This content was published on
August 7, 2026 - 09:09
5 minutes
(Bloomberg) — Stocks were muted as traders awaited the key monthly US payrolls report. Oil gained as prospects for a lasting agreement to reopen the Strait of Hormuz remained elusive.S&P 500 futures were little changed, and contracts on the Nasdaq 100 edged 0.2% higher. Europe’s Stoxx 600 benchmark rose 0.2%, heading for a fourth straight weekly advance.Global benchmark Brent rose 1.4% to $83.61 a barrel after reports that Iran will seek to restrict US and Israeli ships from the Strait of Hormuz and require compensation from countries it considers hostile before allowing passage.Treasuries were steady after the 10-year yield climbed seven basis points during the US session as higher oil prices revived concerns that the Federal Reserve may need to keep interest rates elevated. The dollar steadied after posting its biggest gain in two weeks during the New York session, while gold rose more than 1.4% to approach $4,300 an ounce.The lack of a deal in the Middle East risks keeping energy prices higher, weighing on a market already volatile amid concerns about the artificial intelligence trade. Attention now turns to Friday’s US employment report for fresh clues on the Fed’s policy path. A stronger-than-expected non-farm payrolls reading would reinforce the case for higher-for-longer interest rates.“There’s quite a bit of uncertainty around the US labor market and the subsequent Fed’s path forward,” said David Chao, global market strategist at Invesco. “Investors could be trimming risk exposure and taking some profit ahead of the NFP.”Meanwhile, the yen is heading into the end of the week having surrendered nearly half of its intervention-driven gains. The Japanese currency was little changed at about 158.35 per dollar, having climbed to as high as 155.23 earlier in the week.What Bloomberg Strategists Say…“The main event of the week for fixed income traders is expected to be a nonfarm payrolls report which delivers an improvement on the disappointing data seen for June. Pricing for potential interest rate increases by the Federal Reserve and Bank of Japan could accelerate with a solid US employment report on Friday.”— Mark Cranfield, MLive Strategist. For full analysis, click here.US economic data released Thursday highlighted the resilience of the labor market, leaving inflation as the key variable for the Fed’s September meeting. Initial jobless claims remained below 200,000 for a third consecutive week.Traders now turn their attention to Friday’s payrolls report.Economists surveyed by Bloomberg expect employers added 80,000 jobs in July, following a weaker-than-expected gain of 57,000 in June. The report is expected to provide the clearest signal yet on whether the labor market is cooling enough to support expectations for Fed easing later this year.“A weaker top-line figure will be enough to spark rallies in Treasuries even if it’s paired with subdued unemployment, because slowdown risk would begin to make its way onto the curve if fixed-income investors fear that rosters could start contracting,” José Torres, senior economist at Interactive Brokers, wrote in a note.Corporate Highlights:Allianz SE, the owner of bond manager Pacific Investment Management Co., generated record second-quarter profit on better results in its insurance and asset management businesses Alphabet Inc. is set to raise $25 billion from a bond sale after generous yield payouts helped secure one of the year’s largest order books for AI-related debt. SK Hynix Inc. is expanding its own investments into local corporate bonds DeepSeek has resumed its second funding round, seeking close to $8 billion, with Monolith Management in talks to contribute, according to people familiar with the matter. SpaceX shares rose on Thursday as investors digested the release of as many as 911.5 million shares worth about $100 billion from lock-up agreements that had prevented insiders from selling them. Some of the main moves in markets:StocksThe Stoxx Europe 600 rose 0.2% as of 8:05 a.m. London time S&P 500 futures were little changed Nasdaq 100 futures rose 0.2% Futures on the Dow Jones Industrial Average were little changed The MSCI Asia Pacific Index was little changed The MSCI Emerging Markets Index was little changed CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1519 The Japanese yen was little changed at 158.36 per dollar The offshore yuan was little changed at 6.7463 per dollar The British pound was little changed at $1.3450 CryptocurrenciesBitcoin fell 0.2% to $64,259.65 Ether fell 0.1% to $1,903.03 BondsThe yield on 10-year Treasuries was little changed at 4.67% Germany’s 10-year yield was little changed at 3.14% Britain’s 10-year yield was little changed at 4.94% CommoditiesBrent crude rose 1.2% to $83.44 a barrel Spot gold rose 1.2% to $4,291.68 an ounce This story was produced with the assistance of Bloomberg Automation.–With assistance from Winnie Hsu and Ruth Carson.©2026 Bloomberg L.P.
