Stocks Rise as Yields Drop From Multi-Decade Highs: Markets Wrap
(Bloomberg) — A rebound in Treasuries brought relief to Wall Street, spurring gains in stocks and overshadowing concerns about inflationary pressures stemming from elevated energy costs.
The respite in the bond selloff sent 10-year yields down from the highest since 2002. The S&P 500 erased a drop that had been fueled by factory data showing a surge in a gauge of raw-material prices. Oil climbed amid ongoing geopolitical risks. The Pentagon may soon deploy an additional aircraft carrier and 10,000 troops to the Middle East, according to a US official.
An unwinding of crowded positions helped fuel the bounce in Treasuries, which also rose as France’s fiscal woes boosted haven demand. Also underpinning gains were remarks from Federal Reserve Vice Chair Philip Jefferson, who said it may take more time to judge whether further interest-rate increases are needed.
He echoed comments from New York Fed President John Williams, who on Tuesday said there was no urgency in considering another hike after the Federal Open Market Committee’s decision to lift rates in September.
“We continue to think the Fed remains oriented towards a limited two or three hike mini-cycle in the base case,” said Krishna Guha at Evercore. “It does not currently see demand so strong as to create obvious danger of demand-driven overheating risk.”
“We think Jefferson’s comments are consistent with our view that an October hike is now unlikely,” said Goldman Sachs Group Inc. economists led by Jan Hatzius. “We continue to expect the second hike in December, and we see a strong chance that the FOMC will ultimately conclude that additional rate hikes are unnecessary.”
Also on Thursday, Fed Vice Chair for Supervision Michelle Bowman said the central bank needed more time to better understand the economy’s underlying trends.
Meantime, Fed Bank of Minneapolis President Neel Kashkari told Bloomberg Television he doesn’t know how high rates will have to go to cool prices, adding it’s the central bank’s job to tame inflation after five years of supply shocks.
In the run-up to key payrolls figures, data showed US companies announced the fewest number of job cuts for any September since 2022. Weekly jobless claims edged down to the lowest level since July — indicating healthy labor-market conditions.
Economists estimate the jobs report due Friday will show nonfarm payrolls rose 90,000 after climbing in the prior month by the most since March. The unemployment rate is seen remaining at a one-year low of 4.1%.
Corporate Highlights:
Nike Inc. reported worse-than-expected results, with the company citing weakness in China as well as in sportswear and at the Jordan brand. Anthropic PBC is set to meet prospective investors on Oct. 14 in preparation for its initial public offering, according to people familiar with the matter, advancing its plan for a potential blockbuster listing even amid scrutiny over AI safety. Micron Technology Inc. gave an upbeat forecast for the current quarter, fueled by the AI building frenzy, though the chipmaker warned that rising compensation would weigh on profit margins. Amazon.com Inc. has agreed to purchase 690 megawatts of power from Constellation Energy Corp. in a deal that will help the biggest US nuclear operator boost capacity at the only reactors in Maryland. Accenture Plc, the technology consulting firm that’s under pressure to show it can help clients adopt AI and can undergo such a transition itself, reported that it booked more business in the fourth quarter than analysts had expected. Some of the main moves in markets:
Stocks
The S&P 500 rose 0.2% as of 4 p.m. New York time The Nasdaq 100 rose 0.3% The Dow Jones Industrial Average was little changed The MSCI World Index fell 0.2% Currencies
The Bloomberg Dollar Spot Index rose 0.4% The euro fell 0.8% to $1.1243 The British pound fell 0.5% to $1.3199 The Japanese yen fell 0.5% to 158.13 per dollar Cryptocurrencies
Bitcoin rose 1.4% to $84,822.01 Ether rose 0.9% to $2,704.65 Bonds
The yield on 10-year Treasuries declined five basis points to 5.24% Germany’s 10-year yield declined eight basis points to 3.51% Britain’s 10-year yield declined three basis points to 5.40% The yield on 2-year Treasuries declined 10 basis points to 4.78% The yield on 30-year Treasuries declined two basis points to 5.61% Commodities
West Texas Intermediate crude rose 2.9% to $93.08 a barrel Spot gold rose 0.5% to $4,177.35 an ounce ©2026 Bloomberg L.P.
