US Stocks Rise as Labor Market Slowdown Eases Rate Hike Fears

US stock markets closed higher on Monday, with the Dow Jones Industrial Average gaining 0.18% to reach 51,267.90, the S&P 500 advancing 0.66% to 7,773.95, and the Nasdaq Composite rising 1.05% to 27,477.31. The gains extended from the previous session, driven by a slowdown in the labor market that eased concerns about near-term interest rate hikes. However, the 10-year Treasury yield continued to climb, hitting a two-decade high last week, raising worries about higher borrowing costs impacting equities.

The yield on the 10-year Treasury note increased nearly three basis points to 5.312%, while the 30-year note rose more than five basis points to 5.665%. Oil prices also fell, with Brent crude futures down 1.89% to $100.32 a barrel and West Texas Intermediate crude dropping 1.8% to $89.43 a barrel, following the G7's decision to release fuel reserves.

Investors are closely watching the Federal Reserve, with the minutes from the latest Open Markets Committee meeting set to be released on Wednesday. Analysts will scrutinize the minutes for any hints about the central bank's future monetary policy. Additionally, US service sector activity accelerated sharply in September, with the S&P Global services PMI jumping to 58.8 and the composite PMI rising to 58.4, marking the strongest expansions in over five years.

Among the top movers, Cisco Systems Inc. (CSCO) rose 2.84%, Visa Inc. (V) gained 2.51%, and Intel Corp. (INTC) fell 6.40%. In the S&P 500, Seagate Technology Plc (STX) surged 9.66%, while Nektar Therapeutics (NKTR) dropped 10.03%. The Nasdaq 100 saw Mercadolibre Inc. (MELI) climb 10.05%, and Qvc Group Inc Series A (QVCGA) fall 13.49%.