Strong Jobs Report Lifts U.S. Stocks to New Highs, While Gold Falls Under Pressure

Market Overview

The U.S. labor market showed surprising strength in June, with non-farm payrolls far exceeding expectations. This boosted market confidence and drove all major U.S. stock indices to new record highs. The S&P 500 and Nasdaq both logged a third consecutive weekly gain, with the Nasdaq advancing over 1%, led by tech stocks.

The robust job data prompted a sharp pullback in market expectations for a Fed rate cut in September. U.S. Treasury yields surged across the curve—10-year yields rose nearly 5 basis points, while 2-year yields climbed over 10 basis points.

The U.S. Dollar Index spiked sharply, rebounding more than 0.7% intraday before trimming gains to close up 0.4%.

Gold prices, pressured by rising yields and a stronger dollar, tumbled as much as 1.4% during the session. The move reflects increased risk appetite and a diminished need for safe-haven assets.

Hot Topics to Watch

🔹 Narrow Vote Passes the “Big & Beautiful” Bill in the House

Despite fierce opposition from Democrats, Republicans succeeded in passing the bill just before the July 4th deadline with a four-vote margin. The White House confirmed that Trump will sign it at 5:00 PM on July 4.

Ahead of the vote, Democratic leaders staged a near nine-hour protest speech, marking the longest in House history. Treasury Secretary Besant said markets perceive the bill as fiscally prudent and supportive of growth. The bill brings economic certainty and stability, encouraging businesses to hire, invest, and raise wages.

🔹 Japans Markets: Calm or Crisis？

Japan's 30-year bond auction on Thursday saw demand recover, with bid-to-cover ratios hitting a six-month high at 3.58. However, the auction results raised some red flags: the lowest accepted price came in below market expectations, and bond yields across the curve rose—suggesting investors still demand a higher risk premium.

Nomura analysts forecast that in upcoming U.S.-Japan trade talks, the U.S. will first push tariffs to heighten urgency in Japan, before both sides make concessions and claim victory. This process could trigger two risks: increased Japanese defense spending and a political setback for the LDP.

In the short term, equity market risks are elevated due to trade uncertainty and yen strength. Investors are advised to reduce exposure to Japanese equities and consider opportunities in long-duration bonds.

Key Focus(GMT+8)

🕔 17:00 EU – Eurozone May PPI MoM