Stocks spiked sharply higher after a weaker-than-expected September Jobs report lowered expectations for an October interest rate hike. As of Oct. 2, the CME FedWatch tool puts the odds of a hike at about 20%, down from about 55% after the last FOMC meeting. It's another case of bad news being good news.
However, lower oil prices and a lower yield on the 10-year Treasury note also contributed to the risk-on sentiment. The takeaway for investors is that despite some pockets of weakness, the economy and consumers continue to show resilience.
