U.S. stocks climbed at midday Friday, with the Nasdaq 100 leading and reaching new record highs, after a much weaker-than-expected September jobs report pared bets on further Federal Reserve rate hikes.
Chip stocks led the move as Nvidia Corp. (NASDAQ:NVDA) hit a record high at $237.88 per share.
Nonfarm payrolls rose by just 29,000 versus roughly 84,000-90,000 expected, and the unemployment rate ticked up to 4.2% from 4.1%.
The report added another leg to the tension between a soft labor market and a still-restrictive Fed. Investors now see little chance of a hike at the October meeting, with odds of a hike falling to 17%.
Treasury yields tumbled on the data, easing the pressure that has weighed on equities this week.
- The S&P 500 advanced 0.6% to 7,714,
- The Dow Jones Industrial Average rose 0.3%, or about 137 points, to 51,066.
- The Nasdaq 100 gained 1.1% to 30,825.
On the geopolitical front, President Donald Trump has deployed 9,000 additional troops to the Middle East and warned of possible strikes against Iran. Even so, oil moved lower as G7 countries agreed to release 100 million barrels from fuel stockpiles.
West Texas Intermediate crude fell 3.7% to about $89.39 a barrel, while the United States Oil Fund (NYSE:USO) slid 2.5%.
Gold also retreated, with the SPDR Gold Shares (NYSE:GLD) down 1.1%.
Friday’s Performance In Major US Indices
| Index | Last | % Change | MTD | YTD |
|---|---|---|---|---|
| S&P 500 | 7,714.15 | +0.62% | -0.43% | +12.69% |
| Dow Jones | 51,066.47 | +0.27% | -4.88% | +6.25% |
| Nasdaq 100 | 30,825.42 | +1.06% | +4.56% | +22.08% |
| Russell 2000 | 2,836.35 | +1.06% | -4.44% | +14.28% |
According to the Benzinga Pro platform:
- The Vanguard S&P 500 ETF (NYSE:VOO) gained 0.7%.
- The SPDR Dow Jones Industrial Average ETF Trust (NYSE:DIA) rose 0.3%.
- The Invesco QQQ Trust (NASDAQ:QQQ) climbed 1.1%.
- The iShares Russell 2000 ETF (NYSE:IWM) advanced 0.9%.
Chips Surge, Hard Drive Makers And Nike Slump
Technology led the S&P 500 sectors. The Technology Select Sector SPDR Fund (NYSE:XLK) was up about 1.3%, followed by the Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY) at 1.2% and the Materials Select Sector SPDR Fund (NYSE:XLB) at 1.0%.
On the Downside
The Health Care Select Sector SPDR Fund (NYSE:XLV) fell 0.3%, the Financial Select Sector SPDR Fund (NYSE:XLF) lost 0.3% and the Energy Select Sector SPDR Fund (NYSE:XLE) slipped 0.1% as crude retreated.
Among industry funds, the VanEck Semiconductor ETF (NASDAQ:SMH) jumped 2.7%, the Invesco Solar ETF (NYSE:TAN) gained 2.1%, the Invesco WilderHill Clean Energy ETF (NYSE:PBW) rose 1.6% and the SPDR S&P Metals & Mining ETF (NYSE:XME) advanced 1.3%.
Western Digital Corp. (NASDAQ:WDC) was the worst performer in the Russell 1000, sinking 12.5% after Toshiba announced plans to double its hard disk drive production capacity. Seagate Technology Inc. (NASDAQ:STX) also fell sharply.
Nike Inc. (NYSE:NKE) dropped 5.7%, extending recent losses, after reporting weak fiscal first-quarter revenue and a grim full-year outlook that signals deeper sales declines, alongside planned layoffs.
Accenture plc (NYSE:ACN) lost 5.1%, giving back part of Thursday’s post-earnings surge.
The consulting giant reported fiscal fourth-quarter EPS of $3.29 versus $3.18 expected on revenue of $18.68 billion versus $18.03 billion, and shares jumped roughly 16% on the day of the report.
Modine Manufacturing Co. (NYSE:MOD) fell 4.8% after completing a $946 million spin-off with Gentherm. Freedom Holding Corp. (NASDAQ:FRHC) slid 4.6% with no confirmed company-specific catalyst in the tape.
Fair Isaac Corp. (NYSE:FICO) lost 7.1% after the Federal Housing Finance Agency moved to introduce competition in credit scoring.
Gainers
Allegro MicroSystems Inc. (NASDAQ:ALGM) led the Russell 1000 with an 8.5% jump, followed by Innio N.V. (NASDAQ:INIO) at 8.5%.
MACOM Technology Solutions Holdings Inc. (NASDAQ:MTSI) saw a 7.9% spike with Teradyne Inc. (NASDAQ:TER) at 7.8% and Planet Labs PBC (NYSE:PL) at 7.6%.
The semiconductor names moved with the broader chip rally as Nvidia hit a record, and Planet Labs traded alongside Space Exploration Technologies Corp. (NASDAQ:SPCX), which gained 6.0% after completing three rocket launches within 13 hours.
Elsewhere, Synaptics Inc. (NASDAQ:SYNA) surged 13.8% after ON Semiconductor Corp. (NASDAQ:ON) shifted to an all-cash acquisition offer valued at $123 per share, while ON itself rose 5.3%.
Friday’s Russell 1000 Top Gainers
| Name | % change |
|---|---|
| Allegro MicroSystems, Inc. | +8.53% |
| Innio N.V. | +8.50% |
| MACOM Technology Solutions Holdings, Inc. | +7.90% |
| Teradyne, Inc. | +7.75% |
| Planet Labs PBC | +7.63% |
Friday’s Russell 1000 Top Losers
| Name | % change |
|---|---|
| Western Digital Corporation | -12.47% |
| NIKE, Inc. | -5.72% |
| Accenture plc | -5.10% |
| Modine Manufacturing Company | -4.81% |
| Freedom Holding Corp. | -4.58% |
Image: Shutterstock
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