US Stocks Hit Record Highs as Unexpected Job Cuts Shift Fed Rate Expectations

NEW YORK — U.S. stocks rose on Wall Street 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, marking a strong start to August following several weak months. The S&P 500 rose 47.68 points, or 0.6%, closing at 7,757.64. That topped the all-time high set earlier in the week. The benchmark index has maintained a record run throughout the year. The Dow Jones Industrial Average rose 151.83 points, or 0.3%, to 54,036.93, putting it just short of the record set on Wednesday. The Nasdaq composite rose 342.26 points, or 1.3%, to 26,690.62. Technology stocks drove much of the heavy lifting for the broader market. Nvidia jumped 2.3% and Broadcom rose 1.7%. The bond market reacted more strongly to the weaker jobs report, which investors interpreted as potentially 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% prior to the jobs update, after dropping as low as 4.60%. The yield on the two-year Treasury fell to 4.20% from 4.22%. Wall Street awaits several important inflation updates scheduled for the following week, most notably the consumer price index (CPI), which measures costs for consumers. Economists expect the report to show that inflation in July rose at a 3.4% rate, representing a slight easing from the 3.5% rise recorded in June. Inflation has remained above 3% for most of the year. Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management, noted that the weak payrolls print could ease pressure on the Federal Reserve to raise rates at its upcoming September meeting, though next week's inflation data wi