STAN HONDA/AFP via Getty Images)
- US stocks rebounded sharply Friday, after a spike in bond yields in the morning.
- September's jobs report came in hotter than expected, and could indicate higher Federal Reserve rates.
- The United Auto Workers indicated significant progress in talks with carmakers, helping boost market optimism.
US stocks rebounded sharply Friday, reversing an early sell-off triggered by surging Treasury yields and a labor market spike.
The September payroll report showed 336,000 positions were added, well above forecasts for 170,000, while unemployment remained at 3.8%.
The metric underlines continued economic resiliency, and could force the Federal Reserve to keep raising interest rates. As a result, the bond market sell-off accelerated Friday morning, with the 10-year yield soaring as much as 14 basis points before paring some gains.