Stocks Settle Mostly Lower on Hawkish US Payroll Report

Stocks closed mostly lower on Friday, following a stronger-than-expected U.S. jobs report that raised speculation of a possible Fed interest rate hike this year. The S&P 500 Index fell by -0.38%, the Dow Jones Industrial Average declined by -0.51%, and the Nasdaq 100 Index rose by +0.21%. E-mini S&P futures and September E-mini Nasdaq futures also closed lower or higher.

The broader market faced pressure due to the improved U.S. employment data, which increased the likelihood of a Fed rate hike. The chance of a 25 basis point rate hike at the upcoming FOMC meeting rose to 60% from 52% before the report. Stronger-than-expected U.S. nonfarm payrolls and revised upward July payrolls contributed to the bullish sentiment, as did positive Q2 earnings results and the anticipation of AI spending driving most of the earnings growth.

However, software stocks, including Autodesk, Adobe Systems, Thomson Reuters, and Workday, suffered losses, weighing on the broader market. Additionally, credit reporting agencies and cryptocurrency-exposed stocks experienced downward pressure due to concerns over overcharging and falling Bitcoin prices.