Stocks snap a three-day slide as bond fears ease a bit

Good morning. Wall Street broke a three-day losing streak overnight, with the Dow rising nearly 300 points. That is a notable turnaround, since Nasdaq futures were sharply lower before the open.

Bonds set the mood. Government bond yields around the world climbed this week to their highest in decades, then US yields backed off a little from recent peaks. The trigger for the selloff was oil topping $90 after new clashes around the Strait of Hormuz, which brought inflation worries back. Traders are now weighing the chance that the US, Japanese and euro-zone central banks all raise rates this month.

The Fed picture shifted a bit too. New York Fed President Williams said rising yields reflect a strong economy, leaving the door open to a hike. Meanwhile hiring is cooling: private employers added just 38,000 jobs in August, the weakest month since January. Rising rates alongside softer jobs is a confusing mix for markets.

In corporate news, AI chip supplier Credo fell 18% despite strong results, a drop several analysts called overdone. Households feel the squeeze as well, with the 30-year fixed mortgage rate climbing to 6.79%.