Odds of a 50 basis point cut dropped to 0% from 53% last week after the strong September jobs report, according to the CME FedWatch Tool.

Breakeven rates are a measure of what market participants expect average inflation to be over the next 5 or 10 years. As of Wednesday, the most recent day in which data is available from the St. Louis Fed, 5- and 10-year breakeven rates were respectively at 2.1% and 2.21%.

U.S. stocks rallied Friday after a surprisingly strong report on the U.S. job market raised optimism about the economy. The Standard & Poor's 500 climbed 0.9% and got close to its all-time high set on Monday.

"On the face of this the Fed should be hiking rates with these sorts of figures, not cutting rates," Economist James Knightley said.

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 unemploy

The Dow posted a record closing high on Friday and the Nasdaq ended with a more than 1% gain as a stronger-than-expected jobs report reassured investors who had worried the economy may be getting too weak.

U.S. equities rallied on October 4, with the Dow Jones Industrial Average closing at a record high following a blockbuster labor report that