US stocks rise as tech shares recover, Treasury yields retreat from 24-year highs
US Treasury yields fell for the week ended October 9 as the recent selloff in government bonds eased, bringing another eventful week to a close. Investors are now looking ahead to the September consumer price index (CPI) report, scheduled for Wednesday (October 14), which could influence the Federal Reserve’s next interest rate decision.
Yields on long-term US government bonds retreated from recent highs after investors showed strong demand at Treasury bond auctions, The Wall Street Journal reported. The 10-year Treasury yield fell by 3.3 basis points over the week to 5.243%. The two-year Treasury yield dropped by 3.4 basis points to 4.789%.
Treasury yields rose on Friday, however, reversing part of their decline earlier in the week, Reuters reported.
US stocks rise as tech shares recover
US stocks rose on Friday as technology shares recovered from recent losses, helping Wall Street end a volatile week on a positive note. Investors had been dealing with rising US Treasury yields, high oil prices and concerns about the outlook for artificial intelligence (AI) companies.
The Nasdaq Composite gained 0.64% to close at 27,366.17. The S&P 500 rose 0.59% to 7,811.54, while the Dow Jones Industrial Average climbed 423.31 points, or 0.83%, to end at 51,654.95.
Trump announces diesel deal with Russia
US President Donald Trump announced a deal with Russia to supply diesel to global markets in an effort to ease rising energy prices and inflation.
In a post on Truth Social, Trump said Russia would immediately supply more than 300,000 tons of diesel, followed by 500,000 tons in November and another 1 million tons immediately afterwards. Moscow would then deliver a further 3 million tons, he said.
The US Treasury Department’s Office of Foreign Assets Control issued a licence on Friday authorising transactions involving Russian diesel.
Higher energy prices have added to concerns about inflation, making the upcoming consumer price data particularly important for investors.
Oil prices ended slightly higher on Friday. West Texas Intermediate crude futures settled at nearly $92 a barrel, while Brent crude futures closed above $104. Both contracts fell slightly after Trump’s announcement, which came after the settlement.
Trump also established a committee to investigate allegations that Federal Reserve Governor Lisa Cook made false statements in mortgage documents, according to a White House memorandum dated October 7. Cook has denied wrongdoing. The Associated Press reported that the move was likely to renew concerns about the Fed’s independence.
Treasury yields rise but remain below recent highs
Earlier on Friday, Treasury yields rose but remained below their recent highs as oil prices eased.
At 9 am ET, the 10-year Treasury yield stood at 5.250%, up from Thursday’s closing level of 5.232%. The two-year yield rose to 4.785% from its previous settlement of 4.753%.
Investors were also watching the University of Michigan’s Consumer Sentiment Index, due at 10 am ET. A Wall Street Journal consensus forecast expected the index to rise slightly.
September inflation data in focus
Markets have turned their attention to the US Consumer Price Index (CPI) for September, which is due next Wednesday.
The inflation figures are expected to help guide the Federal Reserve’s next interest rate decision. Markets are currently pricing in a pause in rate changes at the Fed’s upcoming meeting, which is expected to take place two weeks after the inflation report.
The data could influence expectations for interest rates and determine whether investors remain willing to buy US government bonds despite concerns about inflation and rising borrowing costs.
The US earnings season will gather pace next week, with several major banks and healthcare companies scheduled to report their results.
All three major indexes post weekly gains
Despite the volatility amid elevated Treasury yields, all three major US stock indexes ended the week higher. The Nasdaq gained 0.6% over the five-day period, while the Dow rose 0.9%. The S&P 500 advanced around 1.2%.
The benchmark 10-year Treasury yield had reached a 24-year high on Wednesday. Higher bond yields can make government debt more attractive compared with stocks. They can also increase borrowing costs for businesses and households, putting pressure on company earnings and share prices.