Dow Surges Over 400 Points as Rate Hike Odds Fall on Weak Jobs Report

The Dow Jones Industrial Average surged over 400 points to hit an all-time high of 52,805 following the release of the June nonfarm payrolls report. The Bureau of Labor Statistics reported a seasonally adjusted increase of 57,000 jobs, falling short of analysts' expectations by more than 50%. The unemployment rate also came in below expectations at 4.2%, down from an anticipated 4.3%.

The weaker-than-expected jobs report led to a decline in rate-hike odds, with the CME FedWatch tool indicating a 17.6% chance of a 25-basis-point rate hike, down from 28.9% the previous day and 32.1% a week ago.

White House National Economic Council Director Kevin Hassett expressed confidence in the US economy's strength, citing wage growth as a key indicator. 'The BLS data confirm that the U.S. economy is very strong,' he said. Savita Subramanian, Bank of America Securities' Head of U.S. Equity and Quantitative Strategy, echoed Hassett's sentiments, saying it's hard to be bearish on the US economy currently.