S&P 500 Closes at Record High After Weak US Jobs Data Lowers Fed Rate Hike Expectations

Macro

โดย Reuters·

Summary · why it matters

The S&P 500 index closed at an all-time high on Friday after investors scaled back expectations that the Federal Reserve will raise interest rates in September, following July nonfarm payrolls data that fell by 23,000 jobs, contrary to Reuters expectations of an 80,000 increase. Meanwhile, the unemployment rate declined to 4.1% from 4.2% in June. Data from CME FedWatch indicated that the market reduced the probability of a Fed rate hike at its next meeting to 44% from 55% the previous day and 67% a week earlier. The Dow Jones Industrial Average closed at 54,036.93 points, up 151.83 points or 0.28%. The S&P 500 closed at 7,757.64 points, up 47.68 points or 0.62%. The Nasdaq Composite closed at 26,690.62 points, up 342.26 points or 1.30%. For the week, the Dow rose 2.96%, the S&P 500 gained 3.58%, and the Nasdaq advanced 5.19%, marking the best weekly performance since mid-April. Strong earnings also helped ease concerns about AI spending, with 85.1% of the 436 S&P 500 companies that have reported results beating analyst expectations, above the average of 68% since 1994, according to LSEG data. Notable individual stocks included SpaceX, which surged 15.8% after the end of its first lock-up period. Atlassian soared 35.3%, its biggest one-day gain on record. Microchip Technology rose 13.9%, its best daily performance in over 15 months, after both companies forecast quarterly revenue above analyst estimates. Airbnb jumped 17.4%, the top performer in the S&P 500, after reporting second-quarter revenue above expectations. Trade Desk tumbled 21.9%, the worst performer in the index, after forecasting third-quarter revenue below market expectations.