EBC Financial Group Sees Shift in Investor Sentiment as Above-Expectation 147,000 Non-Farm Payrolls Reprice Markets
DC, UNITED STATES, July 4, 2025 / EINPresswire.com / -- The latest US Non-Farm Payrolls (NFP) data, released on 3 July, delivered an unexpected jolt to global financial markets. With 147,000 jobs added in June—far above the forecasted 110,000—and the unemployment rate ticking down to 4.1%, investor expectations for an imminent interest rate cut have sharply diminished. The ripple effect was immediate, with the US dollar staging a recovery across major currency pairs, gold prices falling, and equities reassessing their recent gains.
U.S. Labour Market Resilience Redefines Fed Policy Expectations
The headline jobs number surpassed consensus estimates and included upward revisions to previous months, highlighting labour market resilience despite persistent macroeconomic uncertainty. However, the strength was not uniform: private sector job creation slowed to just 74,000—the weakest since October 2024—while government hiring surged by 73,000.
Wage growth also came in softer than expected, with average hourly earnings rising by only 0.2% month-over-month, below the 0.3% forecast. While this may ease some inflation concerns, it adds complexity to the Federal Reserve's decision-making ahead of its next meeting.
'The June NFP report is both a reassurance and a warning,' said David Barrett, CEO of EBC Financial Group (UK) Ltd. 'On the one hand, job growth continues. On the other, weak private hiring and soft wages reveal deeper fault lines. For traders, the market response highlights the importance of staying agile—especially in FX pairs like USD/JPY and EUR/USD, where monetary divergence is becoming more pronounced.'
Currency Markets React Sharply to Fed Repricing
The US dollar strengthened broadly following the release. EUR/USD fell amid renewed speculation that the Fed will hold rates higher for longer. Technical support is expected near the 1.16 level, a previously tested zone.
USD/JPY surged above the 145 mark, with traders now eyeing the 50-day Exponential Moving Average (EMA). Markets are watching Japan closely as speculation mounts over the Bank of Japan's potential return to quantitative easing. In contrast, AUD/USD held near 0.6550 with muted upward momentum, suggesting continued consolidation unless broader risk appetite improves.
'This is a decisive moment for currency traders,' Barrett added. 'Differentiating between short-term reactions and longer-term structural shifts will define opportunities in Q3.'
Gold Slips Below $3,350 as Yields Rebound
Gold (XAU/USD) dropped to trade below $3,350 as stronger employment data spurred a rebound in U.S. Treasury yields and dampened rate-cut expectations. The precious metal also came under pressure from technical resistance at its 20-day Simple Moving Average (SMA) and the 78.6% Fibonacci retracement near $3,372.
Still, with political pressure on the Fed mounting and upcoming trade policy developments, including the 9 July tariff deadline—volatility remains a key theme. Some investors may seek refuge in gold should geopolitical or fiscal instability resurface.
Looking Ahead: Inflation, Tariffs, and Cautious Central Banks
The CME FedWatch Tool showed market-implied probability for a July rate cut falling from 25.3% to just 4.7% after the report, while likelihood of a September cut also dropped significantly. With wage growth slowing but the labor market still adding jobs, the Fed is likely to take a 'meeting-by-meeting' approach, as reiterated by Chair Jerome Powell during this week's European Central Bank forum.
Meanwhile, global risk sentiment will be tested next week as the U.S. approaches a politically charged tariff decision on 9 July, potentially affecting trade-sensitive sectors and broader economic confidence.
Disclaimer: This information reflects the observations of EBC Financial Group and all its global entities. It is not financial or investment advice. Trading Contracts for Difference (CFDs) entail a substantial risk of swift financial loss due to leverage, rendering it inappropriate for all investors; thus, a thorough evaluation of your investment objectives, expertise, and risk appetite is imperative prior to engagement, as EBC Financial Group and its entities are not liable for any damages arising from reliance on this information.
###
About EBC Financial Group
Founded in London, EBC Financial Group (EBC) is a global brand known for its expertise in financial brokerage and asset management. Through its regulated entities operating across major financial jurisdictions—including the UK, Australia, the Cayman Islands, Mauritius, and others—EBC enables retail, professional, and institutional investors to access global markets and trading opportunities, including currencies, commodities, CFDs and more.
Trusted by investors in over 100 countries and honoured with global awards including multiple year recognition from World Finance, EBC is widely regarded as one of the world's best brokers with titles including Best Trading Platform and Most Trusted Broker. With its strong regulatory standing and commitment to transparency, EBC has also been consistently ranked among the top brokers—trusted for its ability to deliver secure, innovative, and client-first trading solutions across competitive international markets.
