S&P 500 hits new record high but US markets mixed on stronger-than-expected jobs report; Nasdaq falls

The US markets traded mixed on June 7 after the jobs report came in stronger than expected. US nonfarm payrolls increase by 272,000 in the month of May, as against the Dow Jones estimate of 190,000. Although investors had been hoping for weak job data to nudge the Federal Reserve to cut interest rates, the markets now seem to reflect that the economy will remain strong either way.

The S&P 500 hit a new 52-week high of 5,370.30 during early trading hours and at 9pm IST, trading flat-to-positive at 5,357. The Dow Jones Industrial Average was also up 0.19 percent at 38,960. However, the Nasdaq Composite declined marginally to 17,165.

The GIFT Nifty fell 0.35 percent to 23,249 after Indian indices ended positive earlier during the day.

Indian indices resurged for the week’s end as the Sensex created a new record high of 76,795.31 during intraday trading hours. Nifty edged 2.05 percent higher to 23,290.15 and the Sensex ended 2.16 percent higher at 76,693.36. All major sectors also ended in green.

On Friday, the Reserve Bank of India’s Monetary Policy Committee (MPC) voted to keep the repo rates unchanged at 6.5 percent under the liquidity adjustment facility.

European markets traded in red a day after the European Central Bank announced to cut interest rates for the first time since September 2019. FTSE fell 0.48 percent to 8,245.37 and the Dax declined 0.52 percent to 18,555.39. CAC also ended 0.48 percent lower at 8,001.80.

Earlier during the day, the Asian indices also traded lower owing to weak global cues. The Hang Seng fell 0.59 percent to 18,366.95 and the Nikkei ended flat-to-negative at 38,683.93.

DIIs net sold Rs 1,289.75 crores in Indian equities while the FIIs/FPIs made a massive net purchase of Rs 4,391.02 crore.

Crude traded mixed as WTI traded 0.05 percent higher at $75.59 while Brent declined 0.15 percent to $79.75.