Nasdaq hits record high after softer jobs data tempers rate-hike bets
SPY•U.S. stocks rose, with the Nasdaq Composite reaching a record high after payrolls increased by 29,000, below economists’ 90,000 forecast. Traders put the probability of an October Federal Reserve rate hike at 20%, down from 26% before the report.
1. Jobs data lifts stocks
U.S. stocks rose Friday after weaker-than-expected jobs data reduced bets on a near-term rate hike. Payrolls increased by 29,000 last month, compared with economists’ forecast of 90,000, and figures for the prior two months were revised sharply lower. At 11:37 a.m. ET, the Nasdaq Composite was up 1.15%, the S&P 500 0.69% and the Dow 0.36%.
2. Rate expectations shift
Traders assigned a 20% probability to a 25-basis-point rate hike in October, compared with 26% before the jobs report. The Cboe Volatility Index fell to a one-week low of 15.67. Brent crude slipped below $100 a barrel.
3. Company moves diverge
Nike fell 5.6% after forecasting a steep drop in annual revenue due to weakness in China and announcing job cuts and a shake-up of its global business divisions. Western Digital and Seagate Technology each fell around 14% after Toshiba reportedly plans to double its hard-drive production capacity within fiscal 2027.
