The Dow Jones Industrial Average rose 0.3% shortly after the opening bell, while the S&P 500 gained 0.5%. The Nasdaq Composite advanced more than 1% in early trading, led by technology stocks.
Jobs data shifts focus to Fed policy
US labour market data showed the economy lost 23,000 jobs in July, compared with Bloomberg economists’ expectations of an increase of 80,000 jobs. The unemployment rate fell to 4.1% from an expected 4.2%.
The data prompted investors to reassess the Federal Reserve’s policy outlook, with markets increasing expectations of interest rate cuts. Lower interest rates are generally viewed as supportive for technology and other growth-oriented stocks.
Also read: US jobs shrink by 23,000 in July as Iran conflict weighs on economy; unemployment dips to 4.1%
Oil remains in focus amid Hormuz developments
Oil prices also remained under watch as developments in West Asia continued. Brent crude traded at about $82 a barrel, while US benchmark West Texas Intermediate crude remained above $77 a barrel.
Crude prices were steady after reports indicated Iran and Gulf states were moving towards an agreement to reopen the Strait of Hormuz. However, uncertainty remained following reports of explosions in the waterway linked to Iran intercepting what it described as hostile targets.
Markets are also tracking discussions involving Iran and Oman over reopening the shipping route, alongside reports that Iran may seek to restrict US and Israeli vessels from transiting the strait.(with inputs from agencies)
