Major stock indexes rose and the dollar fell after U.S. payrolls grew by 29,000, below expectations for 90,000, reducing bets on a Federal Reserve rate hike this month. Treasury yields later rose, with the 10-year yield up 4.72 basis points to 5.281%.
Major U.S. stock indexes ended higher on Friday as softer-than-forecast jobs data reduced expectations for a Federal Reserve rate hike in October. Payrolls rose by 29,000 last month, below the 90,000 expected, and August job growth was revised down to 133,000 from 162,000. Traders priced in an 80% chance that rates would remain unchanged this month, up from 74% before the report.
Treasury yields initially fell after the report but later rose, as investors noted the data had not eliminated the possibility of rate increases in coming months. The 10-year Treasury yield rose 4.72 basis points to 5.281%, while the two-year yield gained 3.98 basis points to 4.827%. Ten-year yields were on track for a 10-basis-point weekly gain, their fifth consecutive weekly increase.
The Nasdaq gained 1.2%, the S&P 500 rose 0.7% and the Dow added 0.5%. The dollar weakened against the euro and yen. Brent crude rose 0.45% to $102.77 a barrel, while WTI fell 1% to $91.90 and spot gold dropped 1.01% to $4,135.68 an ounce.
