Wall Street rallies after weaker June jobs ease rate fears
Business
Wall Street kicked off Thursday on a high note after the June jobs report came in weaker than expected, calming worries about the Federal Reserve hiking interest rates soon.
The S&P 500 jumped 0.6% and the Nasdaq-100 was up 0.4%, while short-term Treasury yields dropped (signs that investors are feeling more upbeat about where things are headed).
Leisure payrolls cut July rate odds
The slowdown in hiring was led by leisure and hospitality, which saw its biggest payroll drop since 2020.
Even with big events like the FIFA World Cup, summer hiring did not pick up as economists hoped.
Because of this, traders now see less chance of a July rate hike, dropping from one-in-three to less than one-in-five odds, which could help keep borrowing costs steady for now.