Wall Street sees July jobs report reducing Fed rate hike odds, boosting stocks

Macro Impact 4

โดย Yahoo Finance·

Summary · why it matters

Wall Street strategists assessed the surprise July jobs report as reducing the probability of a Federal Reserve rate hike, fueling a stock market rally. The Bureau of Labor Statistics reported a loss of 23,000 jobs, far below expectations, while the unemployment rate fell to 4.1% as labor force participation dropped to a near-pandemic low. Ameriprise chief economist Russell Price noted the three-month rolling average of job gains fell to just 20,000 and the six-month average declined to 44,000, calling the report one with 'very little to like.' UBS's Leslie Falconio said the soft wage inflation data solidifies the view that the Fed will stay on hold this year, and implied odds of a rate hike in 2026 fell to 56% from 63% on Polymarket. Stocks jumped, with the Dow, S&P 500, and Nasdaq all posting weekly gains, led by large tech as Nvidia surged 10% for the week, while Microsoft and Meta gained 8% and 7%, respectively.