Nvidia, Micron and jobs data shaped a mixed week for stocks

Nvidia, Micron and the jobs report shaped a split week for U.S. stocks. The Nasdaq finished higher as AI-linked shares climbed, while the Dow and S&P 500 still posted weekly losses despite a broad Friday rally, a result that shows how company news and interest-rate expectations can pull the market in different directions.

For the week, the Dow Jones Industrial Average fell 1.26% and the S&P 500 lost 0.3%. The Nasdaq Composite gained 0.45%, according to CNBC Investing Club. The outlet attributed pressure on much of the market during the week to elevated oil prices and rising long-term bond yields, while AI-related stocks supported the Nasdaq.

Why did the jobs report lift stocks on Friday?

September nonfarm payrolls rose by 29,000, while the unemployment rate increased to 4.2%. That was below the Dow Jones consensus cited by CNBC Investing Club, which had called for 84,000 new jobs and a 4.1% unemployment rate.

Investors read the softer hiring data as making a late-October Federal Reserve rate hold more likely, CNBC Investing Club reported. CME FedWatch pricing put the implied probability of a hold at 78%, up from 36% a week earlier, according to the report. The Dow rose 0.5% Friday, the S&P 500 gained 0.7% and the Nasdaq added 1.2%.

Oil also pulled back Friday after a report that European governments were considering releases from strategic fuel reserves, CNBC Investing Club said. The decline added support to stocks after a difficult week for the broader market.

Micron beat expectations, but capacity spending remained a concern

Micron reported fiscal fourth-quarter revenue of $54.23 billion, up 379% from a year earlier, and adjusted earnings of $33.42 a share. It forecast fiscal first-quarter 2027 revenue of $61.5 billion and adjusted earnings of $38.15 a share. CNBC Investing Club described the results and outlook as ahead of Wall Street expectations.

Shares nevertheless ended the week down 0.7%. CNBC Investing Club said investors focused on Micron’s plans to expand manufacturing capacity, which can raise the risk that more industry supply eventually weighs on memory-chip prices and profits.

Micron offered a different view of demand: about 75% of its expected 2027 output was already committed, CNBC Investing Club reported, and the company had signed 26 strategic customer agreements, up from 16 in the prior quarter. The agreements give the company more visibility into expected customer demand, but its outlook remains forward-looking.

Nvidia expands its repurchase authorization

Nvidia authorized an additional $150 billion for share repurchases, lifting its remaining authorization to $235 billion, according to CNBC Investing Club. Nvidia shares rose 3.95% for the week and reached an all-time intraday high Friday, though they did not close at a record.

A repurchase authorization gives a company permission to buy back stock up to a stated amount; it does not require it to spend the full sum. Investors can read more about how stock buybacks work. Nvidia’s announcement added a company-specific catalyst to a week in which AI shares helped the Nasdaq outperform the other major indexes.

This story draws on original reporting from CNBC.