Friday’s Jobs Report Lifted Stocks—but Yields Kept the Rally Honest

The Nasdaq gained 319 points Friday as a cooler-than-expected September jobs report eased pressure on the Federal Reserve to raise rates this month. U.S. stocks climbed near record levels, with the report also cooling concern that a hot economy could worsen inflation. That’s a welcome combination for equities: less immediate rate pressure, without a fresh inflation scare. The catch is that the Fed’s decision still depends on incoming data.

The Bear Case

The jobs report...