NEW YORK (Reuters) – The New York Stock Exchange ended higher on Friday, with most large-cap stocks hitting new records after the release of recent U.S. jobs data, which bolstered hopes of an upcoming rate cut by the Federal Reserve.

The Dow Jones Industrial Average gained 0.2 percent, or 67.87 points, to 39,375.87. The broader Standard & Poor’s 500 gained 30.17 points, or 0.5 percent, to 5,567.19, setting a third consecutive record close. The Nasdaq Composite advanced 164.457 points, or 0.9 percent, to 18,352.759, hitting a new high for the fourth consecutive day.

Over the week, the S&P 500 gained nearly 2%, the Nasdaq 3.5% and the Dow Jones more than 0.6%.

Investors responded well to the latest U.S. employment indicators, which showed that unemployment rose in June and that the economy is showing signs of slowing, a configuration that should theoretically encourage the Federal Reserve to cut rates.

“The jobs data doesn’t indicate an imminent recession, but it does support the soft landing thesis,” said Jack McIntyre, portfolio manager at Brandywine Global. “It clearly reinforces the Fed’s confidence that policy rates are too restrictive and need to be cut.”

Market optimism has particularly benefited large capitalizations, with Microsoft, Meta Platforms, Amazon.com and Apple in particular having enabled the information technology sector to set a record closing price.

Conversely, the banking sector ended in the red, with high interest rates and economic uncertainty weighing on bank revenues. Bank of America, Wells Fargo and JPMorgan & Chase lost between 1.2% and 1.7%.

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(Written by Ankika Biswas, Lisa Pauline Mattackal and Saeed Azhar, Tangi Salaün)

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