Why are stocks rising after August’s dismal jobs report?

Here are two statements that, on the floor, might seem contradictory:

1. The U.S. labor market is weakening, with the number of jobs in June actually decreasing.
2. The U.S. inventory market is hitting all-time highs, with the Nasdaq Composite being the latest index to do so on Monday.

Why do these premises sit collectively uneasily?

Well, a slowdown in jobs development implies a faltering economic system, which has usually been unhealthy for stocks. When individuals lose their jobs — or just really feel like they can not afford to purchase items and providers — company income falls. And these numbers are what, basically, inventory costs are primarily based on.

But main indexes closed larger Monday, regardless of information of a weaker-than-expected jobs market in August. Of course, the prospect of price cuts boosted investor sentiment.

A better take a look at the person actions of stocks, nonetheless, would possibly present one other clarification for that. Technology companies — and synthetic intelligence firms similar to Broadcom and Nvidia, particularly — led the rise.

Investors, then, might need additionally shrugged off the August jobs report as a result of they could possibly be conscious that the advent of AI will bring with it not just job losses, but in addition the tip of the career ladder. Salesforce final week revealed it had cut 4,000 jobs because of AI, whereas Klarna in May stated AI helped the corporate shrink its workforce by about 40%.

So, the implication — however a extremely speculative and far-fetched one! — is that job losses might, in some methods, point out that AI is working as supposed — good for the businesses, not a lot for job seekers.

Private equity giants raid Wall Street as fundraising talent wars heat up

Private fairness recruitment accelerated within the first half of 2025, led by fundraising, investor relations and advertising roles, in accordance with a current report from Magellan Advisory Partners. Broader funding hiring additionally rebounded after two years of freeze or slowdown.

This hiring spree comes after the non-public fairness sector remained caught in a holding sample in recent times, as rising rates of interest and market volatility put the brakes on dealmaking. Fund managers had been left with an increasing pipeline of firms they could not promote, with exits postponed.

— Lee Ying Shan