All three major indexes surged on Friday as a much weaker-than-expected jobs report sent Treasury yields lower, with traders recalibrating expectations for the Federal Reserve's next move.
The Dow Jones Industrial Average rose 0.63%, the S&P 500 gained 0.87%, and the Nasdaq climbed 1.21%.
In individual stock moves, ON Semiconductor jumped 6.68%, Arm Holdings Plc advanced 5.31%, Microchip Technology added 3.95%, Strategy rose 3.94%, and Marvell Technology gained 3.90%.
Among the "Magnificent Seven," Tesla rose 2.49%, Nvidia climbed 2.06%, Meta Platforms gained 1.76%, Amazon added 1.72%, Microsoft rose 1.34%, Google advanced 1.21%, and Apple edged up 0.53%.
Treasury yields moved lower, with the 10-year yield falling more than 5 basis points to 5.176% and the 2-year yield dropping over 3 basis points to 4.75%. One basis point equals 0.01%, and yields move inversely to bond prices.
The September nonfarm payrolls report showed the U.S. added just 29,000 jobs last month, while the unemployment rate rose to 4.2%. The Dow Jones consensus estimate had called for 84,000 new jobs and an unemployment rate holding steady at 4.1%.
Following the report, traders reassessed the Fed's next policy step. According to the CME FedWatch tool, federal funds futures showed the probability of the Fed holding rates steady at this month's meeting rising to 86%, up from about 76% the prior day.
Seema Shah, chief global strategist at Principal Asset Management, wrote Friday that "today's data argues for patience, not panic. For the Fed to hike again this year, it would need to see inflation reaccelerating, not just resilient economic growth."
Oil prices retreated from highs after reports that several European countries are considering releasing strategic fuel reserves following statements from the Trump administration.
U.S. stocks posted modest gains on Thursday to kick off the first trading day of October. However, dragged down by a global bond market selloff, the three major indexes were on track to end the week lower, with the Dow down 1.7% for the week.