US non-farm payrolls rose more than anyone expected

U.S. non-farm payrolls rose more than all expectations in September, the largest increase since March. The unemployment rate unexpectedly fell to 4.1, easing market fears of a significant deterioration in the labor market. Data released by the Bureau of Labor Statistics on Friday showed that non-farm payrolls rose by 254,000 in September after payrolls were revised up by 72,000 in July and August. The unemployment rate fell to 4.1%. Combined with data earlier this week showing that demand for workers remains healthy while layoffs remain low, the non-farm payrolls report could ease concerns that the labor market is cooling too quickly. The payrolls data could increase the likelihood that the Federal Reserve will cut interest rates by 25 basis points next month. Stock index futures, dollar and Treasury yields rallied after the data, with traders pricing in the swap market showing they had scaled back bets on the Federal Reserve cutting interest rates by more than 25 basis points in November.