U.S. Stocks Rise as Weak Jobs Report Lifts Rate Focus
The major indexes ended Friday higher, while September payroll growth came in below expectations and traders weighed the outlook for interest rates.
Key takeaways
- The Dow rose 0.5%, the Nasdaq gained 1.2% and the S&P 500 added 0.7% Friday.
- September payrolls increased by 29,000, below the Zacks Consensus Estimate of 79,000.
- CME FedWatch showed a 77.9% probability rates would remain in the 3.75%-4.00% range.
U.S. stocks ended higher Friday, with the Dow rising 0.5%, the Nasdaq Composite gaining 1.2% and the S&P 500 advancing 0.7%. Investors assessed weaker-than-expected jobs data and the outlook for monetary policy.
The Department of Labor said nonfarm payrolls increased by 29,000 in September, below the Zacks Consensus Estimate of 79,000. July payrolls were revised to a decline of 10,000, from a previously reported increase of 21,000.
The unemployment rate rose to 4.2% from 4.1% in August. After the report, CME FedWatch showed a 77.9% probability that the federal funds rate would remain in the 3.75%-4.00% range.
The Dow closed at 51,176.96, the Nasdaq at 27,190.86 and the S&P 500 at 7,722.72. Cisco Systems was the Dow’s biggest gainer, rising 3.6%.
For the week, results were mixed: the S&P 500 fell 0.3% and the Dow lost 1.3%, while the Nasdaq gained 0.5%.
This article was produced with the help of AI technology. Source: Yahoo Finance