EBC's subsidiaries are licensed and regulated within their respective jurisdictions. EBC Financial Group (UK) Limited is regulated by the UK's Financial Conduct Authority (FCA); EBC Financial Group (Cayman) Limited is regulated by the Cayman Islands Monetary Authority (CIMA); EBC Financial Group (Australia) Pty Ltd, and EBC Asset Management Pty Ltd are regulated by Australia's Securities and Investments Commission (ASIC); EBC Financial (MU) Ltd is authorised and regulated by the Financial Services Commission Mauritius (FSC).
At the core of EBC are a team of industry veterans with over 40 years of experience in major financial institutions. Having navigated key economic cycles from the Plaza Accord and 2015 Swiss franc crisis to the market upheavals of the COVID-19 pandemic. We foster a culture where integrity, respect, and client asset security are paramount, ensuring that every investor relationship is handled with the utmost seriousness it deserves.
EBC is a proud official foreign exchange partner of FC Barcelona and continues to drive impactful partnerships to empower communities – namely through the UN Foundation's United to Beat Malaria initiative, Oxford University's Department of Economics, and a diverse range of partners to champion initiatives in global health, economics, education, and sustainability.
https://www.ebc.com/
Michelle Siow
EBC Financial Group
+ +60 163376040
email us here
Visit us on social media:
YouTube
X
Other
Legal Disclaimer:
EIN Presswire provides this news content 'as is' without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNET
11 minutes ago
- CNET
Today's NYT Mini Crossword Answers for Aug. 17
Looking for the most recent Mini Crossword answer? Click here for today's Mini Crossword hints, as well as our daily answers and hints for The New York Times Wordle, Strands, Connections and Connections: Sports Edition puzzles. If you know your state capitals, especially a certain one that isn't spelled the way it's pronounced, you'll do well on today's puzzle. Need some help with today's Mini Crossword? Read on. And if you could use some hints and guidance for daily solving, check out our Mini Crossword tips. If you're looking for today's Wordle, Connections, Connections: Sports Edition and Strands answers, you can visit CNET's NYT puzzle hints page. Read more: Tips and Tricks for Solving The New York Times Mini Crossword Let's get to those Mini Crossword clues and answers. The completed NYT Mini Crossword puzzle for Aug. 17, 2025. NYT/Screenshot by CNET Mini across clues and answers 1A clue: Salsa, hummus, queso, etc. Answer: DIPS 5A clue: U.S. state capital that rhymes with 9-Across (not 7-Across!) Answer: PIERRE 7A clue: What broadcasters are on Answer: THEAIR 8A clue: "Yes and no ..." Answer: SORTOF 9A clue: Societal equal Answer: PEER Mini down clues and answers 1D clue: John ___ (tractor company) Answer: DEERE 2D clue: Boiling mad Answer: IRATE 3D clue: "Sorry, I have a ___ commitment" Answer: PRIOR 4D clue: Laborer in medieval times Answer: SERF 5D clue: A touchdown is worth six: Abbr. Answer: PTS 6D clue: Breakfast chain typically open 24 hours a day Answer: IHOP
Yahoo
15 minutes ago
- Yahoo
This Red-Hot Vanguard ETF Just Hit an All-Time High. Here's Why It's Still Worth Buying in August.
