US Treasury Yields Hit 2002 High Amid Oil Surge
US Treasury yields reached a 24-year high as rising oil prices triggered a global bond selloff, though strong semiconductor earnings helped Wall Street recover.
The US 10-year Treasury yield reached its highest level since 2002 on October 1, 2026, driven by a global bond selloff and rising oil prices. This volatility extended to the United Kingdom, where 30-year gilt yields climbed above 6%, a peak not seen since 1998. Brent crude futures surged over 4% to exceed $102 per barrel following reports that the United States was preparing to deploy additional military forces to the Middle East.
Despite these inflation fears, Wall Street closed mostly higher. The S&P 500 gained 0.3% and the Dow Jones Industrial Average edged up slightly, while the Nasdaq remained nearly flat. This recovery was supported by strong fiscal fourth-quarter results from Micron Technology, which issued a bullish forecast based on the surge in artificial intelligence infrastructure development, though the company warned that rising compensation costs could impact profit margins.
Economic indicators provided a mixed outlook. The United States Department of Labor reported a fourth consecutive weekly fall in initial jobless claims, and corporate job cuts for September were the lowest since 2022. However, the Institute for Supply Management reported a jump in the manufacturing prices index. Investors are now awaiting the nonfarm payrolls report to gauge future interest rate policy from the Federal Reserve System.
