• US stocks rose as the February jobs report boosts rate-cut hopes.
• The economy added 275,000 jobs in February, above expectations of 198,000. Unemployment rose to 3.9{b35c98fb0b5373898aeb6e2d0db4f287402c3d8e7e09edb32fb78fc4e77f672b}. 
• “There is less reason now to be concerned that renewed labour market strength will drive inflation higher again.”

US stocks rose on Friday morning as investors parsed through the latest employment data in the February nonfarm payroll report. 

The economy added 275,000 jobs in February, above expectations of 198,000. The unemployment rate rose to 3.9{b35c98fb0b5373898aeb6e2d0db4f287402c3d8e7e09edb32fb78fc4e77f672b} compared to 3.7{b35c98fb0b5373898aeb6e2d0db4f287402c3d8e7e09edb32fb78fc4e77f672b} in January. Friday’s job report also saw January’s blowout jobs reading — 353,000 jobs added — revised lower to 229,000.

Wage growth also slowed, with gains of 0.1{b35c98fb0b5373898aeb6e2d0db4f287402c3d8e7e09edb32fb78fc4e77f672b} month-over-month, compared to expectations of 0.2{b35c98fb0b5373898aeb6e2d0db4f287402c3d8e7e09edb32fb78fc4e77f672b}. Altogether, even though the headline figure came in higher than expected, the data paints a picture of a labor market that’s slowing after months of stunning growth. 

The data is a positive sign for the Fed, which has been waiting for the economy to cool and hiring to slow before slashing interest rates. 

Treasury yields were lower following the report. The two-year bond yield dipped six basis points to 4.451{b35c98fb0b5373898aeb6e2d0db4f287402c3d8e7e09edb32fb78fc4e77f672b}. The 10-year bond yield edged lower to 4.085{b35c98fb0b5373898aeb6e2d0db4f287402c3d8e7e09edb32fb78fc4e77f672b}. 

“The 275,000 rise in non-farm payrolls in February may, at face value, add weight to the Fed’s view that there is no rush to start cutting interest rates, but the downward revisions to previous months’ gains leave recent growth looking less strong than previously thought,” said Andrew Hunter, deputy chief US economist at Capital Economics.

After January’s wild job growth, forecasters became concerned that inflation could spike anew, but those fears should be soothed by February’s reading, Hunter said.

“Alongside the rise in the unemployment rate to a two-year high and a much weaker rise in wages, there is less reason now to be concerned that renewed labour market strength will drive inflation higher again,” he said.

Here’s where US indexes stood shortly after the 9:30 a.m. opening bell on Friday: 

Here’s what else is going on: