US stocks rise as weak jobs data eases Fed rate‑hike expectations
U.S. equity markets closed higher on Friday after the Labor Department reported that non‑farm payrolls rose by only 29,000 jobs, well below the 90,000 forecast. The softer data cut the CME FedWatch probability of a 25‑basis‑point rate hike at the end‑of‑October meeting to 22.7%, down from 24.4% the day before and 64.2% a week earlier. The lower odds lifted rate‑sensitive stocks, with the Dow up 250.40 points, the S&P 500 up 56.27 points and the Nasdaq up 319.27 points.
Why it matters
Analysts note that the reduced likelihood of an imminent rate hike supports higher equity valuations, especially for growth and real‑estate stocks. The market rally reflects investors’ shift to a more accommodative monetary outlook.
Key facts
- 1Non‑farm payrolls increased by 29,000 jobs last month, far below the 90,000 estimate. businesstimes.com.sg
- 2CME FedWatch odds of a 25‑basis‑point rate hike fell to 22.7% from 24.4% the prior session and 64.2% a week earlier. businesstimes.com.sg
- 3The Dow Jones Industrial Average rose 250.40 points, or 0.5%, to 51,176.96. businesstimes.com.sg
- 4The S&P 500 gained 56.27 points, or 0.7%, to 7,722.72. businesstimes.com.sg
- 5The Nasdaq Composite added 319.27 points, or 1.2%, to 27,190.86. businesstimes.com.sg
- 6Tesla shares rose 4.7%. businesstimes.com.sg
Summary written by AlphAI from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.