US Jobs Report Spurs Rate Hike Expectations Downgrade

The US jobs report for September showed an increase of only 29,000 new positions, falling short of the expected 90,000. This has led to a decrease in expectations for a Federal Reserve interest rate hike this month, with traders now pricing in a roughly 80% chance that rates will remain unchanged.

According to Joseph Purtell, senior vice president at Neuberger Berman, 'it wasn't as hot a labor market print as August.'

The weaker-than-expected jobs data led to a boost in stocks, with the Nasdaq Composite rising 1.2% and the Dow Jones Industrial Average gaining 0.5%. Rate-sensitive stocks such as the S&P 500 real estate index also saw gains.