Thursday 1st of October 2027
🌍The market Story
Wall Street ended Wednesday mixed as cooler inflation helped technology stocks, but high bond yields kept pressure on the wider market.
The S&P 500 slipped 0.25%, the Dow fell 0.86%, while the Nasdaq gained 0.24%. August PCE inflation came in softer than expected, reducing fears of another Fed hike in October.
The problem remains the bond market. The 10-year Treasury reached 5.31%, its highest since 2007, although it has eased slightly this morning. Oil is also falling, giving markets some welcome relief.
The new quarter begins with inflation improving, but interest rates still unusually high.
📊 Market Snapshot
US Markets:
Index | Close | Daily Move |
|---|---|---|
S&P 500 | 7,651.54 | -0.25% |
Nasdaq | 26,861.06 | +0.24% |
Dow Jones | 50,906.05 | -0.86% |
Russell 2000 | 2,796.86 | -0.39% |
Market Takeaway: Technology held up well, but most US stocks fell as high bond yields remained a concern.
Key Markets:
Gold: $4,162/oz
Gold remains under pressure as high bond yields reduce its appeal.
Oil: $96.86 per barrel
Oil is falling again as hopes grow for progress between the US and Iran.
Bitcoin: mid-$80,000s
Bitcoin enters October well above its summer lows, although high yields remain a headwind.
Dollar: The dollar remains relatively strong, supported by high US interest rates.
🔎 Why Markets Moved
1. Inflation was softer than expected
PCE inflation rose 3.4% year-on-year, below the 3.7% expected.
Why markets cared: Lower inflation reduces the pressure on the Fed to raise rates again.
2. Bond yields stayed high
The 10-year Treasury reached 5.31%.
Why markets cared: High yields make bonds more attractive compared with stocks.
3. Technology remained strong
Microsoft, Apple and Nvidia all gained, helping the Nasdaq finish higher.
Why markets cared: AI and large technology companies continue to support the wider market.
Biggest Winners 📈 & Biggest Losers 📉
Winners -
🟢 FormFactor: +9.6%
Jumped after receiving a positive analyst upgrade.
🟢 HPE: +3.9%
Raised its long-term networking outlook and announced a $1.2 billion AI server deal.
🟢 GameStop: +3.8%
Rose after CEO Ryan Cohen purchased additional shares.
Losers -
🔴 Jabil: -10.0%
Fell despite strong results and an upbeat 2027 outlook.
🔴 Cerebras: -8.9%
Dropped following reports that OpenAI had chosen Nvidia chips over its hardware.
🔴 Moderna: -5.3%
Fell after Citi downgraded the stock to Sell.
⚠️ Key Risks
1. Bond yields remain above 5%
Why it matters: High borrowing costs could eventually slow the economy and pressure stocks.
2. Oil remains volatile
Brent has fallen below $100, but Middle East tensions remain unresolved.
Why it matters: Another oil spike could quickly bring inflation concerns back.
3. Economic growth stays too strong
US GDP growth was revised up to 2.2%.
Why it matters: Strong growth is positive, but it can also keep inflation and interest rates higher.
👀 What To Watch Today
1. ISM Manufacturing
Today’s manufacturing report will give another update on the strength of the US economy.
2. Jobless Claims
Investors will be looking for signs that the labour market is starting to cool.
3. Treasury Yields
The 10-year remains around 5.28%.
A move lower would give stocks some breathing room.
4. Micron
Micron reported very strong results after Wednesday’s close, driven by booming demand for AI memory chips.
Its reaction today could set the tone for semiconductor and AI stocks.
Bottom Line
Cooling inflation is good news, and falling oil prices are giving markets some relief.
But with the 10-year Treasury still around 5.3%, high interest rates remain the biggest challenge for stocks.