Stories
Nasdaq Surges as Weak Jobs Report Dents Rate Hike Fears; Dow Gains 200 Points
- •US stocks opened higher after a weaker-than-expected jobs report eased concerns about a Federal Reserve interest rate hike.
- •The US economy added only 29,000 jobs in September, significantly below expectations, and the unemployment rate rose to 4.2%.
- •Treasury yields fell across the board, with the 10-year US Treasury yield dropping over 5 basis points to 5.176%.
- •Technology and growth stocks, including Nvidia, CrowdStrike, Palo Alto Networks, and AMD, saw significant gains due to falling yields.
- •Markets now show an 86% probability that the Fed will keep interest rates unchanged at its October meeting, up from 76%.
Key Questions Answered
US stocks opened higher on Friday following a weaker-than-expected jobs report that eased concerns over potential Federal Reserve interest rate hikes. The Dow Jones Industrial Average rose about 200 points, the S&P 500 gained 0.7%, and the Nasdaq Composite climbed 1.3% driven by technology stocks.
The US economy added only 29,000 jobs in September, falling significantly short of the 84,000 to 85,000 jobs anticipated by economists. Additionally, the US Labor Department reported that the unemployment rate increased from 4.1% to 4.2%.
Treasury yields fell following the jobs report, with the 10-year yield dropping over 5 basis points to 5.176% and the 2-year yield falling to around 4.75%. Concurrently, federal funds futures indicated an 86% probability that the Fed would keep interest rates unchanged at its October meeting.
