Goodbye, rate hike: Why stocks are soaring after a dismal September jobs report

Markets rallied on Friday after a September jobs report that came in weaker than expected, shifting expectations for the Fed’s next move. The economy added 29,000 jobs versus forecasts of about 90,000, and the unemployment rate rose unexpectedly from 4.1% to 4.2%. While the data looked negative on its face, traders treated it as “bad news is good news,” betting the Fed has less room to push for higher rates. Bond yields fell sharply, with the 10-year Treasury dropping up to 6 basis points to 5.17%, while the 2-year yield fell to 4.72%. US stocks climbed, including a jump in the Dow and a gain of more than 1% in the Nasdaq.