Markets Rally as Cooling Jobs Data Dampens Rate Hike Expectations

The Labor Department’s latest figures, which included a downward revision for May, suggest a cooling labor market that has fundamentally altered the yield environment. The U.S. 2-year yield fell to 4.11%, providing a cushion for technology stocks grappling with the heavy capital expenditures required for artificial intelligence expansion.

Broader market movements remained volatile. While tech valuations found some support, semiconductor stocks faced selling pressure due to portfolio rebalancing. Commodities also reacted to the shifting economic landscape; Brent crude slipped 1.4% to a four-month low amid reports of diplomatic progress between the U.S. and Iran, while gold prices surged 2.2% as lower bond yields reduced the opportunity cost of holding non-yielding assets.