Wall Street climbed on Friday after September's jobs report landed far weaker than expected, setting off a relief rally in rate-sensitive growth stocks. By midday, the Nasdaq Composite had gained 1.18% to 27,191 — a fresh record — as traders slashed bets on another Federal Reserve rate hike.

The Bureau of Labor Statistics reported just 29,000 new jobs in September, barely a third of the 90,000 economists had expected (this morning's preview), while the unemployment rate ticked up to 4.2%. Traders now see only a 21% chance of an October increase, down from 64% a week ago. When the Fed looks less likely to tighten, high-multiple tech gets breathing room — chips led, with Nvidia at a new all-time high too.

The S&P 500 added 0.70% to 7,720 and the Dow rose 0.35% to 51,107. Tesla climbed over 5% to $372.40 on delivery figures that beat expectations, while ON Semiconductor and Synaptics surged on a revised tie-up deal. Integra LifeSciences tumbled after cutting its guidance. Safe-haven gold slipped 0.90% to $4,141.21 as risk appetite returned; the 10-year Treasury yield edged two basis points higher to 5.25%.

Why it matters

A miss this large reframes the Fed's October meeting: the morning debate was whether another hike was coming; by midday it was how fast the labor market is cooling. The advance was broad — industrials and consumer cyclicals led while energy and financials lagged — a rates-repricing story rather than a single-sector one. That repricing also leaves the dollar's pre-data hawkish stance exposed if the Fed softens its tone.

What to watch

  • The October FOMC meeting — with hike odds at 21%, every Fed speaker's labor read now moves markets.
  • The next US inflation prints — soft jobs plus sticky inflation would revive the policy dilemma.
  • AI infrastructure demand and the Anthropic IPO — the Nasdaq's record run is tied to it.
  • Big-tech Q3 earnings — guidance tests whether the AI trade holds.

MarketRadar take

The read: weaker labor data eases Fed hawkishness, bullish for US equities near-term, especially growth and tech. But 29,000 against a 90,000 expectation is a sharp deceleration; if coming data confirms a deteriorating labor market, the "bad news is good news" trade can flip into growth fear.