U.S. equity markets advanced on October 2 as a softer-than-expected September jobs report cooled bets on Federal Reserve rate hikes. The Nasdaq Composite reached a record high of 27,191, gaining 1.18%, while the S&P 500 climbed 0.70% to 7,720 and the Dow Jones Industrial Average rose 0.35% to 51,107 as of 11:38 a.m. ET.
The Labor Department data showed the U.S. economy added only 29,000 jobs last month, with the unemployment rate rising to 4.2%. This unexpected slowdown in labor market growth reduced investor expectations for monetary tightening. Traders now assign a 21% probability to an October rate hike by the Federal Reserve, a sharp decline from the 64% probability priced in during the previous week.
Commodity and fixed-income markets moved in tandem with the equity rally. Gold prices fell 0.90% to $4,141.21, while the 10-Year Treasury yield increased by 2 basis points to reach 5.25%. Most stock market sectors finished in positive territory, with industrials and consumer cyclicals leading the gains. Energy and financial services stocks lagged behind the broader market performance.
Individual stock movements reflected company-specific news alongside macroeconomic trends. Tesla shares surged more than 5% following the release of vehicle delivery figures that exceeded market expectations. Semiconductor stocks also performed strongly, with Nvidia rising 2.29% to set a new all-time high. Other semiconductor leaders joined Nvidia in hitting record levels, driven by renewed enthusiasm for artificial intelligence infrastructure and anticipation surrounding an upcoming Anthropic IPO. Nvidia's planned $150 billion share buyback program further supported investor confidence in the AI sector's durability.
Conversely, ON Semiconductor and Synaptics saw their shares jump after announcing a revised merger agreement. In contrast, Integra LifeSciences shares declined after the company lowered its financial guidance for future periods.