US stocks close week higher

The New York Stock Exchange closed the week on a high note as expectations of a rate hike by the Fed faded following data showing that US employment unexpectedly declined in July.

The Dow Jones Industrial Average gained 0.28%, or 151.83 points, to close at 54,036.93.

The S&P 500 increased 0.62%, or 47.68 points, to finish at 7,757.64, while the Nasdaq Composite soared 1.3%, or 342.26 points, to end the week at 26,690.62.

The Volatility Index (VIX), often referred to as the market’s “fear index,” declined 1.65% to 14.90.

Macroeconomic data released in the US and geopolitical developments in the Middle East remained in the spotlight for investors, while stock markets followed a positive trend.

Investors’ assessment of the weaker-than-expected US employment data in light of expectations regarding the Fed’s monetary policy contributed to the upward trend in the markets.

According to data released Friday in the US, nonfarm payrolls decreased by 23,000 in July; market expectations had been for nonfarm payrolls to increase by 85,000 during this period.

Downward revisions were also made to the May and June nonfarm payroll data; as a result, the total employment level for May and June came in 103,000 lower than previously reported.

Meanwhile, the unemployment rate fell to 4.1% from 4.2% in June.

Analysts noted that the weak employment data could give the Fed room to keep interest rates unchanged at its September meeting.

Investors also closely followed the financial results announced by companies during earnings season.

Shares of software company Atlassian rose 35.3% after its financial results exceeded expectations and the company presented an optimistic outlook for the coming period.

Shares of semiconductor company Microchip Technology also rose 13.9% as the company’s revenue forecast for the next quarter exceeded market estimates.

Shares of technology company Cloudflare gained 5.6% after its financial results came in above expectations, while Airbnb’s shares rose 17.4% as its second-quarter financial results exceeded expectations.

On the geopolitical front, news regarding a potential agreement between the US and Iran was closely monitored.

European markets

European stocks saw mostly positive figures on Friday, excluding Italy. The pan-European Stoxx Europe 600 index gained 0.31% to close at 660.25 points.

The UK’s FTSE 100 gained 0.31% to 10,901.09, while Germany’s DAX 40 rose 0.69% to 26,319.45 points and France’s CAC 40 went up 0.17% to 8,714.93.

Italy’s FTSE MIB 30 increased 0.06% to 53,717.19 points, and Spain’s IBEX 35 fell slightly by 0.02% to 20,176.00 points.