Wall Street cheers bad news on jobs, sending stocks higher and betting that a soft labor market will force Powell’s hand in December

Market Performance - Stocks rose on Wall Street, with the S&P 500 increasing by 0.5%, the Dow Jones Industrial Average rising by 62 points (0.1%), and the Nasdaq composite up by 0.8% [1] - The gains were driven by big technology stocks, with Nvidia rising by 1.6% and Alphabet increasing by 2.4% [2] Company Earnings - McDonald's shares rose by 2% following the return of its popular Snack Wraps, contributing positively to sales in Q3 [3] - International Flavors & Fragrances saw a 4.7% increase in stock price after exceeding quarterly profit forecasts [3] - Axon Enterprise's stock fell by 11.9% due to weaker profit forecasts than expected [3] - Live Nation Entertainment's shares dropped by 7.8% after its results did not meet analysts' expectations [3] Economic Indicators - A monthly ADP report indicated that private payrolls rose more than expected in October, providing insight into the job market [5] - The services sector expanded more than anticipated in October, although employment within that sector was still contracting [5] - The economic growth in October persisted despite the government shutdown, as noted by Comerica Bank's chief economist [6] Federal Reserve Outlook - The Federal Reserve is concerned about the weaker job market, which has influenced its decision to cut benchmark rates twice this year [7] - There is a mixed outlook regarding future rate cuts, with a 65% chance of a December rate cut now forecasted, down from 90% prior to the last cut [8] Bond Market - Treasury yields rose, with the 10-year Treasury yield increasing to 4.15% from 4.09% and the two-year Treasury yield rising to 3.62% from 3.58% [9]