US stocks rise on weak jobs data; Doximity surges 37% on AI search tool

What happened

All three major US stock indexes rose in late-morning trading Friday after the Bureau of Labor Statistics reported July nonfarm payrolls fell by 23,000, well below the consensus estimate of 80,000 jobs. The unemployment rate fell to 4.1% from 4.2% in June. Separately, Doximity shares jumped 37% after CEO Jeffrey Tangney said the company's new AI search tool is generating revenue 10 times what it costs to run.

Why it matters

The weaker-than-expected jobs report signals the Federal Reserve will not be pressured to raise interest rates, a relief for investors who have worried about rate hikes slowing economic growth. For Doximity, the AI search tool demonstrates a clear path to profitability in a competitive market—the revenue-to-cost ratio suggests the tool is both functional and economically viable.

What to watch

Doximity expects fiscal 2027 revenue of $671 million to $681 million, up from its prior outlook of $664 million to $676 million. Atlassian also posted strong results, with shares up 30%, and AWS is now managing AI infrastructure constraints by asking engineers to reduce internal compute usage and free up server capacity.