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Dow hits all-time high as weaker US jobs ease Fed hike fears

Dow hits all-time high as weaker US jobs ease Fed hike fears

Softer U.S. payrolls data and lower oil prices reduced near-term Federal Reserve hike expectations, lifting the Dow to a record, supporting Asian equities, and weighing on Treasury yields and the dollar.

Summary

Weaker-than-expected U.S. labor data, alongside lower oil prices after an OPEC+ output increase, led investors to scale back expectations for a near-term Federal Reserve rate hike. The Dow Jones Industrial Average rose 1.1% to a record high, while Asian shares and Wall Street futures also gained, Treasury yields and the dollar fell, and gold held near a two-week high. Markets looked ahead to Wednesday's Fed minutes for more guidance, with futures implying a 78% chance the Fed would leave rates unchanged at its July 29 meeting.

Terms & Concepts
  • OPEC+: Oil producers' group led by OPEC and allied countries that coordinates output targets.
  • Fed minutes: The detailed record of a Federal Reserve policy meeting, watched for signals on the rate outlook.
  • CME FedWatch tool: A tracker of market-implied probabilities for future Federal Reserve interest-rate decisions.