Markets Rally on Softer Jobs Data While Tech Giants Rise and Storage Stocks Slide

U.S. equities surged on Friday following a weaker-than-anticipated employment report that reduced expectations for near-term interest rate increases. Semiconductor leaders including Nvidia and Arm gained substantially as artificial intelligence momentum continued to dominate market sentiment, though storage device manufacturers Seagate and Western Digital declined sharply after reports of Toshiba's capacity expansion plans. Mixed signals emerged from other sectors, with electric vehicle makers outperforming while apparel retailers faced headwinds from cautious outlooks.

U.S. equity markets climbed Friday following employment figures that came in below expectations, reducing the likelihood of aggressive Federal Reserve rate hikes in the near term. This development proved supportive for stocks broadly, while semiconductor stocks—particularly those tied to artificial intelligence infrastructure—extended their recent gains. Nvidia reached historic price levels and Arm advanced sharply following announcements of expanded partnerships in AI systems.

The session revealed sharp divides across sectors. Beyond technology strength, electric vehicle manufacturers demonstrated resilience with delivery reports exceeding forecasts. Conversely, apparel and specialty sectors struggled; Nike faced particular pressure after missing revenue targets and signaling operational challenges ahead. Storage device makers absorbed significant losses after reports emerged of planned industry capacity additions that could reshape competitive dynamics.