US Labor Market Weakness Fuels Rate Hopes, Bitcoin Hits $86,600

The US labor market showed weakness in September, with the economy adding just 29,000 jobs, falling short of forecasts for 90,000. The unemployment rate unexpectedly rose to 4.2%, from 4.1% in August and July. Bitcoin continued its upward trend, reaching $86,600, a 2% gain for the day.

The government's Nonfarm Payrolls Report, released on Friday morning, revealed the underwhelming employment numbers. August's job gain was revised down from 162,000 to 133,000, and July's 21,000 jobs gain was revised to a loss of 10,000. The 10-year Treasury yield fell by 7 basis points to 5.17%, while the 2-year yield dropped by a similar margin to 4.71%. Gold prices rose by over 1%.

On a year-over-year basis, average hourly earnings rose 3% against forecasts for 3.2%. The US stock index futures continued their gains, with the Nasdaq rising 1.2%. The greenback fell versus major currencies.