Wall Street Hits New Record Levels Amid Strong US Labor Market

Again, the US labor market shows stubborn strength, which reduces the chances of a rate cut. At the same time, the New York stock exchange climbed to new record levels.

» Published: July 24 2025

Wall Street Hits New Record Levels Amid Strong US Labor Market
Photo: Richard Drew/AP/TT

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At the close, the broad S&P500 index had risen 0.1 percent and the technology-heavy Nasdaq's composite index 0.2 percent. The Dow Jones industrial index, on the other hand, fell 0.7 percent.

The surge meant that both the S&P500 and Nasdaq's composite index again closed at new record levels.

This is largely explained by investors' hopes that new customs agreements with the EU and China may be near.

During the day, new statistics also showed that the number of new applications for unemployment benefits during the seven-day period that ended on July 19 fell by 4,000 to 217,000 - fewer than the expected 227,000.

Increase pressure

Thus, the US labor market continues to show strength. It was the sixth week in a row that applications decreased, the longest period since 2022.

The labor market's strength will be considered when the central bank Federal Reserve's (Fed) monetary policy committee (FOMC) meets next week to decide on the interest rate - which today is in the range of 4.25-4.50 percent.

Chris Larkin, investment manager at online brokerage firm Etrade, points to the strong job figures.

If that picture remains intact, the Fed has one less reason to lower interest rates, he tells the news agency Bloomberg.

Tesla fell

The White House announces that President Donald Trump will visit the Fed later on Thursday, which will increase the pressure on Fed Chairman Jerome Powell, whom Trump has pressed hard for several weeks to lower interest rates, reports CNBC.

Google owner Alphabet, which released a strong quarterly report on Wednesday, closed up 1 percent on Thursday.

Alphabet pulled large parts of the tech sector upwards. Five of the seven highly index-heavy tech companies that together are called "The magnificent seven" - "the magnificent seven" - rose.

iPhone manufacturer Apple fell 0.2 percent.

Electric car company Tesla backed down more significantly - by 8.2 percent after a weak report and declining sales.

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By TTEnglish edition by Sweden Herald, adapted for local and international readers

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