Cool Jobs Report Sends Stocks Higher as Treasury Yields Drop

NEW YORK: U.S. stocks surged on Friday morning after a surprisingly weak jobs report reassured investors that the Federal Reserve will likely hold interest rates steady for the rest of the year.

The U.S. Labor Department reported that employers added just 29,000 jobs in September, falling far short of the 84,000 forecast by Wall Street economists. Unemployment ticked up slightly to 4.2 percent, while previous months saw downward revisions totaling 60,000 jobs.

Key Market Movers

• Treasury Yield Relief: Benchmark 10-year Treasury yields pulled back sharply from recent multidecade highs near 5.34 percent, offering immediate relief to equity markets.

• Tech Sector Strength: Mega-cap tech names led the rally, with chip giant Nvidia touching new record intraday highs as artificial intelligence demand remains strong.

• Retail Drag: Nike shares plunged over 7 percent after missing quarterly revenue estimates and trimming its full-year outlook.

Market Summary Data

Economic Outlook

The cooling labor market marks a clear turning point for Wall Street. With three-month average job growth slowing to around 50,000, traders have practically erased expectations for an October rate hike.

Investor focus now shifts toward upcoming third-quarter corporate earnings releases to see if profit margins can sustain current market valuations while economic growth slows to a more sustainable pace.