Key Points The Vanguard Dividend Appreciation ETF is hovering around an all-time high due to the strong performance of megacap stocks. Unlike some income-oriented ETFs, the Vanguard Dividend Appreciation ETF has considerable exposure to growth-focused sectors like technology. Many companies outside the ten largest holdings in the ETF have high dividend yields and multi-decade track records of boosting their payouts. 10 stocks we like better than Vanguard Dividend Appreciation ETF › Exchange-traded funds (ETFs) are a way to invest in dozens, hundreds, or even thousands of stocks under a single ticker. Some ETFs track indexes, while others target themes, such as growth stocks, value stocks, or passive income. The Vanguard Dividend Appreciation ETF (NYSEMKT: VIG) is unique because it accomplishes several investment objectives -- from holding positions in top growth stocks to being a decent vehicle for collecting passive income. Here's why the ETF is still worth buying in August, even though it's at an all-time high. Not your typical list of top dividend stocks Instead of focusing solely on dividend yield, the Dividend Appreciation ETF targets companies that are growing their earnings and can support future dividend raises. Company Percentage of Fund Dividend Yield Broadcom (NASDAQ: AVGO) 6.1% 0.7% Microsoft 5.2% 0.6% JPMorgan Chase 4.1% 1.8% Apple 3.4% 0.4% Eli Lilly 2.9% 0.8% Visa 2.7% 0.7% ExxonMobil 2.4% 3.7% Mastercard 2.3% 0.6% Costco Wholesale 2.0% 0.5% Walmart 2.1% 0.9% Data sources: Vanguard, YCharts. As you can see in the table, eight of the 10 largest holdings in the ETF have yields under 1%. However, the lineup features industry leaders across a variety of sectors -- including technology, financials, consumer staples, healthcare, and energy. Funds that pursue higher-yielding stocks tend to be overweight low-growth sectors and underweight growth-focused sectors -- like tech. But because the Vanguard Dividend Appreciation ETF prioritizes companies that can support a growing dividend with higher earnings, it can include tech giants like Broadcom, Apple, and Microsoft. Broadcom and Apple have increased their dividends for 14 consecutive years, and Microsoft has a 15-year streak. These stocks sport low yields not because they haven't been boosting their payouts, but because their stock prices have gone up by so much. In this vein, the Dividend Appreciation ETF doesn't penalize companies for having low yields because they have been winning investments. A higher yield and lower valuation than the S&P 500 Many of the largest holdings in the ETF sport low yields. But the top 10 holdings only make up 32.6% of the ETF. Just outside of the top 10, holdings 11 through 20 are Procter & Gamble, Johnson & Johnson, Home Depot, Oracle, AbbVie, Bank of America, UnitedHealth Group, Cisco Systems, Coca-Cola, and International Business Machines. Combined, these names make up 15.8% of the fund. However, many of these names have higher yields and extensive track records of boosting their payouts. Because a sizable chunk of the larger holdings in the Vanguard Dividend Appreciation ETF are blue chip stocks with higher yields and reasonable valuations, the fund sports a relatively attractive valuation and dividend yield compared to the S&P 500. In fact, the price-to-earnings (P/E) ratio of the Vanguard Dividend Appreciation ETF is 25.7 and its yield is 1.7% compared to the Vanguard S&P 500 ETF (NYSEMKT: VOO) -- which has a 27.8 P/E and a 1.2% yield. A balanced fund you can confidently buy and hold Buying stocks or ETFs at all-time highs seems counterintuitive. After all, who wants to pay a record price for something? However, the Vanguard Dividend Appreciation ETF could appeal to investors who are looking to put capital to work in the market without betting big on companies with lofty valuations. The ETF's emphasis on dividend quality over quantity will appeal to long-term investors who want to make sure they aren't achieving a high yield just by investing in mediocre companies. The fund could be an especially good pick for folks who don't want to collect passive income at the expense of limiting their exposure to tech stocks. Nvidia has been the poster child of artificial intelligence investor excitement, but Broadcom, the largest holding in the Vanguard Dividend Appreciation ETF, has been no slouch -- with a staggering 474% gain in just three years. All told, the ETF is a great way to balance exposure to megacap growth stocks and blue chip dividend-paying value stocks -- which could make the fund a better buy for certain investors than the Vanguard S&P 500 ETF. Should you buy stock in Vanguard Dividend Appreciation ETF right now? Before you buy stock in Vanguard Dividend Appreciation ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vanguard Dividend Appreciation ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $663,630!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,115,695!* Now, it's worth noting Stock Advisor's total average return is 1,071% — a market-crushing outperformance compared to 185% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 Bank of America is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Daniel Foelber has positions in Nvidia and Procter & Gamble. The Motley Fool has positions in and recommends AbbVie, Apple, Cisco Systems, Costco Wholesale, Home Depot, International Business Machines, JPMorgan Chase, Mastercard, Microsoft, Nvidia, Oracle, Vanguard Dividend Appreciation ETF, Vanguard S&P 500 ETF, Visa, and Walmart. The Motley Fool recommends Broadcom, Johnson & Johnson, and UnitedHealth Group and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. This Red-Hot Vanguard ETF Just Hit an All-Time High. Here's Why It's Still Worth Buying in August. was originally published by The Motley Fool
Yahoo
15 minutes ago
- Yahoo
Cathie Wood Just Loaded Up on This Defense Stock (Hint: It's Not Palantir)
