The S&P/ASX 200 jumped 0.9% to a record close of 8,637 on Thursday, driven by gains in major banks after soft labor data boosted expectations of an RBA rate cut in August. Australia’s jobless rate rose to 4.3% in June, the highest since late 2021, with only 2,000 jobs added - well below the forecast 20,000. The soft labor market print added to evidence of a slowing economy, strengthening the case for policy easing. Markets now price in a 90% chance of easing at the August meeting, after the RBA held steady earlier this month, citing the need for more evidence of sustained disinflation. The index also followed Wall Street’s positive lead after US President Trump signaled no intention to remove Fed Chair Powell, easing concerns over central bank independence. On the corporate side, financials rose 1.3%, with the Big Four banks up 1% to 1.6%, supported by optimism that lower rates will boost credit demand and profitability. Real estate stocks also advanced 1.4%, led by Goodman Group (1%).