Stocks Soar Amid Weaker Jobs Report and Fed Rate Cut Speculation

Several stocks, including Remitly, Chegg, Lyft, eHealth, and Fiverr, surged in the pre-market session following a weak US jobs report, which boosted speculation of a potential interest rate cut by the Federal Reserve. Lower interest rates are seen as positive for growth-oriented stocks, fueling a broad-based rally in sectors like technology. The stocks' gains reflect investors' optimism about the economic outlook.

Several growth-oriented stocks, including Remitly, Chegg, Lyft, eHealth, and Fiverr, experienced significant gains in the pre-market session on July 2, 2025, following a weak U.S. jobs report. The report, which showed a slower-than-expected rise in employment, sparked speculation about a potential interest rate cut by the Federal Reserve. Lower interest rates are generally seen as beneficial for growth-oriented sectors, particularly technology, as they make borrowing cheaper and encourage investment.

The stocks' performance reflects investors' optimism about the economic outlook and the potential for easier monetary policy. The Federal Reserve's upcoming meetings, scheduled for September 16-17, October 28-29, and December 9-10, 2025, will provide further clarity on the central bank's stance on interest rates [1].

The weak jobs report, which indicated a slower pace of job creation than expected, has led investors to believe that the Federal Reserve might consider lowering interest rates to stimulate economic growth. Lower interest rates can make borrowing cheaper, thereby encouraging businesses to invest and consumers to spend, potentially boosting economic activity.

The pre-market rally in technology stocks highlights the sector's sensitivity to interest rate changes. Lower rates can make it more affordable for tech companies to finance growth initiatives, such as research and development, and expansion. Additionally, lower rates can make bonds less attractive, leading investors to seek higher returns in equities, including tech stocks.

Investors are closely watching the Federal Reserve's policy decisions, as they have a significant impact on the economy and financial markets. The upcoming FOMC meetings will be crucial for determining the direction of interest rates and, consequently, the stock market's performance.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L1N3TW0NJ:0-federal-reserve-events/