Nasdaq Hits New Record Intraday High as Soft Jobs Data Reduces Fed Hike Fears

U.S. stocks moved mostly higher on Monday, October 5, extending gains from the prior two sessions, with the Nasdaq reaching a new record intraday high. The rally followed Friday's weaker-than-expected September jobs report, which showed payrolls rising by just 29,000, well below forecasts, while the prior two months were revised down by a combined 60,000 and the unemployment rate edged up to 4.2%.

The soft labor data reduced expectations for another Federal Reserve rate hike in October, lifting growth stocks and taking pressure off the dollar. The S&P 500 closed Friday at 7,722.72, up 0.7% that session, while the Nasdaq Composite gained 1.2% to 27,190.86. A complicating factor on Monday was a stubbornly weak bond market, with yields moving higher even as equities advanced, creating an unusual divergence for growth stocks.

Investors are also watching a packed week of macro events, including seven economic reports and the release of minutes from the Federal Reserve's September meeting on Wednesday, alongside remarks from three Fed officials. Market technicians flagged significant resistance in the S&P 500 futures range of 7,790 to 7,815. Among individual movers, RXO soared, Nu Holdings surged, SpaceX climbed, Alvotech jumped, and Vistra rallied, while Bristol-Myers Squibb and GlobalFoundries declined.