Wall Street rises after weak jobs report

US stocks moved higher on Friday after a weaker-than-expected employment report increased expectations that the Federal Reserve could leave interest rates unchanged at its October meeting.

The Dow Jones Industrial Average gained about 250 points, or 0.5 per cent, while the S&P 500 rose 0.7 per cent. The Nasdaq Composite advanced 1.2 per cent, reaching a record high during the session before retreating from its peak.

The gains came despite mixed weekly results. The Dow finished the week about 1.3 per cent lower, while the S&P 500 declined 0.3 per cent. The Nasdaq, however, gained approximately 0.6 per cent, recording its third consecutive daily advance.

Treasury yields initially fell after the employment figures were released, but later recovered. The rise in yields contributed to stocks moving back from their session highs.

Technology shares were among the strongest performers as investors resumed taking on risk. Nvidia shares reached an all-time intraday high for the first time since May, although the stock closed below its previous record closing level.

The latest employment figures showed that the US economy added just 29,000 jobs in September, well below the 84,000 increase economists had expected. The unemployment rate also rose to 4.2 per cent from 4.1 per cent.

The weaker labour market data prompted traders to reassess expectations for the Federal Reserve's next interest-rate decision.

Markets were pricing in a 77 per cent probability that the Federal Reserve would leave its benchmark interest rate unchanged at its October meeting, according to federal funds futures.

Oil prices also moved lower, providing additional support for equities. The decline followed reports that European countries were considering releasing strategic fuel reserves amid pressure from the US administration to address elevated energy costs.

Investors entered Friday's session after a modest rise on Thursday, which marked the beginning of October trading.

Despite the late-week gains in technology stocks, the Dow and S&P 500 remained on course for weekly declines amid volatility across global bond markets. The Nasdaq was the only major US stock index positioned to finish the week higher.

The latest jobs figures are likely to keep monetary policy and the strength of the US labour market firmly in focus as investors assess the outlook for interest rates and economic growth.