Stock Market Midday, Oct. 2: Stocks Rally as Weak Jobs Data Cools Fed Rate Hike Bets
As of 11:38 AM ET, the Nasdaq Composite (NASDAQINDEX:^IXIC) is up 1.18% to 27,191, hitting a record high as soft labor data boosted tech stocks. The S&P 500 (SNPINDEX:^GSPC) has climbed 0.70% to 7,720, and the Dow Jones Industrial Average (DJINDICES:^DJI) is trading 0.35% higher to 51,107.
Gold is trading at $4,141.21, down 0.90%, as the 10-Year Treasury yield rises 2 basis points to 5.25%. Most sectors were in the green, with industrials and consumer cyclicals leading the gainers, while energy and financial services stocks lagged.
Today’s biggest moves
Tesla is surging more than 5% today after reporting better-than-expected vehicle deliveries. ON Semiconductor and Synaptics are surging after announcing a revised merger agreement. Integra LifeSciences is tumbling after lowering its financial guidance.
What this means for investors
Stocks are rising today as investors process a September jobs report that shows an unexpected slowdown: The U.S. added 29,000 jobs last month, and unemployment rose to 4.2%. It may seem counterintuitive for markets to gain on signs of a cooling economy, but the data makes it less likely that the Federal Reserve will raise rates this month, and that is good for riskier assets. Traders now put the likelihood of an October rate hike at 21%, down from 64% last week.
Several semiconductor leaders, including Nvidia (NASDAQ:NVDA), set new all-time highs alongside the Nasdaq. Artificial intelligence (AI) enthusiasm is building again, particularly as investors eye the upcoming Anthropic IPO and the high demand for infrastructure. Nvidia’s $150 billion in share buybacks only adds to confidence that the AI boom will continue.
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