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Date: October 5, 2026
Reporter: Emilly Jordan
U.S. stock index futures slipped on Monday as technology shares took a pause after reaching record levels in the previous session, while investors assessed the outlook for interest rates amid elevated Treasury yields and oil prices.
Dow Jones futures were down about 0.2% in early trading, while S&P 500 futures fell 0.18% and Nasdaq 100 futures declined 0.25%, according to Reuters. The pullback followed a strong performance by technology stocks, which had pushed the Nasdaq Composite to a record high after a weaker-than-expected U.S. jobs report reduced expectations of an interest-rate increase by the Federal Reserve this month.
Chip stocks were among the early decliners. Intel fell more than 4% in premarket trading, while Micron Technology was down about 0.3%. Nvidia, which reached a record high on Friday, edged about 0.5% higher.
Investors have been reassessing the Federal Reserve's interest-rate path after September employment data showed weaker hiring than economists had expected. Markets were pricing in an approximately 80% probability that the central bank would leave interest rates unchanged at its October meeting, although expectations for a rate increase in December remained relatively strong.
The movement in stocks was taking place alongside elevated government bond yields. The benchmark 10-year U.S. Treasury yield was around 5.28%, close to multi-year highs. Investors have expressed concerns about government finances, heavy debt issuance and higher energy costs, all of which can contribute to upward pressure on borrowing costs.
Oil prices were another focus for investors. Brent crude remained close to the psychologically important $100-a-barrel level as markets continued to monitor disruptions to Gulf energy infrastructure linked to the ongoing conflict involving the United States, Israel and Iran. Higher energy prices could add to inflationary pressures and complicate decisions facing central banks.
The technology sector has been a major driver of the U.S. stock market's recent gains, particularly as investors continue to focus on artificial intelligence and the earnings prospects of large technology companies. Nvidia, Meta Platforms, Microsoft and Tesla were among the major technology names showing gains after the opening bell, helping lift the broader market despite the cautious start.
By the market open, the pullback in futures had largely eased. The S&P 500 rose 0.08% shortly after trading began to 7,728.78, while the Nasdaq gained 0.16% to 27,233.93. The Dow Jones Industrial Average slipped 0.15% to 51,098.69.
The market's direction was also influenced by fresh economic data showing that U.S. services-sector activity slowed in September. The figures added to expectations that the Federal Reserve may have less pressure to raise rates immediately, although investors remain concerned that elevated energy prices could complicate the inflation outlook.
Corporate developments were also contributing to individual stock movements. PTC surged in premarket trading after France's Schneider Electric agreed to acquire the software company in an all-cash transaction valuing its equity at approximately $22.6 billion. PTC later emerged as the strongest performer in the S&P 500, gaining more than 34%.
Shares of Cerebras Systems also climbed after OpenAI CEO Sam Altman described the artificial-intelligence chip company as a “close partner” and said the two companies had deep engagement focused on improving computing speed. Cerebras shares rose about 6.6% in premarket trading.
Freight and transportation companies also moved sharply. RXO rose after C.H. Robinson Worldwide agreed to acquire the transportation broker in a stock-and-cash transaction valued at about $5.8 billion, while C.H. Robinson shares fell following the announcement.
Despite the cautious start, investors have remained relatively optimistic about corporate earnings. Goldman Sachs analysts expect most companies to again exceed consensus earnings estimates this quarter and forecast about 9% year-over-year earnings growth for the median S&P 500 company.
At the same time, some market analysts have warned that high bond yields could eventually put pressure on equities. Brokerage Panmure Liberum said the stock-market bull run could be approaching its end and forecast that the S&P 500 could fall by more than 35% by the end of 2027. That is a market forecast rather than a certainty, and other investors remain more optimistic about the outlook.
Investors will also be watching comments from major central-bank officials during the week, including Federal Reserve Governor Christopher Waller, for further indications about the path of U.S. monetary policy.
The immediate market focus remains divided between strong technology-sector momentum and growing concerns over borrowing costs, government debt and energy prices. With the Nasdaq recently reaching record territory, investors are now assessing whether the rally can continue as markets move deeper into the final quarter of 2026.