The employment portion of the Institute for Supply Management's index of non-manufacturing businesses rose to 52.7 in September from 47.9 the prior month, the Tempe, Arizona-based group said Oct. 3. Services industries make up almost 90 percent of the U.S. economy.
Interest-rate futures suggested a 48 percent chance the Federal Reserve will cut the 4.75 percent target rate for overnight lending between banks a quarter-percentage point on Oct. 31, down from 84 percent a week ago.
The dollar fell 1.1 percent against Brazil's real and decreased to a 23-low versus Australia's dollar as the jobs data encouraged investors to buy higher-yielding assets.
The extra yield investors demand to own emerging-market dollar bonds instead of U.S. Treasuries narrowed to the smallest since July 24. The Standard & Poor's 500 Index and the Dow Jones Industrial Average rose to records.