Dollar drops, stocks climb as weak US jobs data eases rate fears

Specialist Michael Pistillo works on the floor of the New York Stock Exchange, Wednesday, Aug 5, 2026, in New York. (Photo: AP/Yuki Iwamura) 08 Aug 2026 05:31AM NEW YORK: The dollar fell sharply Friday (Aug 7) after the US economy shed thousands of jobs in July, an economic blow that lowered the risk of an interest rate hike by the Federal Reserve that could slow growth in the world's biggest economy.Stocks gained on the report that showed 23,000 jobs were lost last month, upending expectations that 80,000 to 100,000 new posts would be created. Wall Street's S&P 500 gained 0.6 per cent to close at a new record, with the tech-focused Nasdaq up more than one percent and the Dow also closing in the black.Nearly every European market closed higher, with Paris, Frankfurt and Milan again reachin