U.S. Stocks Rise on Weak Jobs Data; Nike Shares Plunge on Earnings Miss

U.S. stock futures and equities climbed on Friday following a weaker-than-expected September jobs report, which suggested cooling labor market momentum and potentially reduced near-term pressure on the Federal Reserve to raise interest rates. According to the U.S. Bureau of Labor Statistics, nonfarm payrolls rose by 29,000 in September, well below the estimated 89,000, marking the slowest monthly job growth of the year. The unemployment rate ticked up to 4.2% from 4.1% in August. By mid-morning trading, the S&P 500 surged 1% to 7,743.96 points, the Dow Jones Industrial Average rose 0.5%, and the tech-heavy NASDAQ Composite jumped 1.7% to a new intraday record high. Analysts noted that softer payroll data, combined with earlier-than-expected moderation in inflation readings, may give the Federal Reserve room to hold interest rates steady. Market expectations for an October rate hike dropped sharply to about 18%, with odds of the Fed holding rates steady climbing to nearly 82%.

However, some Fed policymakers signaled continued concerns about inflation. Dallas Fed President Lorie Logan stated that interest rates would need to rise by at least 50 basis points to adequately curb price pressures, while Fed Governor Lisa Cook warned that artificial intelligence-driven inflation posed a major risk for 2027. Minneapolis Fed President Neel Kashkari said more rate hikes would likely be needed into 2027, though he remained uncertain about the timing of the next increase. The 10-year U.S. Treasury yield declined from 5.34% to around 5.22%, reflecting reduced rate-hike expectations, though it remained elevated amid concerns about government debt and global energy market volatility tied to Middle East tensions.

Nike shares fell more than 10% in pre-market and early trading after the athletic apparel giant published disappointing fiscal 2027 first-quarter results and issued a sharply reduced full-year outlook. Revenue for the quarter ended August 31 was $12.113 billion, down 4% year-over-year (5% excluding currency effects), below analyst expectations of approximately $13.2 billion. While net income of $712 million exceeded expectations, CEO Elliott Hill announced plans to slash additional jobs and overhaul global business divisions. The company now projects full-year revenue to decline in the high single digits—far worse than the roughly 2% decline analysts had previously anticipated. Adjusted earnings per share guidance of $1.15 to $1.35 represented a approximately 22% downward revision from the prior market consensus of $1.61.

Nike's troubles reflected intensifying competitive pressures and particularly severe weakness in Greater China, where first-quarter revenue plummeted 22% (26% on a fixed-currency basis), marking the ninth consecutive quarterly decline in that critical market. Operating income from Greater China fell 34%. The company attributed headwinds partly to deliberate reductions—including a near 50% cut in classic Dunk shoe sales—intended to rebuild scarcity and brand positioning. Nike Sportswear and Jordan Brand lines both declined in the quarter. Management indicated that China market adjustments would remain aggressive, including a consolidation of online sales channels and increased focus on localized product design and production, though near-term revenue and profitability would face ongoing pressure.

Other market movers included broadening strength in European equities, with Germany's DAX gaining 1.2%, France's CAC 40 rising 0.6%, and Britain's FTSE 100 climbing 0.3%, a day after sharp bond yield-driven selloffs. Crude oil prices declined as U.S. Treasury Secretary Scott Bessent called on European allies to accelerate diesel reserve deliveries, with Brent crude losing 2.4% to $99.88 per barrel and U.S. crude falling 3.7% to $89.47. Asian markets were mostly lower, with mainland Chinese markets closed for a holiday. Pre-market movers included Broadcom, which gained 1.41% as the company reportedly prepared to raise $60 billion in new AI chip financing, and Tesla, which rose 0.84% ahead of third-quarter delivery data expected later Friday.