Mixed US Stock Open as Treasury Yields and Oil Prices Weigh on Markets
US stocks kicked off the week with mixed performances as investors weighed elevated Treasury yields and climbing oil prices against the backdrop of Federal Reserve policy expectations. The Dow Jones Industrial Average dropped 98 points, while the S&P 500 and Nasdaq Composite posted modest gains of 0.2% and 0.43%, respectively. The subdued start came after a strong session for tech stocks on Friday, driven by weaker-than-expected jobs data that eased expectations of an October rate hike.
Chip stocks faced pressure, with Intel and Micron Technology falling 2.4% and 0.83%, respectively, while Nvidia edged higher by 1.28%. Investors also turned their attention to the upcoming earnings season, with around 70% of S&P 500 companies set to report results by the end of October. Analysts at Goldman Sachs anticipate a 9% year-over-year increase in median earnings for the S&P 500. Notable individual stock movements included PTC surging 35.7% after a $22.6 billion acquisition by Schneider Electric, RXO rising 23% following a $5.8 billion deal with C.H. Robinson Worldwide, and Cerebras Systems gaining 4.4% after a nod from OpenAI CEO Sam Altman.
Treasury yields remained high, with the 10-year yield hovering around 5.30% and the 30-year yield near 5.66%, as investors assessed inflation risks and government debt issuance. The Federal Reserve’s September meeting minutes, set for release on Wednesday, will provide further insights into its rate hike plans. Markets currently see an 80% chance of no change in October, but expectations for a December rate hike remain strong. Additionally, oil prices remained a key focus, with Brent crude futures and West Texas Intermediate down slightly amid concerns over Gulf oil infrastructure disruptions.
US stocks entered October following a volatile week marked by rising Treasury yields and a weaker-than-expected jobs report. While the labor-market data provided some relief to equities, investors remain cautious about broader risks, including higher yields, oil prices, and geopolitical uncertainty.