Stocks climb after weak US jobs data, but bonds resume selling

Stocks climb after weak US jobs data, but bonds resume selling

By Caroline Valetkevitch and Samuel Indyk

Fri October 2, 2026  

The markets have been looking for signs of inflation easing and they got that today with a government jobs report showing only 1/3 as many new jobs as forecast and additionally a reduction of 30K jobs from August. With the labor market stable but not as hot as expected, this has again lowered the odds of an October rate hike to just 21% vs Thursday’s 28.2% vs 70% earlier in the week. Thus, all the indexes shot way up right out the gate and stayed there all day.  

However, “some investors noted that the jobs report was not so weak that it removed the chances of the Fed raising rates in the coming months.” Furthermore, the bond markets have continued their selloffs, mainly due to the war which has contributed to all the uncertainty surrounding inflation, energy prices, and the overall strained global economy. The 10-year yield has now seen its largest quarterly rise in 32 years. Per the CBOE, volume came in at 17.27 billion, just above the 17.19 average. 

DJ: 50,926.56  +20.51         NAS: 26,871.60  +10.53        S&P: 7,666.45  +14.91           10/1

DJ: 51,176.96  +250.40       NAS: 27,190.86  +319.27      S&P: 7,722.72  +56.27           10/2

Fri 10-2-26 4:14 pm Stocks climb after weak US jobs data, but bonds resume selling | Reuters