Daily News
S&P 500 Retreats From Record as 10-Year Treasury Yield Hits 5.365%, Highest Since 2002; Asian Stocks Slip; Gold Holds Near $4,100 on Fed Hike Signals; Crude Climbs Toward $90 on Iran Strike Reports
08 October 2026
Today in Brief
Asia-Pacific markets traded lower, with Japan’s Nikkei 225 down 1.12%, South Korea’s Kospi losing 2.04%, Australia’s S&P/ASX 200 0.64% lower, the mainland’s CSI 300 declining 0.43% and Hong Kong’s Hang Seng dropping 0.69%. U.S. equities fell on Wednesday as pressure in the bond market pushed Treasury yields to levels not seen in more than two decades — the Dow lost 341.41 points, or 0.66%, to 51,179.87, the S&P 500 retreated 0.22% from its record to 7,801.77 and the Nasdaq slipped 0.22% to 27,538.69 — with the 10-year yield reaching 5.365%, its highest since April 2002, and the 30-year hitting 5.732%, its highest since May 2002, before easing after a solid 10-year note auction. Gold traded near $4,100 an ounce on Thursday, close to its lowest level since early August, as the latest FOMC minutes pointed to another rate hike this year, with the probability of a December hike at around 78%, while crude oil climbed toward $90 per barrel on reports the Trump administration had instructed the Pentagon to develop strike options against Iran, and Gulf of Mexico producers shut in more than 510,000 barrels per day.
In other news: President Trump said he is not keen on a deal with Iran as the U.S. reportedly prepares for possible strikes; Federal Reserve minutes showed all 19 policymakers supported the September rate increase, with most seeing another hike as likely appropriate by year-end; the IMF chief warned France to bring its finances under control as French bond yields surge; Samsung Electronics forecast record third-quarter operating profit of 107.40 trillion won ($80.2 billion) as the AI boom fuels chip demand; Qualcomm and Arm began a trial in a US federal court in Delaware over royalties and licensing; Amazon made fresh job cuts, mainly in its retail division; and Microsoft unveiled an AI coding model that can run directly on personal computers as it challenges Apple.
In Asia, Japan’s Nikkei 225 was down 1.12% while South Korea’s Kospi lost 2.04%
In Asia, Japan’s Nikkei 225 was down 1.12% while South Korea’s Kospi lost 2.04%. Australia’s S&P/ASX 200 was 0.64% lower. Mainland China’s CSI 300 declined 0.43%, while Hong Kong’s Hang Seng Index dropped 0.69%. Higher yields have curbed investor appetite for equities in recent weeks, especially those parts of the market most hurt by higher borrowing costs. Industrials, for example, is the worst performing sector week to date. Many investors are maintaining an optimistic view of the stock market, however. They expect that the start of earnings season could give the market the fuel it needs for the next leg higher.
S&P 500 retreats from record as elevated yields keep traders on guard
U.S. equities fell on Wednesday as pressure continued to build in the bond market, pushing Treasury yields to levels not seen in more than two decades. The Dow Jones Industrial Average lost 341.41 points, or 0.66%, to close at 51,179.87, while the S&P 500 shed 0.22% to end at 7,801.77. The Nasdaq Composite slipped 0.22% to settle at 27,538.69. Investors were spooked by the benchmark 10-year Treasury note yield reaching its highest level since April 2002 at 5.365% on Wednesday. The 30-year bond yield also hit its highest level since May 2002 at 5.732%. The 10-year yield later backed off its high of the day after an auction in which the Treasury sold $39 billion in 10-year notes. The move in the yield, which was last little changed, helped stocks pare their declines.
Gold traded near $4,100 an ounce on Thursday, remaining close to its lowest level since early August
Gold traded near $4,100 an ounce on Thursday, remaining close to its lowest level since early August as the latest FOMC minutes pointed to the possibility of another US rate hike this year, while elevated oil prices continued to fuel inflation concerns. Minutes from the Federal Reserve’s September meeting showed that all 19 policymakers supported the September rate increase, with most indicating that another hike would likely be appropriate before year-end. Markets broadly expect the Fed to leave rates unchanged this month, while the probability of a December hike currently stands at around 78%.
Crude oil prices climbed toward $90 per barrel on Thursday
Crude oil prices climbed toward $90 per barrel on Thursday, recouping some losses from the previous session following reports that the Trump administration had instructed the Pentagon to develop strike options against Iran that could be carried out before the midterm elections. The development goes against the widely held expectation that President Donald Trump would refrain from escalating tensions with Tehran ahead of the November polls. Meanwhile, oil producers in the Gulf of Mexico shut in more than 510,000 barrels per day of crude output, equivalent to around a quarter of the region’s production, due to Tropical Storm Isaias. In the Middle East, oil exports have been gradually returning to prewar levels in recent weeks, although attacks on tankers in the Strait of Hormuz continued to threaten supply.
Trump says he is not keen on a deal with Iran as U.S. reportedly prepares for ‘massive bombing’
U.S. President Donald Trump said Wednesday that he no longer wants a deal with Iran, following reports that the U.S. military is preparing for possible strikes against the country, likely before the midterm election. “I think the deal isn’t really something that I want to do, but they’re willing to offer us anything to stop,” Trump said at a campaign rally with Republican candidates in San Antonio, Texas, late Wednesday stateside. Steve Witkoff, the U.S. special envoy to the Middle East, has been working on the deal and “doing very well,” Trump added. The U.S. president and his national security team have discussed possibly resuming large-scale U.S. military operations in the coming weeks, NBC News reported Wednesday, citing a U.S. official and another person with knowledge of the discussions.
