Stock Market Update
01-Oct-26 13:05 ET
Stocks recover from lows as Treasury yields retreat
Dow -83.28
at 50822.68,
Nasdaq -54.29
at 26827.81,
S&P -6.33
at 7645.31
[BRIEFING.COM] The S&P 500 (-0.1%), Nasdaq Composite (-0.2%), and DJIA (-0.2%) have recovered from their session lows and are approaching their flat lines at midday, helped by a reversal lower in Treasury yields and continued strength across several technology and AI-infrastructure stocks.
The broader market is also recovering after losses widened considerably during the morning. The Russell 2000 (-0.3%) remains modestly lower but has moved off its low, while the S&P Mid Cap 400 (+0.8%) is a notable outperformer.
Treasury yields were a significant early headwind. Longer-dated yields returned to their overnight highs during the morning as generally solid economic data added to the recent pressure in the bond market. That move has since reversed across the curve, however, with the 10-year note yield now down seven basis points to 5.23%. The retreat in yields has coincided with the recovery in stocks from their session lows.
The information technology sector (+0.4%) continues to provide support at the index level, with strength extending across several areas tied to the AI trade. Accenture (ACN 216.10, +32.72, +17.85%) is among the session's standout performers after beating Q4 expectations, with the sharp gain reflecting increased confidence that AI is becoming a growth driver rather than a disruption risk as consulting growth and bookings improve. Synopsys (SNPS 482.36, +47.42, +10.90%) is also among the best-performing S&P 500 components following its Investor Day.
Semiconductor stocks are contributing as well, with the PHLX Semiconductor Index up 1.0% despite Micron (MU 1060.46, -4.65, -0.44%) trading lower following its better-than-expected Q4 results and strong Q1 guidance.
Strength in AI-infrastructure names is also benefiting the industrials sector (+0.8%), while the utilities sector (+0.5%) has improved alongside the retreat in Treasury yields.
The energy sector (+1.5%) remains the strongest-performing group as crude oil extends its recent advance. WTI crude is trading above $92 per barrel, providing another source of support for energy stocks.
Meanwhile, the communication services sector (-1.2%) sits at the bottom of the standings. Paramount Skydance (PSKY 9.46, -0.86, -8.37%) is the worst-performing S&P 500 component as investors digest news that its merger with Warner Bros. Discovery (WBD 30.93, -0.02, -0.06%) is expected to close on October 6. Alphabet (GOOG 333.96, -6.78, -1.99%) has also reversed a firm opening gain that followed the unveiling of Gemini 4 Argon.
The health care sector (-1.0%) is another notable laggard, with Amgen (AMGN 410.11, -11.40, -2.70%) among the weakest DJIA components.
Overall, stocks have regained considerable ground from their morning lows as the reversal in Treasury yields has eased one of the market's most prominent recent headwinds. Still, participation remains uneven, with strength concentrated in several technology, AI-infrastructure, and energy names while sizable losses in the communication services and health care sectors continue to limit the major averages.
Reviewing today's data:
- For the week ending September 26, initial jobless claims fell by 1,000 to 197,000 (Briefing.com consensus: 200,000). Continuing jobless claims for the week ending September 19 decreased by 11,000 to 1.701 million.
- The key takeaway from the report remains the same: layoff activity continues to run at low levels that reflect a solid demand environment.
- Sep S&P Global U.S. Manufacturing PMI - Final 55.9 (Briefing.com consensus 55.3; Prior 57.0)
- Construction spending increased 0.9% month-over-month in August (Briefing.com consensus: 0.3%) following a 0.1% decline in July. On a year-over-year basis, construction spending was down 1.7%.
- The key takeaway from the report was the strength seen in private construction, which included solid increases for both residential and nonresidential spending.
- The ISM Manufacturing Index decreased to 54.5% in September (Briefing.com consensus: 55.2%) from 54.6% in August. The dividing line between expansion and contraction is 50.0%, so the September figure suggests manufacturing activity expanded in September from the prior month but at a slightly slower pace.
- The key takeaway from the report is that it showed an ongoing expansion in manufacturing activity that was accompanied by a faster acceleration in prices paid, which will continue to foment concerns about pass-through effects for customers.
- 09/26 EIA Natural Gas Inventories +64 bcf (Prior +53 bcf)
