US Stock Futures Recover as Treasury Yields Retreat From 24-Year High

US stock futures rose on Thursday, October 1, as gains in chipmakers and consulting companies helped offset concerns over rising borrowing costs and oil prices. Strong forecasts from Micron Technology and Accenture supported premarket trading. 

Meanwhile, Treasury yields eased after reaching their highest levels since 2002, as investors awaited economic reports and comments from Federal Reserve officials.

Wall Street Futures Recover After Early Weakness

At 7:38 a.m. ET, Dow futures gained 41 points, or 0.08%. S&P 500 futures rose 17.75 points, or 0.23%, while NASDAQ 100 futures advanced 164.25 points, or 0.54%. The technology-heavy NASDAQ led the gains as investors bought shares linked to artificial intelligence.

The recovery followed weaker early morning trading, when Dow futures fell more than 0.5%. Stocks changed direction as buying returned to government bonds. Reuters later reported that the benchmark 10-year Treasury yield eased to about 5.27% after briefly reaching 5.34%, its highest level since 2002.

However, investors continued to face concerns over inflation, government debt and energy costs. The Cboe Volatility Index, which measures expected stock-market swings, reached a two-week high before trading at 16.31. September ended with losses for the Dow and S&P 500, while technology stocks helped the NASDAQ finish higher.

Micron and Accenture Support Premarket Gains

Micron forecast quarterly revenue above analysts’ expectations and reported USD 32 billion in customer commitments under supply agreements. Its outlook supported other chip stocks, although Micron shares slipped about 0.9% after nearly quadrupling this year. NVIDIA gained 0.7%, AMD rose 0.5%, and Lam Research advanced 2.2%.

Alphabet also climbed 1.9% after introducing its Gemini 4 artificial intelligence model. The gains extended the technology sector’s stronger performance in September, when enthusiasm for AI helped the NASDAQ rise 1.9%. By comparison, the S&P 500 declined 0.5%, and the Dow dropped 4.3%.

Consulting stocks added further support. Accenture jumped 16.4% after forecasting full-year revenue growth above estimates. Cognizant gained 8.3%, while IBM rose 5.9%. These moves gave futures support beyond chipmakers, even as high Treasury yields continued to weigh on other parts of the market.

Oil Prices Rise as Washington Presses Europe

Oil prices climbed alongside concerns about fuel supplies and the continuing conflict involving Iran. Brent crude rose 2.1% to USD 100.10 a barrel, while US benchmark crude gained 1.5% to USD 91.78. Higher energy prices remained a source of concern for investors tracking inflation and the Federal Reserve’s next decision.

Meanwhile, Reuters reported that Washington had urged France and Germany to release emergency diesel stocks or face a possible US diesel export ban. One source said the administration wanted the European Union to release 120 million barrels over six months. European officials were discussing possible releases on Thursday.

US Energy Secretary Chris Wright pointed to supply disruptions. “We’ve lost some diesel exports from the Middle East, although we’re restoring those, and we’ve lost diesel exports from China,” he said. France’s energy ministry declined to comment, while Germany’s economy ministry did not immediately respond.

Investors Await Jobs Data and Federal Reserve Comments

Traders priced in a 63% chance that the Federal Reserve would leave interest rates unchanged later this month, according to CME Group’s FedWatch Tool. Softer inflation readings on Wednesday reduced expectations for an immediate increase. Nevertheless, inflation remained above the Fed’s 2% target, keeping a December increase under consideration.

Investors awaited weekly unemployment claims and the Institute for Supply Management’s manufacturing report on Thursday. September’s employment report was scheduled for Friday. Comments from Fed officials, including Christopher Waller, Philip Jefferson and Michelle Bowman, were also on the calendar. Nike was due to report earnings after Thursday’s market close.

Among individual companies, Constellation Energy rose 3% after signing a 20-year power agreement with Amazon. Meanwhile, Rocket Lab gained 4.6% after securing a 20-launch agreement with Synspective, its largest commercial Electron launch contract.

Overall, US stock futures entered October with gains led by AI and consulting shares, while Treasury yields eased from their early highs. However, Brent crude above USD 100 and concerns over government debt kept inflation and borrowing costs in focus. Investors await employment and manufacturing data, alongside Federal Reserve comments, for further information on the economy and interest rates.

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