US stocks closed mostly higher on Thursday, erasing earlier losses as the Treasury selloff came to a halt. The S&P 500 gained 0.2%, the Nasdaq rose 0.3%, while the Dow closed near flat. The pause in the bond rout sent 10-year Treasury yields lower from their highest since 2002, with an unwinding of crowded positions helping fuel the rebound. Treasuries also gained after Fed Vice Chair Philip Jefferson said it may take more time to assess whether further rate hikes are needed. The pause lended some support to credit-sensitive stocks. Chipmakers, which are facing record levels of debt issuance, closed mostly higher. Nvidia gained 1.1%, AMD rose 0.6%, and Micron added 3% after issuing an upbeat current-quarter forecast following strong fiscal fourth-quarter results. Treasury yields had previously extended a months-long rise, pressured by higher oil prices, which fueled inflation concerns and reinforced expectations of further rate hikes by central banks.

Crude oil climbed above $93 a barrel on Thursday after reports that the US is sending a third aircraft carrier strike group to the Middle East. Marine Corps ships and up to 10,000 additional troops are also reportedly being deployed, with the forces expected to arrive by the end of November. The deployment could signal preparations for further US military action against Iran. US President Donald Trump has reportedly told aides he expects to resume bombing Iran after the November midterm elections. Oil prices are rising even as crude flows from the Middle East have largely recovered to prewar levels. However, the recovery remains fragile, with at least three tankers attacked this week while transiting the Strait of Hormuz. Iran and its Houthi allies have also attacked regional refineries. Meanwhile, Ukrainian strikes on Russian refineries prompted Moscow to ban diesel exports, while Chinese refiners canceled some gasoline and jet fuel exports planned for October.

The yield on the US 10-year Treasury note topped 5.3% on Thursday, its highest level since early 2002, before retreating slightly to 5.27%. The bond market has remained under pressure amid expectations of further monetary policy tightening by the Fed, as persistent inflationary pressures from higher oil prices and the lack of a resolution to the Middle East conflict continue to weigh on sentiment. Concerns over the US fiscal and debt outlook, along with resilient economic data, have added to the pressure. The ISM Manufacturing PMI edged lower in September but still pointed to solid manufacturing activity, while the prices paid gauge soared. The jobs report due tomorrow will provide a fresh update on labor-market conditions and will help shape expectations for the Fed’s policy path. Traders have fully priced in a 25 bps rate hike by the Fed this year, although the probability of such a move in October has fallen to 34% from 70% last week.

The S&P Global Canada Manufacturing PMI fell to 51.5 in September 2026 from 53 in August, falling to its lowest level in six months. Output continued to rise, albeit more modestly, as firms noted a degree of client hesitation. New export orders declined for a fourth consecutive month amid weaker demand from US clients due to increased trade frictions. Customs delays and difficulties at the US border, the conflict with Iran, and demand related to AI were also reported to have added strain to already stretched supply chains. Delivery delays were the most widespread since August 2022, while vendors reported shortages of available stock. As a result, firms drew down existing inventories, contributing to the first decline in stocks of purchases in six months. Product shortages and high energy prices pushed input costs higher, with inflation reaching its highest level since mid-2022. Confidence deteriorated to its lowest level since December 2025 as multiple headwinds weighed on sentiment.

The S&P Global Brazil Manufacturing PMI fell to 44.8 in September 2026 from 46.3 in August, marking the sharpest deterioration in manufacturing operating conditions since April 2023. The quarterly average fell to 46.2, its lowest since Q2 2023. Factory output contracted for a fifth month, with the downturn the strongest since the COVID-19 outbreak in early 2020. New business declined at the fastest pace in nearly four years, while export demand fell for a fifth month. Lower workloads allowed firms to clear backlogs at one of the fastest rates in the survey’s history. Employment fell for a third month, although job shedding eased from August. Buying activity declined for a fifth month at the fastest rate since April 2023, while pre-production inventories posted their sharpest drop since October 2025. Cost pressures resurged, but weak demand and competition limited pricing power, pushing output charge inflation to a seven-month low. Firms remained optimistic about the year-ahead outlook.

The number of Americans filing for unemployment benefits fell by 1,000 to 197,000 in the week ended September 26, below expectations of 200,000 and down from a revised 198,000, according to the US Department of Labor. Claims reached their lowest level since the 57-year low of 189,000 recorded in mid-July, pointing to continued resilience in the US labor market despite growing headwinds from the US-Israeli war with Iran, which has pushed diesel prices to record levels. Economists say robust corporate profits and resilient domestic demand are helping shield workers from layoffs, while employers appear to be taking a wait-and-see approach amid elevated energy costs, uncertainty over the conflict in Iran, potential Fed rate increases and an unsettled trade policy that could push costs higher. Continuing claims fell by 11,000 to 1.701 million in the week ended September 19, the lowest since April 2023.