U. S. stocks climbed on Friday as a weaker-than-expected jobs report suggested the Federal Reserve might keep interest rates steady this October. The Dow Jones Industrial Average increased by 244 points, or 0.5%. The S&P 500 rose 0.7%, while the Nasdaq Composite surged 1.2%, briefly reaching a high before a slight pullback.
The labor market report revealed the U. S. economy added only 29,000 jobs in September, falling short of the expected 84,000. Unemployment edged up to 4.2%, against predictions of 4.1%. These figures led traders to reassess the Federal Reserve's potential actions. Fed funds futures now indicate a higher likelihood of no rate change at this month's meeting, up from the previous day.
Tech stocks excelled, with Nvidia shares hitting an all-time high. Other tech firms like CrowdStrike, Palo Alto Networks, and AMD also reached record highs. Nvidia's climb was driven by Morgan Stanley naming it the top semiconductor stock, praising its extensive customer base and the importance of its GPUs for AI advancements.
But Nike shares fell, dropping 6% at market open after a 10% decline in premarket trading. The sportswear giant's first-quarter fiscal 2027 results indicated a longer-than-expected recovery, with weak performance in China despite growth in North America. Nike aims for $2.5 billion in cost savings by 2031, though it anticipates revenues to decline in the high single digits in 2027.
The global bull market entered its fourth year in October, with stock markets repeatedly reaching record highs due to stronger-than-expected corporate earnings growth. Burkhard Varnholt from UBS Switzerland noted that the bull market is driven more by economic recovery than price hikes.
Meanwhile, Tesla reported strong delivery numbers for the third quarter, with 486,532 vehicles delivered. Although deliveries were down from last year's 497,099, they were up from the second quarter's 480,126. Tesla shares rose in morning trading.
In the cryptocurrency sector, the Grayscale Zcash ETF emerged as a top performer, gaining over 60% in the past month and 253% year-to-date. This surge is attributed to renewed interest in privacy as speculative capital shifts toward AI. Zcash, designed to keep financial transactions private, outperformed Bitcoin, which has remained stagnant this year.
Oil prices eased, aiding equities, after reports indicated that European nations might release strategic fuel reserves following pressure from the Trump administration. Despite a modestly higher session on Thursday, the Dow and S&P 500 were on track for weekly losses amid a global bond rout. The Nasdaq, however, was set to finish the week with gains.
In other market developments, shares of Seagate Technology and Western Digital dropped over 10% and 8% respectively. This decline followed Toshiba's announcement of plans to double its production capacity for hard disk drives in the Philippines, marking its first major investment in this area in five years.
