US Stocks Rise as Weak Jobs Report Eases Rate Hike Fears

The US stock market closed on a positive note for the week as the S&P 500 ended at 0.7% higher, the Nasdaq 100 rose by 1%, and the Dow Jones Industrial Average added 0.5%. The weak jobs report, which showed the economy adding fewer jobs than expected, eased fears of an October rate hike.

The unemployment data for September came in below economists' expectations, with jobs rising 29,000 last month and the unemployment rate climbing to 4.2%. This was a drop from the predicted 84,000 new jobs and a steady 4.1% unemployment rate.

As a result, the probability of an October interest rate hike significantly dropped to 22% on Friday from 64% a week ago. Federal Reserve Vice Chair Philip Jefferson and New York Fed President John Williams' comments conveyed a shared belief that policymakers have ample room to evaluate economic indicators before considering further policy tightening.

The market also reacted positively to the news from several key companies, including Nvidia (NVDA), Micron Tech (MU), Advanced Micro Devices (AMD), Space Exploration Technologies (SPCX), Applied Digital (APLD), and Rivian (RIVN).