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    • Stocks are rising after a sharp drop in jobs data and a drop in the unemployment rate
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    Stocks are rising after a sharp drop in jobs data and a drop in the unemployment rate

    Kathleen William Posted on

    Stocks rose on Friday as investors welcomed a key monthly jobs report that showed hiring in the U.S. economy remains robust. The crisis in the Middle East and the resumption of work in the US ports were also in focus.

    The S&P 500 (^GSPC) gained 0.7%, while the Dow Jones Industrial Average (^DJI) gained about 0.6%. The tech-heavy Nasdaq Composite (^IXIC) rose 1.2%.

    The September jobs report significantly beat expectations as the U.S. economy added 254,000 jobs last month and the unemployment rate fell to 4.1%. Overall, the report showed that the labor market remains robust despite signs of slowing. Yahoo Finance's Josh Schafer has more details on the report here.

    The jobs report changed forecasts toward a smaller rate cut by the Federal Reserve next month. According to the CME FedWatch Tool, over 90% of bets are based on a 25 basis point cut, as opposed to a larger 50 basis point cut.

    Read more: What the Fed's interest rate cut means for bank accounts, CDs, loans and credit cards

    Stocks are trying to pare their weekly losses as markets have shown some resilience in the face of a difficult week with worrying headlines. Major indicators were off by 1% or less at Thursday's close, with the S&P 500 and Dow still within touching distance of record highs.

    In recent days, a major port strike, the devastation caused by Hurricane Helene and the prospect of a major Middle East conflict caused potential price increases and rising inflation.

    The U.S. longshoremen's strike thankfully ended after a tentative wage deal was agreed late Thursday. However, some questions still need to be clarified this year.

    On the other hand, a spate of attacks by Israel on Beirut kept alive worries about the Middle East that have driven up oil prices. Western leaders warned of an “uncontrollable escalation” as investors waited to see whether Israel would attack Iran's oil facilities – a move President Biden said was under discussion.

    Oil is on track for its biggest weekly rise in two years as tensions rise. Brent crude oil (BZ=F) and West Texas Intermediate (CL=F) futures rose 0.8% on Friday morning, after gaining 5% the previous day.

    Live3 updates

    • Stocks are rising after massive jobs reports collapsed

      Investors welcomed a highly encouraging jobs report on Friday that showed hiring in the U.S. economy remains robust.

      The S&P 500 (^GSPC) gained 0.7%, while the Dow Jones Industrial Average (^DJI) gained about 0.6%. And the tech-heavy Nasdaq Composite (^IXIC) rose 1.1%.

      According to the Bureau of Labor Statistics, the labor market added 254,000 new jobs in September, more than the 150,000 economists expected. The unemployment rate fell to 4.1% from 4.2% in August.

    • After strong jobs reports, markets are pricing in less Fed easing

      A much stronger-than-expected jobs report in September has led markets to price in fewer interest rate cuts from the Federal Reserve in 2024.

      Following the report, markets have priced in a roughly 10% chance that the Fed will cut interest rates by half a percentage point in November, compared with a 53% chance a week ago, according to the CME FedWatch tool.

      Robert Sockin, senior global economist at Citi, told Yahoo Finance that the better-than-expected jobs report makes it less likely that the Fed will act with the “urgency” it did at its September meeting when the central bank raised interest rates half a percent lowered point.

      “This is putting a lot of pressure on the Fed,” he said, adding that it was uncertain the Fed would cut rates again by 50 basis points this year.

      “Given the strength of the labor market reflected in the September employment report, the real debate at the Fed should be whether to ease monetary policy at all,” Paul Ashworth, chief North America economist at Capital Economics, wrote in a Friday Notice to customers. “Any hopes of a cut (50 basis points) are long gone.”

    • September's jobs report disappoints expectations as the U.S. economy adds 254,000 jobs and the unemployment rate falls to 4.1%

      The U.S. labor market added far more jobs than forecast in September, while the unemployment rate fell unexpectedly, reflecting a far better picture of the labor market than Wall Street had expected.

      Bureau of Labor Statistics data released Friday showed the labor market added 254,000 jobs in September, more than the 150,000 economists expected.

      Meanwhile, the unemployment rate fell to 4.1% from 4.2% in August. More new jobs were created in September than in August (revised 159,000).

      Read more here.

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    Kathleen William
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