S&P closes at record high as soft jobs report eases rate-hike concerns
The S&P 500 reached a record high as a weaker-than-expected jobs report reduced market expectations for a Federal Reserve interest rate hike. Investors are balancing concerns over slowing growth against strong corporate earnings.
Why it matters
Market reactions to labor data are critical for predicting future monetary policy and the overall health of the US economy.
Nonfarm payrolls drop by 23,000 jobs in July, below estimates, US Labour Department says
[NEW YORK] US stocks advanced on Friday (Aug 7), with the S&P closing at a record high to cap off a strong week of gains for the major indexes, after data showed the US economy unexpectedly shed jobs in July and dampened expectations the US Federal Reserve would raise interest rates at its September meeting.
The Labour Department said nonfarm payrolls decreased by 23,000 jobs in July, well below the estimate of economists polled by Reuters that called for an increase of 80,000 jobs.
Previously reported job gains for the prior two months were also revised sharply lower, while the unemployment rate fell to 4.1 per cent in July from 4.2 per cent in June due to workers leaving the labour force.
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