US stocks climbed on Friday, October 2, 2026, after the Labor Department reported that the economy added only 29,000 jobs in September, significantly below Wall Street's expectations of 90,000. The Dow Jones Industrial Average rose by 0.5%, the S&P 500 increased by 0.7%, and the Nasdaq Composite surged 1.2%, nearing an intraday record high. Despite the Nasdaq ending the week with gains, the Dow and S&P 500 posted losses for the week.
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Treasury yields initially fell in response to the jobs report but later rebounded, with the 10-year Treasury yield at 5.28% and the 30-year yield around 5.63%. The unemployment rate slightly increased to 4.2%, compared to expectations for it to remain steady at 4.1%. This disappointing jobs data could influence the Federal Reserve's upcoming decision on interest rates at their next meeting, with traders now estimating only a 16% chance of a rate hike in October, down from 64% the previous week.
Federal Reserve officials have indicated they need more time to evaluate inflation, which remains high, partly due to the ongoing conflict in the Middle East. In a separate context, President Trump has mentioned the possibility of resuming military action against Iran after the midterm elections, while the US has increased its military presence in the region, dispatching an additional aircraft carrier and 10,000 sailors and Marines to the Persian Gulf.
Additionally, the G7 nations announced plans to release 100 million barrels of crude oil and diesel onto the market following pressure from the Trump administration to alleviate rising global diesel prices, currently averaging $6.37 in the US.
In corporate news, Tesla reported Q3 deliveries of 486,532, exceeding analyst expectations, and saw its stock rise by approximately 4%. Nvidia also posted gains, hitting an intraday record high amid strong demand for AI-related hardware.
Bitcoin rose above $85,000 as the likelihood of a Fed rate hike diminished, with experts noting that October is typically a strong month for cryptocurrencies. Meanwhile, Nike faced challenges with its fiscal results, leading to a decline in its stock and affecting shares of rival brands.