US jobs report boosts stocks

On August 7, 2026, the U.S. government reported that employers unexpectedly cut 23,000 jobs in July, a surprising decline that also included downward revisions totaling 103,000 jobs for May and June. The weaker labor market data raised hopes that the United States — Federal Reserve could delay interest rate hikes, leading to a rally in U.S. stocks and a drop in Treasury yields. The S&P 500 rose 0.5% to hover near its record high, the Dow Jones Industrial Average gained about 0.2%, and the Nasdaq Composite climbed 1%, driven by technology stocks such as Nvidia and Broadcom. The 10-year Treasury yield fell to around 4.65% from 4.67% prior to the report. The jobs report came amid ongoing concerns about the U.S. war with Iran and its impact on oil prices and inflation. Brent Crude oil prices fluctuated, with the international benchmark trading around $82-$83 per barrel. The report also highlighted the Fed's balancing act between supporting job growth and fighting inflation, with market expectations for a September rate cut falling to 42-44% according to CME FedWatch Tool. Strong corporate earnings, with nearly 90% of S&P 500 companies reporting and profit growth expected at 50%, helped support the market. Airbnb jumped over 15% after reporting better-than-expected quarterly results. The report also noted ongoing negotiations to reopen the Strait of Hormuz, with Iran and the U.S. indicating progress, though details remained unclear.