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The S&P 500 and Nasdaq Composite opened higher on Thursday after a weaker-than-expected US jobs report boosted hopes that the Federal Reserve may delay further interest rate hikes. The S&P 500 is currently trading around 7,523, up roughly 0.5%, while the Nasdaq Composite has gained more than 0.4% to trade above 26,148. The Dow Jones Industrial Average was little changed as investors rotated back into growth stocks following Wednesday's technology-led decline. The rally comes after fresh labor market data suggested hiring is beginning to cool, easing concerns that the Federal Reserve will need to tighten monetary policy further this summer. Why is the US stock market up today? Markets reacted positively after the June nonfarm payrolls report showed the US economy added 57,000 jobs, well below economists' expectations of 115,000. Although hiring slowed significantly, the unemployment rate unexpectedly declined to 4.2%, highlighting continued resilience in the labor market without signaling excessive wage-driven inflation. For investors, the weaker payroll number was enough to reduce expectations that the Federal Reserve will raise interest rates at its next meeting. Money markets quickly lowered the probability of a July rate hike, supporting equities, particularly technology and growth stocks that are more sensitive to borrowing costs. Treasury yields and the dollar fall after jobs data The weaker employment report also triggered declines in Treasury yields and the US dollar. The Dollar Spot Index fell around 0.5%, while the euro strengthened against the greenback. Lower bond yields generally support higher stock valuations by reducing future discount rates, helping fuel gains across major equity indices. Technology stocks lead early gains Technology shares rebounded after coming under pressure during Wednesday's session. Nike, Apple and Boeing were among the stronger early performers, each rising more than 3% shortly after the opening bell. The recovery comes after semiconductor stocks weighed heavily on Wall Street in the previous session, prompting investors to selectively buy high-quality growth names following the pullback. Oil prices continue easing Energy markets also supported investor sentiment. Crude oil prices extended recent declines and remained below levels seen before the recent Middle East conflict, helping ease inflation concerns. Lower energy prices reduce cost pressures across the economy and strengthen the case for a less aggressive Federal Reserve. What investors are watching next While Thursday's jobs report reduced immediate rate hike concerns, investors will continue monitoring inflation data and upcoming Federal Reserve commentary for further clues about monetary policy. Markets remain focused on whether slowing employment growth translates into lower inflation without significantly weakening the broader economy. If inflation continues moderating alongside a resilient labor market, equities could remain supported through the second half of the year. Why is the US stock market up today? The US stock market is rising after June's weaker-than-expected jobs report reduced expectations of another Federal Reserve interest rate hike. Lower Treasury yields and a weaker US dollar also supported equities. Why did the Nasdaq outperform? The Nasdaq outperformed because technology and growth stocks typically benefit when investors expect lower interest rates. Falling Treasury yields also improved sentiment toward the sector. What did the June jobs report show? The US economy added 57,000 jobs in June, below forecasts of 115,000, while the unemployment rate unexpectedly fell to 4.2%, suggesting hiring is slowing but the labor market remains relatively resilient.