MARKETS LIVE: Wall Street closes higher as rate-hike bets fade, tech stocks gain

1:30pm: Rallying into the weekend

Equities are rallying into the weekend.

“The slowdown in job creation, combined with almost no increase in wages, suggests employment is becoming less of an inflationary threat and reduces the likelihood of further Fed rate hikes this year,” said Axel Rudolph, Chief Technical Analyst at online trading and investing platform IG.

“While the weakness raises concerns about the health of the US economy, investors are focusing on the prospect that interest rates may not rise much further, giving equities a fresh boost.

“European stock markets also recovered despite eurozone inflation accelerating to a three-year high and world food prices advancing for a third straight month to levels last seen in November 2022.”

12:30pm: Nike disappoints

Nike Inc (NYSE:NKE, XETRA:NKE) (Nike Inc (NYSE:NKE, XETRA:NKE), Nike Inc (NYSE:NKE, XETRA:NKE))’s forecast for a high-single-digit sales decline in fiscal 2027 has split analysts on whether its turnaround is working.

Nike shares fell 5.6% Friday after the company missed revenue targets in its first-quarter report Thursday.

Adding insult to injury, the famed shoemaker said it will conduct layoffs next year.

The stock has lost more than half its value over the past year, and the news dampened the launch of Caitlin Clark’s new shoe, which sold out in just over an hour.

“Visibility on a sales turnaround remains limited,” analysts at Bank of America wrote.

“Despite another significant reduction to our estimates, we continue to see downside risk to the premium multiple until the timing of a revenue inflection becomes clearer.”

UBS said it still sees no good entry point, with the stock at about 28 times its fiscal 2027 EPS estimate.

11:05am ET: Weak jobs eases pressure on Fed

Analysts say September’s soft US jobs report eases pressure on the Federal Reserve to raise interest rates again, though views differ on how much it changes the outlook.

Jamie Cox, Managing Partner at Harris Financial Group, said there is now “zero chance” of an October rate hike. He added that September should have been a hold, since outside of energy the inflation impulse is lower.

Bill Adams, Chief US Economist at Fifth Third Commercial Bank, was more cautious. He called the report mediocre but not bad enough to shift the Fed’s focus from inflation.

Adams noted payrolls averaged 51,000 a month in the third quarter. That pace remains near the top of estimates for the “breakeven rate” needed to hold unemployment steady.

Wages were a weak spot. Average hourly earnings posted their smallest annual gain since the post-pandemic recovery began, even as the Cleveland Fed estimates CPI rose 0.5% on the month and 3.6% on the year.

Jeffrey Roach, Chief Economist at LPL Financial, said hiring is concentrated in goods-producing industries such as construction and manufacturing, alongside healthcare.

10:00 am ET: Wall Street points up

Wall Street’s main indexes opened higher on Friday, after a weaker-than-expected jobs report reduced expectations of a Federal Reserve rate hike this month, sending Treasury yields lower and lifting stock futures earlier in the session, while falling oil prices also boosted sentiment.

At 9.30am ET, the Dow Jones Industrial Average rose 340.08p, or 0.67%, to 51,266.64, while the S&P 500 gained 68.27p, or 0.89%, to 7,734.72 and the Nasdaq Composite climbed 341.47p, or 1.27%, to 27,216.91.

Ten minutes into the US trading session, the Nasdaq 100 was up more than 1% and trading near 31,000 after a weaker-than-expected jobs report reduced expectations of a Federal Reserve rate hike this month.

The S&P 500 was up about 1%, leaving it less than 1% below its record high, while Bitcoin was trading above $86,000, up more than 2.5%.

Nike shares fell over 5% to $33.17 in early trade after the sportswear maker’s fiscal first-quarter 2027 earnings report, released after Thursday’s close, delivered a revenue miss and forecast a high-single-digit decline in fiscal 2027 revenue.

The US dollar index, Treasury yields and oil prices were also extending their declines, supporting gains in risk assets.

The benchmark 10-year Treasury yield fell 6 basis points to 5.1717%, retreating from the 24-year high of 5.3445% reached the previous day.

The two-year Treasury yield, which is sensitive to expectations for interest rate policy, fell 6.5 basis points to 4.7204%.

Tesla reported better-than-expected third-quarter vehicle deliveries, offering a sign of resilience in its core business as the electric vehicle market faces a challenging period.

