29K Jobs Kill the October Hike

Welcome to LazyListen. This is The Daily Rip for today. Stocks closed higher on Friday after a surprisingly weak September jobs report cooled expectations for another Federal Reserve rate hike in October.

S. economy added just 29,000 jobs last month, far below the 84,000 economists had forecast. This slowdown in hiring pushed the odds of an October rate increase down to about twenty four percent, signaling the market’s growing confidence that the Fed will pause as the labor market shows signs of cooling.

The major indexes reflected this cautious optimism. The S&P 500 and Dow Jones Industrial Average each gained roughly half a percent, while the Nasdaq led with a one point two percent rise. The Russell 2000 small-cap index also climbed nearly one percent.

Most sectors participated in the rally, with consumer discretionary stocks outperforming, up about one point one percent. Healthcare was the only sector to finish slightly in the red. However, late in the session, stocks pulled back from their highs as bond yields reversed earlier declines.

The 10-year Treasury yield rose back above five point two percent, reminding investors that inflation concerns remain front and center. One key factor easing inflation fears was a sharp drop in oil prices. Brent crude fell more than two and a half percent, dipping below the 100 dollars per barrel mark.

, Germany, France, Italy, and Japan—announced a coordinated release of 100 million barrels of oil from strategic reserves. This move aims to alleviate ongoing supply pressures that have been building since the Iran conflict disrupted markets earlier this year. The International Energy Agency had previously pledged to release 400 million barrels, but only about a third of that has reached the market so far.

The G7’s joint action signals a concerted effort to stabilize energy prices without imposing new export restrictions. Turning to individual stocks, Teradyne stood out after hours with an eight percent jump following strong demand for its semiconductor test equipment. I.

memory chips, including DDR6 and GDDR7, which require rigorous testing before deployment in data centers, phones, and cars. The company’s semiconductor test segment generated over a billion dollars in revenue last quarter, and its stock has surged more than 130 percent this year, outperforming the broader chip sector. Teradyne’s recent partnership to open a Silicon Valley test center may further boost its customer base, fueling investor enthusiasm.

Amazon also made headlines with reports that it’s exploring an 8 billion dollars sale-leaseback deal involving its Nvidia Grace Blackwell chips. I. chips to outside investors, then lease them back for use in its data centers across multiple states.

This creative financing move would allow Amazon to raise capital without disrupting its operations. The company recently raised prices for its EC2 cloud capacity by about fifteen percent, reflecting strong demand amid a massive two hundred twenty billion dollars capital expenditure plan for 2026. Both Amazon and Nvidia shares rose modestly on the news, each up around one point three percent.

On the macro front, the weak jobs report has significant implications. The 29,000 payroll gain in September was less than a quarter of the 119,000 jobs added in the same month last year and below the 12-month average of 45,000. Revisions to prior months were also disappointing, with July’s numbers flipping from a small gain to a loss, and August’s gain revised down by nearly 30,000 jobs.

Unemployment ticked up slightly to four point two percent but remains below last year’s four point four percent. The data suggests the labor market is cooling more rapidly than expected, which could ease pressure on the Fed to continue tightening. Despite the weaker hiring, bond yields didn’t stay down for long.

The 10-year Treasury yield briefly fell to about five point one six percent after the report but closed higher at five point two eight percent. Mortgage rates remain elevated near seven point three percent, reflecting persistent inflation concerns. This creates a tricky environment for policymakers, as they must balance slowing growth with the need to keep inflation in check.

In sector moves, retail stocks showed mixed action. Some names like XRPN surged nearly seventy percent, and IBRX climbed twelve percent, driven largely by retail investor interest. Meanwhile, hard-drive manufacturers Western Digital and Seagate both fell about ten percent, pressured by weaker demand and inventory concerns.

Looking ahead to Monday, keep an eye on upcoming economic data that could further influence Fed expectations, including inflation reports and consumer spending figures. Also, watch for developments in the energy markets as the impact of the G7’s oil release unfolds. -driven demand, while Amazon’s cloud business continues to innovate its financing strategies to support growth.

I. boom. Investors are weighing slower hiring against persistent inflation, setting the stage for a potentially volatile week ahead.

Thanks for listening. Catch you next time on LazyListen.