From Kiplinger · · 1m 50s
Nasdaq Gains 319 Points as Rate-Hike Odds Drop
Nasdaq jumps 319 points as rate-hike odds fall to 22.7% after weak jobs report.
In brief
Nasdaq jumps 319 points as rate-hike odds fall to 22.7% after weak jobs report. Nasdaq rose 319 points to 27,190 after September jobs report disappointed, lowering odds of a Fed rate hike to 22.7%. Originally reported by Kiplinger.
Stocks surge after weak jobs report
Stocks surged on Friday after a cooler-than-expected September jobs report eased pressure on the Federal Open Market Committee (FOMC) to raise interest rates at its meeting later this month.
September jobs report disappointed
The Bureau of Labor Statistics (BLS) said the U.S. added 29,000 new jobs last month, well below a consensus forecast of 93,000, and the unemployment rate unexpectedly ticked up to 4.2% from 4.1%.
Treasury yields rise
The 2-year Treasury yield fell from 4.787% on Thursday to 4.693% right after the release of the nonfarm payrolls report, but it was already rising before the opening bell and ended the session up 5.0 basis points at 4.837%.
Fed rate hike odds drop
According to CME FedWatch, price action in the federal funds futures market indicates a 22.7% probability the Fed hikes rate by 25 basis points at the October Fed meeting, down from 64.2% a week ago.
Nvidia hits all-time high
Artificial intelligence revolutionary Nvidia (NVDA) hit a new all-time high, and its market cap climbed closer to $6 trillion, following the $150 billion stock buyback increase management announced on Monday.
HPE gains on AI demand
Old-school Silicon Valley legacy outfit Hewlett-Packard Enterprise (HPE) was one of the best-performing S&P 500 stocks and also closed at an all-time high on Friday, with management forecasting solid revenue growth for its networking segment due to AI infrastructure demand.
Nike revenue below forecast
Nike (NKE) was the worst-performing Dow Jones stock on Friday following management's report on fiscal 2027 first-quarter results, with revenue slightly below Wall Street's forecast and earnings in line with consensus estimates.
The bottom line
Nasdaq rose 319 points to 27,190 after September jobs report disappointed, lowering odds of a Fed rate hike to 22.7%.
