Stocks rallied after data showed nonfarm payrolls grew by 254,000 jobs in September, far outpacing the forecasted gain of 150,000 from economists polled by Dow Jones. The unemployment rate ticked down to 4.1% despite expectations for it to hold steady at 4.2%.

Goldman Sachs has lowered the odds of the United States slipping into a recession in the next 12 months by five percentage points to 15%, following the latest employment report that showed better-than-expected data.

If Fed officials had known the subsequent data, they probably would have opted for a quarter-point cut on Sept. 18,” economist Jan Hazius said.

U.S. Recession Risk Decreases Amid Job Market Gains Goldman Sachs has reduced the probability of a U.S. recession within the next 12 months to 15%, down from 20%, after the September employment data showed