Stock Market Update

The S&P 500 futures are up 48 points and are trading 0.8% above fair value, the Nasdaq 100 futures are up 250 points and are trading 1.3% above fair value, and the Dow Jones Industrial Average futures are up 256 points and are trading 0.6% above fair value.

Hiring activity was much stronger than expected in September, the unemployment rate fell, and average hourly earnings increased more than expected. Specifically, nonfarm payrolls rose by 254,000, the unemployment rate fell to 4.1% from 4.2%, and average hourly earnings increased 0.4%, leaving them up 4.0% year-over-year.

The key takeaway from the report is that the labor market is in a solid position to keep the U.S. economy on a growth trajectory.

Treasury yields shot higher in response. The 10-yr yield, at 3.87% just before 8:30 ET, sits at 3.95% now. The 2-yr yield, at 3.73% just before the data, sits at 3.86% now.