Monday October 5th 2026
🌍The market Story
Wall Street finished Friday strongly after a much weaker jobs report reduced fears of another Fed rate hike this month.
The S&P 500 gained 0.73%, the Dow rose 0.49%, and the Nasdaq jumped 1.19%. September produced just 29,000 new jobs, well below the roughly 90,000 expected.
Technology led the rally, with Tesla up 4.65% and Nvidia gaining 1.34%. Oil also eased, helping calm some inflation concerns.
The new week starts with Fed fears lower, but Treasury yields above 5% remain the main challenge for stocks.
📊 Market Snapshot
US Markets:
Index | Close | Daily Move |
|---|---|---|
S&P 500 | 7,722.72 | +0.73% |
Nasdaq | 27,190.86 | +1.19% |
Dow Jones | 51,176.96 | +0.49% |
Russell 2000 | 2,832.90 | +0.90% |
Market Takeaway: The rally broadened beyond big tech, with small caps also joining Friday’s gains.
Key Markets:
Gold: $4,132/oz
Gold is slightly lower as a stronger dollar offsets reduced expectations for another immediate Fed hike.
Oil: $102 per barrel
Oil has eased from last week’s highs, providing some relief on inflation.
Bitcoin: around $86,000
Bitcoin briefly approached $87,000 this morning as lower Fed hike expectations supported riskier assets.
Dollar: The dollar remains strong, while the euro has fallen to a 17-month low amid concerns over French debt.
🔎 Why Markets Moved
1. Jobs growth slowed sharply
The US added only 29,000 jobs in September, while unemployment rose to 4.2%.
Why markets cared: A weaker labour market gives the Fed less reason to raise rates again immediately.
2. Fed hike expectations dropped
Markets now see only around a 20% chance of an October hike, down from roughly 64% a week earlier.
Why markets cared: Lower rate expectations generally help stocks, especially technology and smaller companies.
3. Technology led the rally
Tesla, Nvidia, Broadcom and other major technology stocks rose.
Why markets cared: AI and large tech remain the strongest part of the market.
Biggest Winners 📈 & Biggest Losers 📉
Winners -
🟢 HPE: +7.4%
Rose after giving a stronger long-term outlook, helped by AI networking demand.
🟢 Tesla: +4.65%
Jumped after Q3 deliveries of 486,532 vehicles beat expectations.
🟢 Broadcom: +3.35%
Continued to benefit from strong demand for AI infrastructure.
Losers -
🔴 Seagate: -10.21%
Dropped after reports that Toshiba plans to expand hard-drive production for AI data centres.
🔴 Western Digital: -10.07%
Fell on the same concerns about increased competition.
🔴 Nike: -3.64%
Slipped after a weaker outlook added to concerns about its turnaround.
⚠️ Key Risks
1. Treasury yields remain above 5% & Oil above $100
Why it matters: High borrowing costs remain the biggest pressure on the wider market. And higher Oil costs bring inflation risk.
2. The economy slows too quickly
Friday’s jobs report was good news for rates, but only 29,000 new jobs is a sharp slowdown.
Why it matters: Further weakness could eventually hurt consumer spending and company earnings.
3. European bond worries
Concerns around French debt have pushed the euro to a 17-month low.
Why it matters: Further stress in European bonds could spill into global markets.
👀 What To Watch Today
1. ISM Services
September ISM Services is due at 10am ET / 3pm UK time, with economists expecting around 55.0.
A weaker number would add to signs that the US economy is cooling.
2. Treasury Yields & Oil
The 10-year remains around 5.28% & Oil is around $102 this morning
3. AI and Technology
The Nasdaq finished Friday near record territory and AI stocks remain strong.
Watch whether that momentum continues into the new week.
Bottom Line
Friday’s weak jobs report gave Wall Street some welcome relief by sharply reducing expectations for another Fed hike this month.
Stocks enter the week with better momentum, but Treasury yields above 5% remain the main obstacle.