Wall Street Rallies as Weak Jobs Data Lifts Rate-Hold Bets

Markets reassessed monetary-policy risk after a sharp U.S. employment slowdown, while technology shares led a broader equity rebound and investors monitored rates, currencies and commodities. At a glance: Global markets entered the weekend with risk appetite improving after U.S. employers added only 29,000 jobs in September, far below expectations near 90,000, while the unemployment rate increased to 4.2% from 4.1%. The weaker labor-market reading reduced expectations for an immediate Federal Reserve tightening move and supported a rotation into rate-sensitive growth stocks. The Nasdaq Composite rose 1.19% and reached a fresh record, while the S&P 500 gained 0.73% to 7,723. The Dow also advanced, although the Dow and S&P 500 still recorded weekly losses. The U.S. dollar index slipped roughly 0.17% to 101.924, offering some relief to emerging-market currencies. Investors nevertheless remained cautious: the 10-year Treasury yield stood near 5.283%, showing that long-duration government debt continued to carry substantial inflation and fiscal-risk concerns. The VIX fell to 15.31 as equity volatility eased.

Technology advance: Semiconductor and software shares were the strongest part of Friday’s market rebound, reflecting the view that slower employment growth could extend the period before additional monetary tightening. Micron Technology reported fiscal fourth-quarter non-GAAP earnings of $33.42 per share, more than eleven times the comparable year-earlier result and above consensus expectations. The result underscored the continuing earnings power of advanced memory demand and data-center infrastructure, particularly for artificial-intelligence workloads. Nasdaq-listed cloud-computing company Nebius was also reported to have acquired Inferize, a developer of technology designed to improve GPU utilization and reduce AI-request costs, in a transaction valued by sources between $100 million and $150 million. The deal highlights investor focus on infrastructure efficiency as AI operators confront high accelerator costs and constrained capacity. Separately, Reco, which develops software for securing and governing enterprise AI agents across software-as-a-service environments, raised a $55 million Series B extension, bringing its reported total funding to $140 million.

Partnerships: Elon Musk confirmed discussions between Tesla, SpaceX, xAI and Taiwan Semiconductor Manufacturing Company regarding a potential large-scale semiconductor manufacturing arrangement described as a “Terafab” concept. Musk did not disclose commercial terms, production timing or a final site, but the discussions connect three of his companies’ computing and vehicle ambitions with TSMC’s advanced chip manufacturing expertise. Reports also indicated that TSMC is considering a presence in Texas, a development that could improve domestic access to leading-edge semiconductor capacity for U.S. technology and transportation programs. The significance for investors is strategic rather than immediately financial: Tesla requires increasingly capable computing for vehicle automation, SpaceX depends on high-performance systems for aerospace operations, and xAI is building large-scale artificial-intelligence infrastructure. Any eventual agreement would need to resolve capital requirements, manufacturing allocation, technology-transfer restrictions and the supply-chain implications of concentrating demand across several Musk-controlled businesses.

Acquisitions/expansions: Onsemi revised its proposed acquisition of Synaptics to an approximately $5.7 billion all-cash offer, replacing the roughly $7 billion all-stock structure announced in June after Synaptics received another bid. The revised consideration materially changes the financing and shareholder-risk profile of the transaction. An all-cash proposal gives Synaptics investors greater value certainty but increases Onsemi’s funding requirement and balance-sheet exposure, while removing the dilution associated with issuing shares. Synaptics supplies connectivity and edge-computing technologies used across automotive, industrial and consumer applications; Onsemi is a major supplier of power-management and sensing semiconductors. The competing interest reported around Synaptics indicates that strategic buyers continue to value differentiated edge technology despite elevated financing costs. Investors will focus on the revised agreement’s terms, funding arrangements, regulatory review and whether the competing proposal produces another change in price or structure.

Regulatory/policy: Colombia’s central bank unexpectedly raised its policy rate by 25 basis points to 12.25% after inflation remained above target, according to the latest global monetary-policy briefing. The move was notable because only two of 29 surveyed analysts had expected an increase, making it a clear surprise for local rates and currency markets. The decision reinforces the divergence between economies where inflation persistence is forcing tighter policy and the United States, where a weak employment report has encouraged investors to expect Federal Reserve patience. For Colombian businesses and investors, a higher benchmark rate increases borrowing costs, raises the hurdle rate for infrastructure and technology investment, and may support the peso by improving local-currency returns. It also complicates the outlook for domestic demand, corporate refinancing and transport-related capital expenditure. The decision demonstrates that emerging-market central banks remain sensitive to inflation expectations even as developed-market investors price a less aggressive U.S. policy path.

Finance/business: Corporate earnings produced a sharply differentiated trading session. Accenture shares jumped 15.8% after the consulting and technology-services company reported fiscal fourth-quarter adjusted earnings above estimates, suggesting that demand for digital transformation and artificial-intelligence services remained resilient. McKesson rose 5.3% after reaffirming its fiscal 2027 earnings guidance, giving investors greater confidence in the company’s near-term outlook despite broader economic uncertainty. Progress Software declined 8.5% after quarterly revenue missed expectations, illustrating the market’s limited tolerance for weaker execution among enterprise-software vendors. Nike fell about 3.5% after forecasting a larger-than-expected sales decline, highlighting persistent pressure in consumer-facing global brands. In commodities, WTI crude fell about 1.73% and briefly reached $88.06 after reports that the G7 had agreed through the International Energy Agency to release 100 million barrels from reserves. Gold declined roughly 1.07% to about $4,138 an ounce as renewed equity strength reduced immediate haven demand.