# Equities rebound as Treasury yields recede

> US stocks rise after Treasury yields drop.
- Title: Equities rebound as Treasury yields recede · Detroitnews
- Summary: US stocks rise after Treasury yields drop. US equities closed higher as Treasury yields fell after Fed signals eased rate hike fears.
- Keywords: s&p 500, treasury yields, fed, interest rates, stock market, treasury note, oil prices, software shares, business, finance, Equities, rebound
- Source: Detroitnews — https://detroitnews.com/story/business/2026/10/01/wall-street-dips-as-surging-treasury-yields-outweigh-software-gains/92038514007
- Read time: 1 min
- Topics: s&p 500, treasury yields, fed, interest rates, stock market, treasury note, oil prices, software shares, business, finance
## Stocks rebound after early losses
US stocks recovered from early losses to close higher on Thursday with the S&P 500 bouncing from a two-week low as a global bond selloff reversed course.
## Labor market shows strength
Weekly initial jobless claims dipped to 197,000 below the 200,000 forecast indicating a solid labor market ahead of Friday's payrolls report.
## Treasury yields hit 24-year high
The benchmark 10-year Treasury note US10YT=RR hit a 24-year high after closing out September with its biggest quarterly gain since 1994.
## Fed signals rate patience
Fed Vice Chair Philip Jefferson suggested the central bank may be patient before hiking rates again following a 25 basis point September hike.
## Treasury yields drop sharply
The two-year US2YT=RR Treasury yield dropped nearly 10 basis points and was poised for its biggest daily drop since August 2025.
## Market reaction to Fed comments
Scott Welch, chief investment officer at Certuity, said markets are not cheap and expect higher volatility in equities and bonds despite valuation drops.
## Key takeaway

US equities closed higher as Treasury yields fell after Fed signals eased rate hike fears.