The S&P 500 added 0.2% on Thursday to close out the first trading day of October, even as all three major U.S. indices remain on pace for weekly losses. Seeds and genetics company Vylor joined the index the same day, replacing Corteva, while Twilio is set to take Warner Bros. Discovery's spot on Oct. 6.
The S&P 500 rose 0.2% on Thursday, closing out the first trading day of October. The Dow Jones Industrial Average and the Nasdaq Composite also ended the regular session marginally higher.
Despite the daily gains, all three indices are on pace for weekly losses, with the Dow off 1.7% in the period. Futures pointed to a quiet open Thursday night: S&P 500 futures were up 0.05%, Dow futures gained 10 points, and Nasdaq-100 futures advanced 0.1%, as traders awaited September's jobs report.
Treasury yields hit multiyear highs
Treasury yields climbed to multiyear highs before retreating. The benchmark 10-year Treasury note yield soared to 5.344%, its highest level since 2002, and the 30-year Treasury bond yield also reached its highest in 24 years.
Oil prices climbed too, after the Wall Street Journal reported the U.S. is sending a third aircraft carrier strike group to the Middle East. Brent crude futures gained more than 4% to close at $102.31 a barrel, while WTI futures advanced 2.7% to settle at $92.87 a barrel.
Jobs report looms over the Fed's next move
September's nonfarm payrolls report is due Friday, with the Dow Jones consensus calling for job growth of 84,000 and unemployment holding steady at 4.1%. The release will shape how traders read the Federal Reserve's next move, with fed funds futures trading suggesting a 72% likelihood the central bank will stand pat in October.
Christopher Hodge, chief U.S. economist at Natixis CIB Americas, said a strong jobs report alone would likely not push the Fed to hike in October given the current narrative of a stable labor market. He expects payrolls to increase by 60k, which would slow from August's pace but still register solid gains.
Vylor and Twilio reshape the index
Vylor was added to the S&P 500 on Thursday after it was spun off from Corteva the same day, replacing Corteva, which moved to the S&P MidCap 400. Twilio will replace Warner Bros. Discovery in the S&P 500 on Oct. 6, as Paramount is set to acquire Warner Bros. Discovery following a California judge's order.
In extended trading, Twilio shares popped over 1%, while Vylor shares were last up 3%.
Source: US Top News and Analysis
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