Nasdaq Gains as Dow Snaps Three-Week Losing Streak; 10-Year Treasury Yield Tops 5.2% 

Mumbai, Sept 26: Wall Street closed the trading week with all three major indices finishing higher, as a late-session technology and industrial rally offset earlier pressure from surging Treasury yields.  

The Dow Jones Industrial Average eked out a modest weekly gain of 0.9%, snapping a three-week losing streak, while the S&P 500 rose 0.5% and the Nasdaq Composite surged 0.9%, buoyed by a renewed appetite for growth and semiconductor stocks.  

The week’s dominant theme was the relentless climb in US government bond yields, with the benchmark 10-year Treasury yield touching an intraday peak of 5.225%, its highest level since July 2007, following hawkish Federal Reserve commentary and resilient economic data. 

Dow Jones Rallies 478.61 Points on Friday to Snap Three-Week Losing Streak 

The Dow Jones Industrial Average closed the week at 51,828.59, a gain of 478.61 points, or 0.93%, on Friday, 25 September 2026. This weekly close represented a gain of approximately 127 points, or 0.2%, from the prior Friday’s close of approximately 51,701.  

The blue-chip index opened the week’s first trading session on Monday, 21 September 2026, at approximately 51,683 and traded within a weekly range of roughly 51,124 to 51,890. The final session on Friday saw the Dow open at 51,359.70, reach an intraday high of 51,874.94, and close at 51,828.62. The index’s previous close was 51,349.98 on Thursday, 24 September 2026. 

Also Read: What Is the New York Stock Exchange (NYSE)?  

The index’s recovery was led by technology and industrial constituents. Nvidia and Microsoft were among the strongest contributors, each gaining more than 3% for the week as the semiconductor and software complex rebounded. Caterpillar and Honeywell also provided support, rising approximately 2% and 1.8% respectively, as industrial sentiment improved.  

On the downside, UnitedHealth and Chevron lagged, each declining more than 1.5%, reflecting weakness in healthcare and energy. The Dow’s modest weekly gain, despite a strong Friday session, underscored the index’s vulnerability to rate-sensitive and defensive components, which struggled amid the yield surge. 

S&P 500 Rises 0.5% as Technology and Communication Services Lead 

The S&P 500 advanced 0.5% for the week, closing at 7,743.41, up from its weekly opening level of approximately 7,704 on Monday, 21 September 2026. The index traded within a weekly range of roughly 7,590 to 7,752. On the final session, Friday 25 September 2026, the S&P 500 opened at 7,709.86, reached an intraday high of 7,752.07, and closed at 7,743.41, a gain of 0.51% for the day. The previous close was 7,704.13 on Thursday, 24 September 2026 (Yahoo Finance, 25 September 2026; HDFC Sky, 25 September 2026). 

The advance was broad-based across growth-oriented sectors. Information Technology and Communication Services were the primary drivers, with the technology sector rising 1% and communication services gaining approximately 1.92% for the week. Consumer Discretionary also participated, adding 0.5%. Within the S&P 500, Nvidia, Microsoft, and Alphabet were the largest positive contributors, each advancing more than 2.5%.

Also Read: How to invest in US stocks 

Meta Platforms rose approximately 4.5%, while Amazon gained 0.04%. Conversely, Utilities and Materials were the largest drags, falling 1.02% and 1.01% respectively, as rising Treasury yields made their dividend yields less attractive. The S&P 500’s weekly gain was therefore not uniform, but rather a tale of two markets: a robust technology-led advance offset by weakness in income-oriented sectors (Fidelity, 25 September 2026; Xinhua, 25 September 2026). 

Nasdaq Composite Surges 0.9% as Semiconductor and AI Themes Dominate 

The Nasdaq Composite was the standout performer among major indices, surging 0.9% for the week to close at 27,068.72, up from its opening level of approximately 26,827 on Monday, 21 September 2026. The index traded within a weekly range of approximately 26,280 to 27,083. On Friday, 25 September 2026, the Nasdaq opened at 26,970.95, reached an intraday high of 27,122.76, and closed at 27,068.72, a gain of 0.48% for the session. The previous close was 26,939.37 on Thursday, 24 September 2026  

The rally was driven by a powerful rebound in semiconductor and AI-related stocks. The Philadelphia Semiconductor Index (SOX) climbed 14% over a six-session winning streak through Tuesday, before a modest pullback on Wednesday. Nvidia rose more than 4% for the week, while Broadcom and AMD each gained over 3%.  

