U.S. stocks opened higher Friday, with investors betting that a sharply weaker jobs report will all but guarantee the Federal Reserve cuts interest rates later this month.

The Dow Jones Industrial Average climbed 110.73 points, or 0.24%, to 45,732.0. The S&P 500 advanced 25.99 points, or 0.40%, to 6,528.07, while the Nasdaq Composite gained 135.36 points, or 0.62%, to 21,843.1.

Fed Cut Expectations Surge After Soft Labor Data

Markets reacted swiftly to the August employment report , which showed U.S. nonfarm payrolls increasing by just 22,000, well below economists’ expectations of 75,000. The report highlighted broad weakness across cyclical industries, including a loss of 12,000 manufacturing jobs, 6,000 mining jobs, and 12,000 wholesale trade positions, partially offset by a modest 31,000 gain in healthcare.

Revisions painted a grimmer picture, with June’s tally cut by 27,000 to show the first net job loss since 2020. The three-month average gain now stands at 29,000, the weakest since the 2008 financial crisis. According to CME FedWatch data, markets are now pricing a 99% chance of a quarter-point cut at the Fed’s September 17 meeting, with a 61% probability of two cuts by OctoberArticle Build - Google Docs.

Commodities Diverge: Gold Climbs, Oil Falls

Commodities reflected diverging investor sentiment. Gold futures (Dec 2025) rose 0.86% to $3,637.80, benefiting from safe-haven demand as traders anticipated looser monetary policy. In contrast, crude oil (Oct 2025) slumped 1.83% to $62.32, as concerns about slowing growth weighed on demand expectations.

Tesla in Spotlight with Musk Incentive Plan

Tesla also captured market attention after its board proposed a sweeping new incentive package for CEO Elon Musk. The plan would grant Musk up to 423 million additional shares, potentially raising his voting power to 25%, contingent on Tesla achieving ambitious milestones. These include delivering 20 million vehicles, securing 10 million active FSD subscriptions, and deploying 1 million robotaxis and Optimus robots.

Wedbush analysts led by Daniel Ives reaffirmed their “OUTPERFORM” rating and $500 price target, calling Musk “the biggest asset for Tesla” at a time when the company is betting heavily on robotics and artificial intelligence.

Broader Context

The combination of a weaker labor market and imminent Fed easing has bolstered equities at the open, though risks remain. For now, Wall Street appears encouraged by the prospect of cheaper borrowing costs and supportive monetary policy—even as signs of economic strain mount.