2026.08.0720:21:55UTC+00US Stocks Rise as Rate Hike Bets Fade

US stock indices finished higher on Friday after weaker-than-expected labor market data lowered the odds of a Federal Reserve rate hike next month. The S&P 500 climbed 0.6% to a record close of 7,758, the Nasdaq advanced 1.2%, and the Dow added 152 points.

Nonfarm payrolls unexpectedly declined by 23,000 from the prior month, and both the unemployment rate and the labor force participation rate edged down. The softer readings eased worries that a still-robust labor market might reignite inflation. In turn, falling Treasury yields provided support for credit‑sensitive stocks.

Among individual movers, SpaceX surged 15.8%, extending Thursday’s rally after Argus Research upgraded the stock to “Buy,” pointing to rapid payback on the company’s AI infrastructure investments. Palantir jumped 10.3%, adding to gains after strong second-quarter results and an improved outlook for 2026. By contrast, Sandisk and Western Digital dropped 3.7% and 3.8%, respectively, while Berkshire Hathaway slipped 1% ahead of its earnings release.