US stock indexes closed higher on Friday as crude oil prices slid and a stream of economic data beat expectations, supporting risk sentiment. The S&P 500 rose 0.51%, the Dow Jones Industrial Average gained 0.93%, and the Nasdaq 100 finished up 0.42%, with equity gains concentrated in chip and artificial intelligence-related names.
Traders also digested renewed pressure in rates after the US 10-year Treasury yield pushed to a fresh 19-year high, underscoring ongoing concerns about how long interest rates may stay elevated. December E-mini S&P futures rose 0.47% and December E-mini Nasdaq futures added 0.39% into the close.
Key takeaways
- Price move: The S&P 500 ended up 0.51%; the Dow rose 0.93% and the Nasdaq 100 gained 0.42%.
- Catalyst: A drop in WTI crude oil after Iran proposed a short-term plan to ease tensions helped sentiment, alongside stronger-than-expected US economic data.
- Rates watch: The 10-year Treasury yield reached a new 19-year high as Fed comments emphasized the need to return inflation to target.
- Market implication: Equity leadership from semiconductors and AI suggests investors are still targeting growth themes, even as bond yields remain a key headwind.
What drove the move
Stocks found support after economic releases pointed to firmer demand. According to Friday’s data, August nondefense ex-aircraft capital goods new orders rose 1.6% month over month, a clear upside surprise versus expectations of 0.6%. The July figure was also revised upward to 0.6% month over month from previously reported unchanged.
Consumer sentiment data also came in better than expected. The University of Michigan’s September consumer sentiment index was revised upward to 48.1, after an earlier estimate that pointed to a decline to 47.5.
At the same time, energy prices moved lower. Friday saw WTI crude oil fall by more than 2% following reports that Iran proposed a seven-day plan aimed at ending the war and reopening the Strait of Hormuz. Under the proposal’s conditions, hostilities would cease during the week, with the US described as releasing frozen Iranian assets, waiving sanctions on Iranian oil, and lifting a naval blockade, before comprehensive negotiations on Iran’s nuclear program begin after the seven days.
Market reaction and the rates backdrop
While equities gained, the bond market signaled continued caution. According to the report, the 10-year Treasury yield climbed to a new 19-year high around 5.23% earlier in the session, driven by fears that the Federal Reserve could keep raising rates. The pressure followed comments attributed to New York Fed President John Williams, who said the Fed needs to bring inflation back to target and cannot ignore supply shocks if they persistently affect prices.
Later in the day, 10-year Treasury futures settled flat. The yield on the 10-year Treasury note was reported down 1.2 basis points to 5.165% as moves in crude oil helped ease inflation expectations, according to the article. The session also reflected a pullback from early weakness in T-notes after crude’s decline.
Overseas, European stocks finished higher, with the Euro Stoxx 50 ending up 0.48%. Japan’s Nikkei 225 rose to a 2.5-week high and closed up 1.30%, while China’s Shanghai Composite did not trade due to the Mid-Autumn Festival.
Stock performance: AI chips lead, cybersecurity lags
Investor focus remained on semiconductor and AI-related exposure. The iShares Semiconductor ETF (SOXX) closed up more than 1%. In company-level moves, Microchip Technology (MCHP) and ON Semiconductor (ON) each gained more than 5%. NXP Semiconductors (NXPI) and Qualcomm (QCOM) rose more than 3%, while Analog Devices (ADI), Applied Materials (AMAT), Lam Research (LRCX), and Texas Instruments (TXN) finished up more than 2%. Other chip-related names listed in the report also closed higher, including ARM, ASML, Western Digital, Marvell Technology, and Seagate.
Not all technology sectors participated. Cybersecurity stocks were described as under pressure, led by Zscaler (ZS), which fell about 10% after announcing Ross Tackett as chief revenue officer effective October 1. Gen Digital (GEN) and SentinelOne (S) each dropped more than 6%, while Okta (OKTA) and Palo Alto Networks (PANW) fell more than 5% and 3%, respectively. Fortinet (FTNT), CrowdStrike Holdings (CRWD), and Cloudflare (NET) closed down more than 2% as well.
Outside major tech themes, the report highlighted several single-name catalysts. Atlas Energy Solutions (AESI) jumped more than 13% after announcing a purchase agreement with Wyoming Machinery Company for $340.5 million of Balance of Plant equipment for a power generation project. People Inc. (PPLI) rose more than 11% after the Wall Street Journal reported that MGM Resorts International is discussing a bid for the company. Humana (HUM) gained more than 4% following a Barclays upgrade to overweight from equal weight.
There were also notable deal-related and analyst-driven moves. Akamai Technologies (AKAM) added more than 3% after agreeing to a seven-year $11.6 billion deal to provide computing power to Anthropic. Twilio (TWLO) fell more than 7% after HSBC downgraded the stock to reduce from hold. Otis Worldwide (OTIS) declined more than 1% after Wells Fargo initiated coverage with an underweight recommendation, and Comcast (CMCSA) ended down 1% following a KeyBanc downgrade to underweight from sector weight.
Bigger picture: what to watch next
With oil sliding, Treasury yields still acting as a key swing factor, and investors weighing the timing of potential policy moves, attention is likely to shift to the next batch of macro data and Fed communication. The article also pointed to the market’s pricing for the next FOMC meeting on October 27–28, and markets will likely monitor the bond curve for signs that inflation expectations are continuing to cool.
Next on the calendar, investors will also be watching scheduled earnings, including reports listed for 9/28/2026 for companies such as IDT Corp, Jefferies Financial Group, Liberty Live Holdings, ReposiTrak, SR Bancorp, and Vail Resorts.
