Weak Jobs Report Sends US Stocks Soaring as Rate Hike Fears Ease

Wall Street stocks surged on Friday morning as data showed US employers unexpectedly eliminated 23,000 jobs last month. The S&P 500 advanced 0.4%, remaining close to its record high reached on Tuesday.

The Dow Jones Industrial Average gained 114 points, or 0.2%, while the Nasdaq composite climbed 1%. Large-cap technology companies provided much of the market's upward momentum, with Nvidia rising 1.3% and Broadcom adding 1.1%.

The weaker-than-expected employment report strengthened expectations that the Federal Reserve could have more room before increasing interest rates to curb inflation. The yield on the benchmark 10-year Treasury note declined to 4.63% from 4.67%, while the two-year Treasury yield fell to 4.19% from 4.22%.

The report also included downward revisions to payroll data for May and June, reducing employment by a combined 103,000 jobs. This complicates the Fed's task of balancing inflation control with support for employment, as higher interest rates can slow economic activity and ease inflationary pressures but may also place additional strain on a weakening labour market.