The major U.S. stock indexes finished the week on a positive note, taking back some losses but failing to entirely erase the week’s declines.<\/p>\n
The S&P 500 on Friday added 1% and the tech-focused Nasdaq Composite Index rose 0.9%. The Dow Jones Industrial Average jumped almost 500 points. <\/p>\n
It was an upbeat end for a turbulent week for stocks amid broad concerns about the U.S. labor market and about whether Big Tech companies \u2014 responsible for much of the market’s gains this year \u2014 will be able to justify their sizable investments in artificial intelligence.<\/p>\n
Even with Friday’s rally, the S&P 500 was down about 1.8% on the week. It’s up about 12% on the year. The Nasdaq was similarly down 2.7% on the week and up 15% for the year. <\/p>\n
Two major U.S. companies were crucial to the week’s bumpy ride: Nvidia and Walmart. <\/p>\n
Nvidia, now the world’s most valuable company thanks to its dominance of the AI computer chip market, reported strong earnings<\/a>, adding a boost on Wednesday. Walmart earnings on Thursday added to that positive outlook<\/a>. <\/p>\n But a middling jobs report<\/a> \u2014 showing a solid 119,000 jobs added in September but downward revisions in other months along with a slightly higher unemployment rate \u2014 offered a more pessimistic outlook. Persistent inflation combined with a job market that isn’t weak enough to warrant immediate alarm have put the Federal Reserve in a tough position when it comes to setting interest rates. <\/p>\n Interest rate cuts generally make borrowing money easier throughout the economy and usually boosts investor appetite for stocks. Expectations of a cut had declined sharply Thursday, but they were given a jolt on Friday when John C. Williams, president of the Federal Reserve Bank of New York, said that he thought another rate cut could be in order<\/a>. <\/p>\n In October, the Fed cut its benchmark interest rate<\/a> for the second time this year. President Donald Trump has been pushing for even deeper reductions in the rate. <\/p>\n