Strong Jobs Report – US Market Wrap

Treasuries sank after a stronger-than-expected jobs report forced traders to rethink their bets on the size of the Federal Reserve’s next rate cut. Stocks ended the day near session highs as the data underlined the resilience of the US economy and boosted soft-landing hopes.

The policy-sensitive two-year US Treasury yield touched 3.93% after employers added 254,000 jobs in September – the most in six months – and the unemployment rate unexpectedly declined. The dollar had its best week in two years. Traders are now pricing in less than a quarter-point worth of easing in November.

The S&P 500 and the Nasdaq 100 rose the most since Sept. 19. Both eked out a small gain for the week.

Apart from Friday’s labor-market report, a slew of other economic data this week – including private-sector job numbers and a measure of the services sector – painted a picture of a strong US economy.

Meanwhile, oil posted its biggest weekly advance since March 2023. Geopolitical concerns persist as Israel carried out bombing raids in the suburbs of Beirut alongside ground attacks in southern Lebanon, while Iran said it would support a conditional cease-fire in the conflicts involving its allied groups Hezbollah and Hamas.