The week exposed a widening gap between technology resilience and broader market pressure. Nasdaq gained 0.45%, while the S&P 500 fell 0.27%, Dow declined 1.26% and Russell 2000 fell 0.16%. The divergence became especially visible after Friday’s weak U.S. jobs report shifted expectations around Federal Reserve policy.

U.S. Markets: Technology Holds Up as Jobs Data Shift Rate Expectations

September payrolls increased by only 29,000, below the 90,000 economists had expected, while unemployment rose to 4.2%. Reuters reported that the weaker labor data reduced expectations for another October Fed rate increase, supporting technology and smaller-company shares. Nasdaq rose 1.19% on Friday and Russell 2000 gained 0.94%, helping cushion earlier losses, but the weekly figures still showed the Dow and broader large-cap market under greater pressure.

Bonds, the Dollar and Inflation Remain Central

The U.S. Dollar Index gained 0.72% over the supplied five-day period. Meanwhile, elevated government bond yields continued to pressure global equities. Reuters reported that the U.S. 10-year Treasury yield reached 5.34% during the third quarter, while the latest European selloff was linked to multi-year highs in government yields. European markets reflected that strain: MSCI Europe fell 1.82%, FTSE 100 declined 2.18%, CAC 40 fell 2.24% and DAX declined 0.70%. Euro-zone September inflation was estimated at 3.8%, up from 3.2% in August, keeping monetary policy concerns firmly in focus.

Asia Diverges as Japan and Korea Outperform China and Hong Kong

Asian performance was uneven. Nikkei gained 3.69% and KOSPI rose 1.65%, while Hang Seng fell 3.19% and Shanghai SSE Composite declined 2.78%. Reuters reported that mainland Chinese shares received some support from policy pledges to stabilize the property market, although trading liquidity was thin before the National Day holiday. The contrast with Hong Kong underscores how regional markets were responding differently to domestic policy, sector exposure and global funding conditions.

Israeli Market Declines, but Sector Performance Was Mixed

The supplied five-day data show TA-35 falling 0.56% and TA-125 declining 1.16%. On October 1, however, the TA-35 gained 0.34% while TA-125 fell 0.08%; banking and technology shares both advanced that day, according to Globes. The weekly data therefore do not point to a uniform sector retreat. They also do not establish whether institutional flows, banks, defense companies or another group was the main driver, making sector-specific attribution inappropriate without additional evidence.

October’s Next Test Is the Inflation-Growth Balance

The next market test is whether softer U.S. hiring will ease rate pressure without raising broader concerns about economic momentum. Reuters reported that the jobs report reduced near-term expectations for an October Fed hike, while inflation and energy costs remain important risks. Investors will therefore be watching Treasury yields, oil prices, European inflation and whether technology leadership broadens beyond the largest U.S. growth stocks as the fourth quarter develops.