Stock Market Midday, Oct. 2: Stocks Rally as Weak Jobs Data Cools Fed Rate Hike Bets
As of 11:38 AM ET, the Nasdaq Composite (NASDAQINDEX:^IXIC) is up 1.18% to 27,191, hitting a record high as soft labor data boosted tech stocks. The S&P 500 (SNPINDEX:^GSPC) has climbed 0.70% to 7,720, and the Dow Jones Industrial Average (DJINDICES:^DJI) is trading 0.35% higher to 51,107.
Gold is trading at $4,141.21, down 0.90%, as the 10-Year Treasury yield rises 2 basis points to 5.25%. Most sectors were in the green, with industrials and consumer cyclicals leading the gainers, while energy and financial services stocks lagged.
Today's biggest moves
Tesla is surging more than 5% today after reporting better-than-expected vehicle deliveries. ON Semiconductor and Synaptics are surging after announcing a revised merger agreement. Integra LifeSciences is tumbling after lowering its financial guidance.
What this means for investors
Stocks are rising today as investors process a September jobs report that shows an unexpected slowdown: The U.S. added 29,000 jobs last month, and unemployment rose to 4.2%. It may seem counterintuitive for markets to gain on signs of a cooling economy, but the data makes it less likely that the Federal Reserve will raise rates this month, and that is good for riskier assets. Traders now put the likelihood of an October rate hike at 21%, down from 64% last week.
Several semiconductor leaders, including Nvidia (NASDAQ:NVDA), set new all-time highs alongside the Nasdaq. Artificial intelligence (AI) enthusiasm is building again, particularly as investors eye the upcoming Anthropic IPO and the high demand for infrastructure. Nvidia's $150 billion in share buybacks only adds to confidence that the AI boom will continue.
Should you buy stock in S&P 500 Index right now?
Before you buy stock in S&P 500 Index, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and S&P 500 Index wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $365,910!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,418,530!*
Now, it’s worth noting Stock Advisor’s total average return is 930% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of October 2, 2026.
Emma Newbery has positions in Nvidia. The Motley Fool has positions in and recommends Intel, Nvidia, and Tesla. The Motley Fool recommends ON Semiconductor and Synaptics. The Motley Fool has a disclosure policy.
Recommended Articles
