However, that was not expected. The US economy added 254,000 jobs in September, about 100,000 more than economists had expected. The unemployment rate, which was expected to remain at 4.2%, fell to 4.1%. Earnings also rose more than expected month over month. Stock futures rallied following the news. Futures for the Dow Jones Industrial Average were off 255 points, or 0.6%. S&P 500 futures rose 0.8%, while Nasdaq-100 futures rose 1.3%. The S&P 500 was headed for a weekly decline prior to the report and may now end the week in the green. Many on the street cheered the report, which points to a stronger economy as the Federal Reserve eases monetary policy: Sonu Varghese, chief global strategist at the Carson Group: “This was a very encouraging earnings report. … The fact that inflation is falling at the same time means that output growth is strong.” , and that should keep the Fed on track for more rate cuts — a further boost to the economy and markets.” Glen Smith, chief investment officer at GDS Wealth Management: “The stock market has lived up to October’s shadow of rising volatility, and we expect this euphoria to continue over the next few weeks as the market begins to grapple with the uncertainty surrounding the election, the Federal Reserve’s next move and corporate earnings reports.” Lindsay Rosner, head of multi-industry investments at Goldman Sachs Asset Management: “Today’s data hit hard as earnings came in with strong, positive updates, and a drop in unemployment. The economy is heading into the postseason. On all fronts, the Fed should be smiling.” as it brings out the bats.” To be sure, the new data also has traders pricing in a small quarterly interest rate cut at the central bank’s November meeting. The Fed cut rates by a staggering half a percent in September, leading many to expect another cut of that magnitude down the road. “Overall, it was a strong employment report that points to a 25 bp rate cut next month and downplays the strength of 50 bp,” wrote Ian Lyngen, head of US rates strategy at BMO Capital Markets. And some think that this rapid enthusiasm for stocks may end as traders wake up to the realization that the Fed may be easing back on the throttle. Peter Tchir of Academy Securities said in his paper that he would “destroy the initial excitement of the equity world.” “Fed tapering should be slow and I continue to think (and the data supports it) that the current neutral rate is above 3% (the economy is volatile at 5% yield for more than a year),” said Tchir.