July payrolls fell 23,000, missing forecasts and reducing pressure on the Federal Reserve to tighten policy next month.
US stocks climbed in early trading Friday after July nonfarm payrolls dropped 23,000, well below the 80,000 gain economists had expected. The surprise decline eased concerns over an imminent Federal Reserve rate hike, pushing Treasury yields lower and lifting equity markets globally.
MSCI’s All-World index rose 2.4% this week, its strongest performance since May, while Europe’s STOXX 600 gained 2% for the week. The Nasdaq advanced 0.7% in early trading, supported by strong earnings and continued enthusiasm for AI-related stocks. The dollar weakened, allowing the yen to rebound to 157.20 per dollar from near 159.
Analysts noted the jobs report gives the Fed more flexibility to hold rates steady in September while awaiting further inflation data. Next week’s US CPI report will be closely watched for additional signals on monetary policy direction.