Jobs report disappoints investors

Job growth slowed in September in the US, but more jobs were created than analysts expected, sending stocks lower as investors bet the Fed will maintain its aggressive tightening monetary policy for longer.

Nonfarm payrolls increased 263,000 for the month, compared to roughly 250,000 expected. Labor force participation edged lower, sending the unemployment rate lower to 3.5% vs the forecast of 3.7%.

September marks the lowest monthly increase since April 2021, but investors fear it is not enough to convince the Fed to slow down its pace of hiking interest rates. The CPI data point next Thursday for the month of September will be important to watch.