US Stocks Hit Record Highs on Jobs Report; Trump's Tax Bill Passes

Market Reaction to Jobs Data

• 📈 US stocks reached fresh all-time highs, with the S&P 500 climbing 0.8% in a shortened trading session ahead of the July 4th holiday.
• 📉 Bonds fell and the dollar rose as stronger-than-expected employment growth eased concerns about an economic slowdown and the Federal Reserve cutting interest rates soon.
• 💡 The jobs report showed 147,000 jobs added, significantly surpassing the consensus expectation of 106,000, with good revisions and lower-than-expected wage inflation.
• ⚠️ Despite higher bond yields, stocks continued to rally, with the Russell 2000 outperforming larger-cap names in recent sessions.

Key Stock Movements and Analysis

• 🚀 ServiceNow saw a significant gain following a price target bump from Morgan Stanley, benefiting from strong momentum and subscription revenue.
• 💡 Data Dog surged nearly 15% on news of its addition to the S&P 500 and its alignment with recent AI trends, including a partnership with OpenAI.
• 🚗 Counterintuitively, Lucid and Rivian gained despite the sunsetting of EV tax credits, with a narrative suggesting potential market share gains from other EV makers pulling back.
• 📉 Robinhood experienced a decline after not being included in the S&P 500, while Centene extended losses after withdrawing its profit outlook.
• 💰 Merck closed down but is attracting interest from