(Editor’s note: The headline, lede and ETFs data was updated; economic data was added.)
U.S. stock futures were higher on Friday, as the Dow Jones, S&P 500 and Nasdaq 100 indices rose, following Thursday’s lower close.
The U.S. labor market unexpectedly cooled in July as nonfarm payrolls dropped by 23,000, sharply missing FactSet’s forecast of a 97,500 gain and falling below June’s revised 20,000 increase. Despite the job contraction, the unemployment rate ticked down to 4.1%—beating expectations of 4.2%—while average hourly earnings remained essentially flat at $37.62, up 3.2% year-over-year.
Meanwhile, Iran and Oman were continuing negotiations on a proposed framework for the Strait of Hormuz that would allow the two countries more control over the strategic shipping route.
The 10-year Treasury bond yielded 4.67%, and the two-year bond was at 4.24%. The CME Group’s FedWatch tool’s projections show markets pricing a 54.7% likelihood of the Federal Reserve hiking the current interest rates during its September meeting.
| Index | Performance (+/-) |
| Dow Jones | 0.12% |
| S&P 500 | 0.27% |
| Nasdaq 100 | 0.57% |
| Russell 2000 | 0.43% |
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 and Nasdaq 100, respectively, were higher in premarket on Friday. The SPY was up 0.28% at $770.75, while the QQQ advanced by 0.81% to $720.47.
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Stocks In Focus
Atlassian
- Atlassian Corp. (NASDAQ: TEAM ) surged 30.25% in premarket on Friday after the company reported better-than-expected fourth-quarter financial results.
- Benzinga’s Edge Stock Rankings indicate that TEAM maintains a strong price trend in the short and medium terms but a weak trend in the long term.
Trade Desk
- Trade Desk Inc. (NASDAQ: TTD ) plunged by 27.45% as it reported worse-than-expected second-quarter financial results and issued soft third-quarter revenue guidance.
- Benzinga’s Edge Stock Rankings indicate that TTD maintains a weak price trend in the short, long, and medium terms, with a good growth score.
Cloudflare
- Cloudflare Inc. (NYSE: NET ) rose 14.97% after reporting better-than-expected second-quarter financial results and raising its FY26 guidance above estimates.
- Benzinga’s Edge Stock Rankings indicate that NET maintains a strong price trend in the long, short, and medium terms.
Doximity
- Doximity Inc. (NYSE: DOCS ) surged 71.10% after the company reported better-than-expected first-quarter sales results and raised its FY27 sales guidance above estimates.
- Benzinga’s Edge Stock Rankings indicate that DOCS maintains a weak price trend in the long and medium terms but a strong trend in the short term, with a moderate quality score.
Sezzle
- Sezzle Inc. (NASDAQ: SEZL ) declined 23.82% after the company reported second-quarter financial results.
- Benzinga’s Edge Stock Rankings indicate that SEZL maintains a strong price trend in the short, long, and medium terms, with a poor value score.
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Cues From Last Session
Sectors such as real estate, industrials, and materials led the losses on Thursday, though energy and health care bucked the trend to close higher.
| Index | Performance (+/-) | Value |
| Dow Jones | -0.85% | 53,885.10 |
| S&P 500 | -0.18% | 7,709.96 |
| Nasdaq Composite | -0.057% | 26,348.35 |
| Russell 2000 | -0.58% | 3,001.55 |
Insights From Analysts
Luis Alvarado, Co-Head of Global Fixed Income at Wells Fargo Investment Institute, views the current trajectory of the U.S. stock market and broader economy through the lens of shifting capital demands, particularly surrounding the massive funding needs of artificial intelligence (AI).
While investors historically treat AI primarily as a growth engine for equities, Alvarado emphasizes that funding the necessary infrastructure—such as data centers, power generation, and semiconductor manufacturing—requires immense long-term capital.
This heavy financing need directly competes with large federal deficits and elevated U.S. Treasury bond issuance for investor dollars.
Alvarado highlights that while AI could ultimately boost productivity and long-term economic growth, markets must first finance that expansion.
As a result, rising capital competition could put upward pressure on long-term yields and term premiums. As Alvarado points out, “Investors often view AI as an equity story. Increasingly, it may become a bond story as well.”
“In the months ahead, we believe one of the most important forces shaping bond markets may be the growing competition between data centers and deficits,” he added.
Upcoming Economic Data
Here’s what investors will be keeping an eye on Friday.
- Nonfarm Payrolls: Decreased by 23,000 in July, sharply missing consensus estimates of +97,500. May and June payroll gains were revised down by a combined 103,000 to +63,000 and +20,000, respectively.
- Unemployment Rate: Edged down to 4.1%, coming in lower than FactSet’s estimate of 4.2%.
- Average Hourly Earnings: Remained virtually flat over the month at $37.62 (+$0.02), bringing year-over-year wage growth to 3.2%.
- June’s consumer credit data will be out by 3:00 p.m. ET.
Commodities, Crypto, And Global Equity Markets
Crude Oil WTI futures were trading higher in the early New York session by 0.40% to hover around $77.60 per barrel.
Gold Spot US Dollar rose 1.54% to hover around $4,305.90 per ounce. The U.S. Dollar Index spot was 0.01% higher at the 99.9370 level.
Meanwhile, Bitcoin (CRYPTO: BTC) was trading 0.39% higher at $64,849.82 per coin over the last 24 hours.
Asian markets closed lower on Friday, except China’s CSI 300 and Hong Kong’s Hang Seng indices. India’s Nifty 50, Australia’s ASX 200, Japan’s Nikkei 225, and South Korea’s Kospi indices fell. European markets were mostly higher in early trade.
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