A surprise contraction in US payrolls has given the stock market a break from worrying about a near-term interest-rate increase. Whether it gives small-cap stocks a durable reprieve depends on Wednesday’s inflation report.
Nonfarm payrolls fell by 23,000 in July, against forecasts for an 83,000 gain. The shock drove the two-year Treasury yield to a three-week low and led futures traders to abandon bets for a September Federal Reserve rate increase.
