US stocks rebound after weak jobs data cools inflation fears as global bond sell-off steadies

From the Newshound archive · first published 3 October 2026.

Wall Street surged on Friday after employers added just 29,000 jobs in September — far below expectations — easing fears that a red-hot economy could push inflation even higher. The S&P 500 gained 0.7%, pulling to within 1% of its August record, while traders slashed the probability of a further Federal Reserve rate hike this month from 64% to below 21%. The bond sell-off that rattled global markets all week began to stabilise, though the 10-year US Treasury yield had already climbed above 5.2% — its highest since 2002. Brent crude sat at $102.31 a barrel after rising roughly 40% since the Iran conflict began in February.

The 10-year US Treasury yield hit 5.342% on 1 October, a level not seen since 2002, driven by Iran war fears and persistent inflation.