Post-Market Recap — Friday, August 7, 2026

U.S. stocks finished the week higher after a surprisingly weak July employment report reduced expectations for a Federal Reserve rate increase in September. Nonfarm payrolls fell 23,000, versus expectations for an 80,000 gain, and prior months were revised lower. The unemployment rate dipped to 4.1%, largely because more people left the labor force.

Technology and consumer discretionary shares led the advance. SpaceX jumped about 12% following Thursday’s lockup expiration, while Atlassian, Microchip Technology and Airbnb rallied on strong earnings or guidance. Trade Desk fell sharply after issuing a weaker revenue outlook.

The softer jobs data pushed the 10-year Treasury yield toward 4.64% and the two-year toward 4.20%, while the U.S. dollar fell about 0.3%. Markets cut the implied probability of a September Fed hike to roughly 40%-44%, though next week’s inflation data will remain critical.

Gold surged roughly 2.6% to around $4,414, benefiting from lower yields and a weaker dollar. Brent crude slipped modestly toward $82 despite renewed Middle East tensions, as traders continued to weigh possible arrangements involving shipping through the Strait of Hormuz.

What traders should watch next: next week’s CPI and PPI inflation reports, Fed commentary, and whether the combination of softer employment and easing yields can extend the equity rally without reviving concerns about slowing economic growth.