US Stocks Surge to Record Highs on Weak Jobs Report and Falling Oil Prices
US stocks surged to record highs overnight, fueled by a weak jobs report and falling oil prices. The S&P 500 rose 0.62%, the Nasdaq climbed 1.30%, and the Dow Jones gained 0.28%. This was the best week for US equities since April, with the S&P 500 up 3.58%, the Nasdaq climbing 5.19%, and the Dow gaining 2.96%.
The unexpected jobs data saw expectations of a Federal Reserve rate hike at its next meeting fall to 45% from 55%. Investors were also encouraged by a 1.5% drop in Brent crude, on speculation that a deal to reopen the Strait of Hormuz could be close.
Earnings season boosted sentiment further, with 85% of companies beating analyst expectations according to LSEG data. Atlassian surged 35% after reporting its fourth consecutive profitable quarter, while Airbnb jumped 17.4% after beating analyst estimates. SpaceX shares also rose 15.8% after the first of several insider lock-up restrictions expired.
The US Labor Department's July employment report revealed a loss of 23,000 jobs from the economy last month. Economists had forecast an increase of 83,000. The previous two months were revised down by a combined 103,000 jobs, and more Americans left the labour force altogether, helping the unemployment rate ease to 4.1%.