FX.co ★ US Stocks Higher After Jobs Report

The S&P 500 gained 0.9%, the Nasdaq rose 1.4% and the Dow Jones advanced more than 300 points on Friday, after a weaker-than-expected US jobs report led investors to scale back expectations for further Federal Reserve tightening. Nonfarm payrolls increased by just 29,000 last month, far below forecasts for a 90,000 gain, while employment figures for the prior two months were also revised lower.

Following the data, market-based expectations for interest rates eased, with traders now pricing in less than one additional Fed rate hike for the remainder of 2026. At the same time, a drop in oil prices supported the bond market, providing an additional tailwind for equities.

Within sectors, consumer discretionary and ad tech names outperformed, while energy stocks lagged. Major technology and growth stocks also moved higher, including Nvidia (up 2.1%), Apple (0.7%), Microsoft (1.1%), Amazon (1.8%), Broadcom (2%), Meta (0.6%) and Tesla (3.9%).

Despite Friday’s rebound, the major indexes are on track for a weak week overall. The S&P 500 is down 1.2%, positioning it for its worst weekly performance since August, while the Dow has declined 1.8% and the Nasdaq has slipped 0.8%.