US Stocks Rise as Investors See Relief in Yields, Oil Prices

by Geoffrey Morgan, Sagarika Jaisinghani of Bloomberg News, 9/25/26

US stocks climbed as oil and Treasury yields pulled back from the recent surges ahead of data on inflation expectations.

The S&P 500 Index opened 0.3% higher on Friday, led by gains in the tech and industrials sectors. Akamai Technologies Inc. was the top-performing stock in the index, rising 12% on an $11.6 billion contract with Anthropic PBC. The tech-heavy Nasdaq 100 rose 0.4% and is now approaching a record. The Dow Jones Industrial Average climbed 0.3%.

“The equity market is still relatively resilient, you’re not really seeing financial conditions tighten in any meaningful way,” Subadra Rajappa, head of research at Societe Generale Americas, said in a Bloomberg TV interview.

Two of the main sources of pain for the equity market this week eased Friday morning. Yields on the 10-year US Treasury edged lower after steep climbs Wednesday and Thursday. And oil prices slipped overnight as the US and Iran are discussing a phased deal that would see the Strait of Hormuz reopen and Washington lift its blockade of Iranian ports. Brent oil slipped 1% but continues to trade near $105 a barrel.

See more: Dividend Demand Revives as Market Leadership Shifts

The move lower in oil prices and pullback in Treasury yields Friday “provides relief for investors,” Sevens Report founder Tom Essaye wrote in a note to clients.

The Federal Reserve is planning to raise the asset thresholds that trigger stricter oversight of big banks, according to a Reuters report. The report follows a brutal week in the equity market for banks, which hit a technical correction. The sector sold off this week along with so-called “consumer inertia” stocks after the release of Meta Platforms Inc.

Meta is on the cusp of joining an elite group of companies worth at least $2 trillion after shares surged 36% so far in September. The Nasdaq 100 is outperforming the equal-weighted S&P 500 and small-cap Russell 2000 by more than 7 percentage points this month.

“We favor the US as the AI narrative remains strong,” Citigroup Global Markets strategists led by Dirk Willer wrote in a note. “We have capacity to add to equity risk, and emerging Asia is a candidate, but prefer to buy the dip as there is usually some indigestion after first Fed hikes into midterms.”

Still, there are questions over consumer resilience. Tariff-related benefits helped Costco beat quarterly profit estimates, but its paid memberships rose less than expected. The final reading of the University of Michigan survey due later today is likely to show consumer sentiment deteriorated in September, according to Bloomberg Economics.

US core capital goods orders increased by more than forecast in August, data released by the Commerce Department showed Friday. At the same time, durable goods orders were unchanged in the period.

Traders have raised bets on a Fed rate hike at its October meeting this week. New York Fed President John Williams said Friday the central bank can’t ignore supply shocks if they have an effect on prices.

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Bloomberg News provided this article. For more articles like this please visit bloomberg.com.

US Stocks Rise as Investors See Relief in Yields, Oil Prices

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