Equities close higher as softer jobs data quiets rate-hike expectations
US equities closed higher on Friday, October 2, 2026, following a September nonfarm payrolls report that was cooler than economists expected. The Nasdaq reached a record high, leading gains across tech and small-cap shares. Investors reacted to the softer hiring data by lowering expectations for a Federal Reserve interest rate hike at this month's policy meeting. While the major indexes rose on Friday, the Dow and S&P 500 still recorded losses for the overall week.
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- ✓ The Nasdaq hit a record high following the release of softer jobs data.
- ✓ US stocks rose on Friday, October 2, 2026, after weaker-than-expected employment data.
- ✓ The Dow and S&P 500 recorded weekly losses despite Friday's gains.
- ✓ Softer jobs data reduced expectations for a Federal Reserve rate hike this month.
What changed
The release of the September jobs report shifted market sentiment from anticipation to a rally in equities.
Live updates
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US stocks rise and Nasdaq hits record high after weak jobs report
US equities closed higher on Friday, October 2, 2026, following a September nonfarm payrolls report that was cooler than economists expected. The Nasdaq reached a record high, leading gains across tech and small-cap shares. Investors reacted to the softer hiring data by lowering expectations for a Federal Reserve interest rate hike at this month's policy meeting. While the major indexes rose on Friday, the Dow and S&P 500 still recorded losses for the overall week.
Why it matters
The Federal Reserve uses employment data to determine whether to raise interest rates to combat inflation. Lower-than-forecast payroll numbers suggest a cooling labor market, which typically reduces the pressure on the central bank to implement rate hikes.
What is confirmed
- The Nasdaq hit a record high following the release of softer jobs data.
- US stocks rose on Friday, October 2, 2026, after weaker-than-expected employment data.
- The Dow and S&P 500 recorded weekly losses despite Friday's gains.
- Softer jobs data reduced expectations for a Federal Reserve rate hike this month.
- The US dollar fell on Friday.
Still unconfirmed
- The S&P 500 real estate index was boosted by tempered rate hike expectations.
- Bonds resumed selling after the weak US jobs data.
What to watch next
- The Federal Reserve policy meeting later this month
- Further economic indicators confirming labor market trends
confidence 100%Sources used for this update (18)
- CNBC — Stock futures are little changed as September jobs report looms: Live updates
- Bloomberg.com — Asian Stocks to Fall on Oil Rally, Bonds in Focus: Markets Wrap
- Reuters — Asian shares fall after wild swings in bonds, FX; US jobs data looms
- Investor's Business Daily — Futures Await Jobs, Tesla; Micron Flashes Buy Signal
- Yahoo Finance — Stock market today: Dow, S&P 500, Nasdaq futures rise ahead of key jobs report as oil steadies
- AP News — World shares mixed after global bond sell-off deepens and ahead of US jobs data
- WSJ — Jobs Report Today: Bond Market Steadies as Investors Await Employment Numbers — Live Updates
- Bloomberg.com — US Stock Futures Advance Ahead of September Payrolls Data
- www.zerohedge.com — Futures Rise, Yields and Oil Drop Ahead Of Key Jobs Report | ZeroHedge
- Reuters — Nasdaq hits record high after softer jobs data tempers rate-hike bets
- WSJ — Nasdaq Leads Stocks Higher as Hiring Softens
- Investopedia — Markets News, Oct. 2, 2026: Indexes Rise Friday After Weak Jobs Report; Nasdaq Hits New High; Dow, S&P 500 Book Weekly Losses
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