Dow, S&P 500, Nasdaq rise as weak jobs data fuels Fed rate-cut hopes

U.S. stocks advanced on Friday after data showed the U.S. labor market unexpectedly shrank in July, strengthening expectations that the Federal Reserve will avoid raising interest rates. The Dow Jones Industrial Average climbed 0.28% to 54,037, the S&P 500 rose 0.62% to a record 7,758, and the Nasdaq Composite gained 1.3% to 26,691. July nonfarm payrolls fell by 23,000, versus expected growth of 80,000. The weak jobs data pressures the Fed, whose mandate covers stable prices and full employment, to lower rates. For the week, the S&P 500 gained 3.6%, the Nasdaq 5.2%, and the Dow about 3%.