Pre-Market Update: Stocks Mixed as Fed Comments and Treasury Yields Weigh on Wall Street

TLDR

• Nasdaq 100 futures rose 0.4-0.5% while Dow futures slipped as investors weighed Fed policy expectations
• Treasury yields hit their highest level since April 2002, with the 10-year note reaching 5.33%
• Micron’s quarterly earnings beat expectations and lifted tech sentiment heading into October
• Oil prices climbed as Brent crude topped $100 a barrel amid stalled US-Iran peace talks
• Nike reports earnings after the bell as its stock trades near 2014 lows

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Stock futures opened mixed on the first day of October. Traders are watching whether the Federal Reserve will hold interest rates steady at its upcoming policy meeting.

Nasdaq 100 futures jumped 0.4% to 0.5% in early trading. S&P 500 futures climbed roughly 0.1% to 0.2%. Dow Jones Industrial Average futures slipped around 124 points, or 0.2%.

The three major indexes finished September in different directions. The Nasdaq posted a solid monthly gain while the S&P 500 and Dow struggled to keep pace.

What’s Driving Treasury Yields Higher

The yield on the 10-year Treasury note rose four basis points to 5.33% early Thursday. That marks its highest level since April 2002.

U.S. 10 Year Yield > 5.33%; Highest since April 2002 pic.twitter.com/3woHrWiCqK

— Wall St Engine (@wallstengine) October 1, 2026

Rising yields have been a persistent worry for stock investors this year. Higher borrowing costs tend to pressure stock valuations, especially for growth companies.

Fed Minneapolis President Neel Kashkari warned about ongoing inflation risks. His comments added to concerns that the central bank may need to keep policy tight for longer than some investors hoped.

Deutsche Bank analyst Jim Reid noted that global growth and corporate earnings stayed strong through September. But that same strength gave central banks more room to stay hawkish on rates.

There were mixed signals on inflation this week. The Fed’s preferred inflation gauge, the personal consumption expenditures index, came in below expectations on Wednesday.

Oil prices moved in the opposite direction, however. Brent international crude futures topped $100 a barrel in early Thursday trading.

A lack of progress in peace talks between the United States and Iran frustrated energy markets. That uncertainty pushed crude prices higher for the session.

Tech Stocks Lead With Micron Earnings Boost

Micron shares were little changed after the company’s fourth quarter results. The memory chip maker beat Wall Street’s earnings expectations and raised its outlook for the first quarter.

MICRON $MU Q4’26 EARNINGS HIGHLIGHTS

🔹 Revenue: $54.23B (Est. $51.07B) 🟢; +379% YoY
🔹 Adj. EPS: $33.42 (Est. $31.61) 🟢
🔹 Adj. Gross Margin: 87.0% (Est. 86.1%) 🟢

Q1 FY27 Guide:
🔹 Revenue: $61.5B ± $1.5B (Est. $57.02B) 🟢
🔹 Adj. EPS: $38.15 ± $1.00 (Est. $35.40) 🟢
🔹… pic.twitter.com/DvLalHRPYe

— Wall St Engine (@wallstengine) September 30, 2026

The report helped lift broader sentiment across tech stocks heading into the new month. Nasdaq-100 futures gained 0.5% following the announcement.

AI-related tech names have powered much of the market’s recent strength. Nvidia shares rose 5% in September, while AMD gained 30% over the same period.

The rest of the market has struggled under the weight of high Treasury yields and elevated oil prices. The Dow posted losses for both September and the third quarter overall.

Several labor market reports are due out this week ahead of Friday’s monthly jobs report. A Challenger, Gray & Christmas report on layoff plans was scheduled for release Thursday morning.

Investors will also receive a fresh read on manufacturing activity this week. These data points are expected to shape expectations heading into the Fed’s next meeting.

Nike is set to report earnings after the bell on Thursday. The results will offer a look at how the company’s turnaround plan is progressing.

Nike’s stock has been trading at its lowest levels since 2014. Investors will be watching closely for any signs of improvement in sales or guidance.

Markets head into October with tech stocks showing strength while yields and oil prices create headwinds elsewhere. Thursday’s jobs data and Nike earnings are the next events traders are watching closely.