The automaker delivered 486,532 vehicles worldwide in the quarter, compared with the 463,761 average analyst estimate compiled by Bloomberg.

But Ford’s US vehicle sales fell 6.6% to 509,764 in the third quarter, as the automaker phased out the Escape and Lincoln Corsair, although demand for hybrid-powered trucks remained strong.

Bitcoin rose 3.4% to $86,775, extending its gains as softer US jobs data pushed Treasury yields lower and reduced expectations of a Federal Reserve rate hike this month.

European equities are broadly higher, with Germany’s DAX leading the gains at this hour.

FTSE 100: up 38p to 10,466.

FTSE 250: up 105p to 24,248.

The FTSE 100 fell for four consecutive sessions through Thursday, when it closed down 1.68% at 10,428.70.

9:00 am ET: Little change in US employment numbers

The US economy added 29,000 jobs in September, while the unemployment rate was little changed at 4.2%, according to the Bureau of Labor Statistics.

July payrolls were revised down to a loss of 10,000 from a gain of 21,000, while August was cut to 133,000 from 162,000, leaving employment in the two months combined 60,000 lower than previously reported.

Weak hiring numbers will reduce pressure on the Federal Reserve to raise interest rates again. Wall Street may open higher riding on this, and tech stocks could benefit.

Nasdaq 100 futures are up over 1% at 31,094, at this hour, while Dow Jones futures are up 0.9% at 51,676.

Post noon, both UK indices are moving higher at the same pace, with the FTSE 100 and FTSE 250 each up 0.4%.

The FTSE 100 is up 41p at 10,470.02.

The FTSE 250 is up 97p at 24,240.40.

The FTSE 100’s risers were led by telecoms on Friday afternoon, with BT Group up over 3%, Vodafone gaining 2% and Airtel Africa rising 2%, while Halma, Compass Group and Glencore also advanced.

BT’s rise was linked to reports of its bid for TalkTalk, while the broader gains came as London’s market recovered modestly after Thursday’s sell-off.

IG Group was by far the biggest faller, dropping over 21% after cutting its revenue growth outlook to a mid-single-digit percentage range, while Lion Finance Group, Standard Chartered and ICG also fell.

The weakness among several financial stocks contrasts with the strength in telecoms and comes as investors assess easing bond yields and await the US jobs report.

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1:00 pm BST: US futures up

US stock index futures rose on Friday as Treasury yields fell and oil prices eased, while expectations of an interest-rate hike this month weakened ahead of a key jobs report.

In premarket trading, technology stocks led the gains, with Nvidia up nearly 0.9%, while Broadcom and Advanced Micro Devices each rose about 1%.

Investors are awaiting the US September jobs report, due before Wall Street opens, for fresh clues on the labour market and the Federal Reserve’s interest-rate path.

These three US stocks will be in the limelight when Wall Street opens on Friday, with Nike facing heavy selling after a weak revenue outlook and restructuring plans, while Nvidia and Broadcom are among the technology stocks gaining in premarket trading.

Reuters reports that OPEC+ has delayed a review of members’ oil production capacity that would help determine their 2027 output quotas, after the war in Iran disrupted projects aimed at expanding production capacity in the Middle East. The review had been intended to assess how much oil OPEC+ members could sustainably produce, an important factor in setting future quotas.

The delay comes as the oil market remains sensitive to supply risks from the conflict and uncertainty over the recovery of Gulf exports.

But the market appeared to look past this, as Brent crude futures fell 2.8% on Friday afternoon as signs of recovering Middle Eastern supply and potential releases of crude and diesel stockpiles outweighed the geopolitical risk premium, pushing prices below $100 a barrel.

Gold edged higher, rising 0.2% to $4,180.80 an ounce, registering a modest gain.

Till post lunch on Friday, the FTSE 100 made a modest comeback, recovering part of the previous session’s sharp decline.

The tentative stabilisation in UK stocks came as global bond yields and oil prices eased, helping to reduce immediate concerns over inflation.

However, market sentiment remained cautious as investors awaited the US nonfarm payrolls report, due later in the day.

At 12:56 pm BST, the FTSE 100 gained 27p to 10,455.87, while the FTSE 250 rose 63p to 24,206.72.

The broad based gains suggest a modest improvement in sentiment across both large and mid-cap UK shares.

