Traders work on the floor at the New York Stock Exchange in New York City, U.S., Sept. 29, 2026.
Jeenah Moon | Reuters
Stocks posted modest gains on the first trading day of October, clawing back earlier declines as Treasury yields retreated from their highest levels in more than 20 years.
The S&P 500 added 0.19% to close at 7,666.45, and the Nasdaq Composite eked out a 0.04% gain to end at 26,871.60. The Dow Jones Industrial Average inched up 20.51 points, or 0.04%, to 50,926.56.
The 10-year U.S. Treasury yield hit an intraday high of 5.344% to reach its highest level going back to 2002. The 30-year bond yield also scaled to levels not seen in 24 years.
“I think there’s some fatigue in the bond market. We moved 50 basis points in 18 trading days after Fed Chairman [Kevin] Warsh kind of messaged at Jackson Hole that indeed a rate hike was coming,” said Jeff Kilburg, CEO of KKM Financial. “I think there’s also a little bit of optimism that this is going to be a short-lived move to 5%. Of course there has to be an Iranian solution for that to be enabled.”
Yields turned around by late-morning trading. The 10- and 30-year yields were last lower by 5 and 3 basis points, respectively. Declines were more extreme on the short end of the yield curve, with the 2-year yield tumbling 10 basis points.
Stocks of late have been moving opposite of yields. On days yields fell, stocks would rise. However, further gains in oil may have kept the equity market’s enthusiasm in check.
West Texas Intermediate crude futures gained 2.7% to settle at $92.87 a barrel as traders awaited President Donald Trump’s next move in the Iran conflict and considered whether he would wait until after the midterms before taking more military action.
Micron posted blockbuster earnings with revenue quadrupling last quarter. Shares closed up 3% on the day.
Micron is reaping 87% profit margins but is planning to increase worker pay, which will dampen margins relative to Street expectations. “We are very pleased and proud to be able to incentivize our team members in line with our record performance,” Micron CEO Sanjay Mehrotra told CNBC on Thursday.
