US Jobs Report Cools Fed Hike Bets

The US economy added 57,000 jobs in June, falling short of the 100,000 expected and indicating a slowdown from May's hiring pace. This weaker-than-expected jobs report has significantly eased pressure on the United States — Federal Reserve to raise interest rates, with traders now seeing an 80-82% chance of no hike at the upcoming meeting. This development led to a rally in US stocks, with the S&P 500 and Dow Jones Industrial Average rising, while Treasury yields fell. The US dollar weakened against other major currencies, providing relief for the Japan — Japanese yen, which had been at 40-year lows. However, chip stocks, including Micron Technology, AMD, Nvidia, and Applied Materials, continued to face pressure due to concerns over artificial intelligence technology valuations, causing sharp declines in Asian markets like South Korea's KOSPI index, Japan's Nikkei 225, and the Shanghai Stock Exchange Composite Index. Oil prices also continued to sink on hopes for negotiations to end the war with Iran. Companies like National Beverage and Dollar Tree saw their stocks climb due to positive company-specific news.