U.S. stocks recovered from morning losses as bond yields retreated from multiyear highs, with semiconductor strength led by Micron's blockbuster earnings lifting sentiment. The S&P 500 and Nasdaq both eked out modest gains while the Dow barely budged, ending a volatile September on cautious footing.
→ Payroll data Friday and Fed meeting October 27-28—inflation path and rate trajectory remain the market's central narrative after September's hawkish repricing.
→ Breadth deterioration could become a major problem if large caps exhaust gains; watch whether smaller stocks and laggards join the rally or signal broader weakness.
→ Corporate earnings season ramping up with tech in focus—sustainability of AI capex cycles and profit growth assumptions will determine if this bounce holds into Q4.