Stock market today: Dow, S&P 500, Nasdaq rise after July jobs report surprises to the downside

US stocks glided higher as investors digested a surprise decline in job growth and its implications for the Federal Reserve's interest rate policy decisions.

The Dow Jones Industrial Average ( ^DJI ) edged up by 0.3%, while the S&P 500 ( ^GSPC ) gained 0.5%. The Nasdaq Composite ( IXIC ) rose 1.1% after a mixed day in markets.

Attention turned to the July jobs report , which showed the US economy unexpectedly lost 23,000 jobs, while the unemployment rate ticked down slightly to 4.1%. Economists surveyed by Bloomberg expected 80,000 jobs to be added and unemployment to be 4.2% in the month.

While discussions around inflation and furious AI investment have overshadowed the largely stable labor market in recent months, Friday's weaker-than-expected report was expected to give the Federal Reserve pause over the possibility of a rate hike at its next meeting.

Oil prices slipped on Friday as the lack of a US-Iran peace deal fueled uncertainty over when the war will end. On Thursday night, an Iranian semi-official news agency reported explosions in the Strait of Hormuz linked to Iran intercepting "hostile targets." Meanwhile, Iran and Oman continue to work toward a deal to reopen the strait, with the latest reports suggesting Iran will seek to block US and Israeli ships from the critical waterway.

How the recent fluctuations in oil prices affect inflation expectations and Treasury markets remains to be seen. The New York Fed's one-year inflation expectations data is the other key economic report to watch on Friday, aside from the jobs report.

Friday's earnings calendar is lighter than investors have come to expect in recent days. Vistra Corp. ( VST ), Oklo ( OKLO ), Under Armour ( UA ), and Wendy's ( WEN ) comprise today's major reports.