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.

The Nasdaq Composite ended the trading session on a marginally positive note, gaining 1.08 points, or 0.00 percent, to close unofficially at 26,364.52. The move, while technically higher, was negligible in percentage terms, effectively signaling a flat session for the index.

Session Snapshot

The following table summarizes the unofficial closing data for the Nasdaq Composite:

The marginal uptick of 1.08 points placed the index at 26,364.52 on an unofficial basis, with the near-zero percentage change underscoring the subdued nature of the session's price action.