Finance

The U.S. economy added 57,000 jobs in June, significantly trailing the 115,000 projected by economists. This cooling hiring pace has led market participants to dial back expectations for imminent Federal Reserve interest rate hikes, as softer employment data suggests less inflationary pressure.

Investors are increasingly rotating out of mega-cap technology winners and into smaller companies, driving a surge in the Russell 2000. While the Nasdaq faced pressure from profit-taking in the artificial intelligence sector, the broader market was supported by a 6.3% rise in small-cap measures during the week.

U.S. Treasury yields moved lower toward the end of the week following the release of lukewarm employment figures. The 10-year Treasury yield finished at approximately 4.49%, while the 2-year note settled at 4.14%, reflecting a cautious market outlook on the Federal Reserve's long-term policy path.