U.S. stocks were on the rise today, with the Nasdaq reaching an intraday high as investors reacted to the September jobs report. The report indicated that U.S. employers added 29,000 jobs, which was below expectations, while the unemployment rate increased to 4.2%. Analysts had anticipated job growth of 84,000 and a stable unemployment rate of 4.1%.
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Bill Adams, chief U.S. economist at Fifth Third Commercial Bank, noted that the unemployment rate ticked up due to more individuals entering the labor force, although the combined unemployment and underemployment rate decreased, somewhat mitigating the negative headline. He commented on the mixed evidence regarding the impact of AI on the job market, stating that while jobs in sectors adopting AI technology are declining, the demand for technical workers creating AI products is rising.
Adams added that the underwhelming jobs report is not severe enough to divert the Federal Reserve's focus from inflation. He indicated that the Fed's upcoming meeting in late October will be influenced by data on consumer prices and producer prices, along with geopolitical events and fuel prices.
In response to the weaker-than-expected labor data, Treasury yields fell, as investors reassessed the likelihood of a Federal Reserve interest rate hike. Nvidia (NVDA) experienced a notable rise, reaching an all-time intraday high of $237.88, pushing its market capitalization beyond $5.7 trillion amid continued interest in AI.
Additionally, President Donald Trump has deployed 9,000 U.S. troops to the Middle East amidst warnings of potential new strikes against Iran. Markets had a modestly positive end last Thursday as they began the new month, despite volatility driven by bond markets and rising oil prices. Kyle Rodda, a senior analyst at Capital.com, remarked that the recent peaks in long-term yields were short-lived as rates began to stabilize, alleviating some pressure on the market.
This report first appeared in TheStreet on October 2, 2026.