US stocks advanced Friday after September’s employment report came in below expectations, easing pressure on the Federal Reserve to raise rates this month. The S&P 500 rose 0.7%, the Nasdaq 100 climbed 1.2%, and the Russell 2000 jumped 1.4%, its biggest intraday gain in two weeks. Nonfarm payrolls increased by 29,000, lower than forecast, while the unemployment rate edged up to 4.2%. Analysts from Wells Fargo and Glenmede noted the rise reflects a growing workforce rather than distress. Bond traders trimmed expectations for an October Fed rate hike to a 20% chance from nearly 30%. Notable stock moves included Nike dropping after weak revenue guidance, ON Semiconductor rising on its acquisition of Synaptics, and Moderna gaining ahead of its Nasdaq 100 inclusion on October 9.
The data suggests a moderation in hiring and economic activity, potentially delaying further monetary tightening. Investors remain cautious as corporate earnings and restructuring plans unfold, with the market looking for clarity on the Fed’s next steps.
Overall, the mixed jobs report sparked a rally in equity futures, with tech and small‑cap sectors outperforming, while bond markets re‑priced rate‑hike odds downward.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing