US Stocks Rebound as Treasury Yields Ease, Thursday, October 1, 2026

Market Wrap

US stocks recovered from an early dip on Thursday, October 1, 2026, and closed higher. The S&P 500 rebounded from an earlier two-week low, while the Nasdaq Composite finished in positive territory and the Dow Jones Industrial Average posted a modest gain. Major indices had come under pressure as US Treasury yields surged.

The Dow Jones Industrial Average rose 0.04%, closing at 50926.56. The S&P 500 gained 0.19% to finish at 7666.45, and the Nasdaq Composite added 0.04% to end at 26871.60. The Russell 2000, which tracks small-cap stocks, rose 0.39% to 2807.79.

The gains followed a mixed finish on Wednesday, when the S&P 500 dipped 0.25%, the Nasdaq climbed 0.24%, and the Dow was off 0.86%. As of Wednesday's close, both the S&P 500 and Nasdaq had recorded their second straight quarterly gains.

What Drove It

A reversal in the global bond selloff helped stocks recover. US Treasury yields retreated from earlier multi-decade highs after economic data initially pressured equities. The figures pointed to a solid economy and persistent price pressures, raising concern that inflation could push the Federal Reserve toward more aggressive rate hikes.

The benchmark 10-year Treasury yield hit its highest level since 2002 earlier in the day, then pulled back later in the session. US manufacturing data released Thursday showed that activity was little changed in September, while prices for inputs surged amid strong demand. The 10-year US Treasury yield still ended at 5.244%, slightly above Wednesday's 5.241%.

On Wednesday, cooler-than-expected inflation data had tempered expectations for rate hikes. The US Commerce Department reported that the Personal Consumption Expenditures (PCE) Price Index increased 3.4% on an annual basis in August, below economists' estimate of 3.7%. Rising crude prices kept inflation concerns in view, however, and long-dated US Treasury yields moved higher for the seventh straight day on Wednesday.

Sector Highlights

Constellation shares rose after the company signed a 20-year power deal with Amazon. Accenture shares reached a 7-1/2 month intraday high during the session.

Moderna had fallen on Wednesday after Citigroup downgraded the stock to 'sell'. Micron shares were down on Thursday despite an upbeat earnings report. The KBW Nasdaq Bank Index slipped 0.17% on Thursday.

Precious Metals & Commodities

Gold prices rose on Thursday, with gold futures gaining 0.46% to reach $4206.10. That followed a 0.37% gain on Wednesday, when gold closed at $4202.40.

Crude Oil futures climbed 3.15% on Thursday to $93.27 per barrel. On Wednesday, they rose 2.79% and closed at $92.94. The rise in crude prices added to inflation concerns.

The US Dollar Index (DXY) gained 0.36% on Thursday, closing at 97.41. It had risen 0.44% on Wednesday to 97.49.

After reaching its highest level since 2002 earlier in the day, the US 10-year Treasury yield finished Thursday at 5.244%. It had closed at 5.241% on Wednesday.

What to Watch Tomorrow

No specific earnings reports or data releases for Friday, October 2, 2026, were provided in the sources. Investors will likely keep watching Treasury yields and further economic data for signals about the Federal Reserve's monetary policy stance. Geopolitical developments and corporate news will also remain factors.

Bottom Line

Thursday's session showed the market's continued sensitivity to Treasury yields. Stocks found support when bond selling eased, but persistent inflation concerns and signs of economic resilience remain central to expectations for interest rates.