U.S. stocks surged amid weak employment figures, with the S&P 500 hitting a new all-time high as investors lowered their bets on a Fed interest rate hike.

U.S. and European stock markets rose on Friday (August 7, 2026), with U.S. stocks boosted by weaker-than-expected employment data, easing investor concerns about an imminent interest rate hike. Technology and chip stocks also rebounded strongly. Gold prices hit a seven-week high, while the dollar weakened following lower-than-expected U.S. economic data.

U.S. stock markets surged, with the S&P 500 hitting a new all-time high, amid weak employment data.

U.S. stock markets closed higher on Friday. The S&P 500 index hit a new all-time high after U.S. nonfarm payroll employment data for July showed a decrease of 23,000 jobs, contrary to economists' expectations of an 80,000 increase. This led investors to believe that the Federal Reserve is likely to slow or postpone raising interest rates.

This data boosted buying interest in the market, particularly in technology and software stocks, following strong earnings reports from several companies and easing concerns about the impact of artificial intelligence (AI) on business. Semiconductor stocks also rebounded strongly, contributing to a sharp rise in the Nasdaq index.

In addition, U.S. stock markets closed higher for the second consecutive week, with the S&P 500 up 3.6% this week, while the Nasdaq gained 5.2% and the Dow Jones climbed nearly 3%. All three indices delivered their best weekly performances since April.

• • Dow Jones Industrial Average Closed at 54,036.93 points, up 151.83 points (+0.28%)
  • S&P 500 Index Closed at 7,757.64 points, up 47.68 points (+0.62%)
  • Nasdaq Composite Index Closed at 26,690.615 points, up 342.263 points (+1.30%)

European stock markets closed higher, buoyed by improved global investment sentiment.

European stock markets closed higher on Friday. Following the upward trend in global stock markets, which were boosted by gains in US stocks after weaker-than-expected US labor market data eased pressure on the Federal Reserve's interest rate hike prospects,

Investors continue to monitor the economic situation and the monetary policy direction of central banks, as well as the tensions in the Middle East. The market received additional support from improved investment sentiment and buying interest across several sectors.

• • STOXX 600 Index Closed at 660.25 points, up 2.06 points (+0.31%)
  • DAX German stock market index Closed at 26,319.45 points, up 179.32 points (+0.69%)
  • CAC 40 Index of the French stock market Closed at 8,714.93 points, up 15.22 points (+0.17%)

The UK stock market closed higher, following the global trend.

The London stock market closed higher on Friday. This was driven by an improved global investment sentiment, after investors assessed that weak U.S. employment data might mean the Fed doesn't need to rush to raise interest rates.

However, investors continue to monitor global economic trends, including the conflict situation in the Middle East and energy price movements, which remain key factors influencing inflation and monetary policy at central banks worldwide.

• • FTSE 100 Index UK Stock Market Closed at 10,901.09 points, up 33.20 points (+0.31%)

Oil prices rose as investors awaited a deal to reopen the Strait of Hormuz.

World crude oil prices rose on Friday. Investors are watching for the possibility of an agreement between the United States and Iran to reopen the Strait of Hormuz and restore normal shipping conditions, amid uncertainty surrounding oil shipments along this strategic route.

However, oil prices fell more than 7% this week after markets hoped that negotiations between the US and Iran might ease shipping restrictions and reduce risks to oil supply in the Middle East.

Data from Kpler indicates that shipping volume through the Strait of Hormuz on Friday decreased by 33% compared to the previous day, as Iran and Oman are discussing alternative shipping routes through the strait.

• • WTI crude oil price (September delivery) It closed at $78.18 per barrel, up 1.15%.
  • Brent crude oil price (October delivery) It closed at $83.55 per barrel, up 1.29%.

Gold prices surged to a seven-week high amid weak US employment figures.

Global gold prices surged on Friday, reaching their highest level in seven weeks. Following the unexpected decline in U.S. employment data for July, investors lowered their expectations that the Federal Reserve would raise interest rates at its September meeting.

Data from the U.S. Department of Labor shows that nonfarm payroll employment decreased by 23,000 positions in July, after a revision to June's figures showed an increase of only 20,000 positions. Economists had predicted an increase of 80,000 jobs.

Fluctuating interest rate expectations are boosting gold buying, as lower interest rates reduce the opportunity cost of holding gold. A weaker dollar is also a positive factor for gold prices.

• • Spot Gold Price It closed at approximately $4,336.11 per ounce, up 2.3%.
  • Gold price on Comex market (December delivery) It closed at approximately $4,396.90 per ounce, up 2.3%.

The dollar weakened after US employment figures came in lower than expected.

The dollar weakened against major currencies on Friday. Following weaker-than-expected U.S. employment data for July, investors lowered their expectations that the Fed would raise interest rates in September.

The dollar weakened significantly against the yen following the release of employment figures, while U.S. bond yields fell as markets increased the likelihood that the Fed will keep interest rates unchanged at its September meeting and potentially postpone any rate hikes until October or December.

• • Dollar Index It decreased by 0.39% to 99.54.
  • Dollar/Yen It stood at 157.54 yen, down 0.55%.
  • Euro/Dollar It stood at $1.1563, up 0.33%.

refer : CNBC, Reuters

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