ZINGER KEY POINTS
- U.S. adds 254,000 jobs in September, far surpassing the 140,000 forecast and August’s revised 159,000.
- Stocks rally premarket, with S&P 500 up 0.9%, tech-heavy Nasdaq gaining 1.4%, small caps rising 1.7%.
A hotter-than-expected jobs report spurred a premarket rally on Wall Street Friday, showcasing the U.S. economy’s resilience and easing concerns over an economic slowdown.
The strong labor data also led traders to rethink the Federal Reserve’s aggressive rate cuts, resulting in a jump in the dollar and Treasury yields.
What Happened:
The U.S. economy added 254,000 jobs in September, far exceeding the expected 140,000. This marks an acceleration from August’s 159,000 figure and well above the 12-month average of 230,000. Payrolls for both July and August were upwardly revised by 55,000 and 17,000, respectively.
Before the jobs report, the market had priced in a 30% chance of a 50-basis-point rate cut in November, according to the CME FedWatch Tool. Following the data release, those odds plummeted to 11%.
Market Reactions:
- Blue chips rose.
- Small caps outperformed large caps.
- Yields on the 10-year Treasury bond soared by 11 basis points to 3.96%. Yields on the policy-sensitive two-year note spiked by 15 basis points to 3.87%.
- The U.S. Dollar Index rose 0.7%.
Top Gainers Post-Jobs Report:
Using the Movers function on Benzinga Pro, here are the top performers among U.S. mega-cap stocks in the 30 minutes following the release of the September jobs data.
| Company Name | Price | Change |
|---|---|---|
| KLA Corp. | $799.25 | +3.18% |
| Mitsubishi UFJ Financial Group | $10.18 | +3.18% |
| Applied Materials Inc. | $205.53 | +2.10% |
| Lam Research Corp. | $83.60 | +2.08% |
| Advanced Micro Devices Inc. | $166.90 | +1.92% |
| ARM Holdings plc | $142.44 | +1.91% |
| Shopify Inc. | $80.02 | +1.67% |
| Broadcom Inc. | $175.66 | +1.66% |
| Adobe Inc. | $510.58 | +1.59% |
| Bank of America Corp. | $39.96 | +1.56% |
| Texas Instruments Inc. | $204.82 | +1.56% |
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