The Prime Daily: 01 October 2026

Authored By HDFC SKY | Published at: Oct 1, 2026 09:28 AM IST

Open Free Demat Account

Dow Slips Over 4% in September as Treasury Yields Hit Multi-Year Highs

US stocks closed the last session of September mixed after a late reversal. Mega-cap tech lifted the Nasdaq into positive territory, while late selling pushed the S&P 500 and Dow Jones Industrial Average lower.

Inflation data offered some relief, with August PCE rising 3.4% year on year, down from 3.7% in July, and core PCE easing to 3.0%, below forecasts. Revisions to earlier months also point to milder price pressure than previously estimated, and second-quarter GDP growth was revised up to 2.2% annualised from 1.5%.

Treasury yields kept climbing, with the 10-year rising to about 5.29% and the 30-year reaching a 24-year high, as strong corporate earnings and the GDP upgrade outweighed the cooler inflation print.

Elevated yields are weighing on risk assets and supporting the dollar. The softer PCE nonetheless cut October rate-hike odds to about 35% from roughly 72% on Tuesday.

Friday’s September nonfarm payrolls report is the next key test, following weak JOLTS data and consumer confidence of 81.9.

Investors will watch today’s jobless claims and ISM manufacturing data, along with remarks from Fed officials Barkin, Collins and Schmid, for further cues.

Micron beat expectations, reporting fiscal fourth-quarter adjusted EPS of $33.42 against $31.16 expected, and guiding current-quarter EPS to $38.15 ± $1.00, versus the $36.02 consensus. It flagged slightly softer gross margins and higher fiscal 2027 operating expenses, and investors wanted more detail on capital returns, with management saying only that it will raise them in December. Accenture reports today, with its shares down about 32% this year on AI-disruption concerns.

India’s southwest monsoon season ended with one of the weakest rainfalls in over a decade, recording 759 mm against the 868 mm long-period average, marking a 12.6% deficit for 2026. Regionally, central India received rainfall in the normal range, while northwest India (-5.8%), east and northeast India (-25.6%) and south peninsular India (-24.4%) recorded below-normal precipitation.

The rupee appreciated 15 paise to close at 95.83 yesterday, tracking gains across Asian currencies. Lower crude prices, a retreat in global bond yields, anticipated RBI intervention and a softer dollar against major currencies supported the move.

Nifty fell 95 points to close at 22,620 yesterday, marking its third straight daily decline. Immediate resistances lie at 22,810 and the 23,000–23,100 band; a decisive break above this zone is required to signal a meaningful recovery. Conversely, a sustained move below the recent swing low of 22,569 could extend the decline toward 22,200.

Indian equities are poised for a lower open, on the back of weak global cues.

Disclaimer

At HDFC SKY*, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.
If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.
Please Note: The information shared is intended solely for informational purposes and does not make any investment recommendations.
HDFC SKY from HDFC Securities, one of most trusted trading platforms in India, has been recognized with the *Next-Gen Digi Content Awards 2025-26.

Markets