Markets Higher as Jobs Number Disappoints, Wage Growth Falls

• The July jobs report showed a loss of 23,000 non-farm payrolls, with average hourly earnings slowing (0.1% M/M, 3.2% Y/Y) and the unemployment rate dropping to 4.1%.
• This macroeconomic data is interpreted as a positive sign for cooling inflation, leading to higher stock futures and lower bond yields, with September Fed rate hike odds dropping to 40.1%.
• Airbnb (ABNB) surged over 7% pre-market on strong Q2 earnings and raised guidance, attributing success to its AI strategy, while The Trade Desk (TTD) plunged nearly 30% after missing earnings and providing weak Q3 guidance.

The July jobs report indicated a loss of 23,000 jobs, coupled with slowing average hourly wage growth and a drop in the unemployment rate to 4.1%. This data is viewed positively by the market, easing inflation concerns and reducing the likelihood of a September Fed rate hike. Company earnings were mixed, with Airbnb surging on strong results and AI strategy, while The Trade Desk plunged due to a double miss and weak guidance.