US stock markets posted broad gains on Thursday, driven by a softer-than-expected June jobs report that tempered expectations for further interest rate hikes by the Federal Reserve.
The Dow Jones Industrial Average and other major indices surged as investors digested the cooling labour data, which alleviated concerns that a resilient employment market would force the central bank to adopt a more hawkish stance on monetary policy.
The repricing reflects a shift in market expectations regarding the Fed's policy path.
With the labour market showing signs of softening, traders have reduced the likelihood of additional rate increases in the near term.
This development provides relief for rate-sensitive sectors and supports equity valuations that had been pressured by fears of prolonged high interest rates.
The June jobs data serves as a critical indicator of economic momentum.