The U.S. economy unexpectedly shed 23,000 jobs in July, marking the first net job loss in more than two years. The weak report immediately recalibrated expectations for the Federal Reserve's September policy meeting. The unemployment rate fell to 4.1 percent, giving policymakers a mixed read on labor market health.
Kalshi traders now price a 62 percent chance the Fed holds rates steady in September, up sharply from a 34 percent probability for a 25-basis-point hike before the report. A sustained rate pause—or eventual cuts—benefits growth stocks by lowering borrowing costs and lifting the present value of future earnings.
Growth-oriented tech stocks posted a mostly positive session. Microsoft (MSFT) rose 2.5 percent to close at $499.86, a direct response to reduced rate-hike fears that supports its cloud and AI segments. Apple (AAPL) gained 0.5 percent to $312.41, and Meta Platforms (META) added 0.2 percent to $589.90.
The broader indices diverged from large-cap tech. The Nasdaq Composite closed at 26,348, down 0.1 percent. The S&P 500 fell 0.2 percent to 7,710, and the Dow Jones Industrial Average dropped 0.9 percent to 53,885. Investors were selective even with a favorable macro shift, favoring established large-cap names over the broader market.
Several tech giants faced headwinds. Alphabet (GOOGL) dropped 1.3 percent to $357.75, and Nvidia (NVDA) slipped 0.1 percent to $218.99. Tesla (TSLA) declined 0.6 percent to $319.53. The Russell 2000 fell 0.6 percent to 3,002, reflecting caution toward smaller-cap names.
