Dow Surges as Weak Jobs Report Triggers Rate-Hike Reversal
The Dow Jones Industrial Average rose by 326.90 points to close at 51,252.47 on Friday, October 2, as investors weighed the impact of weak employment figures and falling Treasury yields.
The September jobs report showed a gain of only 29,000 jobs, below the predicted range of 84,000 to 90,000, while the unemployment rate increased to 4.2% from 4.1% in August.
This sparked a reevaluation of the Federal Reserve's interest-rate policy ahead of its October meeting, with investors now expecting an 86% chance that rates will remain unchanged, up from 76% the previous day.
The technology sector played a significant role in supporting the market, with stocks such as Intel and Nvidia rising by 3.21% and 2.10%, respectively, to $123.91 and $235.83 per share.