Key Highlights

  • Akamai Technologies closed as the seventh-best performer in the S&P 500 on Friday with no company-specific news found, moving instead with a broad AI-infrastructure and cloud rally.
  • The September jobs report added just 29,000 jobs against roughly 84,000 expected, cutting odds of another Federal Reserve rate hike at the October 27-28 meeting.
  • Hewlett Packard Enterprise, Super Micro Computer, Oracle, Dell and NetApp all climbed the same day, with Nvidia hitting a record high and the Nasdaq-100 closing at a record 30,807.93.
  • Market breadth stayed narrow and CNN's Fear & Greed index sat at 31, in Fear territory, even after rising, while Treasury yields reversed to close higher.

Akamai Technologies (NASDAQ:AKAM) is best known as one of the companies that quietly keeps the internet fast and safe, running a huge network of servers that deliver web content and block cyberattacks. In recent years it has also pushed into cloud computing, including services for running AI applications closer to users. On Friday, investors were in the mood for exactly that kind of exposure. Shares jumped and closed as the seventh-best performer in the S&P 500.

No Headline, Just Momentum

No company-specific news was found for Akamai on the day. The stock moved with a broad rally in technology and AI-infrastructure names that took hold after the morning's jobs report.

That report was weak. The US economy added just 29,000 jobs in September against expectations of about 84,000, private payrolls rose by only 46,000, and the previous two months were revised down by a combined 60,000. Average hourly Earnings grew at their slowest annual pace since May 2021.

For investors, the key implication was for the Federal Reserve. The Central Bank raised rates on September 16 for the first time since 2023, and markets had been pricing in another increase at the October 27-28 meeting. After the data, those hike odds collapsed, before partly recovering into the close.

Who Else Was Buying In

Commentary noted that investors were returning to AI-infrastructure names on Friday, and the evidence was everywhere. Hewlett Packard Enterprise closed at an all-time high after a $1.2 billion order from cloud provider Vultr. Super Micro Computer soared after NetApp announced a Partnership with it at the NetApp Insight conference. Oracle, Dell and NetApp all climbed. CoreWeave and Nebius, two specialist AI cloud providers, rose in the Nasdaq-100.

Nvidia hit a record high during the session after Morgan Stanley named it its top semiconductor pick. The Nasdaq-100 posted a record close of 30,807.93, while the S&P 500 gained 56.27 points to 7,722.72. Ten of 11 sectors rose.

For Akamai, Friday's trading put it alongside that group. The company's edge network and cloud services, which can run AI applications closer to users, give it a link to the wider AI build-out theme that investors were buying on the day.

The Cautionary Notes

The rally rested on a narrow base. Most S&P 500 stocks still trade below their 50-day moving averages, and CNN's Fear & Greed Index sat at 31, in Fear territory, even after rising from 28.

The Bond Market also refused to fully cooperate. Treasury yields fell right after the jobs data but reversed and closed higher, with the 10-year near its highest level since 2002. Persistently high yields raise the hurdle for technology stocks whose value depends on future profits.

The VIX Volatility index fell 1.08 points to 15.31, suggesting traders felt calmer on the day, but geopolitics remains a risk. The US is sending about 9,000 troops to the Middle East as the war with Iran approaches its eighth month.

Earnings Season Will Test the AI Spending Theme

The Fed's decision on October 28 is the next major test for rate-sensitive tech stocks such as Akamai. September Inflation data will feed into that decision.

Earnings season is close. PepsiCo reports on October 8, Delta on October 9, and the big banks, including JPMorgan, Wells Fargo, Citigroup and Goldman Sachs, on October 13, followed by Bank of America and Morgan Stanley on October 14. Analysts expect another quarter of strong double-digit earnings growth for the S&P 500. Any fresh signs of AI spending from hyperscalers and cloud providers will be watched closely for read-through to Akamai.