Financial News October 2, 2026: Stocks Rise as Job Growth Slows

Wall Street advanced Friday after the United States added only 29,000 jobs in September. Slower hiring, higher unemployment and weaker wage growth sharply reduced expectations for another Federal Reserve rate increase in October.

Market information is current as of approximately 2:46 p.m. Eastern on Friday, October 2, 2026. Friday’s U.S. stock, bond, commodity, currency and cryptocurrency sessions remained underway. Thursday’s U.S. results and Friday’s European and Asian closing figures are identified as completed results.

American stocks moved closer to record territory Friday as a weak employment report provided relief from the bond-market pressure that has dominated global finance.

Employers added only 29,000 jobs during September, far below the 90,000 increase economists expected. The unemployment rate rose to 4.2%, while average hourly earnings increased just 0.1% for the month.

Those figures reduced the probability of an October Federal Reserve rate increase to approximately 21%–22%. The S&P 500, Dow and Nasdaq all advanced, even though the report also raised new questions about the economy’s ability to withstand expensive energy and the highest long-term borrowing costs in nearly a quarter-century.

Wall Street Rises After Weak September Jobs Report

The S&P 500 gained approximately 0.7% during Friday afternoon trading. The Nasdaq-100-tracking QQQ fund rose about 0.9%, while the Dow-tracking DIA fund added approximately 0.5% as of 2:46 p.m. Eastern.

The Nasdaq Composite reached a record intraday high, supported by gains in technology companies including Nvidia and Tesla. Lower expectations for immediate Fed tightening helped growth stocks because their valuations are particularly sensitive to interest rates.

The market did not treat the jobs report as evidence of an immediate recession. Initial unemployment claims remain near multidecade lows, and companies have not announced widespread layoffs. Instead, investors saw a “low-hire, low-fire” labor market that may give the Fed time to observe inflation before raising rates again.

The Associated Press reported Friday’s intraday index movements and market reaction. Reuters tracked the global response across stocks, bonds, currencies and commodities.

U.S. Economy Adds Only 29,000 Jobs

Nonfarm payroll employment rose by 29,000 in September, the Bureau of Labor Statistics reported Friday. Economists surveyed by Reuters had expected approximately 90,000 new jobs.

The unemployment rate increased from 4.1% to 4.2% as more people entered the labor force. Participation edged up to 61.8%, which means the rise in unemployment partly reflected additional job seekers rather than a sudden surge in dismissals.

Average hourly earnings rose five cents, or 0.1%, to $37.81. Annual wage growth slowed to 3%, down from 3.1% in August. The average workweek remained unchanged at 34.4 hours.

Revisions made the summer labor market look weaker. July employment was changed from a gain of 21,000 to a loss of 10,000. August was revised from 162,000 to 133,000. Together, July and August produced 60,000 fewer jobs than previously reported.

Healthcare, construction and manufacturing recorded modest increases. Employment weakened in information, financial activities and government, while most other major industries changed little.

The Bureau of Labor Statistics published the complete September employment report. Reuters examined the report’s economic implications.

Federal Reserve Expected to Pause in October

Interest-rate traders reduced the implied probability of a quarter-point Fed increase in October to roughly 21% from 26% immediately before the jobs report. The probability had exceeded 60% earlier in the week.

A pause would leave the federal-funds target range at 3.75%–4%. The Fed raised rates in September for the first time in the current tightening phase under Chair Kevin Warsh.

The central bank still faces an uncomfortable balance. August consumer inflation was 3.4%, well above the 2% target, and diesel prices remain historically high. At the same time, slower hiring and downward payroll revisions suggest that further tightening could place unnecessary pressure on employment.

Several economists still expect an increase in December if September and October inflation data remain elevated. The September Consumer Price Index arrives October 14, followed by producer-price data October 15.

Reuters reported the changing policy expectations and possibility of a December increase.

Treasury Yields Remain Elevated Despite Jobs Relief

The 10-year Treasury yield initially declined after the employment report, then reversed higher during the session. It remained near 5.28%, below Thursday’s 5.3445% peak but still close to its highest level since 2002.

The reaction showed that one weak employment report cannot resolve the bond market’s broader concerns. Investors remain focused on federal borrowing, oil and diesel prices, inflation, heavy corporate debt issuance and competition for capital from enormous AI infrastructure projects.

The 10-year yield completed its sharpest quarterly increase since 1994 during the July-through-September period. Mortgage and corporate borrowing costs generally follow long-term government yields, making the bond market a central risk for housing and business investment.

Fed minutes due Wednesday may provide additional information about how policymakers viewed the September increase and what would justify another move.

Thursday’s Completed Wall Street Results

U.S. indexes completed Thursday’s volatile session slightly higher after Treasury yields retreated from their peaks.

The S&P 500 gained 0.2%, ending a three-session losing streak. The Dow and Nasdaq each advanced less than 0.1%, while the Russell 2000 added 0.3%.

