Market Shifts: Stocks Rise, Dollar Drops Amid Slowed U.S. Job Growth

Stocks and government bond prices rose while the dollar fell after data showed slower-than-expected U.S. job growth in June. The Labor Department reported a modest increase in nonfarm payrolls, impacting Federal Reserve rate hike expectations. Meanwhile, chipmakers struggled, and oil and gold prices reacted to broader market shifts.

On Thursday, stock and government bond prices experienced an uplift as the U.S. dollar weakened. This market activity followed a report that U.S. job growth in June slowed more than anticipated, with a downward revision of May's numbers. The Labor Department's data showed a modest increase of 57,000 nonfarm payrolls.

Economists had expected a stronger performance, forecasting a 110,000 rise. As traders adjusted their Federal Reserve rate hike bets, the U.S. 2-year yield dipped to 4.11%. This shift in bond yields, which move inversely to prices, was seen as a potential positive for technology investors amid rising AI development costs.

Away from employment data, chipmaker stocks took a hit, influenced by Wall Street's trends and market rebalancing. In other developments, oil prices hit a four-month low, with Brent crude down 1.4% as U.S. talks with Iran progressed. Gold prices bounced back 2.2% in response to the drop in yields.