Stories
US Job Growth Plummets to 29,000 in September; Rate-Hike Bets Tumble, Futures Surge
- •US employers added only 29,000 jobs in September, significantly below the expected 90,000, indicating a softer labor market.
- •The unemployment rate rose to 4.2% from 4.1% in August, though it remains within a narrow range of 4.1% to 4.3% since March.
- •Job gains for July and August were revised downwards by a combined 60,000, further highlighting weakening hiring trends.
- •The weak hiring numbers could pressure the Federal Reserve to reconsider further interest rate increases, despite ongoing inflation concerns.
- •Following the data release, US stock futures extended gains, Treasury yields moved lower, and oil prices eased, with Brent crude slipping below $100 a barrel.
Key Questions Answered
US employers added 29,000 jobs in September, falling well below market expectations of around 90,000. Meanwhile, the national unemployment rate ticked up slightly to 4.2% from 4.1% in August.
Following the weaker-than-expected jobs report, US stock futures extended gains with Dow futures up 0.85% and S&P 500 futures rising 0.79%. Treasury yields moved lower as traders scaled back expectations of further rate increases, with the 10-year yield falling to around 5.18% and the two-year yield dropping to approximately 4.72%.
The September report included downward revisions to earlier employment data, lowering job gains for July and August by a combined 60,000. Specifically, the August employment figure was revised down to 133,000 from its earlier estimate of 162,000.
