Global Stocks Surge as Weak US Jobs Data Eases Rate Fears

Global stock markets experienced an upswing as investors reacted to weak US jobs data, which indicated that 23,000 jobs were lost in July, prompting a reassessment of Federal Reserve interest rate hike expectations. The data, released by the US Bureau of Labour Statistics, also revised previous growth figures for May and June downward, suggesting a slowdown in the US economy.

Consequently, the likelihood of a rate increase in September dropped from 64 percent to approximately 43 percent. The S&P 500 reached a record high, bolstered by tech firms that typically benefit from lower interest rates, with the Nasdaq gaining over one percent.

Markets in Asia also reflected this positive sentiment, with Tokyo rising more than two percent. Rodrigo Catril from National Australia Bank noted that the report challenges near-term Fed rate hike expectations, while DWS chief economist Christian Scherrmann stated it sends a dovish message to central bankers.

Meanwhile, crude prices rose amid geopolitical tensions regarding the Strait of Hormuz.