Stock indices closed higher on Friday, with the S&P 500 achieving a record closing high. The US July nonfarm payrolls unexpectedly decreased by 23,000, marking the first decline since February. The unemployment rate edged down to 4.1%, the lowest level since June 2025. Traders anticipate this data will lead the Federal Reserve to maintain current interest rates. All three major US stock indexes recorded significant gains for the week, with the Dow rising 2.96%, the Nasdaq climbing 5.19%, and the S&P 500 adding 3.58%.
At the closing bell, the Dow Jones Industrial Average rose 151.83 points, or 0.28%, to 54,036.93. The Nasdaq Composite gained 342.26 points, or 1.30%, to 26,690.62. The S&P 500 advanced 47.68 points, or 0.62%, to 7,757.64. SpaceX (SPCX.US) shares surged 15.8%, Qualcomm (QCOM.US) rose 4.6%, and Nvidia (NVDA.US) gained 2.2%. Memory-related stocks mostly declined, with SK Hynix (SKHY.US) falling nearly 4% and Micron Technology (MU.US) dropping 0.4%. The Nasdaq Golden Dragon China Index closed up 0.7%. The optical communication sector saw strong gains, with Applied Optoelectronics (AAOI.US) up 9%, Lumentum (LITE.US) rising 6.2%, Corning (GLW.US) adding 5.4%, and Marvell Technology (MRVL.US) climbing 3.8%.
In European markets, Germany's DAX 30 rose 163.94 points, or 0.63%, to 26,329.17. The UK's FTSE 100 gained 35.52 points, or 0.33%, to 10,903.41. France's CAC 40 added 15.22 points, or 0.17%, to 8,714.93. The Euro STOXX 50 rose 22.09 points, or 0.34%, to 6,524.65. Spain's IBEX 35 fell 16.42 points, or 0.08%, to 20,163.98. Italy's FTSE MIB gained 59.28 points, or 0.11%, to 53,742.00.
In Asian markets, Japan's Nikkei 225 fell 0.12%, and South Korea's KOSPI dropped 0.6%.
The US Dollar Index, which measures the greenback against six major currencies, fell 0.39% to 99.539. At the New York foreign exchange close, the euro traded at $1.1564, up from $1.1524 in the previous session. The British pound stood at $1.3499, up from $1.3457. The US dollar bought 157.55 Japanese yen, down from 158.33 yen. The dollar fell to 0.8076 Swiss francs from 0.8122 francs. The dollar was at C$1.3937, down from C$1.4014. The dollar traded at 9.4701 Swedish kronor, down from 9.5068 kronor.
In cryptocurrency markets, Bitcoin briefly surpassed $65,000, last trading at $64,888. Ethereum rose 0.5% to $1,914.
In the oil market, West Texas Intermediate crude for September delivery rose 89 cents to settle at $78.18 per barrel, a gain of 1.15%. Brent crude for October delivery added $1.06 to close at $83.55 per barrel, up 1.29%.
In precious metals, spot gold climbed 2.39% to $4,341.45 per ounce. Spot silver rose over 3.2% to $63.489 per ounce.
Iranian Official Says General Framework for Strait of Hormuz Passage Agreed with Oman
On Friday, Hassan Kashkavi, spokesperson for the Iranian Parliament's National Security and Foreign Policy Committee, stated that Iran and Oman have clarified the general framework of a memorandum of understanding regarding shipping through the Strait of Hormuz. The final text and specific details will be announced publicly soon. On August 6, Iran released preliminary details of a proposed strategic management plan for the Strait of Hormuz, which includes prohibiting hostile parties from passing through the strait, with violators facing fines of up to 20% of the cargo value. Iran has repeatedly emphasized that arrangements concerning the Strait of Hormuz should be decided solely by Iran and Oman, rejecting any external interference. Meanwhile, President Trump stated on Friday that the US is involved in negotiations regarding the Strait of Hormuz.
Bessent: Nonfarm Report Underestimates the Underlying Strength of the US Economy
Treasury Secretary Bessent posted on social media: "Today's employment report underestimates the underlying strength of the real economy: American businesses are building, factories are producing, and worker productivity is rising. July marks the fifth consecutive month of job growth in the goods-producing sector. This year, the goods-producing sector has created 105,000 jobs, the strongest seven-month start since 2023. Additionally, second-quarter productivity growth more than doubled expectations, creating favorable conditions for sustained economic growth and real wage increases for American workers. Strong expectations for third-quarter growth further indicate that the US economy is poised for accelerated expansion. When the US produces more and worker productivity rises, the domestic economy benefits: higher wages, stronger companies, more choices for consumers, and economic expansion built on supply-side strength that can lower inflation, rather than relying on temporary stimulus effects."
Media: Trump Moves to Remove Fed Governor Cook, Initiates Removal Process Citing 'Gross Misconduct'
According to reports, President Trump is moving forward with the removal of Federal Reserve Governor Lisa Cook. Sources familiar with the matter say the White House this week sent a letter to Cook stating that Trump is `considering` removing her from the Fed Board and demanding she respond to related charges within three weeks. This action follows a June Supreme Court ruling that upheld restrictions on a president's attempt to remove a Fed member. Trump said after the ruling he would take `immediate appropriate action` to remove Cook. The president appears to have fulfilled that promise this week, initiating the removal process based on mortgage fraud allegations that have not yet been tried in court, citing `gross misconduct`. The letter, signed by White House Deputy Chief of Staff Dan Scavino, argues that even if the allegations do not constitute a crime, Cook's actions amount to misconduct. Cook's attorney, Lowell, issued a statement saying: `These allegations are baseless, and we will challenge this latest pretext.`
OpenAI Pauses Development of New Model Astra Over Concerns It Possesses Critical Cyberattack Capabilities
OpenAI stated that it cannot rule out that its upcoming model, Astra, possesses `critical` cyber capabilities, prompting the company to expand safety testing and pause internal activities that do not meet stricter safety requirements. This is the latest sign of the rapid advancement of AI model cyber capabilities. OpenAI said that after an internal evaluation of one of its upcoming models, Astra, `we cannot rule out that it possesses critical cyber capabilities.` Before releasing Astra, OpenAI will expand testing and safety measures for the model and slow its development, as required by the company's `preparedness framework` first released in 2023, until appropriate safety precautions are established. OpenAI also stated that Astra was not involved in the Hugging Face vulnerability attack. This may be the first instance of an AI frontier lab committing to slowing its own AI model development due to cybersecurity concerns.
New York Fed Survey: US Consumers More Optimistic About Employment and Inflation Outlook
A survey released by the New York Fed on Friday showed that Americans' overall expectations for the job market improved in July, while their expectations for future inflation also declined. The survey indicated that the perceived probability of finding a new job if unemployed rose to 46.2%, the highest level this year. This improvement was most pronounced among those with a high school education or less and households with annual incomes below $50,000. Meanwhile, consumers' expectations for inflation in the year ahead edged down to 3.6% from 3.7% previously. Expectations for inflation three and five years out remained unchanged at 3.3% and 3%, respectively. However, consumers remain concerned about the overall labor market outlook. The average probability of the unemployment rate rising in the year ahead increased. This upward trend was widespread across age and income groups. The perceived likelihood of losing one's job in the next year also rose slightly, though it remains below the 12-month average.
Analyst Ratings
Wedbush: Upgraded Airbnb (ABNB.US) from Neutral to Outperform, raising the price target from $152 to $200.
Stifel: Raised the price target for Cloudflare (NET.US) from $260 to $370.
Morgan Stanley: Resumed coverage of Baker Hughes (BKR.US) with an Overweight rating and a price target of $70.
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