U.S. stocks experienced a positive boost on Friday as major technology companies rallied, and Treasury yields saw a decline following the release of key labor market data. The Nasdaq Composite marked its fourth consecutive session of gains, closing at a record high with a 0.9% increase. The S&P 500 also rose, reaching its third record of the week with a 0.5% gain. The Dow Jones Industrial Average edged up 0.2%, ending the week with a 0.7% increase. This week, both the S&P 500 and Nasdaq achieved their best performance since April, rising by 1.9% and 3.5% respectively.

The U.S. added 206,000 jobs in June, closely aligning with economists' predictions. However, the unemployment rate slightly rose from 4% in May to 4.1% in June. Additionally, annual wage growth decelerated from 4.1% the previous month to 3.9%. The job report presented a contrast compared to Tuesday's job openings and labor turnover survey, which surpassed expectations, and Wednesday's private payroll report from ADP, which fell below estimates.

Following the jobs report, Treasury yields experienced a decline. The Federal Reserve has been monitoring hiring and wage growth as indicators that high interest rates are effectively controlling inflation and stabilizing the economy.

Cryptocurrencies faced a slump as the defunct exchange Mt. Gox commenced payouts of nearly $9 billion to former creditors, leading to significant selling in the cryptocurrency market. Meanwhile, the dollar and oil saw minor decreases, while gold, silver, and copper futures advanced.

Market activity was paused on Thursday for Independence Day after both the Nasdaq and S&P 500 reached new record highs earlier in the week. The market was buoyed by soft manufacturing and services data, increasing hopes for potential interest rate cuts later in the year.

Tech stocks dominated the index on Friday, with Intel, Apple, and Microsoft reaching record highs with gains of 2.5%, 2.2%, and 1.5%, respectively. However, financials, including JPMorgan Chase and Travelers Co., lagged behind with declines of 1.3% and 0.9% respectively. Other notable performers included Meta, which surged 5.9%, and Alphabet, which climbed 2.6%. Advanced Micro Devices experienced a 4.9% increase after being named a top pick in AI stocks by New Street Research. Paramount continued its upward trend, rising 3.1%, following reports of potential merger talks with Skydance Media. Gold miner Newmont gained 2.4% due to the rising price of gold, partially driven by a weakening U.S. dollar and potential central bank purchases. Tesla also advanced by 2.1%, erasing its year-to-date losses.

Retail traders have shown a decrease in investments ahead of the upcoming earnings season, deviating from the trend seen in previous quarters. Retail investors have been heavily invested in Tesla shares, which have seen significant gains in the past three months. However, if positive momentum continues, retail investors may re-engage with Tesla stock, supporting it until it reaches at least the $250 level.

Bitcoin and other major cryptocurrencies faced a decline as the long-awaited repayment process of defunct exchange Mt. Gox began. The announcement sent bitcoin tumbling to its lowest point since February, reaching $54,000.

As enthusiasm for artificial intelligence (AI) continues to drive big tech stocks to record highs, experts warn that meeting investors' lofty expectations may become more challenging in the second half of the year. AI's long development timelines raise concerns about the timing of returns on AI investments. Goldman Sachs analysts project strong second-quarter earnings growth for tech giants such as Nvidia, Meta, Alphabet, Amazon, Microsoft, and Apple, but disappointments could be heavily penalized, potentially impacting the broader market.

Macy's stock experienced a significant surge after reports indicated that activist investors Arkhouse Management and Brigade Capital Management have increased their takeover offer for the department store chain. Macy's shares rose nearly 10% on news of the raised bid, which now values the company at $6.9 billion.

Tesla's stock, after a challenging first half of the year, has seen a remarkable turnaround in recent weeks. Anticipation of better-than-expected second-quarter deliveries resulted in an upward trajectory for the stock, which has now erased its year-to-date losses. The company's positive delivery report led to a gain of over 25% this week alone.

The latest data revealed that U.S. job growth in June slowed down, accompanied by a slight rise in the unemployment rate to 4.1%. The market perceived this as a hopeful sign that the Federal Reserve might consider cutting its benchmark interest rate in the coming months. Economists had predicted approximately 200,000 new job additions for June, with the unemployment rate remaining at 4%.

In addition, the Bureau of Labor Statistics revised the job growth figures downward for April and May. The May jobs figure was adjusted to 218,000 (a decrease of 54,000 jobs), while the April number was reduced by 57,000 to 108,000.

Overall, the positive performance of big tech stocks, the decline in Treasury yields, and the labor market data impacted the U.S. stock market on Friday. Traders and investors will continue to closely monitor economic indicators and earnings reports as they navigate the dynamic market landscape.