US Dollar and Yields Slump After September Nonfarm Payrolls Rise by Only 29,000

U.S. stock futures and the euro advanced on Friday as weak employment figures spurred dollar selling and reduced Federal Reserve rate-hike expectations. Nonfarm payrolls increased by 29,000 in September, falling well short of forecasts, while the unemployment rate rose to 4.2%. EUR/USD rebounded 0.16% to 1.1260 from an intraday low of 1.1221, and S&P 500 futures gained 0.9%. The CME FedWatch probability of an upcoming Fed rate hike declined from 24% to 13.8%, putting downward pressure on Treasury yields and the U.S. Dollar Index, which fell 0.23% toward 101.80.