Stock market today: Dow, S&P 500, Nasdaq jump to cap winning week as Fed rate hike fears fade
US stocks glided higher as investors digested a surprise decline in job growth and its implications for the Federal Reserve’s interest rate policy decisions.
The Dow Jones Industrial Average (^DJI) edged up by almost 0.3%, while the S&P 500 (^GSPC) gained 0.6%. The Nasdaq Composite (IXIC) rose about 1.3% after a mixed day in markets.
All three averages notched a winning week, with the Nasdaq gaining a whopping 5%, and the S&P 500 packing nearly 3.5%.
Attention turned to the July jobs report, which showed the US economy unexpectedly lost 23,000 jobs, while the unemployment rate ticked down slightly to 4.1%. Economists surveyed by Bloomberg expected 80,000 jobs to be added and unemployment to be 4.2% in the month.
While discussions around inflation and furious AI investment have overshadowed the largely stable labor market in recent months, Friday’s weaker-than-expected report was expected to give the Federal Reserve pause over the possibility of a rate hike at its next meeting.
Next Wednesday, investors will get a read on inflation with the release of the Consumer Price Index, giving yet another clue on how the Fed’s policy path may go.
Oil prices slipped on Friday as the lack of a US-Iran peace deal fueled uncertainty over when the war will end. On Thursday night, an Iranian semi-official news agency reported explosions in the Strait of Hormuz linked to Iran intercepting “hostile targets.”
Meanwhile, Iran and Oman continue to work toward a deal to reopen the strait, with the latest reports suggesting Iran will seek to block US and Israeli ships from the critical waterway.
