U.S. stocks climbed on Friday as a pullback in oil prices helped Wall Street shake off some of the anxiety surrounding surging Treasury yields. The Dow Jones Industrial Average jumped about 0.8%, or more than 400 points, while the S&P 500 gained 0.5% and the Nasdaq Composite advanced roughly 0.5%.
The gains came despite another uncomfortable move in bonds, with the 10-year Treasury yield touching 5.2%, its highest level since the global financial crisis. Investors also weighed cooling consumer sentiment and continued uncertainty surrounding the Strait of Hormuz, while WTI crude dropped toward $94 and Brent traded near $99.
Market Movers:
- Fathom Holdings (FTHM) +20% and Neighborhood Intelligence (NXH) +4%: Shares jumped after the companies agreed to explore an alternative transaction that would replace their previously announced merger agreement, with NXH potentially contributing digital and other assets valued at no less than $130 million to Fathom. The proposed structure would give NXH a controlling interest while the companies explore acquisitions and applications for blockchain and tokenization in real estate.
- Akamai Technologies (AKAM) +8%: Shares surged after Akamai announced a seven-year, $11.6 billion agreement to provide Anthropic with cloud infrastructure and software, with the deal potentially reaching $20 billion if additional spending targets are met. Akamai also granted Anthropic warrants representing roughly 5% of its common stock, tying the companies more closely together as AI computing demand expands.
- Select Water Solutions (WTTR) +3%: Shares rose after the company agreed to acquire Pilot Water Solutions for $700 million in cash and stock, expanding its water infrastructure footprint in the Delaware Basin. Pilot is expected to generate $120 million to $130 million in adjusted EBITDA in 2027, with Select targeting another $10 million to $15 million in annual cost synergies.
- Scholastic (SCHL) -7%: Shares dropped after the company reported a wider-than-expected fiscal first-quarter loss and a 4% year-over-year revenue decline as educational spending remained soft. Scholastic nevertheless maintained its full-year outlook for 2% to 4% revenue growth and adjusted EBITDA of $135 million to $145 million.
- Zscaler (ZS) -6%: Shares fell after Zscaler named Ross Tackett its new chief revenue officer, effective Oct. 1, as Mike Rich prepares to step down for personal reasons. Tackett will oversee global revenue operations, partnerships and go-to-market execution, while Rich will remain an adviser through the end of December.
- Twilio (TWLO) -5%: Shares slipped after HSBC downgraded the cloud communications company to Reduce from Hold, warning that expectations surrounding the benefits of Meta’s Muse AI agent may be too optimistic. The firm argued that AI could generate more communications traffic while still leaving Twilio concentrated in lower-margin connectivity services.
Oil Retreat Gives Wall Street Some Relief
Energy prices finally offered investors some breathing room Friday. WTI crude dropped more than 2% toward $94 per barrel, while Brent fell back near $99 as markets continued tracking negotiations surrounding shipping through the Strait of Hormuz.
The decline matters after elevated energy costs renewed inflation concerns and pushed gasoline prices toward $4.50 per gallon nationally. A sustained drop in crude could ease some of that pressure, although uncertainty surrounding Middle East supply remains a major source of volatility.
Treasury Yields Hit Another Milestone
The bond market remained a much less comfortable story. The 10-year Treasury yield climbed to roughly 5.2%, extending a dramatic selloff that has pushed borrowing costs to levels not seen since the financial crisis. Higher yields are becoming an increasingly important headwind for equities, particularly expensive growth stocks. They are also filtering directly into the economy, with the average 30-year fixed mortgage rate approaching 7.5%, adding another obstacle for the already rate-sensitive housing market.
Consumer Sentiment Weakens
Fresh economic data added another wrinkle to Friday’s rally. The University of Michigan’s final September consumer sentiment index fell to 48.1 from 51.7 in August, marking a four-month low as higher grocery and gasoline prices weighed on household confidence. Consumers also reported growing concern that elevated fuel prices and trade tensions could spill into the broader economy. That puts investors in an unusual position: resilient markets are confronting signs that higher inflation and borrowing costs may increasingly squeeze households.
Looking Ahead
Friday’s gains show that falling oil prices can still provide a powerful boost to risk appetite, but the Treasury market remains difficult to ignore. With the 10-year yield around 5.2%, investors will be watching closely for signs that tighter financial conditions are beginning to weigh more heavily on corporate earnings and economic growth. Oil and the Strait of Hormuz will remain equally important. If crude continues retreating, inflation fears could ease and give stocks room to extend their rebound — but another energy spike combined with already elevated yields could quickly put Wall Street back on the defensive.