Wall Street traders largely refrained from making significant bets in anticipation of Friday's monthly jobs report. Economists project an increase of 80,000 in payrolls for July, following a lower-than-expected gain of 57,000 in June. This jobs data is crucial for markets given the recent rally in the stock market and ongoing concerns about elevated inflation.
Oil prices surged, with Brent crude climbing 3.8% to $82.49 a barrel and US crude rising 2.75% to $77.29. This increase was driven by renewed tensions in the Strait of Hormuz, erasing earlier relief from lower oil prices that had helped to calm inflation worries. The rise in oil prices is contributing to concerns about inflation and putting upward pressure on bond yields.
Despite the churn, the S&P 500 and Dow both gained 1.0% over the past week, while the Nasdaq advanced 1.6%. The VIX, a measure of market volatility, surprisingly moved lower by 4.17% to 15.15, indicating specific market strain rather than widespread selling. The Federal Reserve maintained its benchmark interest rate at 3.50%-3.75%, although three policymakers advocated for a 25 basis point increase.
