It was a weaker than expected jobs report, but the kind that markets like: not too hot, not too cold. Stocks rose and investors bet that the Fed won't be forced to raise rates as aggressively as previously feared.
The U.S. added 29,000 jobs last month, far short of expectations. Friday's report signals that the labor market remains steady but may not be able to deliver consistent and sizable employment gains like it did in the past. The unemployment rate was 4.2%, up slightly from the previous month.
Nasdaq rallied about 1%, close to a record high. The bond market's reaction was more measured. Treasury yields initially fell, but have since retraced that move and are higher on the day. France continues to worry bond investors, with yields on its two-year debt jumping to their highest level since 2008.
Brent crude oil futures fell about 1%, but have moved higher from session lows. The Group of Seven major economies agreed to release 100 million barrels of crude oil and fuel from their emergency stocks together with allied nations, seeming to end the threat of a U.S. ban on diesel exports.
