Market Close: Stocks Gain, Boeing Glitch Not a Safety Risk, Paychecks Lag • 10/2/26

0:00It's the NBC Business News Update. I'm Jessica Ettinger. Wall Street opens Monday morning. After a winning Friday for the major averages, the Dow up 250 points, a half percent. Cisco shares led it higher. They were up three and a half percent. The S &P 500 index added 56 points. The Nasdaq was up 319 points. That was more than one percent. Both NVIDIA and AMD, shares of each, hit record highs on Friday. A weak September jobs number and bond yields fell, oil fell, but then both yields and oil turned around and started climbing again. The impact on rates is fleeting. Yes. And then the rates resume the trend.

0:40It's a pretty fragile setup in terms of, I think, positioning in yields. Stock market, you know, obviously we got a lift. Breath was better than it has been, but not overwhelmingly to the upside. That's CNBC's Mike Santoli and Melissa Lee. The Department of Justice late Friday saying it will not reopen a federal criminal investigation into former Fed Chair Jay Powell. A Fed Inspector General report found no violations in the renovation project at the Fed's headquarters. President Trump had threatened another investigation of Powell if he refused to step down from his current position as a member of the Federal Open Market Committee that sets monetary policy.

1:18Boeing shares were higher Friday on news from the Federal Aviation Administration. The FAA says that software issue in certain Boeing 737 MAX flight computers is not a safety concern. The FAA says a panel of safety experts made the determination after a thorough review because pilots remain in full control of the aircraft. That's CNBC's Kelly Evans. Investors liked the weak September jobs report. Only 29 ,000 jobs added last month. It brought down Treasury yields, says investors bet the Fed won't be raising interest rates if employment's getting weaker. I think this takes a rate hike off the table, which will be a positive for the markets.

1:57Now on Treasury yields, they're a little bit more tricky. There's other factors that are raising yields. But the good news here is that this should give us the positive bridge until we get to third quarter earnings. And those are going to be very strong. So I think this could be the start of the Santa Claus rally that we've all been hoping for. That's Nuveen's Sarah Malik on CNBC. The unemployment rate went up in September to 4.2%. The jobs report also has salary data. And CNBC's Frank Holland points out that Americans are still underwater with their paychecks. Inflation is going up faster than their pay.

2:31Hourly pay up 3.1 percent, but consumer prices up 3.4 percent. So wages are not keeping up with inflation. And here's a take from J.P. Morgan's David Kelly on CNBC. This economy is a tortoise disguised as a greyhound. It is just not as fast as it feels on Wall Street, because on Wall Street, we're looking at the AI boom. If you look at the rest of the economy, this is the sixth month in a row in which real wage growth year over year will be negative. We've got very little job growth. So there's not a lot going on. This is not a boom. I mean, it's not a bust either, but this economy is not booming.

3:06On the coming week's watch list, New York City holds an AI safety hearing. We get some new data on retail sales. PepsiCo reports quarterly results. Amazon will hold a two-day Prime Day sale. Rival retailers hold their own fall sales. and we'll get a new read on consumer sentiment. Jessica Ettinger, CNBC. Introducing Fidelity Trader Plus, the next generation of advanced trading from Fidelity. Customize your tools and charts and access them seamlessly across desktop, web, and mobile. For faster trades anywhere you go, try the all-new Fidelity Trader Plus. Learn more about our most powerful trading platform yet at fidelity.com slash trader plus.

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