S&P 500 futures rose 0.3% Thursday as AI-linked stocks extended their rally into October, even as Treasury yields pushed to levels not seen since 2002. Strong earnings from Micron and Accenture lifted chip and consulting names, offsetting broader weakness tied to surging borrowing costs.
AI earnings power the early gains
S&P 500 futures rose 0.3%, and Nasdaq-100 futures gained 0.6%, while futures tied to the Dow Jones Industrial Average added 86 points, or 0.2%.
Micron posted revenue that quadrupled last quarter, and the results appeared to boost other chipmakers and AI-related companies more than Micron itself, with Nvidia, AMD and Broadcom all higher in early trading.
Accenture shares rallied 17% after the consulting giant's fiscal fourth-quarter results beat the Street, with the company earning $3.29 per share on $18.68 billion in revenue against analyst expectations of $3.18 per share. Alphabet shares rose almost 2% after unveiling its Gemini 4 Argon AI model, its most advanced yet.
Treasury yields keep climbing
The gains in AI-related names came even as bond markets stayed under pressure. The 10-year Treasury yield traded near 5.298% Wednesday, a level not seen since 2002, while the 30-year yield rose to 5.64%. Separately, Reuters reported the 10-year yield hit 5.3423% Thursday, a day after Treasuries logged their worst quarter since 1994.
Rising interest rate expectations have weighed on sentiment, but traders are pricing in a 63% chance the Federal Reserve holds rates steady this month after softer inflation data Wednesday. Wells Fargo's Tracie McMillion said, according to CNBC: "corporate earnings have continued to show resilience", though she added the key question is whether that strength holds as borrowing costs stay elevated.
September losses give way to a stronger Q3
September was unkind to the S&P 500, which dropped 0.5% for the month as investors grappled with higher oil prices and the surge in yields. The Dow lost 4.3% in September, while the Nasdaq gained 1.9% on tech strength. Over the full third quarter, though, the S&P 500 and Nasdaq each advanced about 2%, while the Dow lost 2.7%.
Sources: CNBC, Reuters via Investing.com
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