US stocks jump as employers unexpectedly cut 23,000 jobs, raising hopes that rate hikes can wait

NEW YORK (AP) — Stocks rose on Wall Street Friday and Treasury yields fell after the government reported that employers unexpectedly cut 23,000 jobs last month.

Every major index notched a second straight week of gains, which included several fresh records. It marks a strong start to August following several weak months.

The S&P 500 rose 47.68 points, or 0.6%, to 7,757.64. That topped the all-time high it set on Tuesday. The benchmark index has been on a record run throughout the year.

The Dow Jones Industrial Average rose 151.83 points, or 0.3%, to 54,036.93. That put it just short of the record it set on Wednesday. The Nasdaq composite rose 342.26 points, or 1.3%, to 26,690.62.

Technology stocks, with their big market values, did much of the heavy lifting for the broader market. They are often the heaviest weights determining the market's direction. Nvidia jumped 2.3% and Broadcom rose 1.7%.

The bond market reacted more strongly to the weaker signal on the jobs market, which can be seen as allowing the Federal Reserve more time before raising interest rates to fight inflation.

The yield on the 10-year Treasury fell to 4.64% from 4.67% just prior to the jobs update. It was as low as 4.60% before recovering a bit.

The yield on the two-year Treasury, which more closely tracks expectations for Fed action on interest rates, fell to 4.20% from 4.22% prior to the report's release. It was as low as 4.15% before edging back up.