SynopsisThe US stock market enjoyed a significant boost on Friday as the S&P closed at an all-time high. The unexpected rise in job losses led to reduced expectations for a Federal Reserve interest rate hike in September.

Strong earnings from corporations further propelled market indices upward. Meanwhile, a dip in oil prices, influenced by advancing peace talks, helped to soo the inflation fears.

comA strong earnings season has also tempered concerns about the massive spending by AI-related companies, sending each of the three major indexes to their biggest weekly percentage gains since mid-April. S.

S. economy unexpectedly shed jobs last month and dampened expectations the Federal Reserve would raise interest rates at its September meeting.

The Labor Department said nonfarm payrolls decreased by ‌23,000 jobs last month, well ⁠below the ⁠estimate of economists polled by Reuters that called for an increase of 80,000 jobs. 2% in June due to workers leaving the labor force.

Market expectations for a rate hike from the Fed at its next meeting dropped to about 44%, according to CME FedWatch, down from 55% in the prior session and 67% a week ago. Signs of progress for a potential peace deal in the Iran war have helped cool oil prices and, in turn, have eased inflation worries that could prompt a ⁠Fed rate ‌hike and pushed Treasury yields lower.

A strong earnings season has also tempered concerns about the massive spending by AI-related companies, sending each of the three major indexes to their biggest weekly percentage gains since mid-April." You probably have to ⁠lower rates to kind of stimulate job growth, but if you lower rates, you're going to also stimulate inflation.

So you're kind of in a pickle at this point, and yet the market's just taken off because earnings have been stellar," said Tom Siomades, chief market economist at AE Wealth Management in Topeka, Kansas." The market should be reacting to weak job numbers and higher inflation and the possibility of a slow-growth economy that may need to have rates raised rather than cut, and yet it's not.

We're setting records, so go figure." 1% have ‌topped analyst expectations, according to LSEG data - well above the 68% average since 1994.

S. central bank has offered investors little forward guidance on monetary policy, leading market participants to focus on economic data and commentary from policymakers.