Dovish Jobs Report Sends Stocks Soaring as Rate Hike Bets Fade

US stocks surged on Friday after the release of weaker-than-expected September jobs data. The report showed that the US economy added only 29,000 jobs in September, down from a downwardly revised increase of 133,000 in August.

Economists polled by Reuters had expected payrolls to rise by 90,000, while unemployment increased to 4.2%, compared with expectations for it to remain at 4.1%.

The Labor Department's employment report added to a series of recent economic indicators that have influenced expectations for the Federal Reserve's next policy move.

Treasury yields declined following the jobs data, with the 10-year yield falling more than four basis points to 5.20%. The two-year Treasury yield also declined for a second consecutive session.