Mid-Morning Look: October 01, 2026

Mid-Morning Look

Thursday, October 01, 2026

U.S. stocks under pressure again after tumbling late Wednesday to close the day and month lower for the S&P 500. The same story continues to drag stock markets lower: the persistent surge in Treasury yields and energy prices amid inflation concerns and expectations for needed rate hikes by the Fed. The U.S. 10-year Treasury yield is on track to finish the week higher than it opened for an eighth straight week, a run that has lifted the benchmark to its highest level since 2002. The yield was last trading at 5.33% on Thursday, up about 3 basis points on the session and at a fresh high for the year. It opened 2026 at 4.16% and has climbed 115 basis points through the first three quarters. The 30-year yield rises 4bps to 5.677%. Meanwhile the US dollar index (DXY) extends gains as the euro slips to 17-month lows vs the buck. Economic data was stronger today with jobless claims, construction spending and ISM manufacturing, but inflation concerns still as the prices paid index component jumped notably again. In tech (XLK), which was the only S&P sector to close September in the “green”, MU shares slipped after earnings as another strong beat-and-raise quarter was offset by softer near-term margins and higher spending (GMs are more negatively impacted by increased variable compensation, and Opex increased by an additional $1.5B for all of FY27). Software and IT Services stocks are seeing some strength behind Accenture (CAN) earnings/guidance. Same story today as tech and Energy (XLE) are rising while the other nine S&P sectors are lower again.

• August construction spending rises +0.9% (vs. consensus unchanged) to $2.203 trln, vs July -0.1% (prev -0.5%) while August private construction spending +1.1%, public spending +0.2%
• ISM U.S. manufacturing activity index 54.5 in September (vs. consensus 55.0) vs 54.6 in August while the prices paid index jumped to 77.9 in September vs. consensus 72.3 and above the 71.1 in August; new orders index 55.3 in September vs 53.7 in August and employment index 52.7 vs 51.2 in August.

• Nuclear/Utility sector: CEG shares rose after the power company and AMZN announce a 20-year power-purchase agreement. The deal is expected to spur over $3 billion in infrastructure investments, add 190 MW new emission-free capacity coming online between 2030 and 2032. ORA was downgraded to Neutral at UBS driven by limited earnings upside potential through 2028E and valuation multiples generally in-line with peers. NNE and its unit, HALEU Energy Fuel, enter into a definitive asset purchase agreement with Radnostix and its unit International Isotopes Fluorine Products to acquire strategic US nuclear fuel processing assets as deal consideration is $9.50M cash and $4M in Nano Nuclear common stock
• Bank and broker sector: another brutal trading day for banks as BAC, C, WFC, JPM, ZION, PNC, MS and others extend declines from September as the financial space seeing weakness with Treasury yields impacting consumer spending/lending. NU shares rose after the company issued a statement yesterday denying that it was pursuing an acquisition of Monzo, a U.K. fintech firm; in research, FHB was upgraded from Underweight to Neutral at JP Morgan as believes the recent increase in the Fed funds rate creates a more favorable earnings setup noting roughly half of First Hawaiians loans are floating rate, while its cost of interest bearing deposits is the lowest in JPMC’s coverage universe.
• Transport sector: CHRW was added to Wells Fargo to its Tactical Ideas List saying they see  a favorable setup for the company as brokerage margins improve, share gains persist, and liability concerns appear overdone. HUBG was upgraded from Sell to Hold at Stifel with $29 tgt saying although financial reporting uncertainty and a depressed earnings base continue to warrant caution, the firm believes the decline in the share price has brought the risk/reward into better balance. CP reached a tentative, five-year agreement with 250 train operators in Minnesota, Iowa, Illinois, and Missouri.

• BJRI +3%; was upgraded to Outperform from Neutral at Mizuho and raise tgt to $76 as the firm upped the company’s Q3 same-store-sales growth estimate to 5.5% from 4.6% citing its strong channel checks; sees upside to current same-store-sales growth and margin expectations thru ’27.
• CEG +3%; shares rose after the power company and AMZN announce a 20-year power-purchase agreement. The deal is expected to spur over $3 billion in infrastructure investments, add 190 MW new emission-free capacity coming online between 2030 and 2032.
• NU +3%; shares rose after the company issued a statement yesterday denying that it was pursuing an acquisition of Monzo, a U.K. fintech firm.
• RKLB +2%; after announced its largest commercial launch agreement to date for its Electron rocket, a 20-mission contract with Japanese Earth observation company Synspective.
• SNPS +12%; after delivering much better than expected initial FY27 guidance at Investor Day, an uptick on LT EDA and IP growth targets, meaningful OM expansion, an explanation of the underlying secular drivers across its product portfolio, and incremental partnerships with AWS and OpenAI.
• VICR +11%; as raised its Q3 sequential growth forecast to more than 30%, up from more than 20% saying the raise is driven by increased royalties from the previously announced first non-exclusive license to Vertical Power Delivery (VPD).

• CTVA -83%; shares tumbled after successfully spinning off its advanced seed and Genetics business into Vylor Inc. (new symbol VYLR), an Independent company, and will move forward as a leading, pure-play global Crop Protection company. Corteva shareholders will receive 1 Vylor share for every 1 Corteva share held on Sept 24, 2026.
• FHTX -40%; after saying they would slash 40% of its workforce and cut expenses to extend its cash runway after scrapping a drug development partnership with LLY; added that the companies also were scrapping a second collaborative cancer program and don’t anticipate any further Joint projects.
• LQDA -14%; as shares tumbled for a second day after plunging Wednesday after a court ruling in its ongoing patent dispute with UTHR over its Yutrepia drug. The court said Liqudia’s motion to strike is denied, Judge Richard G. Andrews wrote in a court filing.
• NKTR -16%; after data as presented 1-year Phase 2b data for rezpegaldesleukin at EADV Congress 2026 in Vienna. Alopecia areata results showed durable benefit after stopping treatment, with some patients continuing to improve during follow-up. Atopic dermatitis maintenance data indicated sustained disease control on less frequent dosing, with additional patients improving over time.
• PHM -2%; amid more weakness in homebuilders as rising Treasury yields are lifting mortgage rates and hurting the housing sector (DHI, KBH, TOL) and mortgage companies (RKT).