Major Indexes Show Mixed Results on October 2, 2026
Major U.S. stock indexes finished higher on Friday, with the Nasdaq Composite setting a new record high. This upward movement occurred after the Bureau of Labor Statistics reported that the nation added fewer jobs in September than market experts had predicted. However, the Dow Jones Industrial Average and S&P 500 both recorded losses for the week.
The Nasdaq Composite achieved a gain of 0.5% for the week, marking its third consecutive weekly increase. In contrast, the Dow Jones Industrial Average finished the week down 1.3%, and the S&P 500 declined by 0.3%. All three indices had posted gains the previous week.
On Friday itself, the tech-centric Nasdaq, the benchmark S&P 500, and the blue-chip Dow all closed higher, rising 1.2%, 0.7%, and 0.5%, respectively. The Nasdaq’s performance included an intraday high mark. Notably, while the S&P 500 saw gains across most sectors, Health Care was the exception, finishing down 0.3%.
Labor Market and Interest Rate Dynamics
The latest monthly employment report revealed that the U.S. economy added 29,000 jobs in September. This figure was significantly below the 84,000 jobs anticipated by economists, and it was also substantially lower than the 162,000 jobs added in August. Furthermore, the unemployment rate rose to 4.2%, exceeding the expected rate of 4.1%.
Regarding interest rates, the 10-year Treasury yield, a key benchmark for various rates, climbed to approximately 5.30% during late-afternoon trading. This represents an increase of more than five basis points from Thursday’s close, following a dip to 5.16% immediately after the jobs report. Earlier yesterday, the yield had reached a 24-year high of nearly 5.35%.
According to data from CME FedWatch, traders currently assess a 23% probability that the Federal Reserve will increase interest rates at its late-October meeting. This probability has decreased from 28% before the labor data release, and was 64% just one week prior.
“We are seeing the tension between the goods-producing sectors that support the AI boom and the services-producing sectors that are feeling the impact of technological change,” noted Jeffrey Roach, Chief Economist for LPL Financial. He added that “Given the overall softness of the labor market, the likelihood of two Fed hikes is getting lower.”
Key Corporate and Sector Movements
In individual stock movements, Nike (NKE) shares fell roughly 3.5%, leading the decliners among Dow components. This decline followed the company’s projection that its sales would experience a steeper decline this fiscal year than analysts had predicted.
Conversely, Tesla (TSLA) surged 4.5% after the electric vehicle manufacturer reported that its third-quarter vehicle deliveries surpassed market expectations. Another company linked to Elon Musk, Space Exploration Technologies (SPCX) or SpaceX, jumped 7.5%.
The mega-cap tech firms, collectively known as the Magnificent Seven, saw their shares rise 1.3% individually. This lift came after a report from the Financial Times indicated that Amazon (AMZN) was planning to divest $8 billion worth of advanced Nvidia (NVDA) chips to bolster its balance sheet. The Roundhill Magnificent Seven ETF (MAGS) increased by 1.5%.
Broadcom (AVGO) shares rose approximately 3.5% after a Bloomberg report suggested that the chip designer’s syndicate was beginning to accumulate $60 billion in financing for AI chips destined for Anthropic and other technology firms. Broadcom is a component of the iShares Semiconductor ETF (SOXX), which gained 2%.
Economic Growth and Commodity Markets
On the macroeconomic front, data released by the BEA indicated that the U.S. economy had expanded by 6.3% annually as of the second quarter. This figure surpassed the 5.3% yield on the 10-year Treasury, suggesting that the national debt, when measured as a proportion of GDP, may not be escalating rapidly and could even contract if the government maintains small budget deficits.
In commodity markets, oil prices showed mixed activity after the Group of Seven nations agreed to release 100 million barrels of crude and diesel stockpiles. U.S. benchmark West Texas Intermediate crude futures dropped 1.5% to $91.45 a barrel at 4 p.m. ET. Meanwhile, the international benchmark, front-month Brent crude futures, climbed 0.5% to $102.80.
Digital asset markets saw Bitcoin trade at $84,200, a slight decrease over the preceding 24 hours. The U.S. dollar index, which tracks the greenback against a basket of foreign currencies, retreated 0.2% to 101.88. Gold futures slipped 0.7% to $4,170 per ounce.
