US Stocks Rise as Non-Farm Payroll Decline Cuts Rate Hike Bets

Weak July non-farm data reduces Fed rate hike expectations, lifting Nasdaq 0.77% and S&P 500 0.33%. Optical communication stocks lead gains amid capacity expansion news.

Woofun AI reports that a decline in July U.S. non-farm payroll figures reduced trader expectations for Federal Reserve rate hikes, driving broad equity gains. The Nasdaq Composite opened up 0.77%, the S&P 500 rose 0.33%, and the Dow Jones Industrial Average increased by 0.10%.

Optical communication stocks led sector performance, with AAOI climbing over 7% after announcing plans to expand production capacity tenfold within two years and expecting 1.6T product approval from major clients within two weeks. Coherent rose more than 9%. Storage-related equities also advanced, with SanDisk gaining 3.21% and Nebius increasing 1.16%, while SK Hynix fell 1.64% and Micron rose 1.19%.