The unexpected drop of 23,000 in nonfarm payrolls in July raised hopes among investors that the US Federal Reserve can keep interest rates unchanged. Economists had expected an increase of 80,000 jobs. The data dampened expectations that the Fed, under its new chief Kevin Warsh, would raise rates in September. The probability of such a move fell to about 44 percent, according to the CME’s Fedwatch tool. A week earlier, it had stood at 67 percent.
The Dow Jones rose 0.3 percent to 54,037 points, and the S&P 500 gained 0.6 percent to 7,758 points. The Nasdaq added 1.3 percent to 26,691 points. On the week, the three major indices thus posted their strongest percentage gains since mid-April: the S&P 500 rose 3.6 percent, the Nasdaq 5.2 percent, and the Dow about three percent.
Sentiment was also supported by a strong earnings season and signs of a possible peace deal in the Iran war. That pushed oil prices lower and eased inflation concerns.
Among individual stocks, SpaceX shares stood out, recovering from their selloff with a jump of nearly 16 percent. A day earlier, the first lock-up period for the shares had expired after the record IPO in June.
Also in demand were shares of software developer Atlassian and chipmaker Microchip Technology, which rose about 35 and 14 percent, respectively, after optimistic revenue forecasts. Airbnb gained more than 17 percent after beating revenue expectations.
In contrast, Trade Desk shares plunged nearly 22 percent. The ad-tech company had disappointed with its third-quarter outlook.
Source: www.n-tv.de
