The three major averages ticked higher to begin October.

The S&P 500 advanced 0.2% to 7,666.45. The Nasdaq Composite gained 0.04% to end at 26,871.60, while the Dow Industrials inched up 20.51 points, or 0.04%, to close at 50,926.56.

--Darla Mercado

The 2-year Treasury yield has fallen as investors now expect the Federal Reserve to hold its benchmark rate steady this month.

The decline in its yield is "likely just investors pricing out the odds the Fed needs to hike this month," said Ross Mayfield, an investment strategist for Baird Private Wealth Management. "Softer PCE, a few bits of dovish Fed speak and potentially some positioning ahead of tomorrow's jobs data [are all contributing factors and]... a weaker jobs number could all but cement a Fed hold in October."

The yield on the short-dated bond was last down nearly 10 basis points at 4.793%.

— Liz Napolitano

In its third quarter review of the market, Deutsche Bank outlined the technology sector as a "major driver" of stock market performance even as it experienced a lot of volatility, the bank wrote Thursday.

In Q4, the analysts forecast tech will continue to support market returns. At the start of the quarter in July, AI trade reversed lower as investors grew skeptical of sustainable AI-related spending, tech valuations and the outlook for chip demand.

Sentiment improved in August with the S&P 500 reaching record highs supported by strong earnings and early signs of AI monetization. All while Treasury yields rose and higher oil prices pressured inflation, compelling the Federal Reserve to hike rates in September.

Looking ahead, the analysts see tech playing an important role in driving stock returns in the fourth quarter even though the sector faces pressure from elevated valuations and tighter financial conditions.

— Paulina Likos

Oil prices rose sharply Thursday, following a report the U.S. is sending a third aircraft-carrier strike group to the Middle East.

Brent crude, the international benchmark, was last seen trading about 4.6% higher at $102.55 per barrel, while U.S. West Texas Intermediate futures rose about 3% to $93.24.

U.S. officials told The Wall Street Journal that the aircraft carrier will arrive in the region by the end of November. Washington is also deploying up to 10,000 additional troops over the same time period.

Read more here.

— Spencer Kimball

The Russell 2000 outperformed the broader market on Thursday following a rough month and quarter for small caps.

The index climbed around 0.8% in afternoon trading on Thursday. By comparison, the S&P 500 rose 0.4%.

The Russell 2000 dropped more than 5% in September, bringing its third-quarter decline to about 7.5%. The broad S&P 500 slipped 0.5% last month, but still added 2% for the quarter.

Despite the quarterly underperformance, the Russell 2000 has slightly outperformed the S&P 500 in 2026 with a gain of more than 12%.

— Alex Harring

Federal Reserve Vice Chairman Philip Jefferson expressed concern over inflation in remarks delivered Thursday, though he stopped short of endorsing an imminent interest rate hike.

"The economy is being buffeted by a cascade of shocks, including rising energy prices, the surging AI buildout, and changes to trade policy," he said during a speech at the University of Virginia.

"As we look ahead, my view is that any future adjustments in policy should be determined by carefully examining trends in the data, the evolving outlook, and the balance of risks," Jefferson added. "My colleagues and I will need to come to our own judgment, which may take more time."

The comments resemble market-moving remarks earlier in the week from New York Fed President John Williams, who said "there is no need for urgency" in considering whether to follow September's quarter percentage point increase with another move.

—Jeff Cox

Here are some of the names moving midday:

• Accenture — The global professional services company soared 18% following fiscal fourth-quarter results. Revenue of $18.7 billion exceeded the company's guidance of $17.8 billion to $18.4 billion, and FactSet's consensus estimate of $18.3 billion. Earnings of $3.29 per share also topped expectations.
• McCormick — The spice company's third-quarter results beat expectations. McCormick's adjusted earnings of 86 cents per share exceeded the 76 cents expected from analysts polled by FactSet. Revenue totaled $2.02 billion, versus the $1.98 billion average estimate. McCormick fell more than 2%, however, as it's in the midst of being acquired by Unilever, which dropped more than 2%.
• McKesson — The health care services provider reaffirmed fiscal 2027 earnings per share guidance, sending its shares 4% higher. Fiscal second-quarter results are due to be reported Nov. 4. McKesson also extended a partnership with CVS Health to distribute pharmaceuticals to mail order, specialty and retail pharmacies, and distribution centers through June 2032.

