US Stocks Leap on Surprise Jobs Report, Raising Hopes for Delayed Rate Hikes

The US stock market rose on Friday after the release of a surprise jobs report. Employers unexpectedly cut 23,000 jobs in July, which raised hopes that interest rate hikes can be delayed. The S&P 500 index rose by 47.68 points to 7,757.64, topping its all-time high set just two days prior.

The Dow Jones Industrial Average and Nasdaq composite also saw gains, with the Dow rising by 151.83 points to 54,036.93 and the Nasdaq gaining 342.26 points to 26,690.62.

Technology stocks played a significant role in driving the broader market's performance, with Nvidia jumping 2.3% and Broadcom rising 1.7%. The bond market reacted more strongly to the weaker signal on the jobs market, which could give the Federal Reserve more time before raising interest rates to combat inflation.

The yield on the 10-year Treasury fell to 4.64%, while the two-year Treasury yield dropped to 4.20%. However, investors remain cautious about an economy with a weakening job market, as seen in the revised figures for June and May that involved slashing a combined 103,000 jobs from payrolls.