A weaker-than-expected September employment report pushed the tech-heavy Nasdaq 100 index to a record high on Friday, Oct. 2, as traders scaled back bets on another Federal Reserve rate hike this month.
The U.S. economy added just 29,000 jobs in September, well short of the 90,000 economists expected.
The unemployment rate unexpectedly rose to 4.2% from 4.1%. Wage growth also cooled more than forecasts. Average hourly earnings rose 0.1% month over month and 3% year over year, the slowest annual pace since May 2021.
Revisions made the picture softer. August payrolls were cut to 133,000 from 162,000, while July swung to a loss of 10,000 from a gain of 21,000, a combined 60,000 fewer jobs than previously reported.
The cooler data eased pressure on the Fed to follow September’s hike with another one.
Markets now price about an 18% chance of an October rate hike, down from nearly 70% a week ago.
Treasury yields eased. The 10-year yield fell to 5.18% after the report, a day after touching 5.34%, its highest level since 2002. The 30-year yield dropped to 5.57%.
Growth-oriented, rate-sensitive stocks, which suffer most from high borrowing costs, led the move.
The Nasdaq 100 rose 1.3% to around 30,890 points, above its Sept. 22 record close of 30,732.40.
More: Why semiconductor company AMD and Meta (and its Muse) had a good week
AI and autos
On Wednesday, Sept. 30, Micron Technology, the memory and data storage chip maker, showed that the AI buildout is still going strong.
Fiscal fourth-quarter revenue reached a record $54.23 billion, ahead of the $51.07 billion consensus and up 379% from a year earlier. Adjusted earnings per share came in at $33.42, beating the $31.61 estimate and roughly 11 times the $3.03 reported a year ago.
Guidance also beat expectations. Micron forecast current-quarter revenue of $61.5 billion, plus or minus $1.5 billion, against a consensus near $57.2 billion, with adjusted EPS of $38.15.
The stock rose 3% on Thursday after several Wall Street firms lifted their price targets.
Michigan’s automakers did not share in the tech rally. Ford Motor Co. fell a fourth straight week. On Wednesday, it posted its lowest close since mid-May. Third-quarter U.S. new sales, reported Oct. 2, fell 6.6% to 509,764 vehicles.
General Motors Co. also closed a negative week. Third-quarter U.S. new car sales, reported Oct. 1, fell 5.5% to 670,974 vehicles from 710,347. GM cited discontinued models and weak electric-vehicle demand. EV sales dropped 62% against a year-ago surge ahead of the September 2025 expiration of the $7,500 federal tax credit.
