Wall Street Hits Record High as Soft US Data Keeps Rate Path Uncertain

US equities pushed to a fresh record high in early August despite a run of softer-than-expected economic data, as investors bet that any weakness would eventually restrain the Federal Reserve. Private-sector hiring slowed sharply, with one closely watched gauge showing employers added only about 44,000 jobs in July, well below forecasts, while the ISM services index eased to 54.1, indicating slower expansion in the sector that drives most US activity. Separately, factory orders fell 0.3% in June after a larger drop in May, missing expectations for a small gain. The mixed picture pulled the dollar lower even as the S&P 500 closed at an all-time high, helped by strong technology earnings and optimism over a potential deal to reopen a key Middle East shipping route. Federal Reserve officials, however, have maintained a hawkish tone, keeping alive the possibility of a rate increase later in the year if inflation proves sticky. The combination of record equity prices and softening fundamentals underscores the tension between resilient markets and an economy that is gradually losing momentum.