Markets Steady After Turbulent Week as Investors Digest Jobs Shock
Wall Street wrapped up Thursday's session with a cautious sigh of relief — the kind that follows a week nobody wants to repeat. The S&P 500 notched a 0.62% gain to close at 7,757.64, while the tech-heavy Nasdaq led the charge, climbing 1.30% to 26,690.62. The Dow Jones added 151 points to finish at 54,036.93.
The recovery, however modest, came on the heels of a July jobs report that blindsided forecasters. Employers unexpectedly shed workers last month, sending Treasury yields lower — the 10-year note slipped to 4.66% — as bond markets priced in a higher probability of Fed rate cuts before year-end.
"From panic to pricing in" was the phrase echoing across trading desks, as CNBC captured the mood shift. The question now: are markets truly past peak fear?
Commodities and Crypto
Crude oil held steady near $77.89 a barrel, with traders keeping one eye on the simmering U.S.-Iran standoff in the Strait of Hormuz. Any escalation there threatens to pinch global supply routes, and markets aren't exactly sleeping on it.
Gold continued to glitter as a haven play, sitting comfortably at $4,409.10 per ounce. With real yields compressing and geopolitical fog thickening, the yellow metal has found plenty of willing buyers. Wells Fargo analysts noted gold is "starting to look a lot more interesting" — a sentiment that's gaining traction across Wall Street.
Bitcoin traded around $65,131, essentially flat, as the crypto market waited for its next catalyst. After a volatile stretch, digital assets appear to be catching their breath alongside equities.
What to Watch
Chip stocks attempted a comeback late in the week after a brutal selloff, but the rebound's durability remains an open question. Meanwhile, all eyes turn to incoming inflation data and any movement on the Strait of Hormuz negotiations. A quiet Monday could give way to a busy week.