US stocks climb as jobs report cools inflation fears

U.S. stocks climbed closer to their all-time highs on Friday following a government report that suggested the job market was cooling. The S&P 500 gained 0.7%, while the Dow Jones Industrial Average added 250 points, and the Nasdaq composite rose 1.2%. The report showed that employers added only 29,000 jobs in September, significantly fewer than economists had anticipated and down from August’s 133,000. This weaker-than-expected data eased concerns about inflation, which has been a major worry for financial markets.

The Federal Reserve recently raised interest rates for the first time in three years to combat inflation. However, traders now see less than a 23% probability of another rate hike in October, down from 64% a week ago. According to Adam Schickling, senior economist at Vanguard, the labor market has not deteriorated sharply, but there is also little evidence of meaningful strengthening, giving policymakers reason to wait for additional data.

In the bond market, the yield on the 10-year Treasury briefly dropped below 5.17%, down from its peak near 5.35% on Thursday. Lower yields can help the economy by making borrowing more affordable. Oil prices also fluctuated, settling at $102.25 per barrel for Brent crude. In the stock market, Tesla rallied 4.7% after reporting higher-than-expected vehicle deliveries, while Nvidia’s 1.3% rise was the strongest force lifting the S&P 500. Nike, however, dropped 3.6% despite reporting a stronger profit, as its revenue and forecast fell short of expectations.

Globally, European indexes rebounded from earlier losses, while Asian markets were mixed. Hong Kong’s Hang Seng dropped 2.6%, but South Korea’s Kospi added 0.5%. The S&P 500 ended the day at 7,722.72, the Dow Jones Industrial Average at 51,176.96, and the Nasdaq composite at 27,190.86.