US stock indices closed higher on Friday after a weaker-than-expected jobs report prompted investors to pare bets on further Fed tightening. The S&P 500 rose 0.7%, the Dow added 250 points, and the Nasdaq gained 1% to close at a record 30,808. Nonfarm payrolls increased by just 29,000 last month, well below expectations for a 90,000 gain. Employment figures for the previous two months were also revised lower. Fed rate expectations eased following the data. Meanwhile, oil prices declined, helping support the bond market, providing an additional boost to equities. Credit-sensitive stocks gained, AI companies, which are facing record levels of debt issuance, closed mostly higher. Nvidia rose 1.3%, Broadcom gained 3.3%, and AMD added 2.9%. Among hyperscalers, Alphabet rose 1.6%, Amazon gained 1.3%, and Oracle added 3.1%. Tesla jumped 4.6% after reporting better-than-expected third-quarter sales. On the week, the S&P 500 rose 0.2%, the Nasdaq gained 1.3% and the Dow added shed 319 points.

Crude oil trimmed losses to trade near $92 a barrel on Friday after reaching a one-month low of $88.06 earlier in the session, as G7 nations announced plans to release crude and diesel reserves to ease surging fuel prices. The G7 will deploy 100 million barrels of reserves over the next four months. G7 leaders also agreed to “refrain from export restrictions on energy and energy products between G7 countries” and called on producers to avoid measures that could exacerbate market tensions, according to their joint statement. Meanwhile, crude oil exports from the Persian Gulf are at or near prewar levels, although volumes remain volatile. On the other hand, the US is reportedly sending a third aircraft carrier strike group to the Middle East, raising concerns over a potential escalation in the months-long conflict and renewed supply risks.

Next week, the focus will remain on the US-Iran standoff and any efforts to reopen the Strait of Hormuz and bring an end to the conflict in the Middle East. The bond market will also remain in the spotlight following the recent surge in government bond yields. In the US, the FOMC minutes, ISM Services PMI, and preliminary University of Michigan Consumer Sentiment data will be closely watched for further clues on the economic outlook and the Fed’s policy path. Elsewhere, key releases will include German factory orders and trade data, Eurozone PPI, Japan’s consumer confidence and machine tool orders, Australia’s consumer confidence, and Canada’s employment and trade figures. Inflation data from Mexico and Brazil will also be closely monitored. In addition, the Reserve Bank of India will announce its monetary policy decision. The OPEC meeting and developments surrounding Brazil’s presidential election will also remain key events for global markets.

New orders for US manufactured goods edged up by 0.1% month over month in August 2026, following a downwardly revised 0.8% increase in July and matching market forecasts. Non-durable goods orders rose by 0.3%, after a 0.7% increase previously, mainly supported by electrical equipment, appliances, and components (1% vs 0%); primary metals (1.2% vs. 2.1% in July) and machinery (1.1% vs. 1.5%). Conversely, orders declined for nondefense aircraft and parts (-4.3%) and fabricated metal products (-1.4%). Meanwhile, durable goods orders fell by 0.1%, reversing a 0.9% advance in the prior month. Excluding transportation, factory orders rose 0.3%, while excluding defense they increased 0.1%.

Average hourly earnings for all employees on US private nonfarm payrolls edged up by 5 cents, or 0.1% over a month to $37.81 in Setember 2026, after a 0.3% increase in August and below market forecasts of 0.3%. In September, average hourly earnings of private-sector production and nonsupervisory employees rose by 7 cents, or 0.2% to $32.60. Over the past 12 months, average hourly earnings have increased by 3% in September, the least since May 2021, following a 3.1% advance in August and also below the expected 3.2%.

Eurozone annual inflation accelerated to 3.8% in September 2026, up from 3.2% in August and above market expectations of 3.6%, according to preliminary estimates. The rate reached its highest level since September 2023 and remained well above the ECB’s 2% target, driven largely by a surge in energy prices amid continued fighting in the Middle East. Energy inflation jumped to 18.8%, its highest level since January 2023. Price growth also accelerated for services, to 3.2% from 3.0%, and unprocessed food, to 4.0% from 2.7%. Core inflation, which excludes energy and food, rose to 2.5% from 2.4%, in line with expectations. Among the euro area’s largest economies, inflation accelerated in Germany to 3.3% from 2.9%, France to 3.4% from 2.6%, Spain to 5.0% from 4.6%, Italy to 4.1% from 3.2%, and the Netherlands to 3.0% from 2.8%.