Dow Soars as Weaker Jobs Data Cools Fed Hike Bets
US stocks surged on Friday as the September jobs report showed weaker-than-expected numbers. The Dow Jones Industrial Average rose by 324 points, while the S&P 500 gained 0.79% and the Nasdaq Composite advanced 1.21%. The Labor Department's employment report revealed that the US economy added only 29,000 jobs in September, down from a revised increase of 133,000 in August.
Economists had forecasted payrolls to rise by 90,000, and unemployment increased to 4.2%, exceeding expectations for it to remain at 4.1%. The report added to recent economic indicators that have influenced 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%. Markets 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.
Technology and semiconductor stocks led gains, with Nvidia shares rising 2.15%, Broadcom gaining about 1.56%, and Advanced Micro Devices increasing by 3%. Lower oil prices also contributed to the market's improvement, as Brent crude fell below $100 a barrel after reports of additional diesel and crude stockpiles being released.