Nasdaq 100 Climbs to Record as Jobs Curb Fed Bets: Markets Wrap
(Bloomberg) — A slowdown in the US jobs market drove stocks higher on speculation the Federal Reserve won’t be forced to lift rates any time soon.
Those bets fueled the appetite for riskier corners of the market, with the S&P 500 up 0.7%. The Nasdaq 100 rose to a record. While bonds erased earlier gains, money markets see a less than 25% chance of an October Fed hike. A drop in fuel prices also helped sentiment as the Group of Seven nations signaled they would release emergency supplies of diesel and crude.
The US added fewer jobs than expected in September and wage growth slowed, signaling some caution among employers amid rising costs.
Nonfarm payrolls increased 29,000 last month after a downward revision to the prior two months. That missed all estimates in a Bloomberg survey of economists. The unemployment rate rose to 4.2%, partly reflecting a growing workforce.
“A softer-than-expected jobs report should put an October Fed hike firmly on the back foot,” said Seema Shah at Principal Asset Management. “Weaker payrolls, softer wage growth and a higher unemployment rate all point to a labor market that’s cooling rather than reaccelerating.”
Friday’s data may revive the “bad news is good news” narrative, but hoping for a weaker labor market to secure easier financial conditions is a poor tradeoff, according to Bret Kenwell at eToro. Inflation remains a problem, but a breakdown in jobs would create an entirely different one, he noted.
The report came on the heels of a months-long rout in Treasuries driven by worries about persistent inflation, government spending and surging corporate borrowing to finance the artificial-intelligence buildout. Benchmark 10-year yields this week hit their highest level since 2002.
“Going forward, 5% on the 10-year Treasury is the level to watch,” Kenwell said. “If that becomes the new floor, it could challenge the idea that markets can continue to absorb higher rates without consequences.”
At Edward Jones, Angelo Kourkafas said the latest jobs data pointed to a labor market that’s cooling, but remains fundamentally healthy and is not showing signs of generating significant inflationary pressures.
“While higher rates and geopolitical uncertainty may continue to weigh on valuations and contribute to periods of volatility, a still-expanding economy and robust earnings growth should help provide a solid foundation for stocks through the remainder of the year,” he added.
Corporate Highlights:
A software glitch affecting Boeing Co. 737 Max aircraft was determined not to pose a safety risk by a Federal Aviation Administration panel, a positive outcome for the US planemaker seeking regulatory approval for the largest variant of the popular narrowbody family. Tesla Inc. reported better-than-expected sales for the third quarter, a sign of stability for the company’s core business at a challenging moment for the electric vehicle market. Broadcom Inc.’s Wall Street syndicate is starting to gather $60 billion of fresh AI chip financing to benefit Anthropic PBC and other companies, according to people with knowledge of the matter. Western Digital Corp. and Seagate Technology Holdings Plc sank after Nikkei reported that Toshiba would invest about 60 billion yen to double its production capacity for hard disk drives. Nike Inc. is cutting jobs and embarking on a sweeping overhaul of the business as results deteriorate and test Wall Street’s patience with Chief Executive Officer Elliott Hill. Some of the main moves in markets:
Stocks
The S&P 500 rose 0.7% as of 4 p.m. New York time The Nasdaq 100 rose 1% The Dow Jones Industrial Average rose 0.5% The MSCI World Index rose 0.6% Currencies
The Bloomberg Dollar Spot Index fell 0.2% The euro rose 0.1% to $1.1257 The British pound rose 0.4% to $1.3246 The Japanese yen rose 0.2% to 157.82 per dollar Cryptocurrencies
Bitcoin fell 0.2% to $84,398.42 Ether fell 1.1% to $2,668.3 Bonds
The yield on 10-year Treasuries advanced four basis points to 5.28% Germany’s 10-year yield declined five basis points to 3.46% Britain’s 10-year yield declined three basis points to 5.37% Commodities
West Texas Intermediate crude fell 1.5% to $91.48 a barrel Spot gold fell 0.8% to $4,144.17 an ounce ©2026 Bloomberg L.P.
