U.S. Job Surge Pumps Life into Stock Market

U.S. job growth accelerated in September, leading to a decrease in unemployment to 4.1%. This spurred the S&P 500 close to record highs as investors adjusted their interest rate cut bets, with the Federal Reserve likely to enact a smaller cut. Energy stocks showed significant gains.

U.S. job growth saw an impressive surge in September, as the rate of unemployment dropped to 4.1%. This significant development boosted investor confidence, propelling the S&P 500 index towards a record high.

Amid these developments, the likelihood of the Federal Reserve implementing a smaller interest-rate cut at its next meeting increased, as traders adjusted their bets towards a 25-basis-point reduction. Energy stocks also exhibited robust performance, marking the sector's largest jump in two years.

This positive economic news has led to a rally across major stock indexes, with the Dow Jones, S&P 500, and Nasdaq all posting significant gains by Friday morning.

(With inputs from agencies.)