Markets Rally as Fed Rate Cut Expectations Surge Ahead of June Jobs Report

The S&P 500 soared to record highs, marking its first all-time peak since February with a 3.5% weekly gain. The Nasdaq Composite outperformed, climbing 4.1% as investor Optimism swelled around impending Federal Reserve rate cuts. Markets now price in a 93% probability of easing by September, up sharply from 70% just a week prior.

All eyes turn to Thursday's June employment report, where economists anticipate 116,000 new nonfarm payrolls and a slight uptick in unemployment to 4.3%. These figures will prove pivotal for monetary policy direction amid the current risk-on environment. Trading activity will compress around the Independence Day holiday, with early closures Thursday and full shutdown Friday.

The rally reflects growing institutional conviction in accommodative policy, though cryptocurrency markets remain watchful for spillover effects. No direct crypto mentions surfaced in this equities-focused report, but digital assets typically exhibit heightened volatility during major macroeconomic shifts.