Update: US Equity Indexes Rise as Downbeat Nonfarm Payrolls Slash Hawkish Outlook for Fed Policy

12:02 PM EDT, 10/02/2026 (MT Newswires) -- (Updates with index/price moves, macroeconomic data and company/geopolitical news from the first paragraph.) US equity indexes rose after a weak September jobs report slashed the odds of a back-to-back monetary policy tightening in October and as crude oil prices slumped. The Nasdaq Composite jumped 1.2% to 27,181.2, the S&P 500 climbed 0.7% to 7,720.5, and the Dow Jones Industrial Average advanced 0.3% to 51,104.5 after midday Friday. All but three sectors rose, with consumer discretionary, materials, and technology leading the gainers. The September employment report from the Bureau of Labor Statistics showed nonfarm payrolls rose by 29,000, below the 90,000 increase expected in a Bloomberg-compiled survey, while August jobs were revised downward to a 133,000 increase and July payrolls were adjusted lower to a 10,000 decrease, for a net reduction of 60,000 jobs. Traders slashed the probability of the Federal Reserve raising its target rate by 25 basis points in October to 22% from 24% a day ago and 64% a week earlier, according to the FedWatch tool. The remaining 78% likelihood is that rates will remain unchanged in the 3.75% to 4.00% range. The front-month US West Texas Intermediate crude oil contract sank 4.1% to $89.00 per barrel, and the global benchmark North Sea Brent dropped 2.9% to $99.33 per barrel after the G7 agreed to release 100 million barrels of energy reserves "immediately over 4 months" to help ease price pressures. The plan includes a "frontloaded substantial diesel release within the first 20 days" by G7 members and partners, per a G7 statement. In company news, Nike (NKE) shares slumped 6%, the Dow's steepest decliner, after the sportswear giant forecast a fiscal 2027 revenue decline and unveiled a plan to transform its operating model.