S&P closes at record high as soft jobs report eases rate-hike concerns
Nonfarm payrolls drop by 23,000 jobs in July, below estimates, US Labour Department says
On August 7, the S&P 500 reached a record high as US stocks experienced a strong week of gains. This followed a surprise drop in nonfarm payrolls, which decreased by 23,000 jobs in July, far below economists' expectations of an 80,000 job increase. The unemployment rate fell to 4.1 percent in July from 4.2 percent in June, as workers left the labor force.
The market's expectation of a Federal Reserve rate hike at its September meeting dropped to 44 percent, from 55 percent the previous day and 67 percent a week prior. Signs of progress towards a potential peace deal in the Iran war helped lower oil prices and inflation concerns, prompting a rate hike delay and declining Treasury yields.
Strong earnings for companies throughout the third quarter have also tempered concerns about the substantial spending by AI-related businesses.
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- S&P 500 closes at record high as weak jobs data lifts markets qatar-tribune.com
- S&P closes at record high as soft jobs report eases rate-hike concerns freemalaysiatoday.com
