US equities rise with focus on rates as job market weakens

Meanwhile, oil prices are barely lower as investors weigh signals that Gulf states and Iran are closing in on a deal to reopen the Strait of Hormuz under a temporary arrangement aimed at allowing for broader talks to bring the Iran war to a close. Here is your morning snapshot: - U.S. equity indexes rise, Nasdaq out front, up ~1% - Among S&P 500 sectors, consumer discretionary gains most, energy is biggest laggard - Euro STOXX 600 index up ~0.5% - Dollar falls; U.S. crude edges up; bitcoin up >1%; gold up >2% - U.S. 10-year Treasury yield falls to ~4.64% Still, among the S&P 500's 11 major sectors, six are advancing. The consumer discretionary sector .SPLRCD is outperforming with a 1.6% gain. Its strongest advancer is Airbnb ABNB.O, up 16%, after the vacation-rental firm raised its annual revenue forecast, easing worries about a demand fallout from the Middle East conflict. However, Under Armour UAA.N shares are down 2% after it forecast a steeper annual revenue decline, underscoring the challenge of reviving growth as cautious consumers rein in spending on athletic apparel amid economic uncertainty in North America. In technology earnings, shares of Microchip Technology MCHP.O are rallying more than 12% after the company forecast second-quarter revenue and profit above Wall Street estimates late on Thursday, on strengthening demand for chips used in AI data centers and in industrial, automotive and aerospace sectors. The weakest S&P 500 sector is energy .SPNY, which is off more than 1%. Wall Street's three major indexes are rising on Friday as investors bet that the Federal Reserve will be less inclined to raise rates after a weaker-than-expected jobs report. Some strong earnings reports are also helping sentiment. Expectations for a one-notch rate hike in September fell to 44% from 55% a day ago, according to CME Group's [FedWatch](https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html?redirect=/trading/interest-rates/countdown-to-fomc.html) tool after the Labor Department reported a decline of 23,000 jobs in July versus expectations for an increase of 80,000 jobs. June's job growth was revised down to 20,000 from the previously reported 57,000 and May growth was revised to 63,000 from 129,000. While the report may imply a lower likelihood of a Fed rate hike, Ameriprise chief economist Russell Price wrote that there was "very little to like about this report." Since the job market provides the income and confidence consumers need in order to keep spending, Price said that "if the job market falters, consumers and the economy might not be far behind."

US equities rise with focus on rates as job market weakens

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Markets rise as weak jobs data shifts rate expectations

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