Click here to see more stocks making moves midday.

— Ananya Chetia

The Federal Reserve's next move could be to cut rates, despite markets widely expecting another hike, according to Scott Chronert, head of U.S. equity strategy at Citi Research.

Citi economists believe "we've got the September hike and they're probably in pause mode 'til middle of next year," Chronert said Thursday on CNBC's "Squawk on the Street."

CNBC Pro subscribers can click here to read the story and watch the interview.

— Alex Harring

The 10-year U.S. Treasury yield hit an intraday high of 5.342% to reach its highest level going back to April 3, 2002. The 30-year bond yield also scaled to levels not seen in 24 years. Yields, however, had turned around by late-morning trading. 10- and 30-year yields were lower by 6 and 4 basis points, respectively. Declines were more extreme on the short end of the yield curve, with the 2-year yield tumbling 10 basis points.

— Fred Imbert

Wells Fargo has downgraded ExxonMobil to equal weight but maintained a price target of $182 per share, implying 12% upside from Wednesday's close of $162.75.

Here's what Wells' analysts said about the oil major:

— Spencer Kimball

Rising bond yields and a rocky stock market has created both challenges and opportunities for inventors, according to Wells Fargo Investment Institute.

It sees fixed income as a "useful ballast" to support returns when the equities become volatile and short-term bonds as an opportunity to grab higher yields with lower rate sensitivity.

It also favors U.S. large-cap equities, "where resilient earnings, strong balance sheets, pricing power, and continued artificial-intelligence (AI) investment should help companies navigate higher financing costs," analyst Alex Sagal said in a note Wednesday.

In addition, commodities can be used as a potential hedge against persistent inflation, he added.

— Michelle Fox

Shares of the Fair Isaac Corporation, known for its FICO scores, rallied 8% after Bill Pulte, director of the Federal Housing Finance Agency, voiced support for its new cost-cutting program.

Pulte said on X that he spoke with CEO Will Lansing "to ensure FICO Direct is approved on our end."

FICO launched its FICO Mortgage Direct License Program on Thursday, which it said could save lenders up to 50% per score FICO fees.
"We do not care who wins — we just want them and Vantage to compete — not be a cartel or abusive monopolies," he added.

The stock has been under pressure since Pulte said Fannie Mae and Freddie Mac can also use VantageScore 4.0 for credit scores after only using FICO for decades. After a limited rollout in the spring, VantageScore 4.0 was expanded this month to all mortgages sold under Freddie and Fannie.

— Michelle Fox

The U.S. manufacturing sector continued to expand in September, albeit with substantial pressure from higher prices fueled by a number of factors, according to the Institute for Supply Management.

The ISM manufacturing index was little changed at 54.5 for the month, above the 50 level that denotes expansion but slightly below the 54.9 Dow Jones consensus estimate. The survey measures the percentage of companies reporting growth.

Within the monthly survey, the prices index surged to 77.9, up 6.8 points while employment rose 1.5 points to 52.7. New orders indicators were mixed while backlogs jumped 4.6 points to 56.4.

Survey respondents were generally positive, though multiple managers cited challenges posed by tariffs and the accelerated trade tensions with Canada.

""Every month, we are faced with new headwinds created by this administration. This month, it is the trade war with Canada, which every day is getting worse — causing prices to go up and uncertainty that creates massive disruption," said one respondent in the transportation equipment industry.

