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US equities climb Tuesday as Nasdaq gains 1% and S&P 5% after July jobs miss, Fed holds rates at 5.25‑5.5% – see the key numbers and what’s next.
US equity indexes closed higher on Tuesday, with the Nasdaq up 1%, the S&P 500 up 1% and the Dow Jones Industrial Average up 0.8% after a volatile week sparked by weaker‑than‑expected July employment data and lingering election uncertainty【1】.
| At a glance | |
|---|---|
| Nasdaq performance | +1% close |
| S&P 500 performance | +1% close |
| Dow Jones performance | +0.8% close |
| July jobs added | 114,000 (vs. 150,000 forecast) |
| Unemployment rate | 4.3% (highest in ~3 years) |
| Fed policy rate | 5.25‑5.5% (held) |
Official labour statistics showed employers added only 114,000 jobs in July, well below the 150,000‑plus benchmark that analysts had been looking for, while the unemployment rate rose to 4.3%, the highest level in nearly three years【2】. The surprise underscored concerns that the long‑running U.S. jobs boom may be waning, reviving speculation that the Federal Reserve could be forced to cut rates sooner than market‑priced. The Fed’s decision the week before to keep its benchmark range at 5.25‑5.5% – the highest in two decades – added to the backdrop of heightened volatility【2】.
Equities responded positively despite the data shock. The technology‑heavy Nasdaq, which had been the most volatile segment, rebounded 1% to close higher, while the broader S&P 500 and the Dow also posted gains of 1% and 0.8% respectively【1】. The rally was mirrored in Asian markets, with Japan’s Nikkei 225 jumping 10.2% (3,217 points), its biggest one‑day point gain after a sharp slump the previous day【1】. European indices showed mixed moves, with London’s FTSE 100 edging up 0.2% and Germany’s DAX flat, while France’s CAC 40 slipped 0.3%【1】.
Analysts linked the recent turbulence to a “perfect storm” of factors: disappointing U.S. jobs data, concerns that AI‑focused tech stocks may be overvalued, and heightened political uncertainty surrounding the U.S. presidential campaign【1】. Economists remain split on whether a recession is imminent; some warn that a U.S. downturn would have global repercussions given the country’s role as a growth engine【1】. The Fed’s hold on rates, coupled with other central banks beginning to cut, has been criticised as a possible misstep that could keep markets volatile until the next policy meeting in September【1】【2】.
The rebound shows that despite a sharp dip triggered by weaker jobs numbers and election‑related nerves, equity markets can quickly recover when investors reassess risk and focus on the broader macro backdrop. The key question now is whether the Fed will pivot sooner than anticipated, which could set the tone for the rest of the year.
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AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 4 outlets · Jul 12, 2026 · How we report
Physical exchanges use a trading floor where brokers shout bids and offers, while electronic exchanges match orders via computer networks, as exemplified by the NYSE’s hybrid model and NASDAQ’s fully electronic system.
Approximately 59.9% of global equity market capitalization is in the United States, according to data from January 2022.
The 16 exchanges with market caps of $1 trillion or more account for 87% of the total global market capitalization.