US Payroll Report Fuels Global Stock Market Rally

The U.S. jobs report showed only 57,000 new jobs in June and a drop in unemployment to 4.2%, far below analysts' expectations of 110,000‑115,000 hires. The weaker payroll data bolstered expectations that the Federal Reserve will keep interest rates unchanged for longer, lifting the probability of a September rate hold to 46.8% from 35.8%.

Equities surged worldwide. In New York, the Dow Jones rose 1.14% to a record‑high of 52,900 points, while the S&P 500 and Nasdaq added 1.8% and 2.1% respectively over the week. European markets followed suit, with the Stoxx 600, FTSE 100, DAX, and CAC 40 all posting record‑level gains; sector leaders included utilities, industrials and basic materials. In Asia, South Korea’s KOSPI jumped about 6% on a rebound in semiconductor manufacturers, while Japan’s services sector expanded and Chinese services demand accelerated.

Analysts noted the rally reflects profit‑taking and a shift away from high‑flying tech and AI stocks, as investors rotate into broader sectors amid the revised outlook for monetary policy.