—Jeff Cox

Micron stock fell Thursday despite a stellar quarterly earnings report, in which the company guided with slightly lower profit margins due to increased worker pay.

CEO Sanjay Mehrotra defended the decision to raise compensation levels along with margin guidance of 86.25%, which was below Street expectations.

"Commensurate with our record quarter, we rewarded our team members in a record fashion, as well," he said. "It does impact our gross margin, but we guided to a very strong gross margin of 86.25%."

– Tobias Burns

Citi analysts expect Sandisk Corp. to benefit from strong demand of NAND flash solutions, which provide  non-volatile data storage, following a better-than-expected earnings report from Micron on Wednesday. 

Citi set its target price for Sandisk Corp. at $2,100, implying a nearly 20.7% upside from Wednesday's close. The analysts reiterated a buy rating on the manufacturer of data storage devices. 

Citi noted NAND revenue grew by 42% for Micron and NAND prices increased by about 30% "on tight NAND conditions." 

Given Sandisk Corp is a data storage supplier of NAND flash solutions, Citi expects the company to benefit from NAND demand.  

"SNDK should continue to be a beneficiary of this structurally favorable environment, additionally coupled with its Bics8 qualifications, serving as a competitive moat, and with increasing mix to data center further benefiting its margins through the longer-term," wrote Citi's Asiya Merchant. 

— Ananya Chetia

The Dow Jones Industrial Average traded 85 points higher, or 0.2%. The S&P 500 climbed 0.2%, and the Nasdaq Composite advanced 0.3%.

— Fred Imbert

September was a historic month of underperformance for the S&P 500 equal-weight index (RSP), which trailed the cap-weighted index (SPY) by 4.6 percentage points, according to Bespoke Investment Group.

In data going back to 2003, when both ETFs started trading, there have been only two other months where the RSP underperformed by a wider margin, the firm said.

The weakening breadth over the last month has spooked investors, who worry that an anemic rally heading into a historically volatile month is a warning sign for the market-cap weighted index. The RSP had actually outperformed to start the year, before the war with Iran spurred a rotation back into the megacaps.

"If you want the broadening trade to start working again, you'd better start rooting for lower oil prices," read a Thursday note from the firm.

— Sarah Min

Initial jobless claims edged lower last week amid increasing signs that U.S. employers remain reluctant to part with workers.

First-time filings for unemployment benefits totaled a seasonally adjusted 197,000 for the week ending Sept. 26, the Labor Department reported Thursday. That was off 1,000 from the prior week and below the Dow Jones consensus for 200,000.

At the same time, employee placement firm Challenger, Gray & Christmas reported that companies announced 43,281 job cuts in September, a decrease of 39% from August and 20% below the same month in 2025. Planned layoffs year to date are at their lowest since 2022, the firm noted.

—Jeff Cox

Here are some of the names moving before the opening bell:

• Alphabet— The tech giant gained 1.5% after unveiling Gemini 4 Argon, its most advanced artificial intelligence model yet,
• Rocket Lab — The space stock climbed 4.8% after the company signed a multiyear launch agreement for 20 new Electron missions with Toyoko-based company Synspective. Rocket Lab said it is the largest commercial launch contract for Electron to date.
• McCormick — The spice company's third-quarter results topped expectations, sending shares nearly 4% higher. McCormick's adjusted earnings came in at 86 cents per share, topping the 76 cents expected from analysts polled by FactSet. Revenue was $2.02 billion, versus the $1.98 billion consensus estimate.

Click here to see more stocks making moves premarket.

—Michelle Fox

Federal Reserve Bank of Minneapolis president Neel Kashkari said Wednesday that investment coming from the AI buildout is likely pushing up the neutral rate of interest. 

The neutral rate, which is not directly measured but serves as a guiding concept of monetary policymaking, is associated with full employment and stable prices. It neither stimulates nor squeezes economic activity.

