US stocks rise near their record after the latest jobs report eases worries about inflation
U.S. stocks rose near record highs after a jobs report showed slower-than-expected hiring, easing inflation concerns. The S&P 500 gained 0.7%, the Dow added 0.3%, and the Nasdaq climbed 1.2%. The data reduced expectations for a Fed rate hike in October. Nvidia and Tesla saw gains, while Nike fell despite beating earnings estimates.
How this was made
The 30-second read
Why it matters
The softer payroll data lowered the probability of an October rate hike, boosting equity valuations and easing bond yields.
Market read
Jobs data drives expectations for monetary policy, directly affecting equity, bond, and commodity markets.
What to watch
Persistently high oil prices and geopolitical risk in the Middle East could reignite inflation worries.
Background
The latest U.S. jobs report showed 29,000 jobs added, well below expectations, reducing expectations of an imminent Fed rate hike.
Ticker impact
Tesla reported delivering 486,532 vehicles in the latest quarter, exceeding analyst expectations.
likely upward pressure as the market prices in the delivery beat
Strong delivery numbers reduce concerns about demand and may prompt buying ahead of earnings.
Nike posted a stronger quarterly profit but weaker revenue and issued a profit forecast below expectations.
likely downward pressure as investors react to the weaker guidance
Guidance shortfall outweighs profit beat, prompting sell pressure.
Market effects
Lower job growth eases inflation concerns, supporting risk assets and AI‑related stocks.
U.S. equities rise; European markets rebound after bond‑yield swings.
Broadly supportive for global risk‑on sentiment as rate‑hike expectations recede.
Counterpoint
If the labor market remains weak, the Fed could cut rates sooner, potentially triggering a rally in defensive sectors.
Key entities
- RegulatorFederal Reserve
Monetary authority whose policy outlook is influenced by the jobs data.
- Data ProviderCME Group
Supplied the market's probability of an upcoming rate hike.
