US stocks ended the week higher after a weaker-than-expected jobs report shifted attention back towards the Federal Reserve and the possibility that interest rates may not need to stay elevated for as long as previously feared.
The S&P 500 climbed 0.6% on Friday, the Nasdaq Composite gained 1.3% and the Dow Jones Industrial Average added almost 0.3%, with all three major indexes finishing the week in positive territory.
The boost came after the latest employment figures surprised investors, showing the US economy lost 23,000 jobs in July, compared with expectations for an increase of around 80,000.
The unemployment rate edged down slightly to 4.1%, but the weaker hiring data raised fresh questions over whether the Federal Reserve will be more cautious with future interest rate decisions.
After months of markets focusing heavily on inflation and the huge spending behind artificial intelligence, the jobs report offered a reminder that the health of the wider economy still matters.
Airbnb Leads Corporate Winners as Forecast Rises
One of the biggest winners on Wall Street was Airbnb, with shares jumping 14% to their highest level in more than four years after the holiday rental company lifted its annual revenue forecast.
The company said travel demand had remained resilient despite the ongoing conflict in the Middle East, with finance chief Elinor Mertz noting that Airbnb had not assumed any significant impact from the situation in its current quarter.
Airbnb expects full-year revenue growth to reach at least the mid-teens, an upgrade from its previous low-to-mid teens forecast, helped by strong demand and expansion into services and experiences.
The company reported second-quarter revenue of $3.61 billion, ahead of analyst expectations of $3.57 billion, giving investors further confidence that demand remains strong.
Oil prices moved lower on Friday as uncertainty continued around the possibility of a US-Iran agreement and the future of the Strait of Hormuz, a key route for global energy supplies. Reports of tensions in the region kept markets cautious despite ongoing discussions between Iran and Oman over reopening the waterway.
FTSE 100 Edges Higher as Miners Support London Market
In London, the FTSE 100 managed another small gain, rising 0.3% as mining stocks helped offset a mixed session elsewhere. The FTSE 250 performed better, adding 0.7% as investors continued to react to company results and changing expectations around interest rates.
Gold miners were among the strongest performers as precious metal prices remained elevated. Fresnillo climbed 4.6%, Hochschild Mining gained 6.2% and Endeavour Mining rose 4.1%, with investors continuing to favour companies benefiting from higher gold prices.
Elsewhere, Diageo shares rose 3.3% as investors assessed new chief executive Dave Lewis’ plan to deliver $1 billion of cost savings and improve efficiency across the drinks group.
On the FTSE 250, Goodwin jumped 9.8% after announcing it was reviewing strategic options for its Mechanical Engineering division, including a potential sale of a significant part of the business.
Recruitment stocks also continued their recovery, with Hays rising 5.8% and Michael Page gaining 3.8% as investors looked for signs of improvement in hiring conditions.
The session was not positive everywhere, with Oxford BioMedica falling 15% after cutting its 2026 revenue outlook by 17% due to delayed customer programmes, procurement changes and slower progress at its North Carolina facility.
