September's 245,000 new jobs topped consensus forecasts by about 100,000. This means the Fed can probably slow the pace of rate cuts, economists said.

A surge in U.S. job growth has financial markets betting the Federal Reserve will follow last month's half-point interest rate reduction with smaller moves, and ignited a debate over whether the policy rate ends up at a higher level than previously expected.

The jobs report from the Bureau of Labor Statistics for September was considerably stronger than expected. Economists had been predicting payroll growth of 140-150,000 jobs; instead, payrolls rose by 254,

The U.S. labor market grew at a faster rate than expected in September with notable gains in the food and beverage sector as well as health care, although manufacturing shed jobs.

The September jobs report was stronger than expected and is likely to assuage recession fears, driving up hopes for “soft landing” or “no landing” economic scenarios.

U.S. employers added 254,000 jobs in September, blowing past expectations, while the unemployment rate fell to 4.1%, in the latest sign of the resilience of the labor market.

Wall Street is watching the labor market for signs of slower hiring, which could influence the Federal Reserve's next rate decision.

The U.S. added 254,000 jobs in September, far exceeding expectations, while the unemployment rate fell from 4.2% in August to 4.1%.