Fed officials see another hike coming, but no sign as to when, minutes show
Federal Reserve officials expect they will raise interest rates again before the end of the year to head off inflation that has run above target for more than five years, according to meeting minutes released Wednesday. But the meeting summary provided no indication of when specifically, policymakers expected to raise benchmark rates – only that persistently higher prices and a stable labour market likely would lead to a second hike this year. The Fed next decides on rates on Oct. 28 and then again on Dec. 9. “With regard to the outlook for monetary policy beyond the current meeting, most participants assessed that another increase in the target range for the federal funds rate would likely be appropriate by year end,” the document stated.
10-year Treasury yield backs off from 24-year high after solid bond auction eases demand fears
U.S. Treasury yields came off their highs after a solid sale of 10-year notes. Earlier, the 10-year yield rose to its highest level in more than two decades. The 10-year Treasury last traded more than 1 basis point higher at 5.286%. Earlier in the session, it reached 5.35%, its highest level since 2002. The 30-year Treasury bond yield also traded below a 24-year high, at 5.666%. One basis point equals 0.01%, and yields and prices move in opposite directions. Indirect bidders, which include global central banks, took 80.3% of the auction — above a 10-auction average of 72.4%. Direct bidders, scooped up 17.1% of the sale, just below an average of 18.3%. Dealers, meanwhile, bought just 2.5% of the notes offered, well below a 9.4% mean.
IMF chief’s stark warning for France over surging bond yields
The head of the International Monetary Fund had a blunt message to the French government in a CNBC interview on Wednesday: bring your finances under control. France is currently in the throes of another political crisis, with violent student protests now stretching into their third week. The movement – which has seen young people across the country demonstrate discontent with long study days, teacher shortages and rundown schools – comes as the French government seeks to win over a politically fractured parliament and convince lawmakers to agree to tens of billions of euros worth of spending cuts. Political instability in France has put pressure on the country’s government bonds, known as OATs. Investors now demand a higher yield than they do for bonds issued by the Italian government, with French 10-year bond yields rising by more than 100 basis points since the start of the year.
Samsung forecasts record third-quarter profit of $80 billion as AI boom fuels chip demand
Samsung Electronics on Thursday reported third-quarter preliminary operating profit of 107.40 trillion won ($80.2 billion), surging past 100 trillion won for the first time in the company’s history as booming demand for artificial intelligence continues to fuel its chips business. Projected quarterly operating profit is 782% higher from a year earlier. Revenue forecast of about 195 trillion won is up nearly 127% from the same period last year. Samsung shares, however, dropped 0.7% Thursday morning.
Qualcomm and Arm kick off trial, potential for huge damages in focus
Chipmaker Qualcomm and chip tech firm Arm Holdings, long at loggerheads, began another trial on Monday, with Qualcomm accusing Arm of withholding chip testing tools that were due under contract. Qualcomm also alleges that Arm leaked to the media its 2024 threat to terminate a vital license agreement in a way that damaged discussions for a chip deal between Qualcomm and Meta Platforms. In the lawsuit brought before US federal court in Delaware, Qualcomm, one of Arm’s largest customers, is seeking to quit paying royalties — potentially worth billions of dollars — to Arm for up to five years. Qualcomm attorney Karen Dunn said in her opening statement that Qualcomm had been on the cusp of a deal with Meta when Arm notified Qualcomm that it was in breach of its architecture agreement and then allegedly leaked that notification letter to Bloomberg News.
Amazon makes fresh job cuts, mainly in retail division
Amazon confirmed on Wednesday it had cut what it said were a small number of jobs, primarily in its Stores unit which oversees the main e-commerce website. The layoffs to its retail unit coincide with one of Amazon’s biggest shopping days, which it calls Prime Big Deal Days. The promotion started on Tuesday and runs through Wednesday, offering varying discounts. The cuts are the latest in a series of small reductions since a larger round of 30,000 job cuts that began last year and continued into January. Some affected employees reached out to Reuters and shared posts from internal Slack channels about the news. Amazon let go fewer than 1,000 white-collar workers, a person familiar with the matter said. Business Insider earlier reported the layoffs.
Microsoft brings more AI to PCs as it challenges Apple
Microsoft unveiled on Wednesday an AI coding model that can run directly on personal computers and new security technology to prevent AI agents from accessing data without permission, challenging Apple’s push to bring more AI into personal devices. The software company also presented at the event in San Francisco a high-powered Surface laptop called Ultra powered by Nvidia’s RTX Spark chips. Redmond, Washington-based Microsoft is seeking to turn Windows into a platform for AI agents to handle tasks such as writing computer code or tackling complex business projects on desktops and laptops. For Microsoft, the move represents a bet that some work that currently happens in its costly Azure cloud computing data centers can shift to high-powered Windows machines in businesses and homes, a market where the firm retains a stronghold — and where its customers foot the hardware bills. It is a market opportunity rival Apple is also chasing with new Mac computers.