U.S. stocks finished higher Friday after a surprisingly weak September jobs report increased expectations that the Federal Reserve could leave interest rates unchanged at its October meeting.
The Dow Jones Industrial Average gained 250 points, or 0.5%, to close at 51,176.46. The S&P 500 rose 0.7%, adding 56.27 points to finish at 7,722.72. The Nasdaq Composite climbed 1.2%, or 319.27 points, to 27,190.86 after reaching a record high earlier in the session before retreating as Treasury yields turned higher.
Despite Friday’s gains, the Dow ended the week down about 1.3%. The S&P 500 slipped 0.3% for the week, while the Nasdaq advanced 0.6%, extending its winning streak to three sessions.
Treasury yields initially declined following the September employment report but later reversed higher, weighing on stocks and pushing the major indexes away from their session highs.
Technology stocks led the broader rally as investor risk appetite improved. Nvidia shares reached an all-time intraday high for the first time since May, although the stock ultimately finished below its previous record closing level. CrowdStrike, Palo Alto Networks and AMD also reached record highs, with AMD gaining nearly 3%.
The September nonfarm payrolls report showed that the U.S. economy added just 29,000 jobs, while the unemployment rate increased to 4.2%. Economists surveyed by Dow Jones had expected payrolls to rise by 84,000, with unemployment holding at 4.1%.
The weaker-than-expected data prompted traders to reassess expectations for the Federal Reserve’s next policy move. Fed funds futures indicated a 77% probability that the central bank would keep rates unchanged at its October meeting, according to the CME FedWatch Tool.
Oil prices also declined, providing additional support for equities. The move followed reports that European countries were considering releasing strategic fuel reserves amid pressure from the Trump administration.
The rally came after stocks posted modest gains Thursday to begin October. However, the Dow and S&P 500 still ended the week lower amid continued pressure across global bond markets, while the Nasdaq was the only major U.S. index to finish the week in positive territory.
