U.S. Stocks Surge: Jobs Report Provides Market Boost

U.S. stock indexes rose as a strong jobs report indicated robust economic growth, alleviating concerns of an economic slowdown. This influenced traders to scale back expectations of a significant Federal Reserve rate cut. Energy stocks soared amidst Middle Eastern tensions, while certain companies faced individual challenges.

The major U.S. stock indexes climbed on Friday following a stronger-than-expected jobs report, which alleviated concerns about a weakening economy. September saw the highest jobs gains in six months, and unemployment dropped to 4.1%.

Traders adjusted their expectations for the Federal Reserve's upcoming meeting, reducing the likelihood of a 50-basis-point rate cut to just 8%, down from 31% earlier. "This data suggests continued solid economic activity," remarked Peter Cardillo, a chief market economist.

On Wall Street, small caps shone as the Russell 2000 index rose by 1.1%, matching gains in financials. Meanwhile, tensions in the Middle East spurred a rise in energy stocks, but challenges linger for Spirit Airlines and Rivian.

(With inputs from agencies.)