U.S. stocks hit record highs before data showing job growth cooled led to a reversal, sparking bets on Fed rate cuts. Speculation of more aggressive cuts caused Treasury yields to drop, the dollar to fall, and gold to surge near $3,600.

The S&P 500 and Dow Jones hit record highs before pulling back, while the Nasdaq remained unchanged. Lower rates are expected, with the two-year Treasury yield down and the 10-year yield sagging.

European markets were mixed, with the STOXX 600 down, FTSE 100 unchanged, and CAC 40 losing ground. The global MSCI World Equity Index finished slightly higher amid concerns about the U.S. labor market and potential rate cuts.

Global stocks rebounded after a recent dip, and long-dated bond yields in Europe eased. Yields in France and the UK dropped from recent highs, while German industrial orders unexpectedly fell in July.

The U.S. signed a deal with Japan to lower auto tariffs, impacting the dollar-yen exchange rate. Oil prices fell in anticipation of an OPEC meeting, with Brent crude settling lower at $65.50 a barrel and U.S. crude dropping to $61.87.

The EU welcomed President Donald Trump’s plan to stop buying Russian oil, while spot gold surged to a record high near $3,600 per ounce. Gold is set for its strongest weekly gain in nearly four months.

Read more at Yahoo Finance: US stocks brush record highs as weak jobs data fuel rate cut bets