Stock Index

The U.S. Labor Department reported that nonfarm payrolls rose by just 29,000 last month, far below market expectations and down from 133,000 in August, signaling a notable cooling in the labor market. Investors quickly pared back expectations for near-term Federal Reserve rate hikes. U.S. stocks advanced across the board, with the S&P 500 sitting within 1% of its record high.

As of the most recent week, U.S. equity funds attracted $20.6B in inflows. Over the same period, money-market funds recorded $41.36B in outflows. The flow data point to a renewed rotation from cash-like assets back into risk assets.

India’s Nifty and Sensex fell for an eighth consecutive week, marking their longest weekly losing streak in a quarter of a century. Persistent foreign outflows, Brent crude holding above $100 a barrel and the US 10year Treasury yield at its highest level since midJune 2007 have dented demand for emerging-market assets. The rupee also weakened, while markets have priced in a 25 basis point RBI rate hike to 5.50 per cent on 7 October, adding to pressure on equities.

U.S. stocks rose on Friday, with the Nasdaq Composite touching an intraday record after weaker-than-expected jobs data reduced expectations for a near-term Federal Reserve rate hike. CME FedWatch showed the probability of a rate increase of at least 25 basis points at the Fed’s meeting later this month slipped to 23.8%. The Dow climbed 0.43%, the S&P 500 gained 0.70% and the Nasdaq advanced 1.14%. Rate-sensitive groups such as real estate and small caps led, while Nvidia and Tesla provided the biggest lift to the S&P 500.

S&P Dow Jones Indices said Twilio will be added to the S&P 500 before the market opens on Oct. 6, replacing Warner Bros. Discovery. The change is expected to prompt passive funds that track the index to rebalance their holdings accordingly.

U.S. stocks reversed early losses on Thursday, with the S&P 500 rebounding from a two-week low to finish modestly higher. Equities were pressured earlier as Treasury yields climbed and the ISM manufacturing PMI pointed to a jump in input prices. Sentiment improved after yields pulled back and Fed Vice Chair Philip Jefferson signaled the central bank could pause before raising rates again. The two-year U.S. Treasury yield posted its biggest one-day drop since August 2025.

From late July to mid-September, tech-exposed stocks in the S&P 500 rose 14% while the rest of the index fell 3%, underscoring a sharp concentration in returns. Microsoft led the Magnificent Seven after Azure growth materially exceeded expectations and Copilot adoption was strong. On July 30, Microsoft jumped more than 15%, its biggest one-day gain since 2008, adding about ~$450 billion in market value. The move was the largest single-day market-cap increase on record at the time.

US stocks came under pressure as the 10-year Treasury yield climbed to 5.3445%, its highest level since 2002, weighing on demand for richly valued shares. Rate-sensitive sectors led the declines, with housing shares down 1.4% and banks off 2.2%. Software stocks bucked the broader weakness, lifting the S&P 500 software index 1.7% to its highest level since November, after Accenture surged 22% on a stronger-than-expected full-year revenue growth forecast.

U.S. Treasury yields surged to their highest levels since 2002, with the 10-year and 30-year reaching 5.32% and 5.66%, pushing Dow futures to a three-month low. Micron Technology’s results beat expectations and helped lift semiconductor shares, with Lam Research, Applied Materials and Nvidia among the gainers. Alphabet rose 2.3% after unveiling its Gemini 4 flagship AI model, while Nasdaq 100 futures edged higher.

Australia’s S&P/ASX 200 fell 176 points to 8,613.2, an intraday four-month low. Sentiment was pressured after the Reserve Bank of Australia urged banks to strengthen crisis preparedness. Energy led declines, with the sector down 3.1% as Brent crude extended losses and weighed on heavyweights including Woodside and Santos.