2nd October 2026 – (New York) Major US equity benchmarks advanced sharply after the latest employment data signalled a cooler labour market, easing pressure on interest rate expectations. In afternoon trade the Nasdaq Composite rose about 1.7 per cent, the S&P 500 gained 1.1 per cent and the Dow Jones Industrial Average added 0.6 per cent, paring part of this week’s declines. The 10‑year Treasury yield slipped to roughly 5.22 per cent, down two basis points from Thursday’s close, after touching a near 24‑year high of almost 5.35 per cent yesterday. Futures pricing indicated the probability of a Federal Reserve rate increase at the late‑October meeting fell to about 21 per cent from 28 per cent before the release and 64 per cent a week ago, as investors reassessed the policy path.
The September non‑farm payrolls report showed employers added 29,000 jobs, undershooting economists’ forecasts for 84,000 and well below August’s previously reported 162,000. The unemployment rate edged up to 4.2 per cent against expectations of 4.1 per cent, reinforcing the view that hiring momentum has softened amid tighter financial conditions. Some economists highlighted a widening gap between goods‑producing sectors linked to the artificial‑intelligence build‑out and services industries adjusting to technological change, arguing that the chances of two further Fed hikes are diminishing given the overall slack emerging in the labour market.
Energy markets retreated as traders digested reports that European Union members had discussed a French proposal to release diesel supplies amid US pressure. West Texas Intermediate fell about 4.4 per cent to around $88.75 a barrel, while Brent slipped 3.1 per cent to roughly $99.20, easing one source of inflation anxiety. The US dollar index weakened about 0.4 per cent to near 101.70, gold firmed to approximately $4,205 an ounce, and Bitcoin recovered to about $85,800 after overnight lows near $84,500, reflecting a broader risk‑on tone.
Corporate moves were mixed. Nike dropped roughly 5 per cent after projecting a deeper sales decline this fiscal year than analysts had pencilled in, making it the day’s biggest decliner on the Dow. By contrast, large‑capitalisation technology shares advanced after reports that Amazon was exploring shifting about $8 billion of Nvidia chips into a special‑purpose vehicle and leasing them back to pursue a more asset‑light strategy. Amazon and Nvidia both climbed around 2 per cent, and the Roundhill Magnificent Seven ETF rose about 2 per cent as investors rotated back into AI‑exposed names.
Semiconductor‑adjacent sentiment was further buoyed by a report that Broadcom’s banking partners were beginning to assemble roughly $60 billion in AI chip financing for Anthropic and other customers. Broadcom shares rose around 4 per cent, helping lift the iShares Semiconductor ETF by more than 3 per cent as markets wagered that infrastructure demand for accelerated computing would remain resilient despite macro headwinds.
Hard‑disk drive makers slumped on supply headlines. Seagate Technology fell about 13 per cent and Western Digital lost roughly 11 per cent after reports that Toshiba plans to invest around 60 billion yen (about $380 million) to expand production capacity in the Philippines, aiming to lift its storage‑capacity market share from just over 10 per cent toward 30 per cent in the medium term. Even after today’s pullback, both Seagate and Western Digital remain sharply higher year‑to‑date, up roughly 200 per cent and 140 per cent respectively, as investors have positioned for AI‑driven data‑storage demand.
