Dow Slips as Treasury Yields Hit Highest Since 2002, Oil Jumps, Even as Micron and Accenture Lift Tech Stocks

NEW YORK — The Dow Jones Industrial Average slipped in early trading Thursday as long-term Treasury yields climbed to their highest levels in more than two decades and oil prices jumped, offsetting gains in technology shares fueled by strong results from Micron Technology and Accenture.

The Dow fell 59.45 points, or 0.12%, to 50,846.60 as of 9:50 a.m. Eastern time. The blue-chip index had opened modestly higher, rising about 0.16% at the bell, before turning lower.

The broader market was mixed. At the open, the S&P 500 gained 0.2% and the Nasdaq composite rose 0.44%, while the Russell 2000 index of smaller companies slipped 0.39%.

The moves came on the first trading day of October, following a choppy end to the third quarter.

Yields reach multi-decade highs

The bond market remained a major source of pressure on stocks. The yield on the 10-year Treasury rose 4 basis points to 5.3338% on Thursday, its highest level since April 2002, according to LSEG data. The 30-year yield climbed 3 basis points to 5.6702%, its highest since July 2002.

Higher yields raise borrowing costs for consumers and businesses and make bonds more attractive relative to stocks, which can weigh on share prices, particularly for rate-sensitive sectors.

The latest climb in yields followed Wednesday's release of the Federal Reserve's preferred inflation gauge, which came in softer than expected. The core personal consumption expenditures price index rose 3% from a year earlier in August, below forecasts of 3.3%.

But some analysts said the improvement reflected changes in how the data is calculated rather than a genuine slowdown in inflation.

"Wall Street traded in a mixed fashion again as highly anticipated US PCE Index data proved more noise than signal, with methodological changes leading to a drop in measured core inflation last month," said Kyle Rodda, senior financial market analyst at Capital.com.

"But it proved to be all technical in nature, arguably leaving the markets in a greater state of uncertainty than before the release," he added.

Wednesday's late sell-off

Stocks ended mostly lower Wednesday after an early rally faded in the final minutes of trading. The Dow lost 444 points, the S&P 500 fell 0.2% and the Nasdaq gained 0.2%.

The Dow finished September down more than 2,000 points for the month, while the tech-heavy Nasdaq 100 posted a gain, reflecting a split market in which artificial intelligence-related stocks have outperformed while other sectors struggled.

"It is almost like a simultaneous bull market and bear market, depending on what you are looking at," said James "Rev Shark" DePorre, a contributor to TheStreet Pro. "Growth is quite strong, but it isn't being embraced with much enthusiasm. Iran, interest rates, oil, inflation, and worries about the cost of living are holding back any surge in optimism."

Oil prices climb

Oil prices rose more than 2% amid continued tensions in the Middle East and news that Chinese refiners had suspended fuel exports. West Texas Intermediate crude rose 2.06% to $92.28 a barrel, while Brent crude, the international benchmark, climbed 2.61% to $100.60.

Chinese refiners have halted exports of oil products to destinations outside Hong Kong and Macau until further notice, Reuters reported, a move expected to further tighten fuel markets already strained by the war with Iran.

"The Chinese export ban suggests concerns about domestic product availability," said UBS analyst Giovanni Staunovo.

Gold futures rose 0.62% to $4,212.50 an ounce, while silver gained 1.62%.

Tech stocks get a lift

Technology shares provided support after Micron Technology reported a massive fiscal fourth-quarter earnings beat late Wednesday. The memory chipmaker posted revenue of $54.23 billion, nearly four times its year-earlier level, and issued revenue guidance for the current quarter well above analysts' expectations.

Accenture shares surged about 16% in premarket trading after the consulting company reported better-than-expected fiscal fourth-quarter earnings and gave a strong outlook for fiscal 2027 revenue. Rival Cognizant Technology Solutions climbed about 7% in sympathy.

Power component maker Vicor jumped about 12% after raising its third-quarter revenue forecast.

Decliners

Corteva shares plunged more than 80% in premarket trading after the agricultural company completed the spinoff of its seed and genetics business into a separate publicly traded company called Vylor. The drop reflects the separation of the business rather than a loss in value for shareholders.

Moderna fell about 3% after Citigroup downgraded the biotechnology company to sell.

Nike shares slipped about 0.4% ahead of its quarterly results, due after the closing bell. The stock is down 44% so far this year as the company works through a turnaround under CEO Elliott Hill.

Layoffs ease

On the economic front, U.S.-based employers announced 43,281 job cuts in September, down 18% from August, according to outplacement firm Challenger, Gray & Christmas. Layoff announcements so far this year are down 39% compared with the same period last year.

"Companies are in a wait-and-see period right now," said Andy Challenger, the firm's chief revenue officer. "Employers are facing high energy costs, an uncertain war in Iran, a rate hike that could make hiring more expensive, plus the likelihood of surging healthcare costs."

Investors are also awaiting data on manufacturing activity and construction spending later Thursday.

Iran remains in focus

Geopolitical tensions continued to weigh on sentiment. In an interview with Time magazine, President Donald Trump said it was "possible" the United States could resume attacks on Iran after the midterm elections.

Attention now turns to Friday's government jobs report, which could influence expectations for whether the Federal Reserve will raise interest rates again this year. Nike's results after the bell Thursday will also be closely watched as a gauge of consumer spending.