US equities climbed on Friday after a weaker-than-expected key employment report eased pressure on the Federal Reserve to raise interest rates at its October meeting.

The S&P 500 ended the session up 0.7% in New York, marking its second straight day of gains. The tech-heavy Nasdaq 100 rose 1%, while the Russell 2000 small-cap index added 0.9%.

US employers added fewer jobs than anticipated in September and wage growth slowed, suggesting companies are becoming more cautious about hiring as costs rise.

"The disappointing September jobs report shows hiring slowed again heading into the fall, which may signal economic activity is moderate enough to delay further Fed rate hikes," said Jennifer Timmerman of Wells Fargo Investment Institute.

The report also showed the unemployment rate rose to 4.2%, partly due to an expanding labor force. Jason Pride, chief investment strategist and head of research at Glenmede, said the jobless rate rose for "the right reasons." He added it should be viewed more as "a sign of confidence than distress."

Following the jobs data, interest rate swaps showed traders pricing in less than a 25% chance of a Fed rate hike at the October meeting, down from nearly 30% before the release.

Nike shares fell as the company's results missed expectations and it forecast declining revenue. ON Semiconductor rose after announcing it would acquire Synaptics.

At the close, the S&P 500 gained 0.7% to 7,722.72. The Dow Jones Industrial Average rose 0.5% to 51,176.96. The Nasdaq Composite advanced 1.2% to 27,190.86. The Nasdaq 100 climbed 1% to 30,807.93. The Russell 2000 added 0.9% to 2,832.896.