Equities close higher as softer jobs data quiets rate-hike expectations
SPY•U.S. stocks rose Friday after payrolls increased by 29,000, below economists’ 90,000 estimate, lowering the probability of an October Fed rate hike to 22.7% from 24.4% the prior session. The S&P 500 gained 0.76%, the Nasdaq rose 1.19% and the Dow added 0.51%.
1. Stocks advance
U.S. stocks advanced Friday after weaker-than-expected jobs data dampened expectations for a Federal Reserve rate hike at its October meeting. Nonfarm payrolls increased by 29,000 last month, and figures for the prior two months were revised sharply lower; economists polled by Reuters had estimated 90,000 jobs.
2. Small caps outperform
The probability of a rate hike of at least 25 basis points at the Fed’s meeting at the end of October fell to 22.7%, from 24.4% in the prior session and 64.2% a week earlier. The Russell 2000 gained about 1%, its biggest daily advance in a month. The S&P 500 rose 0.76% to 7,724.38, the Nasdaq Composite gained 1.19% to 27,191.33, and the Dow rose 0.51% to 51,186.71.
3. Company moves
Nike shares fell after the company forecast a steep annual revenue decline due to weakness in China, announced job cuts and plans to reorganize its global business divisions. Western Digital and Seagate shares tumbled after a report that Toshiba plans to double hard-drive production capacity within fiscal 2027.
