Nasdaq Hits Record High as Weak U.S. Jobs Data Eases Near Term Rate Concerns
NEW YORK, United States, October 3, 2026, ZEX PR WIRE — U.S. stocks ended higher on Friday, with the Nasdaq Composite reaching a record high after weaker than expected employment data reduced expectations for another near term Federal Reserve rate hike and supported demand for technology shares.
The Nasdaq gained 1.19% to close at 27,190.86, while the S&P 500 rose 0.73% to 7,722.72. The Dow Jones Industrial Average added 0.49% to finish at 51,176.96. Despite Friday’s advance, the S&P 500 and Dow both recorded weekly declines, while the Nasdaq posted its fifth weekly gain in six weeks.
Weak jobs data shifts rate expectations
U.S. nonfarm payrolls increased by only 29,000 in September, well below the 90,000 increase economists had expected. Payroll figures for the previous two months were also revised lower, reinforcing signs of cooling labor market conditions.
The softer employment report reduced expectations for an immediate increase in borrowing costs, providing support for growth oriented technology stocks. Lower rate expectations can improve the relative appeal of companies whose valuations depend heavily on future earnings growth.
The move also came as oil prices declined, providing additional relief for markets that had been dealing with elevated inflation concerns and rising Treasury yields.
Technology stocks lead the rebound
Semiconductor companies and large technology stocks were among the strongest performers. Nvidia gained 1.9%, while the Philadelphia semiconductor index rose about 3%. Tesla advanced 5.5% and Oracle gained 2.4%.
The technology rally highlights the market’s continued sensitivity to interest rate expectations and artificial intelligence investment. However, investors are also entering a period when corporate earnings will become increasingly important for determining whether elevated technology valuations can be supported by underlying profit growth.
The weaker labor data therefore provide a fresh catalyst for U.S. equities, but investors will continue watching inflation, Treasury yields and upcoming Federal Reserve communications for confirmation of the broader rate outlook. Reuters reported that Fed minutes due next week are expected to provide additional clues about policymakers’ thinking.
