US stocks reached record highs on Friday as investors anticipate a rate cut from the Federal Reserve following a stronger-than-expected June jobs report. The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all saw gains, with tech giants like Apple, Amazon, Alphabet, and Meta leading the pack. The labor market added 206,000 jobs in June, surpassing expectations, but the unemployment rate also rose slightly to 4.1%. This data, along with signs of easing inflation, has increased the likelihood of a rate cut in September, with traders now pricing in a 75% chance. The 10-year Treasury yield continued to decrease, reflecting market expectations of lower interest rates. Investors are analyzing the job growth data to determine if it indicates a normalizing labor market post-pandemic or a broader economic slowdown on the horizon.