US Stocks Rally as Falling Treasury Yields and Cooling Labor Market Ease Rate Hike Fears

S&P 500 rises nearly 6% from October lows; latest job report points to slowing economy, reducing the need for Federal Reserve rate hike.

US Treasury yields are falling after reaching 16-year highs, with a decrease of about 35 basis points from their October peak, prompting a rally in US stocks, especially the S&P 500, which has risen nearly 6% from its October lows.
The Federal Reserve is believed to be nearing the end of its rate hiking cycle, in light of the cooling labor market and smaller than expected government borrowing. This has led to increased optimism among stock investors.
The unemployment rate slightly increased and wage increases were the smallest in two and a half years, suggesting a slowdown in the economy and potentially reducing the need for further rate hikes by the Federal Reserve.
Contrary to previous expectations, the likelihood of another rate hike at the Fed's December meeting has decreased. Instead, investors are beginning to expect rate cuts next year as they believe the economy will continue to slow down.
Despite the positive outlook among some investors, concerns remain regarding the sustainability of the government's $33 trillion debt pile and who will buy the increasing amount of debt the U.S. government is forecasted to issue.