Finance

Government bond yields fell from their recently established multi-decade highs in response to the cooler-than-expected labor data. The benchmark 10-year U.S. Treasury yield cooled down to around 5.21%, easing from earlier peaks that neared 24-year highs. This downward shift in yields provided relief to equity markets, where elevated borrowing costs have historically pressured stock valuations.

The disappointing employment figures caused market participants to significantly dial back expectations for future monetary tightening by the Federal Reserve. Analysts and traders noted that the weak payroll growth reduces the likelihood of an interest rate hike at the upcoming October policy meeting. Economists suggested that the cooling labor market could firmly hold the central bank's tightening cycle at bay for the time being.

The tech-heavy Nasdaq Composite outperformed other major benchmarks during the session, heavily propelled by artificial intelligence and semiconductor firms. This momentum followed recent blowout quarterly earnings from Micron Technology, which continues to bolster confidence across the broader chip industry. Major tech giants like Alphabet also added to the positive market sentiment after introducing updated versions of their artificial intelligence models.