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Indexes up: S&P 500 0.67%, Nasdaq 0.79%, Dow 0.64%

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US job growth beats expectations in June

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Tripadvisor ( TRIP ) gains on report Starboard Value built stake

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Synopsys ( SNPS ), Cadence rise as US lifts China export curbs

(Updates with market open prices)

By Sruthi Shankar and Nikhil Sharma

July 3 (Reuters) -

The S&P 500 and the Nasdaq touched fresh record highs on

Thursday after a stronger-than-expected jobs report pointed to a

resilient labor market amid concerns about U.S. President Donald

Trump's tariff policies potentially weighing on the economy.

Nvidia ( NVDA ) was trading at a record high, up 2.2%, and

was track to become the most valuable company in history, with

the chipmaker's market capitalization nearing $4 trillion.

Data showed nonfarm payrolls increased by 147,000 jobs last

month after an upwardly revised 144,000 advance in May, while

economists polled by Reuters had forecast payrolls rising

110,000. Unemployment fell to 4.1% last month, against

expectations of a rise to 4.3%.

"We were all expecting the hard data would start to show

some cracks, and we really haven't seen that with the jobs

report coming in much better than expected," said Brian Klimke,

chief market strategist at Cetera Investment Management LLC.

"That just puts the Fed on pause and gives it more time to

wait right now because the labor market is really resilient."

Traders quickly priced out chances of an interest-rate cut

in July, with the odds of a 25-basis-point reduction in

September at 69.2%, according to CME Group's Fedwatch tool, down

from 74% a week ago.

The data was released a day early because of the

Independence Day holiday on Friday. Trading volumes were lighter

than usual on Thursday with markets due to close early, at 1

p.m. ET.

Another dataset showed the number of Americans filing new

applications for jobless benefits fell to a six-week low last

week.

U.S. services sector activity

picked up

in June as orders rebounded but employment contracted for

the third time this year, underlining the impact of policy

uncertainty on businesses.

The S&P 500 and Nasdaq extended their

record-winning session as signs of a resilient economy and

easing trade tensions following a series of agreements between

the United States and other countries continue to propel stocks

higher.

Meanwhile, the blue-chip Dow was just 0.8% below

all-time highs touched in December.

All three main indexes were on track to end the

holiday-truncated week on a positive note, if gains hold.

Meanwhile, Republicans in the U.S. House of Representatives

advanced President Donald Trump's massive tax-cut and spending

bill toward a final yes-or-no vote, appearing to overcome

internal party divisions over its cost.

The legislation is expected to add $3.4 trillion to the

nation's $36.2 trillion in debt over the next decade, according

to nonpartisan analysts.

At 10:03 a.m. ET, the Dow Jones Industrial Average

rose 284.02 points, or 0.64%, to 44,769.03, the S&P 500

gained 41.23 points, or 0.67%, to 6,268.65, and the Nasdaq

Composite gained 161.74 points, or 0.79%, to 20,554.87.

Shares of chip design software firms Synopsys ( SNPS ) and

Cadence Design Systems ( CDNS ) climbed 3% and 3.7%,

respectively, in premarket trading after the U.S. lifted export

restrictions on chip design software to China, signaling a thaw

in trade tensions between the world's top two economies.

Tripadvisor ( TRIP ) climbed 15% after the Wall Street

Journal reported activist investor Starboard Value had built a

more than 9% stake in the online travel company.

Datadog ( DDOG ) jumped 9.4% after the cloud security firm

was set to replace Juniper Networks on the S&P 500.

U.S. solar stocks jumped in early trading, with First Solar ( FSLR )

rising about 10% to become the top-performing

individual stock on the S&P 500 index.

Advancing issues outnumbered decliners by a 2.53-to-1

ratio on the NYSE, and by a 2.29-to-1 ratio on the Nasdaq.

The S&P 500 posted 36 new 52-week highs and one new low,

while the Nasdaq Composite recorded 85 new highs and 13 new

lows.