Stocks were mixed on Friday as investors assessed the Federal Reserve's potential next moves in response to a much stronger-than-expected jobs report for July. The Dow Jones Industrial Average ultimately settled in the green, up nearly 75 points, while the S&P 500 and Nasdaq Composite both slipped lower on the day.
However, with Friday's gains, the Dow settled the week lower, while the S&P 500 and Nasdaq Composite ended the first week of August higher.
Here's how the market settled to close out the week:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
In July, the U.S. economy added 528,000 jobs and the unemployment rate fell to 3.5%, according to the Bureau of Labor Statistics report on Friday, topping economists estimates for both. The unemployment rate is now back to its pre-pandemic level, signalling the labor market is still recovering while other signs parts of the economy have lost steam.
Wall Street initially reacted negatively to the report, with the Dow falling over 100 points, as traders anticipated the Fed will maintain its aggressive rate hikes in response. Since the central bank's last policy meeting in July, investors have grown more optimistic that the Fed will slow the pace of rate hikes in the months ahead. Now, the Fed could potentially match June and July's 0.75% hikes in September.
"The jobs and wage numbers seen in July are not what the Fed wants at a time when the economy has overshot its potential and inflation is running at more than 3X the Fed's target," said Michael Darga, chief economist and market strategist at MKM Partners, quoted by CNBC. "Bottom line: The Fed will persist in moving the front end of the curve higher until growth momentum is broken and inflation infects lower."
Beneath the headline, notable gains were seen by leisure and hospitality--leading with 96,000 additions--and retail increasing by 22,000--despite warnings from corporations like Walmart
For commodities, oil prices slightly rose on Friday, but ultimately ended the week lower as recession fears and concerns over waning global demand washed over the market. West Texas Intermediate
Elsewhere, Lyft
AMC Entertainment
Meanwhile, Amazon