Soft September jobs report sends markets higher
SPY•SPY•SPY•SPY•U.S. payrolls rose by 29,000 in September, below economists’ 90,000 forecast, while unemployment edged up to 4.2%. Stocks and bonds rose, and the market’s expectation of a Federal Reserve rate increase this month fell as low as 12%.
Nonfarm payrolls increased by 29,000 in September after August’s gain was revised down to 133,000. Economists had forecast a 90,000 increase. The unemployment rate rose to 4.2% from 4.1%.
Major U.S. stock indexes rose modestly after the report, with S&P 500 futures up 0.9% and Nasdaq futures up 1%. Treasury yields fell: the two-year yield declined 7 basis points to 4.716%, while the 10-year yield fell 6 basis points to 5.176%. Market expectations of a rate increase at this month’s meeting fell as low as 12%. Economists noted seasonal-adjustment volatility may have affected September’s payroll gain and August’s revision.
