Key facts
- US stocks opened higher on Thursday, October 1.
- Software stocks were a key driver of the market's gains.
- Treasury yields reached over two-decade highs.
- The Dow Jones Industrial Average opened up 0.18%.
- The S&P 500 opened up 0.25%.
- The Nasdaq Composite opened up 0.46%.
Wall Street's main indexes opened higher on Thursday, October 1, with gains in software stocks helping to offset pressure from rising Treasury yields. At 09:30 a.m. ET, the Dow Jones Industrial Average was up 91.75 points, or 0.18%, to 50,997.80. The S&P 500 gained 19.39 points, or 0.25%, to 7,670.93, and the Nasdaq Composite rose 120.49 points, or 0.46%, to 26,984.50.
Despite the positive open for equities, concerns over inflation and mounting government debt pushed Treasury yields to more than two-decade highs. The 10-year Treasury note yield was noted at 5.29% on October 1, 2026, up 0.01%. Investors were also digesting solid earnings from chip giant Micron (MU) and a surprise drop in the Challenger job cuts report to approximately 43,000 in September.
Analysts noted that upcoming September nonfarm payrolls data, expected at 8:30 a.m. ET on October 2, could influence trading. Consensus estimates for payrolls were at 84,000, a significant decrease from August. "Better-than-expected ADP job growth and GDP point to a healthy economy," said Nathan Peterson, director of derivatives research and strategy at the Schwab Center for Financial Research (SCFR), highlighting wage growth as a key metric.
Market participants are also anticipating remarks from several Federal Reserve policymakers. Minneapolis Fed President Neel Kashkari stated that prices remain elevated, and recent PCE data did not significantly alter that view. Minutes from the Fed's last meeting are due the following Wednesday, which may offer further insight into the September rate hike decision. The CME FedWatch Tool indicated a 37% chance of a rate hike in October, but nearly 90% probability of at least one hike before year-end, with December appearing more likely.
Artificial intelligence continues to be a market driver, though concerns about return on investment and competition from open-source models persist. "Funding for the AI buildout continues to grow, but returns on investment remain uncertain," said Michelle Gibley, director of international equity research and strategy at SCFR. Investors are looking for concrete evidence of AI driving efficiency and improving margins.