"So much massive investment is going into the data center buildout, and power and water and all of the infrastructure that goes with it. That's a new demand for investment capital … And if there's a lot more demand for investment capital, all else equal, that's going to push up the neutral rate. So I think the neutral rate is likely elevated temporarily," Kashkari said.

Globally, AI investment is expected to be around $1 trillion in 2026 and about $581 billion in the U.S., which would put it at about 10% of private fixed investment.

As of share of U.S. GDP, AI capex will rise from 1.8% in 2026 to 2.5% in 2027 and 2.8% in 2028, according to Goldman projections.

– Tobias Burns

Accenture shares rallied 17% after the consulting giant reported fiscal fourth-quarter results that beat the Street.

The company earned $3.29 per share on revenue of $18.68 billion. Analysts polled by LSEG expected a profit of $3.18 per share on revenue of $18.68 billion.

"We exceeded our fourth-quarter revenue guidance range and capped off another year of broad-based growth across our business, grew adjusted EPS 8%, returned a record $11.5 billion to shareholders and reached a new high of 141 quarterly client bookings of $100 million or more. These results reflect the continued trust our clients place in us to help them reinvent and create value, the high level of innovation we bring every day and the extraordinary commitment of our Reinventors to our clients' success," CEO Julie Sweet said in a statement.

— Fred Imbert

Treasury yields scaled new multi-decade highs on Thursday as investors continued to demand a higher premium for holding government debt. The benchmark 10-year yield edged higher in early trading, most recently at 5.285%, the highest since 2002.

"Those betting against 'the house' keep winning," DoubleLine founder Jeffrey Gundlach posted on X.

As yields move opposite prices, those holding Treasurys are seeing their capital investments erode.

Investors have grown leery of government debt amid rising debt and deficits and inflation fears as yields have been tightly correlated with oil prices. Other developed-nation sovereign debt has shown a similar pattern.

—Jeff Cox

Shares of United Parcel Service are down 20% from their recent July highs, and analysts at Goldman Sachs think the stock is at an inflection point and can move higher.

The bank reiterated its buy rating on the stock and $132 price target, which represents a 41% gain from Wednesday's close. Analyst Jordan Alliger wrote in a Thursday note that the company's completion of a drawdown in volume from Amazon — which now will make up a smaller share of the UPS' revenue — will create a leaner and more automated company. 

"At what could be a critical inflection point, we highlight a pathway to earnings growth, margin expansion, and multiple re-rating," Alliger wrote in a note. He added that the stock's valuation of 12 times forward earnings represents an unusual discount to its competitor FedEx, which currently trades at 15 times forward earnings. 

Heightened inflationary risks from energy costs and pressures on the transport industry generally have also weighed on UPS shares, Alliger added. But, Goldman said the overall demand environment appears stable and economic resilience should alleviate those risks for UPS. 

— Davis Giangiulio 

Analyst Michael Graham at Canaccord Genuity Capital Markets said Thursday that the geopolitical factors that have been adding to market volatility are not slowing down ahead of the midterm elections.

"An elongated Iran quagmire, increasing AI turbulence, and the possibility that Trump administration policy becomes more aggressive following the mid-term elections are important for investors to factor in," he wrote in a Thursday note.

– Tobias Burns

Oil prices rose on Thursday, reversing earlier losses, following a report that Chinese refiners have suspended October fuel exports, further squeezing war-constrained energy markets.

International benchmark Brent crude with December expiry was last seen trading 2.4% higher at $100.36 per barrel, having earlier traded 1% lower, while U.S. West Texas Intermediate futures with November expiry rose 2.5% to $92.70.

Alphabet shares were up 1.9% in premarket trading Thursday after Google released a new flagship AI model that it said competed at the frontier on some benchmarks.

Gemini 4 Argon is its most advanced AI model yet, offering improvements in coding, cybersecurity and complex professional work, the tech giant said.

The model launches nearly a year after Gemini 3 put Google back at the forefront of the heated AI model race, though it was widely considered to have fallen behind OpenAI and Anthropic across much of 2026.

