Nasdaq rises as payroll data lifts rate-hike bets; SpaceX jumps

Market moves after the jobs report

TradingKey reported that U.S. stocks diverged on Friday, November 6, Eastern Time. The Nasdaq Composite rose 1.09% to 24,579.42, and the S&P 500 gained 0.31% to 7,376.86. The Dow Jones Industrial Average fell 0.46% to 51,285.73. The outlet said chip stocks drew some buying after a steep drop the day before, helping the Nasdaq and S&P 500 recover while the Dow stayed weak.

TradingKey said stronger-than-expected U.S. employment data pushed traders to increase expectations for a Federal Reserve rate hike in December. It said short-term interest rate futures fell after the release of the October labor report.

Semiconductor stocks and SpaceX

TradingKey reported that semiconductor shares rebounded sharply. The Philadelphia Semiconductor Index rose 4.21% to 9,390.25, with 28 of its 30 members higher and 2 lower.

SpaceX shares, trading under the ticker SPCX, rose 8.62% to $134.27. TradingKey said Elon Musk said in an interview that he still expects SpaceX annualized revenue to exceed $500 billion by the end of 2027. He called that his most reasonable forecast. Musk also said a $1 trillion outcome is not impossible, but he personally put the odds at about 2%. He said he expects annualized revenue in the fourth quarter of 2026 to exceed $100 billion, about 70% above the third quarter, and that the U.S. government’s share of revenue should be below 10% this quarter and below 5% a year later. TradingKey noted that Musk described these figures as his personal expectations rather than commitments.

Microsoft, Oracle and OpenAI

TradingKey reported, citing Bloomberg and people familiar with the matter, that Microsoft has decided not to renew an AI computing lease with Oracle and has been phasing out the related resources in recent months. The people said Oracle’s servers use older-generation Nvidia chips that no longer fit Microsoft’s current technical needs. The two companies made the deal in 2023 to supply computing for Bing’s AI search engine, but the contract value was not disclosed. Oracle said demand for its AI infrastructure remains strong and that older-generation GPUs still have a market. TradingKey also said Microsoft is reviewing outside computing partnerships and had previously committed more than $80 billion in computing lease spending to cloud providers including CoreWeave, Nscale and Nebius.

TradingKey reported that OpenAI chief financial officer Sarah Friar told CNBC the company will not change its AI infrastructure investment plans because of the election results. She said OpenAI will keep working with major cloud providers and raising capital to meet customer demand. Friar said AI demand is real and still growing. She also said OpenAI will try to improve communication with local communities as it faces scrutiny over data center construction and concerns about electricity prices, the environment and jobs. TradingKey said OpenAI confidentially filed for an IPO with the U.S. SEC in June. Friar said the company is still considering going public in 2027 and is also negotiating a new funding round at a pre-money valuation of about $1.25 trillion.

TSMC’s memory-chip plans and the labor report

TradingKey reported, citing The Information and two people familiar with the matter, that TSMC is evaluating entry into advanced memory manufacturing and has begun planning 3D DRAM production at Nvidia’s request. The report said the effort is still in the evaluation stage and no mass-production timetable has been set. TradingKey explained that 3D DRAM stacks memory cells vertically to increase capacity density. It said Samsung Electronics, SK Hynix and Micron currently dominate memory chip manufacturing and are also developing 3D DRAM.

TradingKey also reported that the U.S. Bureau of Labor Statistics said October nonfarm payrolls rose by 165,000, above the 65,000 expected in a Reuters poll. The unemployment rate edged down to 4.1%, and job gains for the prior two months were revised higher. The agency said gains were led mainly by professional and business services and healthcare. TradingKey said the report showed labor-market resilience, which may let the Fed keep its attention on inflation, although officials will still receive another jobs report and later inflation data before their December meeting.