U.S. stocks closed higher on Friday, with the Nasdaq Composite gaining around 1%, driven by better-than-expected quarterly financial results from several high-profile companies. Natera Inc led the gains among major names, surging 20.5% to $319.64 after reporting a second-quarter loss of 47 cents per share, which beat the consensus estimate for a loss of 51 cents per share. The company also raised its FY26 sales guidance above estimates, signaling confidence in future growth. Revenue increased 37.7% year over year to $752.8 million, exceeding the analyst consensus estimate of $660.7 million.

The positive sentiment spread across multiple sectors, with healthcare technology firm Doximity Inc seeing the largest percentage gain among the listed movers. Shares of Doximity Inc jumped 39% to $28.64 after the company reported better-than-expected first-quarter sales results and raised its FY27 sales guidance above estimates. This broad-based rally reflects investor appetite for companies demonstrating strong operational momentum and upward revision in outlooks.

Digital advertising platform PubMatic Inc also recorded significant gains, rising 34.6% to $18.14. The company reported better-than-expected second-quarter financial results and issued third-quarter sales guidance above estimates. Similarly, QuinStreet Inc gained 38% to $20.98 after reporting better-than-expected fourth-quarter financial results and issuing first-quarter sales guidance above estimates. These moves highlight strength in the digital services sector.

Enterprise software and gaming stocks also contributed to the market's upward trajectory. Atlassian Corp shares climbed 37% to $151.11 after reporting better-than-expected fourth-quarter financial results and issuing FY27 sales guidance above estimates. Corsair Gaming Inc gained 35.3% to $14.36 after reporting better-than-expected second-quarter financial results and issuing FY26 adjusted EPS guidance above estimates. OmniAb Inc gained 34.8% to $3.02 after reporting better-than-expected quarterly financial results and raising its FY2026 sales guidance above estimates.

Other notable gainers included Twilio Inc, which gained 24.4% to $240.45 after raising its FY26 sales guidance above estimates following better-than-expected quarterly results. B2Gold Corp rose 23.3% to $5.04 following quarterly results. Construction Partners Inc gained 20.7% to $120.90 after raising its FY26 sales guidance above estimates. Halozyme Therapeutics Inc gained 18.7% to $101.84 after raising its FY26 guidance above estimates. Five9 Inc gained 18.4% to $33.60 after raising its FY26 sales guidance. Airbnb Inc rose 15.8% to $175.64 after posting second-quarter results that cleared expectations on both top and bottom lines.

Microchip Technology Inc gained 14.1% to $84.86 after issuing second-quarter guidance above estimates following upbeat first-quarter financial results. Space Exploration Technologies Corp gained 13.7% to $130.88 after Argus Research upgraded the stock from Hold to Buy. Onto Innovation Inc jumped 13% to $304.28 after issuing current-quarter guidance above estimates. Palantir Technologies Inc rose 9.3% to $170.48. James Hardie Industries PLC gained 8.3% to $30.32 after raising its FY27 sales guidance above estimates following better-than-expected first-quarter financial results.

Market Movers Overview

U.S. employers reduced headcount by 23,000 in July, marking an unexpected contraction in the labor market that pushed overall job growth into negative territory. The Bureau of Labor Statistics reported the decline on Friday, contrasting sharply with the consensus estimate of 83,000 new jobs and a downwardly revised 20,000 for June. The unemployment rate remained stable at 4.1%, slightly better than the 4.2% expected by economists, while average hourly earnings rose just 0.1% month-on-month, missing the 0.3% forecast.

Despite the soft labor data, U.S. equity markets closed higher on Friday, driven by strong gains in technology shares. The Nasdaq Composite surged 1.20% to 26,663.54, adding more than 300 points. The Dow Jones Industrial Average rose 0.30% to 54,048.67, and the S&P 500 climbed 0.58% to 7,754.64. Investors appeared to weigh the resilient unemployment rate against the payroll miss, fueling risk-on sentiment in equities.

Sector performance was mixed, with materials stocks leading the advance by jumping 1.5%. Conversely, energy shares lagged, falling 1.4% during the session. Individual stock movements were volatile, with several companies reacting to quarterly earnings reports and guidance updates.

Top Gainers

Three companies saw significant share price increases following better-than-expected financial results or guidance:

Doximity Inc shares shot up 39% after reporting first-quarter sales above expectations and raising its FY27 sales guidance. QuinStreet Inc surged 38% following fourth-quarter results that exceeded estimates, alongside improved first-quarter sales guidance. Atlassian Corp also gained 37%, driven by fourth-quarter financials that beat expectations and higher FY27 sales guidance.

Top Losers

Conversely, three stocks declined sharply after reporting second-quarter results:

Sezzle Inc dropped 35% after releasing second-quarter financial results. Nlight Inc fell 24% following its second-quarter report. Quidelortho Corp declined 24% after reporting second-quarter results and cutting its FY26 guidance below estimates.

Global Markets and Commodities

International markets showed mixed performance. In Europe, the STOXX 600 rose 0.31%, while Germany’s DAX gained 0.69%. France’s CAC 40 climbed 0.17%, but Spain’s IBEX 35 slipped 0.02%. London’s FTSE 100 rose 0.31%. In Asia, China’s Shanghai Composite rose 1.02% and Hong Kong’s Hang Seng gained 0.54%, while Japan’s Nikkei 225 fell 0.12% and India’s BSE Sensex dropped 0.58%.

Commodity prices were mostly higher. Gold rose 2.4% to $4,400.70, and silver jumped 3.5% to $63.775. Oil prices increased 0.5% to $77.65. However, copper fell 1.6% to $6.6045.