Stock Market Slips as Rate Cut Next Month May Not Happen

US stocks whipsawed, with the blue-chip Dow swinging through 1,000 points before closing lower.

The employment report showed 119,000 jobs added in September and the unemployment rate inching up a tenth to 4.4%. (Photo: New York Stock Exchange Facebook) 

Bolstered by strong earnings from artificial intelligence chip giant Nvidia and discount retailer Walmart, stocks opened higher and the Dow climbed 700 points, Medora Lee reported for USA Today.

However, stocks slowly started losing ground after the delayed September jobs report appeared to dash hopes for another rate cut when the Federal Reserve meets next month.

At the close, the Dow was down 386.51 points, or 0.84%, at 45,752.26.

The tech-heavy Nasdaq ended down 486.18 points, or 2.16%, at 22,078.05, and the broad S&P 500 dropped 103.40 points, or 1.56%, to 6,538.76. The benchmark 10-year yield slipped to 4.098%.

The employment report, originally due in early October but delayed because of the 43-day government shutdown, showed 119,000 jobs added in September and the unemployment rate inching up a tenth to 4.4%.

The data were much better than the 51,000 new jobs some economists had expected, but job gains for July and August were revised down by 33,000, making the picture more mixed.

“Given the Fed’s recent hawkish shift and the lack of official data scheduled before its Dec. 10 meeting, it is understandable that the market thinks the next move won’t come until early 2026,” wrote James Knightley, chief international economist at Dutch bank ING.