Microsoft advanced 3.2%, and Alphabet added 2.8%. The technology sector’s sensitivity to interest rates was evident: despite the 10-year yield surging above 5.2%, growth stocks rallied as investors focused on long-term AI investment themes and earnings resilience. The Nasdaq’s outperformance relative to the Dow and S&P 500 highlighted the persistent dominance of the AI trade in driving US equity returns. 

Russell 2000 Falls 0.4% as Small Caps Lag on Rate Sensitivity 

The Russell 2000 declined 0.4% for the week, closing at 2,842.99, up from its opening level of approximately 2,854 on Monday, 21 September 2026. The small-cap index traded within a weekly range of roughly 2,790 to 2,875. The underperformance was stark: while the Nasdaq gained 0.9%, the Russell 2000 lost ground, reflecting the disproportionate impact of rising Treasury yields on smaller, domestically focused companies (Strefa Inwestorow, 25 September 2026). 

Small-cap stocks are typically more sensitive to domestic economic conditions and credit availability. With the 10-year yield climbing above 5.2% and the 2-year yield advancing to 4.901%, borrowing costs for smaller firms rose materially, pressuring margins and valuations. The yield curve’s steepening at the long end further weighed on risk appetite for small caps. The Russell 2000’s weekly decline underscored a narrowing of market breadth, with capital concentrating in large-cap technology names while smaller companies struggled to attract flows. 

S&P 100 Gains 0.9% as Mega-Cap Technology Exerts Dominant Influence 

The S&P 100, which tracks the largest US companies by market capitalisation, rose approximately 0.9% for the week, closing near 3,425, up from its opening level of approximately 3,394 on Monday, 21 September 2026. The index’s performance was heavily influenced by its mega-cap technology components, which collectively represent a substantial weighting. 

Nvidia, Microsoft, Apple, Alphabet, Amazon, and Meta Platforms all contributed positively, with combined gains ranging from 2% to 4%. Apple rose 2.5%, while Tesla gained 1.8%. The S&P 100’s advance was narrower than the S&P 500’s, reflecting the concentration of gains in the largest technology names.  

Defensive positioning was largely absent, with utilities and consumer staples components of the index lagging. The index’s weekly move confirmed that mega-cap technology remains the primary engine of US equity market returns, even as broader market breadth deteriorated. 

Dow Composite Falls 0.4% as Utilities and Transports Diverge Sharply 

The Dow Jones Composite Average declined approximately 0.4% for the week, closing near 8,450, down from its opening level of approximately 8,484 on Monday, 21 September 2026. The composite’s weekly range was approximately 8,380 to 8,510. The decline was driven by weakness in utilities, which fell sharply as Treasury yields surged. 

The Dow Jones Transportation Average fell approximately 1.2% for the week, closing near 19,478, down from its opening level of approximately 19,715 on Monday, 21 September 2026. The transports index broke below its 200-day moving average, a technically significant development that reflected concerns about slowing goods demand and rising fuel costs.  

Also Read: Understanding Dow Jones Industrial Average (DJIA) – A Complete Guide 

The Dow Jones Utility Average was the worst performer, plunging 4.5% for the week to close near 1,007, down from its opening level of approximately 1,055 on Monday, 21 September 2026. Utilities were directly pressured by the yield surge, as higher bond yields made their dividend yields less competitive. The divergence between industrials, transports, and utilities was a direct function of Treasury yield movements and economic expectations: utilities suffered from rate sensitivity, transports from demand concerns, while industrial components held up better due to technology and aerospace exposure. 

SOX Surges 11% as Semiconductor Rally Accelerates on AI Optimism 

The Philadelphia Semiconductor Index (SOX) was the week’s standout performer, surging approximately 11% to close at 12,492.54, up from its opening level of approximately 11,250 on Monday, 21 September 2026. The index traded within a weekly range of roughly 11,130 to 12,550. The rally built on a six-session winning streak through Tuesday, during which the SOX climbed 14% before a modest pullback on Wednesday. 

Nvidia rose more than 4%, Broadcom gained 3.5%, and AMD advanced 3.2%. Micron Technology and Applied Materials also contributed positively. The semiconductor sector’s surge was driven by renewed support for AI and memory chip makers, stable Treasury yields early in the week, and optimism about long-term semiconductor demand.  

Despite the subsequent yield spike, the SOX held onto most of its gains, reflecting the resilience of the AI investment theme. The index’s weekly advance was the strongest among all major US equity benchmarks, underscoring the semiconductor sector’s role as the primary beneficiary of AI-related capital expenditure. 

