US stocks opened higher after September employment data showed a sharp slowdown in hiring, reducing pressure on the Federal Reserve to raise interest rates again.

The market's initial reaction suggests investors are giving more weight to the prospect of relief on interest rates than to the slowdown in hiring itself.

Payrolls increased by just 29,000, while July and August were revised lower by a combined 60,000 — pointing to weaker hiring momentum. Average hourly earnings rose only 0.1%, with annual wage growth at 3.0%, suggesting less inflation pressure from wages. Figures like these move markets because the Federal Reserve operates under a dual mandate that puts employment alongside inflation at the center of policy, making each monthly jobs report one of the most closely watched releases on the calendar.

For stocks, the transmission comes through lower Treasury yields. Lower yields reduce the rate investors use to value future corporate earnings, supporting stock valuations — particularly technology and growth shares. They also ease financing conditions and make bonds less competitive with equities.

Yields have recovered from their initial post-report lows but remain below the Morning North American Kickstart levels:

• 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 pullback spanned the full curve — shorter-dated yields such as the two-year typically react most directly to changing Fed rate expectations, while longer-dated maturities also price in growth and inflation expectations further into the future.

On the technical side, the major US stock indices are opening higher, with the NASDAQ index rising by 1.17%. The high price has reached 27247.97, still short of the high reached on September 22 at 27288.79. Getting above the all-time high would open the door for further upside momentum. This week, the price lows stayed above the rising 100-hour moving average and also found support buyers within the swing area between 26676 and 26856. The inability to move below that moving average and the swing area kept buyers in play, and they reaping the reward from the softer jobs data reaction today.

For the NASDAQ 100 index, it is up 1.10%, having reached a high in the first few minutes of trading at 30,899. The current price is trading at 30,856. The prior all-time high was at 30,770.63 — a close level to watch if buyers are to run the price higher.

The S&P index is up 0.92% at 7737.79, with the session high so far at 7750. The all-time high remains higher at 7816.70, reached in August. The swing high from September was near 7779.22. Looking at the chart, there are a number of swing highs going back to August between 7771.48 and the all-time high at 7816.70. The price high is still short of that area. Can the buyers push to and through? Or will the market keep the up-and-down caution in play?

Source: ForexLive