US equity markets posted gains on Thursday as a softer-than-expected June jobs report tempered expectations for further interest rate hikes by the Federal Reserve.
The Dow Jones Industrial Average rose 0.17%, while the S&P 500 added 0.16% and the Nasdaq Composite edged up 0.03%.
Treasury yields eased in response to the labor data, providing a tailwind for risk assets.
The decline in bond yields helped offset recent volatility in technology shares, improving investor sentiment across the board.
Markets are now pricing in a higher probability of rate cuts in the coming months, as the cooling labor market suggests the economy is not overheating.
The shift in rate expectations comes after a volatile week for tech stocks, with investors seeking clarity on the Federal Reserve’s next move.