The benchmark closed the first trading week of October slightly lower, down 0.27%, as investors rotated out of healthcare and financial shares and into technology. The Nasdaq told a different story, rising 0.45% for its third straight weekly advance and finishing Friday at a record 27,190.86.

Friday's rebound came from a weak September jobs report: employers added only 29,000 positions — less than half the 84,000 expected — and the jobless rate inched up to 4.2%. The S&P 500 climbed 0.7% and the Nasdaq 1.2% on the day, but the bounce could not erase earlier losses: the Dow still ended the week down 1.3%.

The cool data cut October Fed hike odds to the low twenties — roughly 23 to 24 percent on CME FedWatch, versus 64 percent a week ago. Nvidia touched a new all-time high, while Seagate and Western Digital each lost about 10% on easing AI-shortage fears.

Why it matters

Technology (+1.44%) and energy (+1.21%) led the week's sectors; healthcare (-2.57%) and financial services (-2.45%) lagged. Breadth was poor: of the 872 US-listed names Morningstar tracks, just 35 percent ended higher; 65 percent fell. A benchmark propped up by a handful of mega-caps is a narrow, fragile rally.

Healthcare hiring cooled too: September added 17,000 sector jobs, well short of the trailing twelve months' 33,000 average. And the 10-year Treasury yield climbed to 5.28%, near 24-year highs, sustaining the squeeze on rate-sensitive financials — the same bond selloff powering the dollar's fourth straight winning week over the euro, which left gold down 3.34% to $4,143.80 while WTI crude slipped to $91.40.

What to watch

  • Oct. 7 FOMC minutes: how policymakers read the softening labor data.
  • Oct. 8 jobless claims, Oct. 9 Michigan sentiment: whether the consumer is following jobs lower.
  • Oct. 5 PMI/ISM services: the first fresh October activity read.
  • The 10-year yield at 5.28%: a push higher would re-pressure healthcare and financials.

MarketRadar take

A cautious read for broad US equities: the index is barely lower, but internals are weak — defensives sold hardest, two-thirds of stocks in the red, and the week rescued by a tech bid built on fading rate-hike bets, not earnings strength. A market held up by its leaders has little breadth underneath.