Dow Jumps 324 Points as Weaker Jobs Data Boosts Fed Rate Hike Bets

The US stock market saw significant gains on Friday after the release of weaker-than-expected September jobs data, which increased expectations that the Federal Reserve will leave interest rates unchanged at its October meeting.

The Dow Jones Industrial Average rose 324 points, while the S&P 500 gained 0.79% and the Nasdaq Composite advanced 1.21%. The Labor Department's employment report showed that the US economy added just 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. Unemployment also increased to 4.2%, compared with expectations for it to remain at 4.1%. The report added to a series of recent economic indicators that have influenced expectations for the Fed's next policy move.

Market participants were pricing in a 16% probability of a 25-basis-point rate hike in October, down from 26% before the employment report. CME FedWatch data indicated an 86% likelihood that the central bank would leave rates unchanged this month, compared with roughly 76% a day earlier.