US Adds 29,000 Jobs in September, Jobless Rate Rises

• US September nonfarm payrolls rose by only 29,000, significantly below the 90,000 estimate, with a net revision subtracting 60,000 jobs from prior months.
• The unemployment rate increased to 4.2% (vs. 4.1% est.), and average hourly earnings grew by a mere 0.1% M/M (vs. 0.3% est.).
• Equity futures (S&P, Nasdaq, Russell) surged, bond yields (2-year, 10-year, 30-year) plunged, and the dollar weakened, as markets interpreted the data as reducing the urgency for the Federal Reserve to hike interest rates.

The September US jobs report showed significantly weaker-than-expected payroll growth (29k vs. 90k est.) and subdued wage increases, while the unemployment rate ticked up. This 'dovish' report led to a rally in equity futures, a plunge in bond yields, and a weaker dollar, as traders pared back expectations for aggressive Fed rate hikes.