Equities close higher as softer jobs data quiets rate-hike expectations
SPY•U.S. stocks rose after payrolls increased by 29,000, below the 90,000 estimate, lowering expectations for an October Federal Reserve rate hike. The Dow gained 0.49%, the S&P 500 0.73% and the Nasdaq 1.19%.
1. Stocks advance
U.S. stocks closed higher Friday after weaker-than-expected jobs data dampened expectations for a Federal Reserve rate hike this month. Payrolls increased by 29,000 last month, and figures for the prior two months were revised sharply lower. The Dow rose 0.49% to 51,176.96, the S&P 500 gained 0.73% to 7,722.72 and the Nasdaq added 1.19% to 27,190.86.
2. Mixed weekly results
The chance of a rate hike of at least 25 basis points at the Fed’s October meeting fell to 22.7%, from 24.4% in the prior session and 64.2% a week earlier. The Russell 2000 gained 0.9%, its biggest daily advance in a month. For the week, the Dow fell 1.26% and the S&P 500 lost 0.27%, while the Nasdaq rose 0.45%. Nike dropped 3.6% after forecasting a steep annual revenue decline due to weakness in China; Western Digital and Seagate each fell about 10% after Toshiba reportedly plans to double hard-drive production capacity within fiscal 2027.
