U.S. stocks climbed on Friday as a sharp slowdown in hiring cooled expectations for another Federal Reserve rate hike, sending the Nasdaq Composite to a record close. Hiring figures are among the most closely watched inputs the central bank weighs when setting borrowing costs, which is why a single payrolls report can reset expectations across the market. Tesla gave investors an additional reason for optimism with third-quarter delivery numbers that topped forecasts, while semiconductor stocks rallied, Bitcoin moved higher as traders rotated back into riskier assets, and oil slid after the G7 moved to tap emergency reserves.

Tesla Beats Delivery Expectations

Tesla reported 486,532 vehicle deliveries for the third quarter, a figure that came in well above the roughly 456,900 vehicles analysts had expected. Delivery totals are the company's headline volume metric and often set the tone for the stock ahead of the full quarterly report. Stronger demand in Europe helped drive the improvement, a notable turnaround after the company had struggled in that region for much of last year.

Tesla shares rose around 5% following the report. The company is set to release its full financial results on October 21, when the report will show whether the delivery strength translated into revenue and margins.

Jobs Report Sends Nasdaq to a Record

The bigger market mover came from Washington. The U.S. economy added just 29,000 jobs in September, far below the roughly 90,000 positions economists had expected, and figures from previous months were also revised down.

The weak hiring numbers reduced the odds of another Fed rate increase this month, and Treasury yields fell following the report. That eased the pressure on technology stocks, which had come under strain after the 10-year yield recently touched a 24-year high of 5.34%. Growth-heavy indexes such as the Nasdaq tend to be among the most sensitive to moves in yields, since their largest components are valued heavily on earnings expected years from now — a dynamic that explains how a weak jobs report can turn into a technology rally.

The Nasdaq reached a new record on the news. Nvidia gained about 2.5%, and the Philadelphia Semiconductor Index rose more than 3%.

Nike Shares Stay Near Multi-Year Lows

Not every stock joined the rally. Nike shares fell again after a weak outlook and ongoing struggles in China, and the company's Jordan brand as well as parts of its lifestyle lineup also remain soft. The shares have now dropped to levels last seen about 12 years ago.

Chief Executive Elliott Hill is working to rebuild Nike's product lineup and its relationships with wholesale partners. The company recently announced more job cuts and has also said that many of the financial benefits from its restructuring may not show up until 2029 or 2030. That timeline is adding pressure ahead of the company's investor day in November, an event management teams typically use to lay out their long-term plans for investors.

Oil Prices Drop on G7 Reserve Release

Energy markets moved as well. The G7 agreed to release 100 million barrels of diesel, and other reserves through the International Energy Agency in a coordinated step aimed at cooling fuel prices after disruptions tied to the Iran conflict.

Oil fell more than $3 on the news, and Brent crude, the international benchmark, dropped below $100 per barrel. Because energy costs feed directly into consumer prices, lower oil can ease inflation pressure, which could give the Federal Reserve more room to adjust interest rates going forward.

Bitcoin and Crypto Stocks Rebound

Crypto markets reacted to the improving backdrop. Bitcoin climbed around 3.4% on the day, and crypto-linked stocks, which tend to trade alongside broader risk assets when rate expectations shift, followed. Coinbase and Strategy, formerly known as MicroStrategy, each gained roughly 3% as investors added exposure to digital assets.

Falling yields, cheaper oil and a weak jobs report combined to support Bitcoin after weeks of pressure. Investors are now watching for upcoming inflation data and third-quarter earnings. The question going forward is whether softer economic data can lower borrowing costs without pointing to a deeper slowdown in the U.S. economy.

Source: CoinCentral