US stocks jump as employers unexpectedly cut 23,000 jobs, raising hopes that rate hikes can wait

NEW YORK (AP) — Stocks rose on Wall Street and Treasury yields fell after the government reported that employers unexpectedly cut 23,000 jobs last month. The S&P 500 rose 0.6% Friday, topping the all-time high it set on Tuesday. The Dow Jones Industrial Average rose 0.3%, and the Nasdaq composite added 1.3%.

The weaker signal on the job market raised hopes that the Federal Reserve can wait longer before raising interest rates to fight inflation. The yield on the 10-year Treasury fell to 4.64%. The price of Brent crude rose 1.3%.

European markets rose and Asian markets ended mixed.THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.NEW YORK (AP) — Stocks rose on Wall Street Friday and Treasury yields fell after the government reported that employers unexpectedly cut 23,000 jobs last month.The S&P 500 rose 0.5% and is hovering around the record it set on Tuesday. The Dow Jones Industrial Average rose 120 points, or 0.2%, as of 3:07 p.m.

Every major index is on track for weekly gains.Technology stocks, with their big market values, did much of the heavy lifting for the broader market. They are often the heaviest weights determining the market’s direction. Nvidia jumped 1.6% and Broadcom rose 1.5%.The bond market reacted more strongly to the weaker signal on the job market, which can be seen as allowing the Federal Reserve more time before raising interest rates to fight inflation.The yield on the 10-year Treasury fell to 4.66% from 4.67% just prior to the jobs update.

It was as low as 4.60% before recovering a bit.The yield on the two-year Treasury, which more closely tracks expectations for Fed action on interest rates, fell to 4.20% from 4.22% prior to the report's release. It was as low as 4.15% before edging back up.“Although the stock market is likely to welcome the dovish implications of the report, investors should be wary of the future growth potential of an economy where fewer people are working,” said Peter Graf, chief investment officer at Amova Asset Management Americas, in a research note.Overall, the report paints a dimmer picture of the jobs market, which has been one of the brighter areas of the economy amid rising inflation and worries about household spending. It included a revision to the figures for June and May that involved slashing a combined 103,000 jobs from payrolls for those …

NEW YORK (AP) — Stocks rose on Wall Street Friday and Treasury yields fell after the government reported that employers unexpectedly cut 23,000 jobs last month.The S&P 500 rose 0.5% and is hovering around the record it set on Tuesday. Wall Street expects at least one rate increase by the end of the year, with forecasts shifting for the next meeting. Expectations for a rate cut in September are down to 44%, from 55% on Thursday and from 67% a week ago, according to CME FedWatch.A weakening jobs market could make matters more complicated for the Fed, which has to balance supporting job growth with fighting inflation.