Accenture led the market’s corporate news. Its shares surged after better-than-expected results and a strong fiscal 2027 outlook eased concern that artificial intelligence would quickly replace traditional technology consulting.

Constellation Energy also advanced after signing a 20-year power-purchase agreement with Amazon. The deal reinforced expectations for sustained electricity demand from data centers.

The Associated Press published Thursday’s completed U.S. market results. Reuters detailed the bond reversal and company movements.

European Stocks Rebound From Three-Month Low

The pan-European STOXX 600 closed 0.8% higher Friday after reaching its lowest level in more than three months during Thursday’s bond-driven selloff.

Germany’s 10-year government-bond yield declined more than six basis points to approximately 3.45%. Softer American employment data and lower oil prices reduced expectations for immediate tightening by major central banks.

European bond volatility nevertheless remained intense. The gap between French and German 10-year yields reached its widest level since the eurozone debt crisis as investors assessed France’s borrowing and politically contentious budget plans.

IG Group plunged 22.6% after the online trading company cut its annual revenue forecast because of subdued client activity.

Reuters published Friday’s completed European stock and bond results.

Oil Falls as Governments Discuss Reserve Releases

Oil prices declined Friday as European governments discussed releasing additional diesel and crude inventories to ease the global fuel shortage.

West Texas Intermediate fell approximately 2.2%, while Brent declined roughly 0.9%. Brent remained near $101 per barrel after China’s suspension of fuel exports drove prices higher Thursday.

Crude exports from the Persian Gulf have recovered toward their 2025 average. However, damaged refining capacity in the Middle East and Russia continues to restrict diesel supply.

The United States recently recorded diesel prices above $6.50 per gallon. Because diesel powers freight, agriculture and industrial machinery, the shortage remains an important inflation threat even when crude prices decline for a day.

Dollar Retreats but Remains Near Multimonth High

The dollar weakened Friday after the employment report reduced the probability of another immediate Fed increase.

However, the Dollar Index remained on course for a third consecutive weekly gain and stayed close to an 18-month high. High Treasury yields and fiscal anxiety in Europe continue to support American currency demand.

The euro recovered modestly after falling below $1.13. Meanwhile, the widening French-German bond spread highlighted the financial pressures facing the currency union.

The yen remained vulnerable because Japan imports most of its energy and its government-bond yields have climbed toward multidecade highs.

Gold Heads Toward 3.3% Weekly Loss

Spot gold fell approximately 0.8% to $4,145.68 per ounce Friday. U.S. futures declined 0.7% to $4,173.50.

Bullion was headed for a weekly loss of about 3.3%. The strong dollar and elevated Treasury yields outweighed the support normally generated by geopolitical instability.

Silver fell 1.1% to approximately $60.17. Platinum declined 1.9% to $1,692, while palladium lost 0.4%.

Gold initially rose after the weak jobs report but reversed as investors concluded that the Fed could pause in October without ending its broader tightening campaign.

Reuters reported Friday’s precious-metals prices and weekly performance.

Bitcoin and Ethereum Retreat

Bitcoin traded near $84,229 as of approximately 2:46 p.m. Eastern, down about 0.7% from its previous close. It moved between approximately $83,923 and $87,071 during the session.

Ethereum declined about 1.3% to $2,663 after trading between approximately $2,653 and $2,768.

Cryptocurrency initially benefited from the softer jobs report and weaker dollar but later surrendered those gains. Treasury securities yielding more than 5% remain powerful competition for assets that produce no contractual income.

Bitcoin still receives support from concern about government debt and currency purchasing power. However, its Friday reversal showed that lower rate-hike odds do not automatically produce sustained crypto gains.

Nike Falls as Turnaround Concerns Deepen

Nike shares fell approximately 4.8% Friday after the company warned that sales pressure and restructuring costs could persist.

CEO Elliott Hill has attempted to rebuild wholesale relationships, restore product innovation and reduce dependence on discounted retro shoes. However, China, sportswear and the Jordan brand remain significant weak points.

The company announced additional job cuts and indicated that many benefits from its cost-saving program may not appear until fiscal 2029 or 2030. Investors now face a longer turnaround than some had expected.

Reuters examined Nike’s turnaround, product challenges and investor concerns.

Financial Market Outlook

Friday’s jobs report reduced one immediate risk without eliminating the larger economic conflict.

Slower hiring and wage growth make an October Fed increase less likely. That provided short-term relief for stocks. However, employment growth of only 29,000 also shows that businesses are becoming cautious while households face expensive fuel and borrowing costs.

Investors should monitor next week’s Fed minutes, September inflation reports, Treasury auctions, European bond spreads, oil-reserve discussions and early third-quarter earnings guidance.

The S&P 500 entered Friday up approximately 12% for 2026 and less than 2% below its record. Corporate earnings are expected to grow more than 30% this year. Those figures explain the market’s resilience.

Yet the 10-year Treasury yield near a 24-year high sets a demanding standard. Stocks must now deliver enough profit growth to justify their risk while safe government debt offers returns above 5%.

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