US Stock Market: Dow Jones Futures Drop 220 Pts As Treasury Yields Hit 24-Years High; Jobs Report To Impact

The US stock futures erased their early gains in the late afternoon on Thursday, with the Dow Jones dropping over 200 points. Nasdaq 100 futures pulled away from their nearly 275-point gains after US treasury yields reached a 24-year high. Also, the futures pulled back ahead of major economic data such as services PMI, the manufacturing report, and initial claims scheduled on Thursday. Yesterday, the the Dow Jones and S&P 500 indexes plunged while the Nasdaq Composite gained momentum.

US Stock Futures Today, October 1, 2026

The Dow Jones futures declined by 220 points, or 0.4% to trade around 51,076. On the contrary, S&P 500 futures traded broadly volatile to 7,724.75, gaining by 9.25 points or 0.12%. Also, Nasdaq 100 futures traded at 30,821.75, higher by 123 points.

Both S&P 500 and Nasdaq 100 futures pulled away from their intraday highs of 7,767.75 and 31,151.50, respectively.

Thursday's trading session is flooded with major economic data like construction spending, continuing claims, EIA natural gas inventories, initial claims, ISM manufacturing index, S&P Global U.S. manufacturing PMI, S&P Global U.S. and services PMI.

Also, earnings will impact the market as companies Accenture PLC (ACN), Acuity Inc. (AYI), AngioDynamics Inc. (ANGO), McCormick & Company (MKC), and Nike Inc. (NKE) are scheduled to declare their quarterly report.

Investors also await US nonfarm payroll data on Friday that will give more clues of Fed rates trajectory.

Dow Jones + Nasdaq + S&P 500

Yesterday, the Dow Jones Industrial Average index crashed by 443.87 points or 0.87% to end at 50,906.05, while the S&P 500 index slipped by 19.30 points or 0.25% to close at 7,651.54. On the other hand, the tech-heavy index, Nasdaq Composite surged by 63.52 points or 0.24% to end at 26,861.06.

"Wall Street ended mixed overnight after surrendering its early gains. Softer-than-expected August inflation initially reduced expectations of an immediate Federal Reserve rate hike, but resilient economic data and elevated Treasury yields limited the broader risk-on response," said Hariselvan Radhakrishnan, Founder & CEO of HST Wealth.

Additionally, the Trading Economics analysis pointed out that financial and industrial stocks weighed on the market as Treasury yields climbed on concerns about persistent energy-driven inflation, with the US and Iran making little progress in negotiations. Meanwhile, core PCE inflation increased a smaller-than-expected 0.2% in August, raising hopes that the Federal Reserve will hold off on raising rates in October.

The latest US PCE price index rose 0.3% in August below street estimates of 0.4%, while core PCE increased 0.2% also below the estimate of 0.3%. The headline PCE inflation came in at 3.4% from below market estimates of 3.7%, calming investors' concern of rate hikes.

US Stock Market Outlook Today: Key Factors

Investors now await the latest weekly jobless claims data on Thursday and the September jobs report on Friday. Earnings are also due from Nike, McCormick and Acuity Brands, as per Trading Economics.

A very strong jobs report might raise rate hike odds for both October and December, but it would likely take a very weak report to send hike chances, or Treasury yields, much lower, as per Charles Schwab's note.

"We believe the Fed will hike at least one more time this year and maybe again later this year or early next year," said Cooper Howard, director of fixed income research and strategy at the Schwab Center for Financial Research (SCFR). "The outlook largely depends on the breadth and pace of inflation. PCE will be important and could help inform the future path of the Fed funds rate."

US WTI crude oil price fell below $90 per barrel and Brent crude is trading under $96 per barrel, easing energy crisis tensions on Thursday. Also, the 10 year US treasury yield gained to 5.3% and 30-year treasury yield surged to 5.67%. Both yields are at their highest level since 2002.

Meanwhile, US dollar traded above 101.5, the highest since April 2025, following the climb in treasury yields. Rising yields and dollar makes a strong case for one more rate hike.

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