Wall Street edged higher on Thursday as investors navigated another volatile session driven by movements in U.S. Treasury yields, oil prices and fresh economic data.
The market entered October on an uneven footing following a choppy end to September. Investors were also assessing mixed signals on inflation, economic growth and Federal Reserve policy.
S&P 500, Nasdaq and Dow Move Higher
At 13:26 ET, the S&P 500 rose 0.2% to 7,665.64, while the Nasdaq Composite gained 0.2% to 26,914.06.
The Dow Jones Industrial Average also moved slightly higher, adding 0.1% to 50,930.56.
Market volatility remained elevated as investors continued to monitor interest rates and the outlook for corporate earnings.
Treasury Yields Retreat From Earlier Highs
U.S. government bonds remained a major focus during Thursday’s session.
The 10-year Treasury yield fell around 9.4 basis points to 5.217% after climbing as high as 5.362% earlier in the day.
Meanwhile, the 30-year Treasury yield declined to around 5.585% after reaching 5.680% during the session.
Both yields remained close to their highest levels in more than two decades.
Fed Rate-Hike Expectations Ease
Recent U.S. economic data has reduced expectations for another Federal Reserve interest-rate increase in October.
The Fed’s preferred inflation measure showed smaller-than-expected increases in both headline and core inflation during August.
Annual inflation readings also moderated compared with July.
The softer inflation data encouraged investors to reduce bets on additional near-term monetary tightening.
U.S. Economy Shows Resilience
Other economic indicators pointed to continued strength in the U.S. economy.
Second-quarter real GDP growth was revised sharply higher to 2.2% from 1.5%.
Private-sector employment data also showed hiring accelerating in September for the first time since May.
Together, the data suggested a combination of stronger economic growth, resilient employment and moderating inflation.
Manufacturing Prices Raise New Inflation Concerns
However, Thursday’s ISM manufacturing report added fresh concerns about price pressures.
The ISM Prices Index climbed to 77.9 in September, up from 71.1 in August.
The increase suggests that manufacturers are paying significantly more for raw materials and other production inputs.
Higher energy prices and supply-chain pressures have contributed to rising costs.
Despite those concerns, overall U.S. manufacturing activity remained in expansion territory for a ninth consecutive month.
Wall Street Finishes September With Mixed Performance
U.S. stocks ended September on a weaker note.
The S&P 500 fell around 0.5% on the final trading day of the month, maintaining September’s reputation as a historically challenging period for equities.
However, stocks performed better over the entire third quarter.
The S&P 500 gained approximately 2% during the quarter and remained close to its recent record highs.
AI Stocks Help Support the Market
Artificial intelligence remained an important source of strength for equities.
Semiconductor stocks gained around 9.5% in September, rebounding after a quieter performance in August.
Investors remain focused on spending related to AI infrastructure, data centers and advanced computing.
Strong demand for chips and other technology products has supported expectations for continued earnings growth across parts of the technology sector.
Fourth-Quarter Earnings Come Into Focus
With the fourth quarter underway, attention is beginning to shift toward corporate earnings.
Investors will be watching whether companies can maintain strong profit growth despite elevated borrowing costs and high energy prices.
Artificial intelligence spending is also expected to remain an important theme as businesses increase investment in AI infrastructure and implementation.
The November U.S. midterm elections will also be part of the broader market backdrop, although earnings, inflation and interest rates are likely to remain key drivers of day-to-day trading.
Micron Recovers After Initial Decline
Micron Technology was among the notable stock movers on Thursday.
The memory-chip maker reported stronger-than-expected fiscal fourth-quarter earnings, while its current-quarter outlook also exceeded expectations.
Micron shares initially fell more than 2% after the opening bell before recovering later in the session.
The company warned of slightly weaker gross margins and higher operating expenses, but strong demand tied to artificial intelligence continued to support its broader outlook.
Nike Earnings Next on Wall Street’s Radar
Investors are also awaiting quarterly results from Nike after Thursday’s closing bell.
The sportswear company has been working to improve its performance under CEO Elliott Hill after a difficult year for the stock.
Nike shares have fallen sharply during 2026, increasing pressure on management to demonstrate progress in its turnaround strategy.
Wall Street Balances Rates, Oil and Earnings
For now, Wall Street remains caught between falling Treasury yields, high oil prices and mixed economic signals.
Lower bond yields have provided some relief to stocks, while stronger manufacturing prices continue to raise inflation concerns.
As October progresses, investor attention is likely to shift increasingly toward corporate earnings, Federal Reserve expectations and the outlook for the U.S. economy.
