London stocks rise after soft US jobs data eases rate fears

The FTSE 100 added 0.3% and the FTSE 250 rose 0.2% after US non‑farm payrolls slowed sharply, prompting a retreat in Treasury yields.

By Felo News Desk · Published Fri, 02 Oct 2026 18:52:55 GMT

London’s equity markets closed Friday higher after a weaker‑than‑expected U.S. jobs report reduced expectations of a Federal Reserve rate increase, according to both the Standard and the Independent.

What happened

US non‑farm payrolls for September increased by 29,000, far below the revised August gain of 133,000 and the FXStreet consensus of 90,000. July’s figure was also revised down to a loss of 10,000 jobs. The softer data prompted traders to price a lower probability of a rate hike at the Fed’s October meeting, easing Treasury and gilt yields.

In London, the FTSE 100 index finished up 33.68 points, or 0.3%, at 10,461.95. The FTSE 250 rose 51.03 points, 0.2%, to 24,194.24, while the AIM all‑share index gained 1.71 points, 0.2%, to 783.75. Over the week, the FTSE 100 was down 2.2%, the FTSE 250 down 0.3% and the AIM slightly up.

What the reports add

Both outlets quoted the same remarks from Susannah Streeter, chief investment strategist at Wealth Club, highlighting a “ripple of relief” as hopes rise that the Fed will not need to raise rates aggressively. The Standard noted that the easing of Treasury and gilt yields helped lift equities, while the Independent reiterated that the market’s reaction was driven by a reduced chance of a rate hike at the Fed’s October meeting.

What was said

“There’s been a ripple of relief on financial markets as hopes rise that the Fed won’t have to go so hard and fast in raising interest rates. Treasury and gilt yields have eased off, and equity markets are on a rising tide, as the rush of worry has started to recede,” Susannah Streeter told the Standard and the Independent.

How it came about

The move follows a recent swing in global bond yields that had pushed equity markets lower earlier in the week, as reported in Felo’s Bond‑Yield Swings Trigger Global Stock Moves as AI Gains Boost Wall Street on 1 October. The softer US payrolls provided the catalyst for yields to retreat, allowing London’s shares to rebound.

Key facts

FTSE 100 closed at 10,461.95, up 0.3% (standard.co.uk)
US September non‑farm payrolls rose by 29,000, below expectations (standard.co.uk)
Susannah Streeter of Wealth Club said markets felt relief after the data (standard.co.uk)