Wall Street stocks rise and Fed rate-hike bets collapse after US jobs growth misses forecasts by two-thirds

From the Newshound archive · first published 2 October 2026.

US stocks advanced on Friday after a surprisingly weak September jobs report showed employers had created just 29,000 payrolls — roughly a third of the 90,000 economists had expected and well below August's 133,000. The soft figures caused the probability of a Federal Reserve rate rise this month to collapse, from 64% a week earlier to under 21%. The Nasdaq reached a record high in early trading, while the S&P 500 came to within 1% of its own August peak.

The Fed raised rates for the first time in three years earlier this year as inflation remained stubbornly painful for households and businesses.

Bond yields stabilised on Friday following a sharp global sell-off during the week that had unsettled markets, with emerging markets outperforming developed ones through the turbulence.