- US stocks recovered from early losses on Oct. 1 as Treasury yields pulled back from multiyear highs and semiconductor shares strengthened following Micron’s earnings report.
- US stocks started October with a volatile session, but the major indexes finished slightly higher as a retreat in Treasury yields helped ease pressure on equities. The S&P 500 gained 0.2%, while the Nasdaq Composite edged higher and the Dow Jones Industrial Average finished just above the flat line.
The rebound followed an early selloff as the 10-year Treasury yield climbed to around 5.3%, its highest level in more than two decades. The yield later declined to roughly 5.24%, helping stocks recover from their session lows.
Treasury Yields Reverse Higher as Stocks Recover
Bond-market volatility remained a major focus for investors entering the fourth quarter. The 10-year Treasury yield had risen sharply in recent sessions as markets reassessed the outlook for interest rates and inflation. The yield ultimately fell about 5.9 basis points to 5.233%, marking its largest one-day decline since late August, according to MarketWatch.
The move provided some relief for technology and growth stocks, which are particularly sensitive to changes in borrowing costs and long-term bond yields. Investors were also digesting fresh labor-market data ahead of the September employment report. Initial jobless claims fell to 197,000 last week, below economists' expectations for 200,000, according to Reuters.
Federal Reserve Vice Chair Philip Jefferson said the central bank needs time to assess whether inflation is moving lower as long-term Treasury yields remain elevated. The September jobs report was due Friday, making the data a key test for expectations surrounding the Federal Reserve's next interest-rate decision.
Micron Leads Semiconductor Rebound
Semiconductor stocks helped support the Nasdaq after Micron Technology Inc. (NASDAQ: MU) reported stronger-than-expected quarterly results and issued an upbeat outlook.
The memory-chip maker's results helped revive demand for technology shares after recent pressure from rising bond yields. Semiconductor stocks were among the strongest areas of the market during Thursday's recovery.
Accenture Plc (NYSE: ACN) also posted a sharp gain after reporting quarterly results, while energy stocks benefited from higher oil prices.
The broader market nevertheless remained sensitive to elevated yields and uncertainty surrounding inflation. The S&P 500 ended Thursday up about 0.2%, breaking a three-session losing streak, while the Nasdaq and Dow posted smaller gains.
The market's performance also came as investors weighed continued enthusiasm around artificial intelligence against higher financing costs. A report that Anthropic was considering an initial public offering helped lift some technology shares, while Broadcom Inc. (NASDAQ: AVGO) was also in focus following reports of financing tied to Anthropic's AI infrastructure expansion.