Nvidia, Micron and Jobs Report Drive Last Week’s Market Action

Stocks concluded a volatile week on a positive note Friday, following a monthly jobs report that delivered a Goldilocks reading for investors—moderate enough to avoid inflationary concerns yet soft enough to alleviate recession fears. While the gains fell short of pushing all three major indexes into weekly territory, the Nasdaq eked out a 0.45% advance, led by continued momentum in artificial intelligence assets. Nvidia notched a record intraday high not seen since May, and names including CrowdStrike, Palo Alto Networks, and AMD also hit all-time highs.
A tale of two data points
The employment snapshot showed U.S. payrolls grew by 29,000 in September, with the unemployment rate edging up to 4.2%, notably below the Dow Jones consensus of 84,000 jobs and a 4.1% jobless rate. The undersized gain reinforced expectations the Federal Reserve will hold rates steady at its late-October meeting, a view reinforced by Wednesday’s cooler-than-expected August personal consumption expenditures price index, the Fed’s preferred inflation gauge. Combined, the data shifted market odds to a 78% probability of a hold in October, up from 36% a week prior according to the CME FedWatch tool. Friday’s report was sufficient to push shares higher after a challenging week: the Dow added 0.5%, the S&P 500 gained 0.7%, and the Nasdaq climbed 1.2%, briefly touching a record intraday level before modest retracement. Adding to the upbeat tone, oil prices pulled back Friday on reports European nations are considering releasing strategic fuel reserves, easing a lingering drag on equity sentiment.
Micron’s bullish outlook
Semiconductor name Micron delivered a blowout quarter Wednesday, with revenue surging 379% year-over-year to $54.23 billion and adjusted earnings of $33.42 per share topping estimates. More importantly, management painted a strong picture of sustained supply-demand imbalance, guided for $61.5 billion in revenue and $38.15 in adjusted EPS for fiscal first-quarter 2027—both above consensus. Despite the positive numbers, shares slipped 0.7% by week’s end, as investors weighed plans to expand manufacturing capacity, which could eventually pressure memory pricing. The company noted roughly 75% of expected 2027 output is already spoken for, and strategic customer agreements rose to 26 from 16 last quarter, offering greater forward visibility. Cramer highlighted the outlook as “the best I’ve ever heard,” with further momentum expected when CHIPS Act funding restrictions ease in December, potentially enabling a significant share buyback. The firm raised its price target to $1,200 from $1,100 and maintained a buy-equivalent rating.
Nvidia’s expanded buyback program
Nvidia answered calls for greater shareholder returns by authorizing an additional $150 billion in repurchases, bringing total authorized buybacks to $235 billion. Wall Street projects roughly $440 billion in free cash flow over the next six quarters, giving management ample capacity to repurchase shares without compromising AI leadership investments. The move addresses a notable disconnect: Nvidia’s stock has risen roughly 24% year-to-date, yet lagged within the iShares Semiconductor ETF, even as adjusted EPS more than doubled in consecutive quarters. Friday’s trading saw the name punch through its prior May intraday high, though it fell short of a closing record. The expanded buyback, as Jim Cramer noted during Friday’s Morning Meeting, strengthens the investment case, even though the increase falls short of the $500 billion initially urged. For now, Nvidia remains the stock to own.

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