— Kai Nicol-Schwarz

Asia-Pacific markets closed mostly higher Thursday, with Japanese stocks leading gains.

Japan's Nikkei 225 rose 3.3%, ending the trading day at 68,956.72, while the broader the Topix added 0.57% to 4,131.98.

The Nikkei's rally was led by technology and electronics stocks. Lasertec surged 11.1% and chip-testing equipment maker Advantest jumped 9.8%. Index heavyweight Softbank closed over 4% higher.

South Korea's Kospi gained 1.95% to 6,971.35. Heavyweights Samsung Electronics and SK Hynix rose 2.79% and 3.21% respectively. The small-cap Kosdaq rose 4.48% to 894.29.

Australia's S&P/ASX 200 was dropped 2% to 8,614.4.

— Lee Ying Shan

Shares in Pandora fell more than 4% on Thursday morning after CEO Berta de Pablos-Barbier said appetite for the Danish jewelry maker's products among U.S. consumers is cooling amid inflation pressures.

Demand has "stabilized at a lower level", de Pablos-Barbier said, pointing to rising living costs and higher energy prices, particularly among mid- and lower-income consumers.

— Hugh Leask

The pan-European Stoxx 600 was 0.78% lower at the start of Thursday's session, as the continent's major bourses and most regional sectors slipped into the red.

The U.K.'s FTSE 100 was down about 1.37% at 8:15 a.m. in London (3:15 a.m. E.T.). In Paris, the French CAC 40 shed 0.83%, while Germany's DAX tumbled 0.75% in Frankfurt. The Italian FTSE MIB fell 0.78% in Milan.

Technology stocks were a rare bright spot in early dealmaking, rising 0.14%. All other European sectors were negative, with household goods leading losses, sliding 1.7%.

— Hugh Leask

Stoxx 50 futures were 0.2% lower ahead of Thursday's opening bell, as European markets looked set to begin October in negative territory.

The U.K.'s FTSE 100 was seen 0.5% lower, while France's CAC 40 was down 0.31% prior to the start of starting. Germany's DAX was set to slide 0.39%.

The Italian FTSE MIB was hovering just below the flatline.

— Hugh Leask

U.S. Treasury yields edged lower on Thursday but remained near multi-decade highs, as investors continued to grapple with the prospect of interest rates staying elevated for longer.

The benchmark 10-year Treasury yield fell about 2 basis points to 5.276%. The 30-year yield also dropped 2 basis points to 5.621%. Yields move inversely to prices.

Elevated Treasury yields have raised concerns about the U.S. government's balance sheet, with borrowing crossing $40 trillion.

TD Securities, however, said the rise in borrowing costs does not yet point to an imminent fiscal crisis. The weighted-average maturity of U.S. debt stands at 5.9 years, meaning higher market rates feed into the government's overall borrowing costs only gradually, the bank said in a note published late Wednesday.

"A fiscal apocalypse is not upon us just yet," TD Securities strategists Gennadiy Goldberg and Molly Brooks wrote, even as they acknowledged that fiscal concerns were contributing to upward pressure on Treasury yields.

—Lee Ying Shan

South Korea's "historic" $200 billion investment into the U.S., which President Donald Trump said would transform America "for generations," is not a done deal in totality.

The South Korean investment plan includes nuclear power plants, a natural gas power facility in Texas and potentially the long-planned Alaska LNG project.

Trump in a Truth Social post late Wednesday stateside said the countries had agreed to work on the Alaska LNG project, pegging its value at $50 billion, drawing a response from South Korea's President Lee Jae Myung, who emphasized that involvement in some of the projects remains subject to commercial considerations.

Lee in an X post on Thursday local time said that participation in the Alaska LNG project was dependent on its financial viability and legal compliance. He added that investments in nuclear power plants would also require assessment of commercial viability on a plant-by-plant basis.

