Stocks Rose Last Week on Jobs Report and Tech Earnings

U.S. stock markets ended last week on a positive note, influenced by a surprising jobs report and strong performances from technology companies, including Nvidia and Micron. The September jobs report indicated that the U.S. economy added 29,000 jobs, falling short of expectations, with the unemployment rate rising to 4.2%. This figure, often termed a "Goldilocks" number, suggested an economy not overheating but also not heading for a recession, boosting investor sentiment.

Despite the positive end to the week, the Dow Jones Industrial Average finished down 1.26% and the S&P 500 fell 0.3% for the week. Persistent elevated oil prices and rising long-term bond yields continued to pressure various market segments. The Nasdaq Composite, however, managed a weekly gain of 0.45%, largely propelled by demand for artificial intelligence-related stocks. Nvidia reached an all-time high on Friday for the first time since May, joining other AI-focused companies like CrowdStrike, Palo Alto Networks, and AMD in setting new records.

Micron Technology reported strong quarterly results on Wednesday, with management providing an optimistic outlook on supply-demand dynamics and significant share buyback plans. Revenue surged 379% year-over-year to $54.23 billion, and adjusted earnings per share surpassed analyst expectations. The company anticipates continued momentum, forecasting first-quarter fiscal 2027 revenue of $61.5 billion and adjusted EPS of $38.15, both exceeding Wall Street estimates.

In another significant development, Nvidia announced a substantial expansion of its share repurchase program, authorizing an additional $150 billion, bringing its total remaining authorization to $235 billion. Analysts project Nvidia will generate approximately $440 billion in free cash flow over the next six quarters, providing ample capital for buybacks without compromising investments in its AI leadership. Although Nvidia's stock has risen roughly 24% this year, its performance has lagged behind some semiconductor industry peers.