The S&P 500 closed at 7,722.72 on October 2, 2026, roughly 1% below its August record near 7,817, after a 0.73% rally on softer-than-expected September nonfarm payrolls of just 29,000 that tempered expectations for further Federal Reserve rate hikes following the September 25-basis-point increase to the 3.75-4.00% target range. Traders are now pricing lower odds of additional tightening this year amid cooling labor market signals and resilient corporate profits, with Q3 earnings season set to begin and consensus estimates calling for 29% year-over-year growth. Valuations sit near 19 times forward earnings, close to historical averages, while elevated Treasury yields above 4.8% on the 10-year continue to influence risk appetite into month-end.