Another week another all-time high for equities as the S&P 500 index closed at 4350 for the first time. Strong economic data coupled with lower odds of a COVID resurgence fueled equity returns. Last month, the change in nonfarm payrolls surprised to the upside with an 850k gain in jobs, compared to expectations of 720k. Additionally, May was revised up 24k additional jobs. In total there was over 150k more jobs than expected at the end of June. The unemployment rate also went up to 5.9%, as more of those out of work are now looking for a job, adding more evidence of a strong economic recovery.
U.S. Treasury bond yields fell across the yield curve last week with steeper declines on the long end of the yield curve. Treasury yields trended down most of the week on weaker volume leading up to Friday’s June jobs report. The unemployment rate is expected to decline as the extra unemployment benefits are reduced at the state level and expire at the national level in September.