Nasdaq Hits Record High as Weak Jobs Data Boosts Stocks

The Nasdaq reached a record intraday high on Friday, October 2, 2026, driven by a combination of weak employment data and falling energy costs. The S&P 500 rose approximately 1% and the Dow Jones Industrial Average increased by about 300 points, while the Nasdaq gained over 1.5%.

A report from the United States Department of Labor showed non-farm payroll employment rose by only 29,000 jobs in September, significantly missing economist projections of 85,000. The unemployment rate climbed to 4.2 percent. This data triggered an early rally as investors anticipated the Federal Reserve System would be less likely to raise interest rates at its October meeting.

Market gains were further supported by a plunge in U.S. crude oil futures, which dropped more than 3 percent. The decline followed reports that European Union countries discussed a French proposal to release diesel reserves to lower fuel prices linked to the Iran war. While oil producer stocks declined, semiconductor and telecom stocks surged. Nvidia shares climbed over 2.5% to record levels after Morgan Stanley reinstated the company as its top semiconductor pick and Nvidia announced $150 billion in additional share buybacks.

In the aerospace sector, Boeing avoided a white-collar strike after the Society of Professional Engineering Employees in Aerospace agreed to a four-year contract. However, uncertainty persists regarding a flight landing software glitch currently under review by the Federal Aviation Administration, which could delay 737 Max deliveries.