Overview
- The U.S. Labor Department reported a surprise loss of 23,000 nonfarm payrolls on Friday and an unemployment rate near 4.1%, with prior months revised down, signaling a cooling jobs market.
- Markets reacted by sending the S&P 500 to an all‑time closing high while 10‑year Treasury yields fell from recent intraweek peaks, and traders reduced the probability of a September Fed rate increase.
- Earnings season has been supportive overall but guidance from software and ad‑tech firms drove sharp sector losses, with Datadog and AppLovin among the largest decliners and memory names retreating after SanDisk and peers warned of weaker outlooks.
- Geopolitical developments in the Middle East, including Houthi attack claims and reported Iran‑Oman talks over Strait of Hormuz passage, pushed crude prices up earlier in the week and keep upside inflation risk alive.
- Investors’ next major test is the July Consumer Price Index on August 12, which together with remaining corporate reports and moves in Treasury yields will determine whether the market’s easing on Fed tightening is durable.