The 10-year U.S. Treasury yield climbed to a 24-year high, soaring past 5.3% to levels last seen in 2002.
- For the month ended Sept. 30, the S&P 500 and Nasdaq indexes closed in the green, while the Dow ended the month about 3.5% lower.
- On Wednesday, U.S. PCE inflation came in lighter than expected.
- Meanwhile, Micron Technology posted fourth-quarter results, delivering another blowout quarter and a stronger-than-expected outlook.
U.S. stock futures traded higher in the overnight session late Wednesday, even as long-dated bond yields surged to multi-decade highs ahead of the initial jobless claims data due Thursday.
As of 10:13 p.m. EDT, Dow futures were up 0.07%, the S&P 500 futures had gained 0.32%, while Nasdaq-100 futures rose 0.44%.
On Wednesday, the three benchmark indexes closed mixed. The Dow Jones Industrial Average fell 0.86%, while the S&P 500 slipped 0.25%. The Nasdaq Composite climbed 0.24% at close.
| Index | Move | Close |
| Dow Jones Industrial Average | -0.86% | 50,906.05 |
| S&P 500 | -0.25% | 7,651.54 |
| Nasdaq Composite | 0.24% | 26,861.06 |
For the month ended Sept. 30, the S&P 500 and Nasdaq indexes closed higher, while the Dow ended the month about 3.5% lower. Markets struggled with soaring oil prices and a surge in Treasury yields during the month, stoking fears of additional rate hikes from the Federal Reserve.
Key US Market Drivers
Rising long-dated Treasury yields were top of mind for U.S. markets on Wednesday. The 10-year U.S. Treasury yield climbed to a 24-year high, soaring past 5.3% to levels last seen in 2002.
The 30-year Treasury bond yield was trading at 5.652% at the time of writing, also crossing multi-decade highs.
Economist Peter Schiff noted the rising yields, saying in a post on X that “This is how bear markets work.” Schiff said that after an initial rally following a lower-than-expected rise in August's personal consumption expenditures, Treasuries sold off to new lows. “It's still early in what will be the biggest bond bear market in history,” he added.
On Wednesday, U.S. PCE inflation came in lighter than expected. The Fed’s preferred gauge of inflation rose 3.4% year over year in August, below the 3.7% forecast, while core PCE increased 3%, also undershooting expectations.
Meanwhile, Micron Technology (MU) posted fourth-quarter results, delivering another blowout quarter and a stronger-than-expected outlook. However, the company's shares were flat at close.
Nike (NKE) is expected to report earnings after the bell on Thursday.
On the economic front, investors are looking ahead to initial jobless claims, due Thursday, and the September jobs report, due Friday.
Meanwhile, oil prices were trading above $100 a barrel. At the time of writing, Brent crude futures expiring in November were trading at $103.53 a barrel, while WTI crude futures expiring in November traded at $90.35 per barrel.
Trending Stocks To Watch
Micron Technologies (MU): Shares of the chipmaker were on the retail radar after it reported Q4 revenue of $54.23 billion, up 379%, while adjusted earnings per share reached $33.42. The company also expects first-quarter revenue of about $61.5 billion.
Nike Inc. (NKE): Shares of the shoemaker drew attention on Stocktwits ahead of its first-quarter (Q1) results expected on Thursday.
ImmunityBio Inc. (IBRX): The clinical-stage biotechnology company’s shares broke above a key resistance level around $9.44 on Wednesday, extending a September rally that has put it on track for its strongest monthly gain since February.
Constellation Energy Corporation (CEG): The nuclear power stock was on the retail radar after it announced a 20-year power purchase agreement with Amazon.com Inc. (AMZN) that will add 190 MW of nuclear capacity at Calvert Cliffs, Maryland.
Other Market Trends
Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY), the SPDR Dow Jones Industrial Average ETF Trust (DIA) and the Invesco QQQ Trust (QQQ) all climbed higher overnight.
The iShares 20+ Year Treasury Bond ETF (TLT) was down 0.57% amid ‘neutral’ sentiment.
Asian markets opened mixed on Thursday. South Korea's KOSPI was trending lower, while Japan’s Nikkei 225 and China’s SSE Composite climbed at the open. Australian stocks were also trending lower at the time of writing.
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