Stocks Gain as Softer Jobs Report Eases Fed Tightening Fears – US Market Wrap

Most US stocks advanced after a weaker-than-expected employment report reduced concerns that the Federal Reserve will need to raise interest rates in the near term.

The broader improvement in sentiment lifted the majority of S&P 500 constituents, although the index itself was little changed as a sharp selloff in semiconductor stocks offset gains elsewhere. The Dow Jones Industrial Average climbed to a fresh record high. Treasury two-year yields fell four basis points to 4.14%, the dollar weakened, and interest-rate markets scaled back expectations for a Fed hike in the coming months.

The June employment report showed hiring slowed significantly, tempering what had been building momentum in the labor market. Nonfarm payrolls increased by 57,000, while downward revisions to the previous two months softened the impact of earlier strong reports. Despite slower job growth, the unemployment rate edged down to 4.2%, pointing to a labor market that remains relatively resilient.