Stocks rise, yields fall as US job numbers disappoint

The US labor market showed weaker-than-expected performance in September, with only 29,000 new jobs created, falling short of the anticipated 90,000. The unemployment rate also ticked up slightly to 4.2%. The Bureau of Labor Statistics revised down job figures for July and August by a combined 60,000, revealing that the economy lost jobs in July instead of gaining 21,000 as previously reported.

This disappointing data prompted Wall Street stocks to rise at the beginning of trading, as investors perceived the weak labor market as reducing the chances of another immediate interest rate hike by the Federal Reserve. Consequently, yields on 10-year US Treasury notes briefly dropped below 5.2%. While the likelihood of the Fed raising rates at its upcoming meeting now stands at only one in five, a majority expects a quarter or half percentage point increase in December.

The weak labor market numbers have reignited the "bad news is good news" narrative, though analysts warn that hoping for a weaker labor market to secure easier financial conditions is a poor trade-off. Rising oil prices and geopolitical tensions have also contributed to market volatility, with oil prices falling as G7 leaders discussed strategies to lower fuel costs.