Last week's stock market closed on a high note Friday after the September jobs report came in softer than expected. The U.S. added 29,000 jobs versus the 84,000 consensus, and unemployment ticked up to 4.2%. Investors read the weakness as a sign the Federal Reserve will likely hold interest rates steady at its late October meeting, with futures pricing a 78% chance of a pause, up from 36% a week earlier.
Still, the weekly results were mixed. The Dow fell 1.26% and the S&P 500 dropped 0.3%, pressured by elevated oil prices and rising long-term bond yields. The Nasdaq managed a 0.45% gain, helped by AI-related names. Nvidia hit an all-time intraday high Friday after authorizing an additional $150 billion in buybacks, bringing its remaining authorization to $235 billion. Micron also reported a blowout quarter, with revenue up 379% to $54.23 billion, though its shares ended the week down 0.7% on concerns about rising manufacturing spending.
The source notes that Micron expects supply to remain tight into 2027 and 2028, with about 75% of its 2027 output already committed. It also signed 26 strategic customer agreements, up from 16 last quarter. For Nvidia, the larger buyback is seen as a step toward putting its cash generation to work, even though it falls short of the $500 billion some had called for. The source's takeaway is that AI demand remains the dominant driver, and the softer jobs data only reinforced expectations for a patient Fed.