📷 Image Credits: Investing.com
World equities saw a rise on Wednesday as the U.S. dollar weakened in response to soft labor market data, boosting investor expectations of potential Federal Reserve interest rate cuts later in the year. U.S. Labor Department data revealed that initial claims for unemployment increased to 238,000 in the week ending June 29, slightly surpassing expectations and indicating a softening in labor market conditions.
MSCI’s global stocks gauge climbed by 0.71% to 812.52, with Europe’s STOXX 600 index also adding 0.74%. Portfolio strategist Jack Janasiewicz mentioned the possibility of Fed rate cuts in September, highlighting the overall positive economic backdrop despite slowing growth.
On Wall Street, the S&P 500 and Nasdaq achieved fresh closing highs, driven by gains in technology, utilities, and materials stocks. Meanwhile, healthcare equities led to a lower finish for the Dow. The Dow Jones Industrial Average dipped by 0.06% to 39,308.00, the S&P 500 rose by 0.51% to 5,537.02, and the Nasdaq Composite saw an 0.88% increase to 18,188.30.
The dollar index, measuring the greenback against major currencies, declined by 0.26% to 105.39, with the euro gaining 0.34% at $1.078. The decrease in initial jobless claims data and signs of manufacturing weakness led to a drop in benchmark 10-year Treasury yields by 8.1 basis points to 4.355%.
Oil prices experienced a 1% increase following a larger-than-expected decline in U.S. crude stocks. However, concerns over rising global inventories limited the gains ahead of the U.S. Independence Day holiday. Brent crude futures settled at $87.34 a barrel, while U.S. West Texas Intermediate (WTI) crude futures settled at $83.88.
Gold prices also surged by over 1% to a near two-week high as the U.S. dollar weakened. Spot gold rose by 1.13% to $2,355.62 an ounce, with U.S. gold futures gaining 1.66% to $2,361.60 an ounce.
