Story perspectives

July Payroll Cuts Boost Stocks as Unemployment Falls to 4.1%

8/8/2026

Summary

Story summary

Employers cut 23,000 nonfarm payrolls in July, lifting U.S. stock indexes.
The S&P 500 rose 0.6% to 7,757.64, the Dow to 54,036.93, and the Nasdaq to 26,690.62.
Unemployment slipped to 4.1% while labor-force participation fell to 61.4%, a five-year low.
The 10-year Treasury yield dropped to 4.64% while the two-year yield fell to 4.20%.
Futures moved September rate-hike odds to worse-than-even, with analysts expecting July CPI headline 3.4% and core 2.5%.

History

Historical Context

After the 2001 dot-com bust, Fed Chair Alan Greenspan cut the federal funds rate to 3.5%, sparking a 2.5% S&P 500 fall and pushing unemployment to 5.5%. The same playbook reappeared in July 2024 when firms shed 23,000 jobs, the Dow rose above 54,000 and unemployment slipped to 4.1%, illustrating the Fed’s recurring use of rate moves and payroll cuts to steady markets.

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Story summary

Employers cut 23,000 nonfarm payrolls in July, lifting U.S. stock indexes.
The S&P 500 rose 0.6% to 7,757.64, the Dow to 54,036.93, and the Nasdaq to 26,690.62.
Unemployment slipped to 4.1% while labor-force participation fell to 61.4%, a five-year low.
The 10-year Treasury yield dropped to 4.64% while the two-year yield fell to 4.20%.
Futures moved September rate-hike odds to worse-than-even, with analysts expecting July CPI headline 3.4% and core 2.5%.

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