Jobs Report Sends US Stocks into Mixed Week Amid Rate Hike Concerns

US stocks closed the week mixed after a weaker-than-expected September jobs report eased concerns about another Federal Reserve rate hike, allowing tech shares to rebound. The S&P 500 dipped 0.3% for the week and the Dow Jones Industrial Average fell 1.3%, while the Nasdaq Composite rose 0.5%. The Nasdaq 100 reached a record high on Friday after employers added just 29,000 jobs in September, far below the roughly 90,000 economists expected.

The report sparked a significant shift in the near-term rate outlook, with traders now pricing in an approximately 80% probability that the Fed will leave rates unchanged at its October meeting. This change is reflected in Treasury yields, which initially declined before rebounding later Friday.

A number of stocks stood out for their performance during the week. Alphabet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) shares rose after Google introduced Gemini 4 Argon, its most advanced AI model yet, designed for complex software engineering and cybersecurity workloads. Micron Technology Inc. (NASDAQ:MU) delivered results and outlook that reinforced investor enthusiasm for AI-related chip demand, with the company citing $32 billion in customer commitments under supply agreements.

However, not all stocks fared well. Nike Inc.'s (NYSE:NKE) shares fell after the athleticwear giant reported fiscal first-quarter revenue of $11.21 billion, below the $11.33 billion analyst estimate. AppLovin Corp.'s (NASDAQ:APP) shares also declined to a 52-week low as investors weighed concerns around its e-commerce expansion and weaker-than-expected second-quarter revenue.

The jobs report's impact on the market was significant, with Treasury yields initially declining before rebounding later Friday. The shift in the rate outlook also had an effect on other assets, with the 10-year yield reaching a 24-year high above 5.3% earlier in the week, reflecting concerns over inflation, government borrowing and higher energy prices.