Why are stocks rising after August’s dismal jobs report?

Here are two statements that, on the surface, may appear contradictory:

1. The U.S. labor market is weakening, with the number of jobs in June actually decreasing.
2. The U.S. stock market is hitting all-time highs, with the Nasdaq Composite being the latest index to do so on Monday.

Why do those premises sit together uneasily?

Well, a slowdown in jobs growth implies a faltering economy, which has generally been bad for stocks. When people lose their jobs — or simply feel like they can’t afford to buy goods and services — corporate revenue falls. And those numbers are what, fundamentally, stock prices are based on.

But major indexes closed higher Monday, despite news of a weaker-than-expected jobs market in August. Of course, the prospect of rate cuts boosted investor sentiment.

A closer look at the individual movements of stocks, however, might provide another explanation for that. Technology firms — and artificial intelligence companies such as Broadcom and Nvidia, in particular — led the rise.

Investors, then, might have also shrugged off the August jobs report because they could be aware that the advent of AI will bring with it not just job losses, but also the end of the career ladder. Salesforce last week revealed it had cut 4,000 jobs because of AI, while Klarna in May said AI helped the company shrink its workforce by about 40%.

So, the implication — but a highly speculative and far-fetched one! — is that job losses could, in some ways, indicate that AI is working as intended — good for the companies, not so much for job seekers.

Private equity giants raid Wall Street as fundraising talent wars heat up

Private equity recruitment accelerated in the first half of 2025, led by fundraising, investor relations and marketing roles, according to a recent report from Magellan Advisory Partners. Broader investment hiring also rebounded after two years of freeze or slowdown.

This hiring spree comes after the private equity sector remained stuck in a holding pattern in recent years, as rising interest rates and market volatility put the brakes on dealmaking. Fund managers were left with an expanding pipeline of companies they couldn’t sell, with exits postponed.

— Lee Ying Shan