaks (10:00), Italian retail sales (10:00), and UK Purchasing Managers’ Index (10:30).

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Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: Alessandro Fezzi
Source: LGT Bank (Switzerland) Ltd.