US Job Market Slowdown Drives Wall Street And Gold Surge

The US economy shed 100,000 jobs in July 2026, marking a sharp deceleration from previous growth trends and pushing the unemployment rate up unexpectedly to 4.5%. The labor force participation rate fell to 62.5%, while average hourly earnings rose by a modest 0.3% month-on-month. Average weekly working hours also saw a slight contraction, pointing to a broader cooling across American industries.

Wall Street rallied strongly following the release of the weaker-than-expected employment report on August 7, 2026, as investors anticipated a softer monetary policy stance. The S&P 500 climbed 1.4% and the Nasdaq Composite rose 1.7% as chip stocks posted notable gains. Concurrently, spot gold prices touched a seven-week high at $2,348.06 per ounce due to receding expectations for further interest rate hikes.

Treasury yields dropped significantly across benchmark maturities, with the 10-year note yield falling about 10 basis points to 3.89%. The probability of the Federal Reserve raising interest rates further in September dropped sharply, providing central bankers with increased flexibility to consider upcoming rate adjustments.