U.S. job growth slowed sharply last month. Nonfarm payrolls grew by just
29,000 positions in September, falling well below forecasts while the unemployment rate edged to
4.2%. Instead of sparking recession fears, traders viewed the softer print as relief for interest rates. Treasury yields dropped after days of sharp bond selling.
Tech heavyweights led the rally. The Nasdaq climbed more than
1% on the session, powered by mega-cap chipmakers.
NVDA broke out to new all-time highs as lower yields eased valuation pressures. Investors bought back into semiconductor leaders that had paused during the recent run-up in benchmark borrowing costs.
Lower borrowing costs are back in focus. Labor cooling suggests central banks may stay friendly into year-end. If wage pressure stays tame alongside slower headcount growth, growth names should retain their premium. Traders will watch next week's inflation commentary to confirm yields reached a peak.
