An Underwhelming Jobs Report Sends Stocks Higher

October 2, 2026

AI Summary

5 min read

The September jobs report came in well below expectations, but the stock market rallied anyway. The economy added just 29,000 jobs, about a third of what economists predicted, and the unemployment rate ticked up to 4.2%. Yet investors took the weak number as a signal that the Federal Reserve would hold off on raising interest rates, sending the Nasdaq up more than 1%. The episode also covers a G7 agreement to release 100 million barrels of oil and diesel from emergency stocks, a major shift in Republican Senate campaign spending, and the new name for the combined Paramount-Warner Bros. Discovery entity.

A Steady but Unspectacular Jobs Report

September’s hiring numbers were historically low compared to the 200,000-plus monthly gains before the pandemic, but WSJ economics reporter Conrad Putsier described the labor market as "pretty steady." The key indicator, he said, is the unemployment rate, which rose slightly to 4.2% but is "mostly unchanged." That stability signals a healthy market that isn't adding many new positions but doesn't need to in order to keep unemployment flat.

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What you'll learn

1 (00:03) **Jobs Report Misses, But Markets Rally** - September hiring came in well below expectations, but the data is seen as steady enough to keep the Fed from raising rates.
2 (00:48) **FlyDubai Copilot Had Prior Ban Over Radicalization Concerns** - Exclusive reporting reveals the copilot who stabbed his captain was previously banned from flying by Oman due to concerns about radical ideological views.
3 (01:36) **G7 to Release 100 Million Barrels of Oil and Fuel** - The group of seven major economies agrees to tap emergency stocks to combat soaring diesel prices driven by the wars in Iran and Ukraine.
4 (04:41) **Markets Cheer "Goldilocks" Jobs Report** - Stocks rose across the board, with the Nasdaq leading gains, as investors interpreted the mixed data as a signal the Fed will be less aggressive with rate hikes.
5 (05:25) **GOP Super PAC Shifts Funds From North Carolina to Kansas** - The Senate Leadership Fund pauses spending in a tight North Carolina race and redirects up to $19 million to prop up a Republican candidate in deep-red Kansas.
6 (06:14) **NY Governor Appoints AG to Probe Cornell Fraternity Assault Case** - Governor Kathy Hochul says the student who alleged she was drugged and raped by seven fraternity members was failed "at every turn" by institutions.
7 (07:31) **FAA Clears Boeing 737 MAX Software Glitch as Non-Safety Issue** - The agency determines a glitch that could disable some autopilot functions does not pose a flight safety risk, clearing a potential hurdle for the new MAX 10 plane.

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Show Notes

P.M. Edition for Oct. 2. The U.S. economy added 29,000 jobs last month, falling short of expectations. Journal economics reporter Konrad Putzier discusses why that's a more solid number than it may seem… and what it means for the Fed’s next meeting later this month. Plus, the G-7 countries agree to release 100 million barrels of diesel and oil to help ease soaring prices. We hear from reporter Matthew Dalton about why that seems to end the threat of a U.S. ban on diesel exports, at least for now. And the Journal has learned that Oman had previously banned the FlyDubai attacker from flying over his radical views. Alex Ossola hosts.

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