Top U.S. Stories

  • Bond selloff pushes yields to a 24-year high. The 10-year Treasury yield hit as high as 5.342%, its highest since early 2002, before easing to about 5.24% by the close (Yahoo Finance). Why it matters: Mortgage, auto and corporate borrowing costs are tied to this benchmark, and the selloff is global — U.K. and French yields also hit multi-decade highs.
  • Stocks recover to close slightly higher. The S&P 500 rose 0.19% to 7,666.45, the Dow added 20.51 points and the Nasdaq edged up 0.04% as yields retreated from their peak (Yahoo Finance).
  • Factory and labor data stay firm. The ISM manufacturing index came in at 54.5, initial jobless claims fell to 197,000 for a fourth straight weekly decline, and the ISM prices-paid gauge jumped to 77.9 (Yahoo Finance). Why it matters: Strong data plus rising input costs keep pressure on the Fed ahead of Friday’s jobs report.
  • China halts fuel exports, oil jumps. Chinese refiners suspended oil-product exports beyond Hong Kong and Macau, lifting December Brent about 3% to roughly $101 and WTI to about $92 (RTÉ).
  • Iran talks stall. U.S. officials said Secretary of State Marco Rubio ordered Iran’s UN delegation, including Foreign Minister Abbas Araghchi, to leave the country; Tehran disputes that account (Iran International).
  • Nike sales slip 4%. Fiscal first-quarter revenue was $11.2 billion, down 4%, on weakness in Greater China and EMEA, partly offset by growth in North America.

Compass Insight

Thursday showed two markets telling different stories. Equities, led by chipmakers riding Micron’s strong results, kept climbing — Japan’s Nikkei jumped more than 2,200 points. Bonds, meanwhile, are flashing a warning: yields in the U.S., U.K. and France all reached levels not seen in decades. The common thread is cost pressure — oil back near $100 for Brent, firm factory prices and heavy government borrowing. As long as AI earnings stay strong, stocks can absorb higher rates, but that cushion is thinner when the 10-year sits above 5%. In the short term, Friday’s jobs report is the key test: a hot number could send yields back toward their highs. Longer term, watch whether stalled U.S.–Iran diplomacy and China’s export halt keep fuel markets tight.

Markets

  • Dow: 50,926.56 (+20.51, +0.04%); S&P 500: 7,666.45 (+0.19%); Nasdaq: 26,871.60 (+0.04%).
  • Nikkei 225: 68,956.72 (+2,203.00), led by semiconductor stocks.
  • U.K. 30-year gilt yield touched 6% for the first time since 1998; the FTSE 100 fell 1.7% (Rio Times).
  • USD/JPY: 157.98 (ECB reference, Oct. 1).

Stocks in Focus

  • Micron (MU): Gained after its record quarter and upbeat guidance, supporting chip stocks broadly.
  • Bank stocks: The KBW Bank Index fell 0.7% as rates jumped (Yahoo Finance).
  • Nike (NKE): Reported a 4% revenue decline after the bell, with Converse sales down 28%.

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Auto-generated and AI-written. Not investment advice.