Finance

The U.S. economy unexpectedly shed 23,000 nonfarm payroll jobs in July, contrasting sharply with economic forecasts that predicted a major expansion. This soft labor market signal caused U.S. Treasury yields to retreat, with the 10-year yield dropping to 4.64%. Market participants reacted by significantly lowering the probability of a Federal Reserve interest rate hike at the upcoming September meeting.

With a large majority of S&P 500 firms having reported their second-quarter results, corporate financial health remains highly robust. Approximately 86% of reporting companies have outpaced Wall Street's earnings-per-share estimates, well above historical five-year and ten-year averages. This strong fundamental performance has successfully countered investor anxieties regarding heavy technology and artificial intelligence infrastructure spending.

International oil benchmarks finished lower for the week as energy market anxieties over Middle Eastern conflicts began to moderate. Investors reacted to signs of structural progress in diplomatic talks between Iran and Oman aimed at stabilizing and reopening traffic through the vital Strait of Hormuz transport corridor. Brent crude futures ultimately slipped down to settle around the $82 to $83 per barrel range.