The Nasdaq Composite gained more than 300 points on Friday as weaker-than-expected U.S. jobs data reduced the likelihood of a Federal Reserve rate hike. The index closed at 27,190.86, up 1.19% for the session.

Nonfarm payrolls rose by just 29,000, significantly below the expected range of 84,000-90,000. The unemployment rate ticked up to 4.2% from 4.1%. This data eased tension between a softening labor market and restrictive monetary policy, with odds of an October hike falling to 17%.

Market performance and sector trends

Despite Friday's rally, weekly performance remained mixed across major indices. The Dow Jones Industrial Average fell around 1.3% last week, while the S&P 500 slipped 0.3%. In contrast, the Nasdaq secured a weekly gain of 0.6%.

On Friday, most S&P 500 sectors closed higher. Consumer discretionary, information technology, and materials stocks recorded the biggest gains. Health care stocks bucked the trend, closing lower.

Corporate movers

Western Digital Corp. (NASDAQ: WDC) was the worst performer in the Russell 1000 after Toshiba announced plans to double its hard disk drive production capacity. Seagate Technology Inc. (NASDAQ: STX) also fell sharply in response to the news.

Sentiment indicators

The CNN Business Fear & Greed Index remained in the "Fear" zone with a reading of 31, improving slightly from a prior reading of 29. The index ranges from 0 (maximum fear) to 100 (maximum greed) and is calculated based on seven equal-weighted indicators.

Geopolitical tensions persisted as President Donald Trump deployed 9,000 additional troops to the Middle East and warned of possible strikes against Iran.

The Nasdaq Composite gained 0.44% for the week, closing at 27,188.02, driven by strength in semiconductor and software stocks. This contrasted sharply with the Dow Jones Industrial Average, which fell 1.42% to 51,094.96, signaling a narrow market rally as the quarter turned over.

Volatility indicators eased alongside the divergence in index performance. The CBOE Volatility Index dropped to 15.58, while the Nasdaq-100 Volatility Index closed at 21.93. In commodity markets, WTI crude oil declined 2.48% on the day to $90.57 a barrel, whereas natural gas rose 1.69% to $3.02 per MMBtu.

Corporate developments and contract wins

Several companies reported significant operational updates and financial adjustments during the period:

• RTX (NYSE: RTX): Raytheon, an RTX business, secured a five-year contract valued up to $24.4 billion for Standard Missile-6 interceptors. The deal aims to increase availability of the multi-mission munition for the U.S. Navy.
• Integra LifeSciences (NASDAQ: IART): The company lowered its full-year 2026 revenue outlook to $1.634 billion to $1.654 billion from $1.654 billion to $1.695 billion. Adjusted EPS guidance was cut to $2.30 to $2.40 from $2.40 to $2.50, citing impacts from a July flooding event at its Cincinnati facility.
• Trilogy Metals (NYSE: TMQ): Reported a cash balance of $31.2 million and adjusted working capital of $30.3 million as of August 31, 2026. The company also closed a $35.6 million strategic equity investment from the Department of War.
• Phillips Edison & Company (NASDAQ: PECO): Reaffirmed full-year 2026 earnings guidance and increased gross acquisitions guidance to $600 million to $700 million from $500 million to $600 million. Year-to-date acquisitions totaled $459.7 million.
• Axogen (NASDAQ: AXGN): Completed the acquisition of BioCircuit Technologies. The company expects BioCircuit to contribute approximately $6 million to fourth-quarter 2026 revenue and $34 million to 2027 revenue.

Market metrics summary

What the numbers show

A divergence is evident between large-cap technology performance and broader market breadth. While the Nasdaq posted a weekly gain of 0.44%, the Russell 2000 slipped 0.13% and the Dow fell 1.42%. This indicates that the weekly equity gain was concentrated in specific sectors rather than driven by broad-based participation. Additionally, Integra LifeSciences' guidance reduction highlights how operational disruptions can directly impact revenue forecasts, with the full-year range narrowing by approximately $20 million at the midpoint.