The S&P 500 hit a record high on Friday (August 7) with a weekly gain of 3.6%, marking its best week since April, as July U.S. nonfarm payroll unexpectedly fell 23,000 against expectations of a 23,000 gain. The jobless rate dropped to 4.1%, lower than the forecasted 4.2%. CME FedWatch data shows traders now expect the Federal Reserve to hold rates steady in September at 3.50-3.75%, down from a 55% rate-hike probability just one day prior.
The Nasdaq composite jumped 5.2% for the week, while the Dow Jones rose nearly 3%, with the Philadelphia Semiconductor Index gaining 2.56% on the day. Nuveen Chief Investment Officer Saira Malik noted that the softer employment data "does not further strengthen the Fed's need to raise rates," supporting the market's pivot toward equities.
