WS News
02 Oct 2026, 13:36
U.S. Stocks Rally as Weak Jobs Report Boosts Rate-Cut Expectations
U.S. stocks moved sharply higher on Friday after September employment data showed a much weaker labor market than expected, increasing expectations that the Federal Reserve could adopt a more accommodative policy stance.
Nonfarm payrolls rose by just 29,000 in September, far below the 89,000 consensus and down sharply from 133,000 previously. Private payrolls increased by 46,000, also missing the 85,000 forecast and slowing from 89,000.
The unemployment rate climbed to 4.2% from 4.1%, while average hourly earnings growth slowed to 3.0% year over year from 3.1%, below the 3.2% consensus. Together, the figures point to cooling labor demand and easing wage pressures.
Equity markets reacted positively. The S&P 500 rose 0.80%, the Dow gained 0.52%, and the Nasdaq climbed 1.24%, with technology stocks outperforming.
The market reaction suggests investors are focusing on the prospect that weaker employment conditions could reduce pressure on the Fed to keep policy restrictive. Softer wage growth also helps ease inflation concerns, creating a particularly supportive backdrop for growth and technology shares.
U.S. stocks moved sharply higher on Friday after September employment data showed a much weaker labor market than expected, increasing expectations that the Federal Reserve could adopt a more accommodative policy stance.
Nonfarm payrolls rose by just 29,000 in September, far below the 89,000 consensus and down sharply from 133,000 previously. Private payrolls increased by 46,000, also missing the 85,000 forecast and slowing from 89,000.
The unemployment rate climbed to 4.2% from 4.1%, while average hourly earnings growth slowed to 3.0% year over year from 3.1%, below the 3.2% consensus. Together, the figures point to cooling labor demand and easing wage pressures.
Equity markets reacted positively. The S&P 500 rose 0.80%, the Dow gained 0.52%, and the Nasdaq climbed 1.24%, with technology stocks outperforming.
The market reaction suggests investors are focusing on the prospect that weaker employment conditions could reduce pressure on the Fed to keep policy restrictive. Softer wage growth also helps ease inflation concerns, creating a particularly supportive backdrop for growth and technology shares.
