Dow jumps 400 points after weak jobs data sends yields tumbling: Live updates

Stocks jumped Friday, as yields retreated following a surprisingly weak jobs report that raised hopes the Federal Reserve will hold rates steady in October.

The Dow Jones Industrial Average rose 322 points, or 0.6%. The S&P 500 gained 0.8%, while the Nasdaq Composite climbed 1.1%.

Treasury yields fell Friday, with the 10-year yield dropping more than 5 basis points to 5.176%. The 2-year yield slid more than 3 basis points to 4.75%. One basis point is equal to 0.01%, and yields and prices move in opposite directions.

Tech stocks rallied as risk-taking resumed on Wall Street, with shares of Nvidia, CrowdStrike and Palo Alto Networks all rising to fresh highs. Shares of Intel and AMD also jumping more than 3%, each.

September’s nonfarm payrolls report showed the U.S. economy added 29,000 jobs last month, with unemployment rising to 4.2%. The Dow Jones consensus called for jobs growth of 84,000 and for the unemployment rate to hold steady at 4.1%.

The report comes as traders reassess the next move for the Federal Reserve. Fed funds futures trading suggests an 86% likelihood the central bank will stand pat at this month’s meeting, up from a roughly 76% chance just the prior day, according to the CME FedWatch Tool.

“The good news here is that this should give us the positive bridge until we get to third quarter earnings, and those are going to be very strong, up almost 30% year over year,” Saira Malik, chief investment officer at Nuveen, told CNBC’s “Squawk Box.” “So, I think this could be the start of the Santa Claus rally that we’ve all been hoping for.”

Oil prices dropped sharply from their highs, supporting equities, following a report that European nation states are considering a release of strategic fuel reserves following pressure from the Trump administration.

Investors are coming off a modestly higher session Thursday, to start off the month of October. However, the Dow and the S&P 500 were headed for weekly losses amid a global bond rout, while the Nasdaq was the only major average on pace to end the week with gains.

— CNBC’s Jeff Cox contributed to this report