New York Stocks Rebound as U.S. Treasury Yields Ease, Closing Higher on AI Share Gains on October's First Trading Day

[Financial News]  U.S. stocks in New York opened higher on the first trading day of October after a mixed start. The market fell early in the session, but stocks moved higher as Treasury yields gave back some of their gains and artificial intelligence (AI)-related technology shares rebounded.
The Dow Jones Industrial Average (DJIA) moved above the flat line, while the Standard & Poor's 500 Index (S&P 500) rose 0.2%. The technology-heavy Nasdaq also closed slightly higher.
The yield on the 10-year U.S. Treasury note surged to 5.3% during the session, its highest level in decades, before easing to around 5.24%. The bond market had recently posted its worst quarterly performance in decades.
Micron Technology led the gains after the memory chipmaker reported fourth-quarter results that topped Wall Street expectations and offered a positive outlook for the first quarter. Volatility continues across the broader market because of elevated Treasury yields and oil prices, but major technology companies and semiconductor stocks are supporting the indexes by leading the AI boom.
News of an initial public offering by AI startup Anthropic also helped fuel the strength in technology shares. Foreign media outlets reported that Anthropic was considering an IPO as early as mid-November. They also reported that Broadcom had agreed to lend Anthropic $42 billion and that Anthropic was expected to become Broadcom's largest computing customer by next year, underscoring once again the close ties among AI companies.
Meanwhile, the labor market remains stable. Initial jobless claims in the United States fell for a fourth consecutive week. A layoff report released by Challenger, Gray & Christmas (CG&C) showed that companies' layoff plans decreased in September. However, hiring also remains subdued, directing market participants' attention to the monthly jobs report due on October 2.


[email protected] Yoon Jae-jun Reporter