Key Points One of Cathie Wood's largest positions in the Ark portfolio is Palantir Technologies, which dominates the military intelligence pocket of the artificial intelligence (AI) realm. More recently, she has been building a stake in one of Palantir's key partners. As AI becomes a higher priority for military operations, traditional defense contractors could be positioned for long-term gains. 10 stocks we like better than L3Harris Technologies › CEO and chief investment officer of Ark Invest Cathie Wood earned a reputation for making high-conviction bets on disruptive, speculative opportunities aimed at toppling legacy incumbents in markets such as financial services, technology, and pharmaceuticals. When it comes to artificial intelligence (AI) stocks, it's no surprise that Wood has taken a liking to data analytics powerhouse Palantir Technologies, the third-largest holding across Ark's exchange-traded funds (ETFs). Every now and then, however, Wood quietly complements Ark's high-growth positions with a select group of blue-chip counterparts. In Palantir's case, the company is often linked with an emerging corner of the AI realm, using its analytics platforms to bolster the capabilities of the U.S. Department of Defense (DOD). While Palantir will likely remain a core Ark position, recent buying activity hints that Wood may be broadening her exposure within the national security arena, scouting for under-the-radar opportunities even as Palantir remains her flagship pick at the intersection of AI and military operations. Throughout the summer, Wood has been accumulating shares of L3Harris Technologies (NYSE: LHX) in both the ARK Space Exploration & Innovation and ARK Autonomous Technology & Robotics funds. Let's explore what may have prompted this move and assess if defense tech investors should consider looking beyond familiar names like Palantir. Understanding how AI fits into the defense equation While AI has become the dominant megatrend driving the technology sector, most conversations still center on chips, data centers, cloud infrastructure, or workplace productivity tools. Behind the scenes, however, AI is rapidly emerging as a transformative tailwind reshaping modern military strategy. AI's applications in national security range from satellite imagery analysis and equipment maintenance to cybersecurity threat detection and autonomous navigation for unmanned systems like drones. Among established defense contractors, the usual names include Northrop Grumman, General Dynamics, Lockheed Martin, Boeing, RTX, Kratos Defense & Security Solutions, and L3Harris. Palantir stands apart from these incumbents thanks to its versatile AI platforms, including Foundry and Gotham. This integrated ecosystem has positioned Palantir as the operating system supporting a wide range of military operations, securing billion-dollar contracts with the Army and Navy, and extending its reach overseas through collaborations with U.S. allies in NATO. Why might Cathie Wood like L3Harris stock? Like many of its peers mentioned above, L3Harris manufactures mission-critical systems poised to benefit from deeper integration of AI-enhanced capabilities. This makes it plausible that Wood is targeting stealth opportunities to complement Ark's more pure play AI holdings, such as Palantir. That same logic helps explain why several defense-adjacent companies such as electric vertical take-off and landing aircraft (eVTOL) Archer Aviation and Joby Aviation, Kratos, AeroVironment, and Lockheed found a place in Ark's portfolio. When it comes to L3Harris however, I think there is a more specific catalyst behind Wood's recent buying. While Palantir often commands the spotlight in the DOD's high-profile technology awards, many other contractors secure portions of these deals. L3Harris is one of them, partnering with Palantir to develop the Army's next-generation ground transportation systems under the Titan program. During the company's second-quarter earnings call, L3Harris CEO Christopher Kubasik even highlighted the collaboration, noting, "our ongoing partnership with Palantir on the U.S. Army's Titan program continues to mature". Is L3 Harris stock a buy? The comparable company analysis benchmarks L3Harris against a peer set of leading defense contractors on an enterprise value-to-EBITDA (EV/EBITDA) basis. From a valuation standpoint, L3Harris trades at an EV/EBITDA multiple of 16.4 -- a discount to historical peaks but still on the higher end of this cohort. Despite this relative premium, analysts largely view L3Harris through the lens of a conventional defense contractor, valuing the company based on its current contracts and pipeline. I think that the upside from AI integration is not yet fully reflected in L3Harris's share price. As AI-enabled services become a greater priority at the Pentagon, the narrative around traditional contractors could shift especially as they form deeper ties with leading technology platforms like Palantir -- as L3Harris is already doing. For this reason, I see L3Harris as well positioned for long-term valuation expansion and consider it a savvy buy at current levels. Should you invest $1,000 in L3Harris Technologies right now? Before you buy stock in L3Harris Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and L3Harris Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $663,630!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,115,695!* Now, it's worth noting Stock Advisor's total average return is 1,071% — a market-crushing outperformance compared to 185% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 Adam Spatacco has positions in Palantir Technologies. The Motley Fool has positions in and recommends AeroVironment, L3Harris Technologies, and Palantir Technologies. The Motley Fool recommends Lockheed Martin and RTX. The Motley Fool has a disclosure policy. Cathie Wood Just Loaded Up on This Defense Stock (Hint: It's Not Palantir) was originally published by The Motley Fool 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
