The S&P 500 closed higher on Thursday as Treasury yields pulled back from their highest levels since 2002, reversing an earlier selloff in US stocks. Gains in Micron and Accenture after stronger revenue forecasts helped lift sentiment, while investors turned their attention to Friday's US jobs report.
The S&P 500 rose 14.91 points, or 0.19%, to 7,666.45 on Thursday, clawing back an early selloff as Treasury yields eased from decades-long highs. The Dow Jones Industrial Average added 20.51 points, or 0.04%, to 50,926.56, and the Nasdaq Composite gained 10.53 points, or 0.04%, to 26,871.60.
Yields retreat from a 24-year high
The benchmark 10-year Treasury yield breached a level last seen in April 2002, before easing 5 basis points to 5.243%. The 30-year Treasury yield also hit its highest in 24 years before dropping more than 2 basis points to 5.613%. The pullback snapped seven straight sessions of gains in the benchmark yield as buyers stepped back into the bond market.
That selloff had been building for months amid persistent inflation pressure and expectations that central banks would keep rates higher for longer. According to Reuters: "I am suggesting it's probably overdone," said Oliver Pursche, senior vice president and advisor at Wealthspire Advisors, referring to the global bond selloff.
Micron and Accenture lift sentiment
Energy, chip, and software and services stocks were among Thursday's outperformers, alongside Dow Transports, while healthcare and communication services lagged. Shares of Micron rose 3% following a better-than-expected revenue forecast and $32 billion in customer commitments under its supply agreements, and Accenture also jumped after issuing a stronger outlook.
Jobs report looms
Investors now await Friday's employment report, expected to show the economy added 90,000 jobs in September, with the jobless rate holding at 4.1%. Minneapolis Fed President Neel Kashkari said he expects additional rate increases will be needed to restrain the economy heading into 2027, though he remained unsure whether the next move would come later this month.
Sources: CNBC, Reuters via Investing.com, Reuters via Investing.com
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