Dow Jones Rallies on Rate Cut Bets as Labor Market Weakens

Markets surged as softening labor data fueled expectations of imminent Federal Reserve rate cuts. The Dow Jones Industrial Average climbed 343 points (0.80%) on June 26, while the S&P 500 edged toward record highs at 6,132 points - just shy of February's peak. Tech stocks outperformed with Nasdaq gaining 0.70%.

Nvidia's relentless rally continues, reclaiming its crown as the world's most valuable company at $3.77 trillion market capitalization. The chipmaker's ascent has ignited parallel gains across semiconductor sectors globally.

Investors appear to have discounted Middle East geopolitical risks, shifting focus squarely to monetary policy. Thursday's unemployment claims reaching 1.974 million - the highest since November 2021 - served as the latest catalyst for risk asset appreciation.