Markets climb as softer US jobs data lifts rate hopes

US equities ended higher on Friday after weaker-than-expected labour market data reinforced expectations that the Federal Reserve may hold off on raising interest rates next month. The S&P 500 rose 0.60% to a record close of 7 758, while the Nasdaq gained 1.30% and the Dow added 152 points.

Non-farm payrolls fell by 23 000 from the previous month, while declines in unemployment and labour force participation suggested that the labour market was losing momentum. This helped ease concerns about renewed inflationary pressure, while lower Treasury yields supported credit-sensitive shares.

SpaceX climbed 15.80%, extending its gains from Thursday after Argus Research upgraded the stock to ‘Buy,’ citing the rapid returns from its investment in artificial intelligence infrastructure. Palantir rose 10.30%, extending its post-earnings rally after reporting strong second-quarter results and issuing a more optimistic outlook for 2026. Sandisk and Western Digital fell 3.70% and 3.80%, respectively, while Berkshire Hathaway edged lower ahead of its results.

European equities also finished higher, supported by renewed strength in technology and industrial shares. The Euro STOXX 50 and STOXX Europe 600 both gained 0.40%, while the UK’s FTSE 100 edged higher in a narrow range as investor sentiment remained cautious due to the Middle East saga. Germany’s DAX rose 0.70% to a fresh record of 26 355, taking its weekly gain to 2.80%. SAP climbed 4.10%, while Infineon and Siemens each gained close to 3% as demand for software and AI-related infrastructure remained supportive. Pharmaceutical stocks also performed well, with Sanofi and Argenx both rising 1.30%.

Asian markets ended mixed as investors assessed China’s latest inflation data alongside concerns about the regional and global economic outlook. China’s producer price inflation eased to 3.50% year on year in July 2026 from 4.10% in June, its weakest rate since April. Consumer inflation also slowed to 0.50% from 1%, pointing to continued weakness in domestic demand. The Nikkei slipped 0.12%, while the Shanghai Composite and Hang Seng rose 0.97% and 0.53%, respectively.

South African equities ended the week on a positive note, led by strong gains in gold miners and other resource counters. The JSE All Share Index rose nearly 2% to 117 518 points, recording a 1.92% gain for the week. The Top 40 Index advanced 2.18%, while the rand strengthened to around R16.34 against the US dollar, supported by elevated precious-metal prices.

Commodities ended higher as Crude oil prices rose slightly over 1% to settle at $83.40 a barrel, but still ended the week more than 7% lower. Prices remained volatile as markets weighed the possibility of an agreement between Iran and Oman that could restore shipping through the Strait of Hormuz and bring more Middle Eastern supply back to global markets. Oil prices gave back some of their post-settlement gains after reports suggested the US could lift its naval blockade once unrestricted commercial shipping resumes through the strait.

Precious metals climbed with gold increasing 2.41% to trade at $4 337 per ounce and silver bucked the trend closing close to 3% higher holding its seven-week high. Platinum also rose by 1.40%.