Bonds & Stocks
A slower-than-anticipated increase in US jobs drove stocks higher and short-dated bond yields fell on bets the Federal Reserve won’t be forced to raise interest rates any time soon. The S&P 500 rose 0.3%. The yield on 10-year Treasuries was little changed at 4.48%.
Economy
Hiring slowed sharply in June even as the unemployment rate fell to 4.2%. Nonfarm payrolls increased 57,000 and data for the previous two months were revised lower by a net 74,000. The participation rate, or the share of the population that is working or looking for work, dropped to the lowest level in more than five years.
World
The US won't renew its trade deal with Canada and Mexico, instead conducting annual reviews of the pact, which risks adding uncertainty for companies producing goods across North America. The US-Mexico Canada Agreement will remain in force for another decade, but the decision not to renew the deal opens the door to years of contentious negotiations over rules governing continent-wide supply chains and low tariff levels.