Stocks Rise as Weak Jobs Report Eases Fed Rate-Hike Fears — US Market Wrap

A slowdown in the US labor market lifted stocks as investors reduced expectations that the Federal Reserve will need to raise interest rates again in the near term. The S&P 500 gained 0.7%, while the Nasdaq 100 climbed to a record high as appetite for riskier assets improved. Treasuries gave up earlier gains, but money markets priced less than a 25% chance of an October Fed hike. Falling fuel prices also supported sentiment after Group of Seven nations signaled plans to release emergency supplies of diesel and crude. US employers added fewer jobs than expected in September and wage growth slowed, pointing to increased caution among businesses facing higher costs. Nonfarm payrolls rose by 29,000 following downward revisions to the previous two months, missing all estimates in a survey. The unemployment rate increased to 4.2%, partly reflecting growth in the labor force. The jobs report provided some relief following a months-long Treasury selloff driven by concerns over persistent inflation, government spending and rising corporate borrowing to finance artificial-intelligence investment. Benchmark 10-year yields had reached their highest level since 2002 earlier this week.