Record-High Stocks as Fed Rate Hike Pressure Eases on Surprising Employment Data

U.S. stocks closed higher on Thursday as investors interpreted an unexpected employment shock as a signal that the Federal Reserve faces less pressure to raise interest rates.

The S&P 500 notched a record closing high, while the Nasdaq Composite surged more than 1% to lead the three major indexes.

On August 7 (local time), the S&P 500 rose 47.68 points, or 0.62%, to close at 7,757.64, a new all-time high. The benchmark index is now up 13% year-to-date.

The nonfarm payroll figures for July fell short of expectations, with the Labor Department reporting a decrease of 23,000 jobs from the prior month. This unexpected slowdown in employment has eased some pressure on the Fed to raise interest rates at its September meeting.