Stock market today: Wall Street gains on stronger than expected September jobs report

Shares on Wall Street jumped after the U.S. reported much stronger jobs figures than expected early Friday, evidence that the U.S. labor market is still solid despite years of elevated interest rates.

Futures for the S&P 500 rose 0.8% before the bell, while futures for the Dow Jones Industrial Average climbed 0.5%.

America’s employers added a surprisingly strong 254,000 jobs in September, up sharply from the 159,000 jobs that were added in August. The unemployment rate dropped from 4.2% to 4.1%, the Labor Department said.

The latest figures suggest that many companies are still confident enough to fill jobs despite the continued pressure of high interest rates. Few employers are laying off workers, though many have grown more cautious about hiring.

Stocks are near their records because of hopes the U.S. economy will indeed continue to grow, now that the Fed is cutting interest rates. The Fed last month lowered its main interest rate for the first time in more than four years and indicated more cuts will arrive through next year.

Rivian shares tumbled more than 7% after the electric truck and SUV maker lowered its production guidance for the year due to a parts shortage. Rivian said the disruption began in the third quarter and has since gotten worse.

Spirit Airlines shares plunged 32% after The Wall Street Journal reported the that the budget airline was exploring bankruptcy protection. Spirit shares have fallen to all-time lows just above $2 in the wake of its failed merger with JetBlue earlier this year. They are poised to open below $2 when markets open.

Later Friday, the government issues its September jobs report. One big question hanging over Wall Street has been whether the job market will continue to hold up after the Federal Reserve earlier held interest rates at a two-decade high. The Fed wanted to press the brake hard enough on the economy to stamp out high inflation without causing major job losses that could tip the economy into a recession.

Also Friday, some 45,000 dockworkers at East and Gulf coast ports are returning to work after their union reached a deal to suspend its three-day strike until Jan. 15 to provide time to negotiate a new contract.

Oil prices continued to rise in tandem with tensions in the Middle East.

It was the fourth straight day of gains for oil — its longest winning streak since August — after President Joe Biden suggested on Thursday that U.S. and Israel were discussing a possible strike by Israel against Iranian oil facilities.

“We’re in discussion of that,” Biden said to reporters. He added: “I think that would be a little ... anyway,” without finishing the thought. Biden also said he doesn’t expect Israel to retaliate immediately against Iran.

Iran is a major oil producer, and a broadening of the fighting could choke off Iran’s oil flows to China and also affect neighboring countries that are integral to crude supplies. Helping to keep prices in check, though, are signals that oil inventories remain ample at the moment. Brent crude fell to its lowest price in nearly three years last month.

Benchmark U.S. crude added 34 cents to $74.05 a barrel. Brent crude, the international standard, picked up 39 cents to $78.01 a barrel. On Thursday, Brent leaped 5% after starting the week below $72. It’s potentially on track for its biggest weekly percentage gain in nearly two years.

In Europe at midday, France's CAC 40 gained 0.4%, while Germany's DAX edged up 0.2% and Britain's FTSE 100 slipped 0.5%.

Japan's benchmark Nikkei 225 edged up 0.2% to finish at 38,635.62. Australia's S&P/ASX 200 slipped 0.7% to 8,150.00. South Korea's Kospi added 0.3% to 2,569.71. Hong Kong's Hang Seng jumped 2.8% to 22,736.87. Trading was closed in Shanghai for a holiday.

In currency trading, the U.S. dollar slipped to 146.59 Japanese yen from 146.83 yen. The euro fell to $1.1029 from $1.1034.

Japanese Prime Minister Shigeru Ishiba, who took office on Tuesday, gave a policy speech that promised salary increases for workers that exceed inflation, as well as an economic package that will give support for low-income households. He also said he will promote investment to create “a virtuous cycle of growth and distribution.”

Following a meeting between Ishiba and Bank of Japan Gov. Kazuo Ueda, “it was indicated that Japan is unlikely to make any near-term adjustments to its ultra-loose monetary policy,” according to Luca Santos, currency analyst at ACY Securities.

Ueda indicated the loose monetary policy would remain for some time. The Bank of Japan has begun very gradually raising its benchmark rate from near zero. It now stands at around 0.25%.

Expectations of rising rates had pushed the yen higher after the Liberal Democrats elected Ishiba to head the governing party and thus serve as prime minister. But the yen has fallen back against the dollar in the past two days after officials sent clear signals that they did not favor further rate hikes at this time.

A cheaper yen could work as a plus for Japan's giant exporters like Nintendo and Toyota by boosting the value of their overseas earnings. But it raises the cost of imports of oil and other vital commodities, pushing domestic prices higher and pinching household spending.

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