The June jobs report cratered the odds for a July rate cut. Stocks cheered the strong data but dimmer rate-cut views prevented bigger gains.

Headline numbers from the June jobs report took pressure off the Federal Reserve to consider an interest-rate cut later this month, likely leaving the central bank on hold at least until the fall.

Private-sector hiring slowed in June, but the unemployment rate—calculated using a separate survey—declined to 4.1% from 4.2% in May. June hiring figures showed that the breadth of payroll gains was narrow, with most of the hiring occurring in the healthcare sector or in state and local government.