NYSE Composite Gains 0.8% with Broader Participation than Nasdaq 

The NYSE Composite Index rose approximately 0.8% for the week, closing near 18,950, up from its opening level of approximately 18,800 on Monday, 21 September 2026. The index traded within a weekly range of approximately 18,720 to 19,020. The NYSE Composite’s advance was more broad-based than the Nasdaq’s, with participation from financials, industrials, and consumer discretionary sectors. 

Financials contributed positively as the yield curve steepened, improving net interest margin prospects for banks. JPMorgan Chase and Bank of America each gained approximately 1.5%. Industrials were supported by Caterpillar and Honeywell. However, energy was a drag, with Exxon Mobil and Chevron declining approximately 1.2% each as oil prices retreated. The NYSE Composite’s weekly gain reflected broader market participation than the technology-concentrated Nasdaq, though it still lagged the S&P 500’s advance. 

MidCap 400 and SmallCap 600 Lag as Rate Pressures Weigh 

The S&P MidCap 400 declined approximately 0.6% for the week, closing near 3,180, down from its opening level of approximately 3,200 on Monday, 21 September 2026. The S&P SmallCap 600 fell approximately 1.4% for the week, closing near 1,150, down from its opening level of approximately 1,166 on Monday, 21 September 2026. Both indices traded within weekly ranges of approximately 2%. 

The underperformance of mid- and small-cap stocks reflected rising interest rates, tighter credit conditions, and waning risk appetite for domestically focused companies. The 10-year Treasury yield’s surge above 5.2% disproportionately affected smaller companies, which rely more heavily on floating-rate debt and bank lending.  

The yield curve’s steepening at the long end also signalled higher term premiums, pressuring valuations for companies with longer-duration earnings. Mid- and small-cap indices’ weekly declines underscored the narrowing of market leadership to large-cap technology. 

Volatility Indices: VIX Rises to 15.54 as Hedging Demand Increases 

The CBOE Volatility Index (VIX) closed the week at 15.54, up 0.73 points from its opening level of approximately 14.81 on Monday, 21 September 2026. The VIX traded within a weekly range of approximately 14.50 to 16.20. The VIX3M (3-month volatility index) also rose, reflecting increased demand for longer-dated protection. The VXN (Nasdaq volatility index) edged higher alongside the VIX. 

The VIX’s weekly increase indicated rising investor demand for portfolio protection, particularly as the 10-year yield surged above 5.2% and Fed rate-hike expectations intensified. However, the VIX remained below its long-term average of approximately 20, suggesting that while hedging activity increased, broad market panic was absent. The VIX futures curve remained in contango, indicating that investors expected volatility to remain contained in the near term. 

S&P 500 Sector Performance: Technology Leads, Utilities Lag 

Information Technology gained 1% for the week, driven by semiconductor and software strength. Communication Services surged 1.92%, the best-performing sector, led by Alphabet and Meta Platforms. Consumer Discretionary rose 0.5%, supported by Amazon and Tesla.  

Financials gained approximately 0.8% as the yield curve steepened. Industrials rose 0.6%, with Caterpillar and Honeywell providing support. Health Care was roughly flat, declining 0.2%. Consumer Staples fell 0.5%. Materials declined 1.01%. Real Estate fell 2.8%, pressured by rising yields. Energy declined 1.2% as oil prices retreated from early-week highs. Utilities plunged 1.02%, the worst-performing sector, as rising Treasury yields made dividend yields less attractive  

The rotation theme was clear: growth and technology sectors outperformed, while rate-sensitive defensives (utilities, real estate) and commodity-linked sectors (energy, materials) lagged. Cyclicals versus defensives favoured cyclicals moderately, but the dominant dynamic was growth versus value, with growth significantly outperforming. 

Biggest Gainers, Losers and Magnificent Seven Performance 

Biggest Gainers: Nvidia (NVDA) gained 4.2%, Broadcom (AVGO) rose 3.5%, Microsoft (MSFT) advanced 3.2%, Alphabet (GOOGL) gained 2.8%, Meta Platforms (META) rose 3.0%, and Amazon (AMZN) added 0.04%. These gains were driven by renewed AI investment sentiment and falling oil prices late in the week. 

Biggest Losers: NextEra Energy (NEE) fell 5.1%, Duke Energy (DUK) declined 4.8%, Southern Company (SO) dropped 4.5%, Exxon Mobil (XOM) fell 1.2%, and Chevron (CVX) declined 1.5%. Utilities were pressured by the yield surge, while energy stocks tracked oil price weakness. 

