Markets mixed as softer US jobs data eases rate concerns

Global markets were mixed on Friday as weaker-than-expected US employment data reduced expectations of further Federal Reserve (Fed) tightening, while lower oil prices provided additional support for bonds and equities. The S&P 500 gained 0.70%, the Nasdaq rose 1% to a record 30 808 and the Dow added 250 points. Technology shares led the gains, with Nvidia rising 1.30%, Broadcom 3.30% and Advanced Micro Devices 2.90%. Among hyperscalers, Alphabet gained 1.60%, Amazon 1.30% and Oracle 3.10%, while Tesla jumped 4.60% after reporting better-than-expected third-quarter sales. For the week, the S&P 500 gained 0.20% and the Nasdaq rose 1.30%, while the Dow fell 319 points.

US employment data showed the unemployment rate inching higher to 4.20% in September 2026, from 4.1% in August, while the number of unemployed people expanded by 78 000 to 7.11 million. Non-farm payroll employment grew by 29 000 in September, below the 45 000 average monthly increase over the previous 12 months and well below the 90 000 consensus forecast.

The US 10-year Treasury yield resumed its rise to 5.52% after falling as much as 8 basis points earlier in the session, as the weaker jobs data offered only temporary relief to the bond market. Markets no longer priced in a rate increase at the Fed’s October meeting, although traders continued to see a high likelihood of an increase in December. The 10-year yield had climbed above 5.34% earlier in the week, its highest level since 2002, amid expectations of further tightening, the unresolved Middle East conflict, concerns over the US fiscal and debt outlook and resilient economic data.

Crude oil prices declined after the G7 and partner countries announced plans to release up to 100 million barrels of crude and diesel reserves over the next four months to ease surging fuel prices. Crude traded near $92 a barrel after reaching a one-month low of $88.06, while the G7 also agreed to refrain from export restrictions on energy and energy products between member countries. However, the US is reportedly sending a third aircraft carrier strike group to the Middle East, raising concerns over a potential escalation and renewed supply risks. Persian Gulf crude exports have recovered close to prewar levels, although flows remain volatile. Brent crude traded around $102 a barrel amid reports of additional US military deployments and China’s decision to halt most refined-fuel exports for October.

European equities recovered from a three-and-a-half-month low, with the STOXX 50 gaining more than 1% and the STOXX 600 rising over 0.50%. Technology stocks led the rebound, with the sector gaining more than 2.50% and ASML Holding rising over 3%. Frankfurt’s DAX 40 gained about 1.20% to 25 231, supported by technology stocks and lower oil prices, while Infineon Technologies rose 8.80%. The CAC 40 gained 0.80% to 7 897, with STMicroelectronics rising 6.50% and Schneider Electric 3.50%. The FTSE 100 also recovered, gaining 0.53%, after four consecutive sessions of losses, although it recorded a weekly decline of around 2%.

In Asia, Hong Kong’s Hang Seng Index fell 2.60% to 23 972 as global risk assets came under renewed pressure following the National Day holiday. Technology stocks remained weak amid elevated US Treasury yields and restrictions on advanced artificial intelligence hardware. Japan’s Nikkei 225 fell 0.99% to 68 309 as investors took profits and remained cautious about interest rates and geopolitical risks. Tokyo’s core inflation accelerated to 2.70% in September. The Shanghai Stock Exchange remained closed for National Day and will resume trading on Thursday, 8 October.

South African markets ended higher, with the JSE All Share Index gaining 0.57% to 108 378.40. The JSE Financial 15 rose 1.20%, while the Resources 10 gained 0.37%, the Industrial 25 increased 0.20% and the JSE Top 40 rose 0.61%. Metals and Mining declined 0.17%. In currency markets, the rand weakened by 0.16% against the US dollar and 0.08% against the euro, while it strengthened by 0.11% against the British pound at 19h07 SAST, trading at R16.68, R18.77 and R22.07, respectively.

At 21h08 SAST, Brent crude rose 0.10% to $102.41 a barrel. Gold declined 0.93% to $4 138.78 an ounce, while silver and platinum fell 1.18% and 1.47%, respectively.