Market Performance - The US stock market experienced strong performance on July 3, with all three major indices rising. The S&P 500 index increased by 51.94 points, or 0.83%, closing at 6279.36 points. The Nasdaq Composite index climbed 207.97 points, or 1.02%, ending at 20601.10 points. The Dow Jones Industrial Average rose by 344.11 points, or 0.77%, closing at 44828.53 points. Both the S&P 500 and Nasdaq indices set new closing records, marking the S&P 500's seventh record close of the year and the Nasdaq's fourth record close of the year. Due to the public holiday, the US stock market closed early with relatively light trading volume [1]. Technology Sector - The technology sector was the main driver of the market's rise, with several leading tech stocks recording significant gains. Nvidia's stock price rose by 1.3%, reaching a historic high with a market capitalization of $3.89 trillion. The company briefly surpassed the $3.9 trillion market cap threshold, coming close to Apple's record for the highest global market capitalization. Amazon's stock increased by 1.59%, Microsoft by 1.58%, and Meta Platforms by 0.76%. Apple saw a 0.52% increase, while Alphabet rose by 0.5%. Tesla was an exception in the tech sector, closing down by 0.1% [3]. - Nvidia's strong performance was supported by multiple factors. OpenAI recently announced it would not adopt Google's TPU chips on a large scale and would continue to rely on Nvidia's GPUs and AMD's AI accelerators for its model training and inference work. OpenAI's reasoning was that these two chip manufacturers' products are "performance-validated" and have "existing supply agreements." This statement sent a positive signal to the market, indicating that Nvidia and AMD will remain core suppliers for OpenAI, potentially limiting Google's growth in the AI hardware market share [3]. Employment Data - The US Bureau of Labor Statistics reported that June non-farm payrolls exceeded market expectations, providing significant support for the stock market. In June, non-farm employment increased by 147,000 jobs, far surpassing analysts' expectations of 110,000, representing a 33% increase. The unemployment rate fell to 4.1%, better than the expected 4.3%. Average hourly earnings rose by 0.2% month-over-month and increased by 3.7% year-over-year, indicating a moderate wage growth trend that helps alleviate inflationary pressures [4]. - Employment growth showed structural characteristics, with government sector employment increasing by 73,000 jobs, primarily driven by state and local education positions. Healthcare added 39,000 jobs, and social assistance increased by 19,000 jobs. The federal government saw a reduction of 7,000 jobs due to layoffs. Additionally, employment data for the previous two months was revised upward, with April's figures adjusted from 147,000 to 158,000 and May's from 139,000 to 144,000, totaling an upward revision of 16,000 jobs [4]. - The strong employment data impacted expectations for the Federal Reserve's monetary policy. Before the data release, traders estimated a 25% probability of a rate cut in July. Following the report, market expectations for a short-term rate cut quickly diminished. The Chicago Mercantile Exchange's FedWatch tool indicated that the likelihood of a July rate cut fell to single digits, and the expectation for a 25 basis point cut in September decreased from 74% a week prior to 68% [4].

Market Overview - The U.S. stock market saw all three major indices rise, with the S&P 500 up 0.83%, Nasdaq up 1.02%, and Dow Jones up 0.77%, reaching all-time closing highs [1][3] - For the week, the S&P 500 rose 1.7%, Nasdaq increased by 1.6%, and Dow Jones gained 2.3% [1] Employment Data - The U.S. Labor Department reported a non-farm payroll increase of 147,000 in June, surpassing the expected 110,000, with the unemployment rate dropping to 4.1% [3] - Average hourly earnings rose by 0.2% month-over-month and 3.7% year-over-year, indicating reduced inflationary pressures [3] - Government employment saw a significant increase of 73,000, primarily due to state and local government jobs, especially in education [3] - Initial jobless claims fell by 4,000 to 233,000, marking a six-week low, which was below economists' expectations [4] Federal Reserve Outlook - Following the employment data release, the probability of a rate cut by the Federal Reserve in July decreased from 23.8% to 4.7%, with expectations shifting towards a potential cut in September instead [5] Technology Sector - Nvidia's stock reached a historic high, closing up 1.33% and briefly surpassing a market capitalization of $3.9 trillion [8] - OpenAI announced it would continue to rely on Nvidia GPUs and AMD AI accelerators for model training, citing their proven performance and existing supply agreements [8] Banking Sector - Major banks saw collective gains, with Citigroup up over 2%, JPMorgan up nearly 2%, and Goldman Sachs, Wells Fargo, and Morgan Stanley also rising [9] Energy Sector - Energy stocks showed mixed results, with ExxonMobil up 1% while ConocoPhillips and Occidental Petroleum saw slight declines [10] Chinese Stocks - The Nasdaq Golden Dragon China Index rose by 0.4%, with notable gains in certain Chinese stocks, including Brain Rejuvenation Technology, which surged nearly 122% [10] Federal Reserve Leadership - U.S. Treasury Secretary indicated that the selection process for the next Federal Reserve Chair will begin in the fall, with several candidates being considered [12][14]