Nasdaq Climbs to Record High on Friday, October 2, 2026, After Soft Jobs Data

Market Wrap

US stock indexes ended the trading week higher on Friday, October 2, 2026. The Nasdaq Composite led the advance and reached an intraday record high, while the S&P 500 and Dow Jones Industrial Average also gained.

According to Reuters, the Dow Jones Industrial Average rose 0.49%, the S&P 500 increased by 0.73%, and the Nasdaq Composite gained 1.19%. The Russell 2000, which tracks smaller companies, posted its biggest daily gain in a month. Reuters reported an increase of 1.44%.

Nike declined after warning about weak demand in China. Data storage providers also slumped following a report that Toshiba plans to double hard disk production capacity. CNBC identified Nvidia as a leader in the session and a contributor to the Nasdaq's strong performance.

What Drove It

Weaker-than-expected September jobs data drove Friday's rally by reducing expectations for a Federal Reserve rate hike this month. The Labor Department reported that nonfarm payrolls increased by 29,000 jobs in September, well below the 90,000 estimate from economists polled by Reuters.

Job growth for the prior two months was also revised sharply lower. August's figure was revised down to 133,000 from a previously reported 162,000. Reuters noted that the softer report eased concerns that persistent economic strength and inflation might push the Federal Reserve toward more aggressive monetary tightening. Fewer expected rate hikes generally make equities more attractive.

Treasury yields had surged to multi-decade highs earlier in the week. They initially fell after the jobs data release, according to Reuters, but some sources indicated that yields rose again later in the day as the bond market resumed its ongoing selloff.

The U.S. 10-year Treasury yield, which had hit a 2002 high earlier in the week, stood at 5.219% at one point on Friday, according to the Wall Street Journal. Another WSJ source cited it at 5.266%, reflecting an unsettled bond market. The VIX, a measure of market volatility, declined during the session, with one WSJ source showing it falling 5.25%.

Sector Highlights

Broad sector performance percentages were not detailed across the sources, but several stocks and industries stood out:

• Technology/Growth: The Nasdaq's strong performance and Nvidia's leadership pointed to strength in technology and growth-oriented stocks, which tend to benefit when rate hike expectations recede.
• Retail/Consumer: Nike declined after warning about demand weakness in China, raising concerns for companies with significant international exposure.
• Data Storage: Data storage providers slumped after news that Toshiba plans to double hard disk production capacity, creating the prospect of oversupply or greater competitive pressure in that niche.
• Financials: The KBW Nasdaq Bank Index advanced, rising 0.65% according to one WSJ source. Banks moved higher despite the broader bond market choppiness.

The Russell 2000, an index of small-cap companies, recorded its largest daily gain in a month, rising 1.44%. The move showed that the session's risk appetite extended beyond large technology stocks to companies more sensitive to domestic economic sentiment and interest rate expectations.

Precious Metals & Commodities

• Gold: Gold futures moved in both directions during the day. One WSJ source reported gold rising 0.22% to $4211.60, while another showed a decline of 0.98% to $4161.30.
• Oil: Crude oil prices fell sharply. One WSJ source reported crude oil falling 4.37% to $88.81 per barrel, while another cited it at $90.49 with a 2.56% decline.
• Dollar (DXY): The Dollar Index fell on Friday following the softer economic data. One WSJ source showed a decline of 0.29% to 97.12, while another indicated a 0.15% drop to 97.27.
• U.S. 10-Year Treasury Yield: The 10-year Treasury yield initially fell after the jobs report as rate hike concerns eased. It later rose again when the broader bond market selloff resumed. WSJ data showed the yield at 5.219% at one point and 5.266% at another.

What to Watch Tomorrow

On the next trading day, investors will continue assessing the jobs report and watching for comments from Federal Reserve officials about monetary policy. The bond market's response will remain important, particularly the direction of Treasury yields after Friday's conflicting intraday moves.

The provided sources did not detail any specific earnings reports or economic data releases for tomorrow. Inflation, economic growth, and central bank policy will remain the main forces shaping market sentiment.

Bottom Line

Friday's advance showed that investors welcomed economic data pointing to a potentially less aggressive Federal Reserve. For long-term investors, the session was another example of how closely stocks remain tied to economic reports and interest rate expectations. It also reinforced the value of maintaining a diversified portfolio when markets are being driven by shifts in monetary policy.