Friday’s September jobs report was weak on every line, and equities treated that as good news. The S&P 500 rose 0.73% to 7,722.72, the Nasdaq Composite gained 1.19% to 27,190.86 and the Dow added 0.49% to 51,176.96.

How weak was it?

Nonfarm payrolls grew by 29,000, against a forecast of 98,000. The calendar listed August at 162,000, but the Bureau of Labor Statistics now has it at 133,000, and July was cut to a loss of 10,000. Two months of downward revisions took 60,000 jobs out of the earlier count. The unemployment rate rose to 4.2%, a tenth above the forecast and the August reading. Average hourly earnings rose 0.1%, or 5 cents to $37.81, against an expected 0.3%, which leaves annual wage growth at 3.0%.

Why did that lift stocks?

The Federal Reserve raised rates on 16 September and meets again on 27 and 28 October. Before the report, a second increase looked live. Wage growth is the labour-market input the Fed watches most closely for inflation, and a 0.1% gain removes pressure from that side. Futures pricing for an October hike dropped to roughly 16% to 18%, from about 64% a week earlier. Lower expected policy rates raise the present value of distant earnings, so the benefit fell on long-duration technology shares first, and Nvidia pushed the Nasdaq to an intraday record.

Did the bond market agree?

Only partly. The Treasury’s par curve shows the 10-year yield at 5.28%, up four basis points from 5.24% on Thursday. A payroll miss of this size would normally pull yields down. The data cannot explain the rise, and the 30-year yield sat near 5.63%. Traders trimmed bets on near-term hikes, yet long-dated yields stayed high, which suggests investors are still pricing persistent inflation over the longer run.

Was it only the jobs data?

No. Oil fell sharply after reports that the G7 would release 100 million barrels from emergency reserves. WTI crude dropped about 3.75% to $89.39 a barrel and Brent fell about 2.3% to $99.92. Cheaper energy eases the same inflation worry the labour data addressed, so the two moves reinforced each other. Company news added noise, with Tesla beating delivery estimates and Nike issuing a weak full-year outlook.

What is the catch?

A gain this small signals a slowdown. Health care added 17,000 jobs, construction 11,000 and manufacturing 9,000, while financial activities lost 7,000. Employment in most major industries changed little. If hiring keeps shrinking, lower hike odds stop being relief and start reflecting weaker demand, which would eventually reach corporate revenue. For now, the market is reading the report through the rate path alone.

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