U.S. stocks finished higher across all three major indexes on October 1. Raymond James market data showed the S&P 500 at 7,666.45 and the Dow at 50,926.56, while Nasdaq reported a Nasdaq 100 close of 30,501.56. The charts show indexes selling off after the open before recovering in the afternoon, interrupting the recent decline.
Charles Schwab reported that Micron’s earnings and outlook exceeded expectations, with related semiconductor shares attracting buyers early in the session. Evidence that AI demand is translating into profits appears to have drawn money toward companies with strong growth prospects despite the burden of high interest rates. The Nasdaq 100’s stronger performance relative to the Dow also points to selective buying.
According to the Associated Press, faster price increases in a manufacturing survey accompanied a move in the U.S. 10-year Treasury yield toward 5.34%, before it later eased to 5.23%. High yields reduce the present value of future earnings; a pause in their rise eases selling pressure. The afternoon recovery is best read as that relief allowing buying in AI-related shares to provide broader support.
The USD/JPY chart also shows substantial swings. Dollar strength linked to expectations of further rate increases, described by Charles Schwab, appears to have competed with pressure from falling U.S. yields. Although stocks ended higher, the Dow’s gain was small. This was a rebound supported by easing yield pressure and AI demand, with concerns about high rates still limiting the advance.
The afternoon reverses the morning decline
The positive opening fails to last, and the major indexes trade below their previous closes from about 10 to 11:30 a.m. Eastern time. Recovery begins around noon and strengthens during the 1 p.m. hour into approximately 2 p.m. The S&P 500 and Nasdaq 100 reclaim positive territory and absorb subsequent modest dips. The Dow also recovers but ends nearly flat. Small closing gains conceal a meaningful reversal from morning selling to afternoon buying.
Morning weakness fits concerns about manufacturing-related price pressure and rising rates. When Treasury yields subsequently ease, the valuation burden on future earnings diminishes. Micron's favorable results remain a corporate catalyst, allowing buyers to reassess that theme as the financial-condition headwind weakens. My reading is that the balance between supportive company developments and restrictive rates changes during the session.
Place the sharp dollar move in the correct trading session
The following morning's FOREX.com currency recap reports a sharp USD/JPY decline around 11:30 p.m. Japan time as U.S. yields turned lower. That corresponds to approximately 10:30 a.m. Eastern time, not Tokyo equity-market hours. The sharp decline in a rolling 24-hour currency chart therefore belongs to the U.S. rate-related sequence, rather than an immediate response to selling in the following Japanese session.
USD/JPY subsequently recovers while equities regain positive territory in the afternoon. The same rate development can affect both markets without making their later demand patterns identical, because stocks also have corporate earnings support. The Nasdaq 100's relative strength over the Dow fits renewed demand for growth exposure as the rate burden eases more than broad economic optimism. Ahead of the next day's employment report, the recovered afternoon range provides a useful reference for judging how a new catalyst changes buyers' willingness to participate.
Major Index Closes
- S&P 5007,666.45 ＋0.19%
- NASDAQ 10030,501.56 ＋0.31%
- Dow Jones Industrial Average50,926.56 ＋0.04%