—Jenny Lee

Oil was little changed on Thursday, as a rebound in Mideast oil exports helped to offset concerns over stalled U.S.-Iran talks.

Futures for international benchmark Brent crude for December delivery slipped 0.12% to $97.91 a barrel. U.S. West Texas Intermediate futures for November dropped 0.35% to $90.91 per barrel.

Worries over supply disruptions eased following the resumption of oil tanker ​loadings by Saudi Arabia from its Red Sea port of Yanbu after the kingdom restarted operations on its East-West Pipeline.

"The pipeline has done much of the heavy lifting when it came to moving crude out of the Gulf," given that Iran has blocked the Strait of Hormuz where around 20 million barrels of oil passed through each day before the Iran conflict, said David Morrison, senior market analyst at Trade Nation.

"Analysts say that the pipeline is nowhere near running at full capacity. But the fact that it is open provides some relief and has helped oil prices retreat," Morrison added.

Meanwhile, traders continue to keep a close eye on developments in the Middle East amid concerns that a lasting resolution to the Iran conflict may be delayed. On Tuesday, Qatar had said it hopes that shuttle diplomacy between the U.S. and Iran can ⁠lead to a breakthrough.

—Justina Lee

Asia-Pacific markets opened mixed on Thursday.

Japan's Nikkei 225 rose 0.86%, while the Topix declined 0.44%. South Korea's benchmark Kospi was down 0.8%, while the small-cap Kosdaq Index started the trading day flat.

Chinese markets were closed for the holiday.

— Lee Ying Shan

Asia-Pacific markets were set for a mixed open Thursday as investors weighed softer-than-expected U.S. inflation data against a continued rise in Treasury yields.

Japan's Nikkei 225 was poised to open higher, with its Chicago and Osaka futures contracts last at 67,355 and 67,090 respectively, compared with the index's previous close of 66,753.72.

Futures for Australia's S&P/ASX 200 last traded at 8,765 compared with the index's previous close of 8,789.3.

— Lee Ying Shan

As Treasury yields rose on Wednesday, so did the rate on the 30-year fixed mortgage.

The average rate on the 30-year fixed mortgage hit 7.6%, according to Mortgage News Daily. That's the highest level since Nov. 1, 2023 when the average rate was at 7.69%.

The 10-year Treasury yield, which influences mortgage rates, jumped to 5.306% at its high of the day -- the highest level since June 13, 2007. On that day, the benchmark yield hit 5.348%.

--Darla Mercado, Gina Francolla

Google unveiled Gemini 4 Argon on Wednesday, its most advanced artificial intelligence model yet, offering major improvements in coding, cybersecurity, and complex professional work.

The company said the model sets a new record in real-world software engineering, ties for first in cybersecurity, and leads another benchmark measuring performance across finance, legal, and other professional tasks.

Alphabet shares rose more than 1% after hours.

For more, read the full story here.

—MacKenzie Sigalos, Samantha Subin

Micron reported better-than-expected quarterly results on Wednesday as the memory maker continues to benefit from soaring demand for AI infrastructure. The stock rose slightly in extended trading.

The company reported adjusted earnings of $33.42 per share, beating the LSEG consensus estimate of $31.61 per share, while revenue came in at $54.23 billion, above the expected $51.07 billion.

For the fiscal first quarter, Micron said it expects revenue of about $61.5 billion and adjusted earnings per share of $38.15, plus or minus $1. Analysts polled by LSEG had expected earnings of $35.40 per share on $57.02 billion in revenue.

Shares were little changed in extended trading.

Read the full story here.

—Katie Tarasov, Kif Leswing

U.S. equity futures were little changed to begin trading Wednesday evening.

Futures tied to the Dow Jones Industrial Average added 41 points, or 0.08%. S&P 500 futures rose 0.1% and Nasdaq-100 futures ticked up by 0.05%.

— Tanaya Macheel