(Updates with index/price moves, macroeconomic data and company/geopolitical news from the first paragraph.)
US equity indexes rose while government bond yields fell after an unexpected drop in nonfarm payrolls lifted bets for a monetary policy pause.
The Nasdaq Composite jumped 1.2% to 26,667.5, with the S&P 500 up 0.6% to 7,758.9 and the Dow Jones Industrial Average higher by 0.3% to 54,029.3. Consumer discretionary, materials, and technology topped gainers in a broadly positive tape, while energy led a trio of decliners.
The July employment report showed nonfarm payrolls fell by 23,000, compared with the 80,000 jobs increase expected in a Bloomberg-compiled poll. Private payrolls rose by 30,000 in July, the same as in June but below the 82,000 expected. Government sector jobs decreased by 53,000.
The probability of the Federal Reserve keeping its target rate unchanged at 3.5%-3.75% in September surged to 56% on Friday from 45% a day ago and 33% a week ago, according to the CME FedWatch tool.
US Treasury yields fell, with the 10-year yield down 1.9 basis points to 4.65% and the two-year lower by 4.1 basis points to 4.2%.
An Iranian official said a framework on the Strait of Hormuz has been agreed with Oman, with "a final decision to be made at higher levels," Al Jazeera, a Middle Eastern broadcaster, cited Iranian state media reports. The deal would not automatically reopen the waterway, Tehran's deputy foreign minister said, according to CNN.
The front-month US West Texas Intermediate crude oil contract slipped 0.6% to $76.80 a barrel, and global benchmark North Sea Brent edged 0.7% lower to $81.91 a barrel.