US Stocks Soar as Treasury Yields Fall Amid Fresh Labor-Market Data

The US stock market saw significant gains on Thursday as Treasury yields retreated following fresh labor-market and trade data. The Dow Jones Industrial Average rose by 0.8%, while the S&P 500 gained 0.6% and the tech-heavy Nasdaq Composite advanced 0.9%. Eight of the 11 S&P 500 sectors were higher, led by communication services, with healthcare being the weakest-performing sector.

Treasury yields fell across the board, with the 2-year Treasury yield declining by 5 basis points to 4.32%, and the benchmark 10-year yield decreasing by 3 basis points to 4.74%. The 30-year Treasury yield slipped by 2 basis points to 5.23%. Fed Governor Christopher Waller's comments on keeping interest rates unchanged if August inflation figures cooperate eased concerns about further tightening, boosting growth-oriented technology and software stocks.

The US goods and services trade deficit widened sharply to $88.6 billion in July, from $71.2 billion in June. The labor-market data continued to point to relatively contained layoffs, but investors will now look to Friday's payrolls report for clearer signals on hiring, wage pressures, and the likely path of Federal Reserve policy.

Oil prices extended their rally above $91 a barrel as geopolitical risks outweighed hopes that the latest US-Iran conflict could prove short-lived. West Texas Intermediate crude gained 1.02% to $91.94 per barrel, while Brent crude added 0.56% to $96.17 per barrel.

Gold remained firmly elevated, with spot prices trading at approximately $4,465.60 per ounce at 10:07 a.m. New York time, up $78.10, or 1.78%, on the day. The combination of lower Treasury yields and geopolitical uncertainty supported demand for the traditional safe-haven asset.