Treasury Yields Surge to 2002 Highs While Wall Street Seesaws on Inflation Data
U.S. stocks seesawed on Thursday, Sept. 30, 2026, as traders tracked a sharp spike in Treasury yields and awaited President Donald Trump’s next moves regarding the Iran conflict. The 10-year U.S. Treasury yield touched an intraday high of 5.342%, reaching its highest level since April 3, 2002, while the 30-year bond yield scaled a 24-year high.
The S&P 500 traded near the flatline after clawing back earlier losses, and the Nasdaq Composite dropped 0.1%. Meanwhile, the Dow Jones Industrial Average fell as much as 359 points before trading 30 points lower. Wall Street opened higher earlier in the session, supported by technology and consulting stocks, alongside a U.S. Department of Labor report showing initial jobless claims fell by 1,000 to 197,000 in the week ending Sept. 26.
Bond Market Shows Fatigue After Borrowing Costs Surge
The sudden surge in borrowing costs followed a swift repricing across fixed-income markets. Jeff Kilburg, CEO of KKM Financial, told CNBC that the bond market is showing fatigue after moving 50 basis points over 18 trading days. That shift followed remarks from Federal Reserve Chairman Kevin Warsh at Jackson Hole signaling that a rate hike was approaching. Yields eventually pulled back by late-morning trading, with 10- and 30-year yields lower by 6 and 4 basis points, respectively. The short end of the yield curve experienced sharper declines, as the 2-year yield dropped 10 basis points.
Despite cooler-than-expected August personal consumption expenditures inflation data released earlier in the week—which briefly pushed Bitcoin above $85,500—elevated Treasury yields eroded those gains, pulling Bitcoin down below $83,500. West Texas Intermediate crude oil climbed 1.6% to trade above $91 a barrel as energy traders monitored potential military action in the Middle East.
Micron Reports Quadrupled Revenue Amid Strong AI Chip Demand
Micron Technology posted blockbuster quarterly earnings with revenue quadrupling last quarter, driven by strong demand for artificial intelligence memory chips. The Idaho-based chipmaker unveiled an upbeat revenue forecast that beat Wall Street expectations and noted that customers increased long-term supply agreement commitments to $32 billion, up from $22 billion in June.
Despite the strong performance, Micron shares fell 1.7% to $1,047.03 at 9:49 am ET, as the stock had already risen more than 200% year-to-date. Micron CEO Sanjay Mehrotra told CNBC that the company is reaping 87% profit margins but plans to increase worker pay to incentivize staff, which will dampen margins relative to Street forecasts. Analysts responded to the earnings report with price targets as high as $1,625, pointing to deep pricing visibility and a capital return program.
Nike Faces Retail Headwinds Ahead of Earnings Release
Nike prepared to release its quarterly earnings following the closing bell, with shares pointing down slightly in after-hours trading. The athletic apparel giant’s stock has slumped more than 44% this year. The decline prompted S&P Dow Jones to remove Nike from the S&P 100 in a quarterly rebalancing, ending an 18-year tenure on the blue-chip index and threatening its position in the Dow Jones Industrial Average.
The upcoming results serve as a test for CEO Elliott Hill, who took the helm almost two years ago. Hill is leading an overhaul focused on rebuilding wholesale relationships, refocusing on sports like soccer and running, and reversing a prolonged sales slump.
Frequently Asked Questions About the Market Shift
Why did Treasury yields reach levels not seen since 2002?
The 10-year Treasury yield hit 5.342% due to a rapid 50-basis-point bond selloff over 18 trading days. KKM Financial CEO Jeff Kilburg attributed the move to market fatigue following Federal Reserve Chairman Kevin Warsh signaling an upcoming rate hike at Jackson Hole.
How did Micron’s stock react to its quadruple-revenue quarter?
Micron shares dipped despite reporting record revenue and an 87% profit margin. Analysts noted the decline stemmed from the stock’s massive 200% prior gain this year and management’s decision to increase worker pay, which will impact near-term margins.
What prompted Nike’s removal from the S&P 100?
S&P Dow Jones removed Nike from the S&P 100 index during its quarterly rebalancing following a stock price slump of more than 44% this year amid declining sales and fierce competition.
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