US stocks cleared alltime highs on Friday as investors embraced the idea that the June jobs report will push the Federal Reserve closer to a rate cut.

The S&P 500 (^GSPC) advanced around 0.6% on the heels of the new data after notching a record close in a shortened session on Wednesday. The Dow Jones Industrial Average (^DJI) climbed 0.2%, while the techheavy Nasdaq Composite (^IXIC) increased 0.9%, led by the gains of the tech giants.

Apple (AAPL), Amazon (AMZN), Alphabet (GOOG, GOOGL), and Meta (META), were among the market leaders whose stocks notched records on Friday.

And all three gauges logged wins for the first trading week of the back half of the year.

The labor market took the spotlight Friday, as the US economy added 206,000 jobs in June, more than the 190,000 expected on Wall Street. But the unemployment rate unexpectedly rose slightly to 4.1%, its highest level since November 2021, in another signal the jobs market continues to cool.

Signs of looser conditions in labor data earlier this week bolstered the idea that inflation will keep easing, setting the stage for the Fed to lower interest rates from their current twodecade high. Traders are now pricing in a 75% chance of a cut in September, according to CME's FedWatch tool.

The 10year Treasury yield (^TNX) fell to 4.27%, continuing a slide for the week.

Investors are digesting Friday's jobs data to decide whether slowing monthly job growth reflects a normalization in the labor market as it shakes off the pandemic or marks the early signs of a broader economic slowdown.

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