Both the S&P 500 ETF (SPY) and the Nasdaq 100 ETF (QQQ) closed higher on Friday after a weaker-than-expected jobs report lowered interest rate hike odds.
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News That Moved the Stock Market Today
- Nonfarm payrolls fell by 23,000 in July, far below the expected 80,000 increase. In addition, May and June payrolls were revised down by a combined 103,000.
- The labor force participation rate dropped to 61.4%, marking its lowest level since February 2021. That contributed to the unemployment rate falling to 4.1% from 4.2% in June.
- However, the disappointing data came with a silver lining, at least for stocks. With a weaker labor market, the Fed is less inclined to hike rates. That’s because lower rates support employment by reducing borrowing costs and encouraging businesses to invest and hire.
- Following the report, the odds of a rate hike at the September 16 Federal Open Market Committee (FOMC) meeting fell to 43.9% from 55%, according to the CME FedWatch tool.
- Citi analyst Atif Malik slashed his Micron (MU) price target to $1,150 from $1,400. Malik expects NAND and DRAM price growth to decelerate in the next four quarters before peaking in the second quarter of 2027.
- Cloudflare (NET) rallied to an all-time high after its second-quarter results beat on both revenue and adjusted EPS.
- On the other hand, Trade Desk (TTD) plummeted after publishing its earnings, sending its year-to-date loss to 63%.
- SpaceX (SPCX) rallied following its first lock-up expiration on Thursday when over 900 million shares became available.