US Stocks Rise as AI Rally Gains Pace Despite Treasury Yield Crossing 5.3%
What Happened
At the opening bell on October 1, the Dow Jones rose 91.75 points, or 0.18%, to 50,997.80. The S&P 500 gained 19.39 points, or 0.25%, to 7,670.93, while the Nasdaq Composite advanced 120.49 points, or 0.46%, to 26,984.50. Software and technology stocks supported the market despite Treasury yields reaching more than two-decade highs. Micron Technology reported stronger-than-expected results and raised its outlook, supporting optimism around AI-related demand. The benchmark 10-year Treasury yield briefly reached 5.34%, its highest level since 2002.
Key Takeaways
AI and technology optimism lifted US stocks at the open, but rising Treasury yields remain a significant risk for highly valued shares. Later trading was less positive, with the Dow down 0.5%, the S&P 500 down 0.2%, and the Nasdaq roughly flat, showing that bond-market pressure had begun to outweigh the early gains.