Wall Street rallied on Friday after a much softer-than-expected September jobs report lowered the odds of another Federal Reserve rate move. The Nasdaq Composite closed at a record high, led by Nvidia, while the Dow and S&P 500 also advanced. Treasury yields and oil prices eased, adding to the risk-on mood.
Traders bet the Federal Reserve will hold interest rates steady this month after the weak print. The Nasdaq Composite climbed 1.5% to a new all-time high, while the Dow Jones Industrial Average added 300 points, or 0.6%, and the S&P 500 gained 1%.
Jobs report cools rate-hike bets
September's nonfarm payrolls report showed the economy added just 29,000 jobs last month, far short of the 84,000 economists had forecast, while unemployment rose to 4.2% from 4.1%. Fed funds futures now put an 86% probability on the central bank holding rates steady at its October meeting, up from roughly 76% a day earlier, according to the CME FedWatch Tool.
Phil Blancato, chief market strategist at Osaic, summed up the reaction: According to CNBC: "Not too hot, not too cold … not overly great, and not weakening."
Nvidia leads tech stocks to records
Tech shares led the advance as risk appetite returned. Nvidia shares rose more than 3% to an intraday record of $237.88, and chipmakers Intel and AMD each gained more than 4%.
By mid-morning, the S&P 500 had gained 78.31 points, or 1.02%, to 7,744.76, and the Cboe Volatility Index fell to a one-week low, Reuters reported. On the Guardian's live markets blog, Rocket Lab and ARM Holdings led the gainers, up 7.4% and 6.9% respectively.
Yields and oil retreat
Treasury yields fell, with the 10-year yield dropping 2 basis points to 5.216%. Oil prices also dropped sharply after a report that European nations are weighing a release of strategic fuel reserves following pressure from the Trump administration.
Even so, the rally hasn't erased the week's damage everywhere. The Nasdaq was the only major average on pace to end the week with gains, while the Dow and S&P 500 still faced weekly losses amid the broader bond-market rout.
Sources: CNBC, Reuters via Investing.com, The Guardian
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