Wall Street opens higher as September hiring data eases rate pressure

US equities moved higher at the open on Friday after September jobs data came in softer than expected, reducing the likelihood that the Federal Reserve will raise interest rates again.

Investors appear to be focusing more on the relief offered by lower rate expectations than on the cooling labour market itself, based on the early trading reaction.

• Nonfarm payrolls rose by just 29,000 in September, while the combined revision for July and August knocked off a further 60,000 jobs, pointing to softening hiring trends.
• Average hourly earnings edged up 0.1%, bringing the annual wage growth rate to 3.0%, a sign that wage-driven inflation pressures remain muted. finance.yahoo.com

The positive reception for stocks is being driven by a dip in Treasury yields. When yields decline, the discount rate used to value future corporate earnings falls, which supports equity valuations—particularly for technology and growth names. Lower yields also ease financing conditions and reduce the appeal of bonds compared to stocks.

Yields have bounced somewhat from their immediate post-report lows, but are still below the levels recorded at the Morning North American Kickstart:

• 2-year yield:4.7517%, down 3.53 basis points on the day and 2.92 basis points from the Kickstart level of 4.7809%.
• 5-year yield:4.9623%, down 4.27 basis points on the day and 3.03 basis points from 4.9926%.
• 10-year yield:5.1989%, down 3.51 basis points on the day and 2.53 basis points from 5.2242%.
• 30-year yield:5.5795%, down 2.35 basis points on the day and 1.94 basis points from 5.5989%.

The main US equity indices started the session in positive territory, with the Nasdaq Composite climbing 1.17%. It touched an intraday high of 27247.97, still below the September 22 peak of 27288.79. A break above the record high would open the door for additional upside momentum.

The Nasdaq 100 index added 1.10%, hitting an early trading high of 30,899 before easing to 30,856. The prior all-time high stands at 30,770.63, a level that will be closely watched if buyers aim to push prices higher.

The S&P 500 gained 0.92% to 7737.79. Its all-time high remains higher at 7815.54, set in August, while the September swing high was near 7779.22.