Magnificent Seven: Apple (AAPL) rose 2.5%, Microsoft (MSFT) gained 3.2%, Alphabet (GOOGL) advanced 2.8%, Amazon (AMZN) added 0.04%, Nvidia (NVDA) surged 4.2%, Meta Platforms (META) rose 3.0%, and Tesla (TSLA) gained 1.8%. The Magnificent Seven collectively drove the Nasdaq’s outperformance, with Nvidia and Microsoft the largest contributors. The group’s strength confirmed that mega-cap technology remains the primary driver of US equity market returns. 

10-Year Treasury Yield Hits 5.17% as Fed Hawkishness Drives Bond Sell-Off 

Federal Reserve hawkishness dominated the bond market after Governor Michael Barr said further rate increases were “likely to be needed”, reinforcing expectations of another 25 basis point hike in October. The federal funds target range remained at 3.75%–4.00%. Treasury yields rose sharply, with the 2-year yield climbing about 10 basis points to 4.901%, the 5-year rising 15 basis points to around 5.10%, and the 10-year increasing 18 basis points to 5.17%. The 30-year yield jumped 33 basis points to 5.48%. Faster gains at the long end steepened the yield curve, while the 10-year yield recorded its sixth consecutive weekly increase. 

Brent Gains 2.1% to $106.04 as Hormuz Risks Counter WTI Weakness 

Brent crude rose 2.1% to $106.04 a barrel, supported by supply concerns linked to the Strait of Hormuz closure. WTI, however, fell 1.65% to $93.05 as US-Iran truce talks reduced some disruption concerns. Gold dropped 2.5% to $4,314.10 as rising real yields increased the opportunity cost of holding bullion. Silver fell 2.7% to $65.09, while copper declined 1.4% to around $6.85 a pound on dollar strength and China demand concerns. Natural gas gained nearly 7% to about $3.05 per mmBtu. 

Durable Goods Flat, New Home Sales Jump 6.4% as US Data Supports Higher-Rate Expectations 

US economic data remained relatively resilient during the week. Initial Jobless Claims for the week ended 19 September fell to 197,000, below the consensus estimate of 201,000, signalling continued labour-market strength and supporting expectations for a hawkish Federal Reserve. New Home Sales rose 6.4% in August to a seasonally adjusted annual rate of 684,000, the highest since December 2025 and above the 616,000 consensus forecast.  

Sales increased 84.9% in the Midwest and 6.9% in the South, suggesting housing demand remained firm despite elevated mortgage rates. Durable Goods Orders were unchanged at $338.6 billion, compared with expectations for a 0.4% decline, while orders excluding transportation increased 0.3%, indicating steady business investment. Meanwhile, the University of Michigan Consumer Sentiment Index edged up to 48.1 in September from a preliminary 47.8, but remained below August’s 51.7. Inflation expectations rose to 3.4%, keeping consumer confidence near four-month lows. 

Dollar Holds Above 101 as Higher US Rates Pressure Major Currencies 

The DXY rose 0.15% to 101.25 as hawkish Fed expectations supported the dollar. EUR/USD fell 0.4% to 1.1371, touching a two-month low, while USD/JPY gained 0.5% to 159.04 as the yen weakened for a fifth consecutive session. GBP/USD declined 0.5% to around 1.3180 amid dollar strength and UK economic concerns. 

The week’s market action underscored the dominant influence of Treasury yields on US equity performance, with the 10-year yield’s surge above 5.2% driving a sharp divergence between growth and defensive sectors. Investors will monitor the upcoming August PCE inflation data on Wednesday and the September non-farm payrolls report on Friday, which will provide critical signals on the trajectory of monetary policy and the sustainability of the technology-led rally. 

Source 

• https://www.nasdaq.com/ 

• spglobal.com/spdji/en/indices/equity/sp-500/ 

• https://www.dowjones.com/ 

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• https://www.spglobal.com/spdji/en/indices/equity/sp-500/ 

• https://www.nasdaq.com/market-activity/index/comp 

• https://www.nasdaq.com/market-activity/quotes/nasdaq-ndx-index 

• https://www.spglobal.com/spdji/en/indices/equity/sp-100/ 

• https://www.lseg.com/en/ftse-russell/indices/russell-us 

• https://www.nyse.com/index 

• https://www.nyse.com/index 

• https://www.spglobal.com/spdji/en/indices/equity/dow-jones-transportation-average/ 

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• https://www.spglobal.com/spdji/en/indices/equity/dow-jones-composite-average/ 

• https://www.nasdaq.com/market-activity/index/sox 

• https://www.cboe.com/tradable_products/vix/