Asset Management Weekly Market Commentary

Market updates for the week ending
October 2, 2026

Key observations

• U.S. equity indices were content to move sideways throughout much of the week and even after rallying on Friday, both the S&P 500 and S&P Small Cap 600 indices closed out the week with small losses. Notably, leadership remained narrow with the information technology sector remaining the standout performer as both hardware and software had a good week, and tech was joined by energy and utilities as the only S&P 500 sectors to finish the week in positive territory.
• Abroad, both developed and developing markets hit a rough patch early in the week as a relentless rise in Treasury yields pushed the U.S. Dollar Index, or DXY, to a year-to-date high. But both the MSCI EAFE developed markets index and the MSCI Emerging Markets index rebounded on Friday as a drop in Treasury yields provided investors in foreign stocks with the confidence to increase exposure abroad.
• Treasury yields remained volatile during the week, with the 10-year yield trading up to 5.34% intra-day on Thursday, the highest yield seen on that bond tenor since March of 2002, before closing out the week at 5.25% despite a weaker than expected September nonfarm payrolls report on Friday. Credit spreads on high yield corporate bonds widened materially on the week to the highest level seen since late March, but with the yield-to-worst on the Bloomberg U.S. Corporate High Yield index back above 8.3% to April 2025 levels, opportunistic investors are likely starting to kick the tires on credit.

What we're watching this week

• The Institute for Supply Management (ISM) releases its Services index for September on Monday, with a reading of 55.0 expected, which would compare to 55.4 in August. The Prices Paid component of the index is worth watching as a reading of 73.0 is expected, which would be a continued rise from an already elevated 72.6 reading the month prior. For context, a reading above 50 indicates expansion or growth, while a reading below 50 indicates contraction.
• The minutes from the FOMC’s mid-September meeting will be released on Wednesday and could lead to a recalibration of the outlook for monetary policy through year-end.
• The University of Michigan releases its preliminary Consumer Sentiment survey for October on Friday, with the reading expected to fall to 47.8 from an already lackluster 48.1 in September.