Weaker Jobs Report Boosts Stocks as Inflation Fears Ebb

US stocks rose on Friday, with the S&P 500 gaining 0.7% to 7722.72 near its all-time high after a weaker-than-expected jobs report cooled inflation fears and reduced expectations of a Federal Reserve interest rate hike in October.

The latest update on the US job market showed employers added 29,000 more jobs than they cut last month, a slowdown from August's net hiring rate of 133,000. This data tamped down concerns that the US economy could be strong enough to fuel inflation even higher.

Adam Schickling, senior economist at Vanguard, said 'This report strengthens the case for the Federal Reserve to remain patient.' The pullback in expectations for an October rate hike helped calm a rattled bond market, with the 10-year Treasury yield briefly dropping below 5.17%.

Tesla led the charge, rallying 4.7% after delivering more vehicles than expected, and Nvidia's 1.3% rise was the single strongest force lifting the S&P 500. The overall US economy has been chugging along despite concerns about inflation and debt, with businesses building AI data centers and consumers spending.