Wall Street finished higher on Aug 7, with the S&P 500 closing at a record as weaker-than-expected US jobs data eased concerns that the Federal Reserve (Fed) could raise interest rates at its September meeting.
According to Reuters, the S&P 500 rose 0.62% to 7,757.64, while the Nasdaq Composite jumped 1.30% to 26,690.62. The Dow Jones Industrial Average gained 0.28% to 54,036.93.
Investor sentiment strengthened after data showed US nonfarm payrolls unexpectedly fell by 23,000 in July, sharply missing economists’ expectations for an 80,000 increase. Job gains for the previous two months were also revised lower.
The unemployment rate, however, slipped to 4.1% from 4.2% in June, partly as workers left the labour force. Expectations for a Fed rate hike at its next meeting fell to around 44%, from 55% a day earlier and 67% a week ago.
Strong corporate earnings added to the positive mood. About 85% of S&P 500 companies that had reported results beat analysts’ expectations, according to LSEG data.
Among the session’s biggest movers, Atlassian surged 35.3% after forecasting quarterly revenue above expectations, while Microchip Technology climbed 13.9%. Airbnb jumped 17.4% after beating second-quarter revenue estimates, while Trade Desk plunged 21.9% following a weaker-than-expected third-quarter revenue outlook.
The rally capped a strong week for US equities. The Nasdaq gained 5.19% for the week, the S&P 500 advanced 3.58%, while the Dow climbed 2.96%, their biggest weekly percentage gains since mid-April.
