The Nasdaq closed at an all-time high on October 5, its second consecutive session of sharp gains, as a weaker-than-expected jobs report on October 2 all but erased bets on a Federal Reserve rate increase this month. The benchmark rose 1.05 percent to 27,477.31, surpassing its previous record from September 22, while the S&P 500 added 0.66 percent to 7,773.95, leaving it roughly 0.3 percent shy of its own August 13 peak. The Dow Jones Industrial Average edged up 0.18 percent to 51,267.90.

Jobs data rewrites the Fed script

Traders had priced a 70 percent probability of a hike at the October policy meeting a week ago. After the September payrolls miss, CME’s FedWatch tool shows that odds at 24 percent. The shift handed equities a tailwind that has lasted two sessions, with volume light at 16.8 billion shares against a 20-day average of 17.3 billion.

AI giants carry the index

Nvidia climbed 2.1 percent to a fresh record, pushing its market capitalization to $5.76 trillion. Microsoft gained 1.5 percent. Meta Platforms and Tesla each rose about 2 percent. Ten of eleven S&P 500 sectors advanced, led by materials at 1.22 percent and communication services at 1.14 percent. Advancing issues outpaced decliners by a 1.7-to-1 ratio, though the S&P 500 logged more new lows (20) than new highs (13), and the Nasdaq recorded 243 new lows against 57 new highs.

Earnings season looms with a 30 percent bar

Third-quarter results kick off next week with the major banks. LSEG data shows analysts expect S&P 500 earnings to jump more than 30 percent year over year, a figure propped up almost entirely by artificial-intelligence-exposed names. Art Hogan of B. Riley Wealth noted that with the economic calendar thin and earnings a week out, investors are latching onto anything positive, lower energy prices chief among them. Oil slipped after Middle East exports rose and the Group of Seven pledged to boost supply.

Deal flow and a chatbot endorsement

PTC surged 33 percent after Schneider Electric agreed to a $22.6 billion all-cash takeover. RXO jumped over 22 percent on a $5.8 billion stock-and-cash deal with C.H. Robinson, which fell nearly 11 percent. Cerebras Systems rose 9 percent after OpenAI chief Sam Altman called the chip designer a “close partner” with “deep engagement pushing on the frontiers of speed.”