At 12:55 pm BST,

12 noon BST: FTSE 100 Stays In Black But Just

European stocks continued to move higher at noon on Friday, but the FTSE 100 struggled to hold its earlier gains, rising just 25p, or 0.2%, to 10,453, while the FTSE 250 was up 84p, or 0.3%, to 24,227 at 11:57 am BST.

Oil prices fell about 3% on Friday, after surging a day earlier, as reports of potential releases from diesel and crude stockpiles eased concerns over tight global energy supplies.

The retreat in bond yields lifted rate-sensitive homebuilders by 1% after the sector fell 5% a day earlier.

Banks remained under pressure, however, with an index tracking UK lenders on course for its biggest weekly decline since March.

US futures point to a higher open, with Nasdaq 100 futures up 0.7%, while S&P 500 and Dow Jones futures gain about 0.4% ahead of key jobs data.

The Nasdaq 100 is outperforming, suggesting stronger demand for technology and growth stocks ahead of the opening bell.

11:00 am BST: Indices recovering lost ground

The FTSE 100 and FTSE 250 edged higher in late Friday morning trade. The indices are still recovering lost ground after Thursday’s sharp sell-off, but remained close to recent lows as investors awaited US jobs data and assessed the outlook for interest rates.

At 10:54 am BST, the FTSE 100 was up 28p, or 0.27%, to 10,456.61, while the FTSE 250 gained 116p, or 0.48%, to 24,259.77.

Global bond markets have stabilised after Thursday’s dramatic sell-off, with the US 10-year yield easing from its 5.34% peak, while falling oil prices have also reduced some inflation pressure.

Sterling was on track for its biggest weekly rise against the euro in months, as mounting concerns over the fiscal outlook of some of ​the euro area’s most indebted countries dented confidence in the single ‌currency.

However, the pound was set for its third straight weekly drop against the dollar, which strengthened after the mid-September Federal Reserve’s hawkish shift, reports Reuters.

Small-cap round-up

Pathos Communications Plc (LSE:NEWS) (Pathos Communications Plc (LSE:NEWS)), the public relations technology company, was named on Friday as the fastest-growing British company in its sector in a Financial Times ranking of the UK’s fastest-growing companies.

Krakatoa Resources Ltd (ASX:KTA, LSE:, AIM:) (Krakatoa Resources Ltd (ASX:KTA, LSE:, AIM:)) earlier this week reported further high-grade antimony and gold mineralisation from drilling at its Zopkhito Antimony-Gold Project in Georgia, with CEO Mark Major pointing to continuity in the mineralised system and the identification of additional gold-rich areas.

10:00 am BST: European markets in black

European markets rose on Friday, with the FTSE 100 up 0.6%, while Germany’s DAX, France’s CAC 40 and the Euro Stoxx 50 each gained about 0.9%.

The FTSE 100 rose over 68p, or 0.7%, to 10,497, while the FTSE 250 gained 152p, or 0.6%, to 24,295 at 9.54am BST.

The FTSE AIM All-Share rose 5.56 points, or 0.7%, to 787.60, extending gains across the UK’s smaller companies.

Asian shares fell as investors assessed sharp moves in bond and currency markets ahead of key US jobs data, while an increased US military presence in the Gulf kept oil prices elevated and added to inflation concerns.

IG Group shares slumped 25% after the online trading platform cut its revenue outlook, saying it now expects total revenue growth in 2026 to be in the mid-single-digit percentage range, down from its previous forecast of 10% to 15%.

The company expects third-quarter revenue of about £240 million, down 14% from a year earlier, as lower revenue retention from over-the-counter derivatives trading weighed on performance.

IG Group shares were trading at 997p at 9.45am BST, down 21% on the session.

BT Group has launched a late bid to acquire TalkTalk, which serves about 1.5 million broadband customers, prompting rivals to raise concerns about the potential impact on competition and BT’s market power.

BT Group shares rose more than 4% to 199.15p, having opened at 191.05p and reached an intraday high of 199.15p.

British businesses expect prices to rise at a slightly slower pace over the next year, with the Bank of England’s latest survey showing expected annual price growth easing to 3.7% from 3.8%.

The euro strengthened against the dollar, while sterling was little changed against both the euro and US currency.

The euro rose to $1.1265 from $1.1238 at Thursday’s London close, while sterling slipped to €1.1723 from €1.1739 and edged up to $1.3212 from $1.3204.

