Key Highlights

  • Intel finished among the top 17 performers in the S&P 500 on Friday and ranked among the Nasdaq-100's top gainers, with no company-specific news confirmed for the day.
  • The September jobs report added just 29,000 jobs against roughly 84,000 expected, with July and August revised down by a combined 60,000, cutting odds of an October Federal Reserve hike.
  • Teradyne topped the S&P 500, Onsemi rallied on its revised Synaptics deal, and Nvidia hit a record high the same session, while Treasury yields reversed to close higher, raising the Cost of Capital for Intel's large Manufacturing projects.
  • Health care was the only sector to fall, Nike sank after weak results, and hard-drive makers Seagate and Western Digital plunged on a Toshiba capacity report.

Intel (NASDAQ:INTC), the company that built the personal-computer era and is now trying to rebuild itself as a contract chip manufacturer, joined Friday's chip party. Shares climbed and finished among the top 17 performers in the S&P 500. It also ranked among the top gainers in the Nasdaq-100. No company-specific news was confirmed for the day. Intel moved with the broad semiconductor rally. Market commentary pointed to general discussion of Intel's 18A manufacturing process and foundry progress, but no fresh announcement was identified.

The Day Chips Caught Fire

The rally began with the September jobs report. The US economy added only 29,000 jobs against expectations of around 84,000, and July and August were revised down by a combined 60,000. Average hourly Earnings grew at the slowest annual pace since May 2021.

For the Federal Reserve, which raised rates on September 16 for the first time since 2023, the soft data argued for patience. Traders sharply cut the odds of an October hike, which earlier in the week had looked likely.

Semiconductors were among the biggest winners. Teradyne topped the S&P 500, Monolithic Power Systems and Microchip jumped, Onsemi rallied on a revised all-cash Synaptics deal, and AMD, Texas Instruments, Analog Devices and KLA all climbed. Nvidia hit a record high during the session after Morgan Stanley named it its top semiconductor pick. Broadcom recovered from an early dip to close higher.

The Nasdaq-100 closed at a record 30,807.93, up 306.37 points. The S&P 500 added 56.27 points to 7,722.72, and the Dow rose 250.40 points to 51,176.96.

Why Intel Is a Special Case

Intel is not a pure play on the AI boom in the way Nvidia is. The company is spending heavily to catch up in advanced chip manufacturing and to win outside customers for its factories. That makes it sensitive to two things: confidence in the overall chip cycle, and the cost of funding big projects.

On Friday, the first Factor was clearly positive. The second was more mixed. Treasury yields fell right after the jobs report, then reversed to close higher, with the 10-year near its highest level since 2002. Higher long-term rates raise the cost of capital for companies with large building programmes.

A Narrow and Nervous Market

The chip rally masked weakness elsewhere. Most S&P 500 stocks still trade below their 50-day moving averages. CNN's Fear & Greed index was 31, in Fear territory, though up from 28.

Health care was the only sector to fall. Nike sank after weak results, and hard-drive makers Seagate and Western Digital plunged after reports said Toshiba plans to double its hard-drive capacity.

Geopolitics also hangs over markets. The US is sending about 9,000 troops to the Middle East, and President Trump called Iran's latest ceasefire proposal not good enough.

The Fed and Foundry Updates to Watch

The Federal Reserve's October 27-28 decision is the next big test for chip stocks, which have swung sharply on rate expectations.

Earnings season begins with PepsiCo on October 8, Delta on October 9 and major banks on October 13 and 14. Chip equipment maker ASML reports in mid-October, and its comments on foundry spending could be relevant for Intel's manufacturing ambitions. Investors will also look for any concrete updates on Intel's 18A process and foundry customers.