Nasdaq hits record as weak jobs data eases rate-hike concerns

US equities advanced on the back of softer-than-expected jobs data, which signaled potential cooling in labor market momentum. The Nasdaq Composite achieved a fresh record high, reflecting broad-based strength in technology-related securities. According to the market reaction, semiconductor stocks emerged as particular beneficiaries, with Nvidia posting an intraday record. The announcement indicated that Treasury yields contracted and crude oil prices declined, both supporting equity valuations across sectors sensitive to borrowing costs and economic growth expectations. The weaker employment report appeared to ease concerns about the Federal Reserve maintaining an aggressive monetary tightening stance, a development that typically bolsters equities amid risk-on positioning.

However, not all corporate news proved positive. Nike's share price contracted following the company's revenue forecast, which indicated a significant decline attributable to operational and demand challenges in China—a critical market for the apparel giant. The divergence between semiconductor strength and consumer discretionary weakness reflected selective market dynamics during this period.

From a broader perspective, equity markets remain highly sensitive to macroeconomic data releases, particularly employment figures that influence Federal Reserve policy expectations. Softer labor market signals typically reduce the probability of further rate hikes, which benefits growth-oriented and leveraged securities disproportionately. Conversely, deteriorating corporate guidance—especially from consumer-facing companies with substantial international exposure—can trigger sector-specific selloffs regardless of macro tailwinds. The concurrent decline in Treasury yields and oil prices reinforces the "risk-off" undertones despite equity market gains, suggesting investors are positioning cautiously.

Source: Markets-Economic Times