Here are the headlines moving the markets.
US stocks slipped by 1.4pc and the dollar dropped by 1.4pc against the euro after the disappointing data were released. The yields on 10-year Treasury bonds - which imply the cost of government borrowing - slid below 2pc to their lowest levels since April.
Economists at BNP Paribas said that there was a "decent" chance that the Fed would raise rates even later than March "given weather risks that could distort data over the winter".
Paul Ashworth, chief US economist at Capital Economics, said that "aside from manufacturing, which is getting hammered by the stronger dollar, everything else [in the US economy] looked pretty positive" before the jobs report was released.
Excluding manufacturing, "the slowdown in employment gains is most notable in business services and education and health, which are not the sectors most prone to cyclical swings".
"Accordingly, we would not be surprised if the economy had a stronger fourth quarter," Mr Ashworth said. But as this rebound will not show up in official data for a few months, the Fed is not likely to raise its rates before 2016.
There was one bright spot in the jobs report. While the headline unemployment rate stood still at 5.1pc, the broader underemployment measure fell from 10.3pc to 10pc.
Despite the recent improvement in the domestic economy, the Fed decided to leave its rates on hold at their historic lows of 0pc to 0.25pc in September. The central bank said that "uncertainties abroad" had made it more risky to tighten policy. US rates have now remained unchanged for almost seven years.
NEW YORK (AP) — A weak report on the U.S. jobs market knocked the stock market lower early Friday. U.S. employers cut back sharply on hiring in September and added fewer jobs in July and August than previously thought. The news shot government bond prices up and drove the dollar down against other major currencies. Banks fell more than the rest of the market as investors expected low interest rates to continue to pinch their profits. KEEPING SCORE: The Standard & Poor's 500 index was down 12 points, or 0.6 percent, to 1,911, as of 11:16 a.m. Eastern time. The Dow Jones industrial average dropped 102 points, or 0.6 percent, to 16,168, while the Nasdaq composite declined 19 points, or 0.4 percent, to 4,607. WAY OFF: The government reported that employers added 142,000 workers last month,
Weak jobs report sends JPMorgan Chase, Citigroup and other bank stocks lower
NEW YORK (AP) — Banks were pummeled Friday after weak economic data raised doubts about the timing of a possible interest rate hike by the Federal reserve. The latest employment data shows that employers pulled back sharply on hiring in September. The 142,000 new jobs were far below the 200,000 that economists had projected, according to a poll by FactSet. The Fed, to the surprise of many, held off on raising interest rates at its meeting last month and banks took a hit then, too. The Fed has kept the federal funds rate near zero since the financial crisis struck seven years ago, which has constrained bank profits because it limits how much they can charge for loans and other products. Fed Chair Janet Yellen has said that the job market has almost recovered. But she has also said she wa
U.S. stocks rebounded, edging higher on Friday as investors wrestled with implications of a weaker-than-expected jobs report.
The disappointing report, seen as the closest proxy to the health of the economy, comes at a time when financial markets have been reeling on heightened worries about global economic growth, led by China.
The U.S. economy added 142,000 jobs last month, far less than the expected 200,000, while gains in the previous two months were cut, suggesting the pace of hiring slowed over the past few months. The unemployment rate remained at 5.1% and wage growth was flat.
Slack in employment has led the market to now pricing in only a 30% probability of a rate hike in December, according to Fed-funds futures. Meanwhile, economists said the Federal Reserve is now unlikely to raise interest rates year. Before the report, there had been speculation that a move could come later this month or in December.