The dollar also strengthened slightly against the yen, trading at ¥157.87 compared with ¥157.48 on Thursday.

Government bond yields eased, with the US 10-year Treasury yield falling to 5.24% and the UK 10-year gilt yield dropping to 5.33% after borrowing costs rose sharply the previous day.

Brent crude futures fell 2.8% as signs of improving supply outweighed geopolitical risks that had pushed prices above $100 a barrel.

Gold steadied but remained on course for a second consecutive weekly decline, pressured by a stronger US dollar and elevated Treasury yields as investors awaited US payrolls data for signals on the Federal Reserve’s policy path.

Spot gold was little changed at $4,188.28 an ounce.

9:00 am BST: Market cautious

The FTSE 100 is up 21p, or 0.2%, to 10,450.63, while the FTSE 250 is up 31p, or 0.1%, to 24,174.87 at 9:00 am BST.

This is a modest recovery after Thursday’s sharp sell-off, when the FTSE 100 fell 1.68% and the FTSE 250 dropped 1.62% as surging bond yields and inflation concerns hit risk appetite.

For now, the recovery seems relatively cautious rather than broad-based, with both indices only slightly higher.

Friday morning risers: telecommunications and internationally exposed companies are prominent.

BT Group, Vodafone, Airtel Africa, Compass Group and Antofagasta were among the biggest risers in Friday morning trading, with BT Group leading the gains.

BT Group rose 3.2% to 196.95p, while Vodafone gained 2.2% to 126.80p.

Airtel Africa rose 2.1% to 311p, while Compass Group and Antofagasta both gained 1.9%, reaching 2,974p and 3,759p respectively.

Oil prices eased on Friday after a sharp rise a day earlier as markets focused on signs of recovering Middle Eastern supplies, while the prospect of renewed US-Iran tensions limited the decline.

Brent crude fell 70 cents, or 0.7%, to $101.61 a barrel at 6.35am GMT, while West Texas Intermediate dropped 85 cents, or 0.9%, to $92.02 a barrel.

8.15 am BST: Blue chips recover after Thursday’s rout

The FTSE 100 rose 18.70 points, or 0.18%, to 10,446.97 after reaching an early high of 10,455.57.

The index opened at 10,428.23, close to Thursday’s closing level, before buyers returned following the previous session’s 1.7% decline.

Antofagasta led the blue-chip risers with a 1.6% advance as copper prices strengthened.

Telecommunications shares also attracted support, with BT Group gaining 1.5% and Vodafone rising 1.4%.

Rentokil Initial added 1.4%, while Polar Capital Technology Trust, Sage Group and Halma gained between 1.2% and 1.4%.

British Land rose 1.2%, suggesting some selective buying had also returned to rate-sensitive property shares.

The FTSE 250 advanced 0.1% to 24,178, while the AIM All-Share gained 0.3% to 785.

The relatively modest index rise suggested cautious bargain-hunting rather than a broad relief rally ahead of the US employment report.

7.00 am BST: London set for recovery after bond-driven rout

The FTSE 100 is expected to rebound by about 85 points to 10,513, with futures up 0.3% at 10,515.5.

The prospective recovery follows Thursday’s 1.7% decline to 10,428, when rising government borrowing costs triggered heavy losses across banks, housebuilders and other rate-sensitive shares.

Wall Street stabilised after US Treasury yields retreated from multi-decade highs, with the S&P 500 gaining 0.2% while the Dow Jones and Nasdaq finished fractionally higher.

The US 10-year Treasury yield was holding near 5.25%, having reached 5.34% on Thursday, its highest level since 2002.

Asian markets were mixed as investors remained cautious before the US employment report, with Japan’s Nikkei falling 0.9% and Hong Kong’s Hang Seng sliding 2.7%.

Australia’s ASX 200 gained 0.4%, South Korea’s Kospi added 0.2% and mainland Chinese markets remained closed for a holiday.

Brent crude eased 0.1% to US$102.19 a barrel, and West Texas Intermediate slipped 0.3% to US$92.61, while gold gained 0.4% to US$4,218.65 an ounce and copper rose 0.7%.

Bitcoin advanced 2.2% to about US$86,041.

US non-farm payrolls are expected to show around 90,000 jobs created in September, with unemployment forecast to remain at 4.1%.

JD Wetherspoon’s preliminary results will provide the main UK corporate focus.