The prospect of another Federal Reserve interest rate cut has caused markets to rally, with expectations of a 25 basis point cut increasing to 88.2% from an already high 77%.

The Dow rose by 0.47% to close at 2,6201.04. The S&P 500 rose by 0.8% to 2,910.63. The Nasdaq Composite climbed by 1.12% to 7,872.26. This came on the back of a rapid two-day selloff that was prompted by disappointing U.S. services data from the Institute for Supply Management.

Jobs data was also recently released, comprised of a mixed bag. The American economy added 136,000 jobs in September, which undershot previous forecasts of 145,000. Of these newly created jobs, the private sector generated 114,000 jobs, missing views for 135,000. The unemployment rate fell to a five-decade low of 3.5%.

"While the bears may take this as a further confirmation of a slower economy, it is actually a pretty strong read, especially when you factor in previous revisions" said Mike Loewengart, vice president of investment strategy at E-Trade Financial.

Essentially, this report is testament to the fact that jobs are still being added at a healthy rate, though that rate has somewhat slowed. Also, the fact that the rate has decreased makes it more likely for another Fed rate cut, which may be done in order to prove as a buffer against weakening economic data and an impending recession.

"There's probably some relief this morning that the labor report didn't confirm or enhance the weakness that we saw out of the two [economic] surveys," said Bill Northey, senior investment director at U.S. Bank Wealth Management.

A lot of the market rally was led by tech stocks, with Apple (AAPL  ) jacking up its iPhone 11 production by up to 10%, evidence of stronger demand for the new smartphones.

Overall, it seems as though the market is still waiting for more data and the Fed's next decision to solidify its stance.

"What market participants will be looking for is really what is the next trajectory?" Northey said. "Is it getting worse? Is it getting better? Is it status quo?"