(Reuters) – The New York Stock Exchange opened higher on Friday as U.S. job creation figures for September eased fears of a slowdown in the labor market.

In early trading, the Dow Jones index gained 233.09 points, or 0.55%, to 42,244.68 points and the broader Standard & Poor’s 500 rose 0.76% to 5,743.51 points.

The Nasdaq Composite for its part gained 1.21%, or 216.18 points, to 18,134.66.

Data from the Labor Department, released Friday shortly before the stock market opened, showed that the number of jobs created in the United States accelerated unexpectedly in September and that the unemployment rate fell, which calms fears of a rapid slowdown in the labor market and reinforces hopes of a soft landing for the American economy.

The report showed 254,000 non-farm jobs created last month, while economists polled by Reuters had forecast an average of 140,000. The unemployment rate, for its part, stood at 4.1% in September, while analysts expected a stable rate at 4.2%.

“For the economy, this means a soft landing is happening. We continue to create jobs at a rapid pace and the unemployment rate continues to fall,” said Ross Mayfield, investment strategist at Baird.

The data, however, negates the need for the Federal Reserve (Fed) to make aggressive cuts in borrowing costs at its final two meetings of the year, sending bond yields and the dollar higher.

According to the CME’s FedWatch tool, traders now estimate a 90% chance of a 25 basis point cut at the Fed meeting on November 6-7, compared to around 70% before the figures were published.

The chance that the Fed will make a more aggressive 50 basis point cut – as it did in September – has fallen to around 10%, from around 30% before the numbers were released.

Central bank President Jerome Powell already appeared to rule out the scenario of a 50 basis point cut earlier this week, advocating a gradual approach to monetary policy easing.

In terms of values, the airline Spirit Airlines, which according to the Wall Street Journal is in talks with its bondholders on the terms of a potential bankruptcy filing, fell 35%.

* Rivian for its part drops 5%, the electric vehicle startup, faced with a shortage of spare parts and a slowdown in the growth of demand for electric vehicles, having reduced its production forecasts for the year and having delivered less vehicles than expected in the third quarter.

*For values ​​to track, click

(Writing by Diana Mandiá, editing by Kate Entringer)

Copyright © 2024 Thomson Reuters