Tech lifts stocks for the week as 10-year Treasury yield climbs to 5.18%

U.S. stocks finished the week ending Friday, September 25, 2026, higher, led by large technology companies, even as the 10-year Treasury yield climbed to what Portfolio Terminal said was its highest close since 2007. Smaller companies and interest-rate-sensitive sectors lost ground.

How the indexes did

The Nasdaq Composite rose 2.06% for the week to close at 27,068.72, according to weekly market reports from First Financial Trust and Portfolio Terminal. The S&P 500 gained about 1.2% to 7,743.41, and the Dow Jones Industrial Average edged up 0.28% to 51,828.62. The Russell 2000 index of smaller companies fell 0.80% to 2,837.55.

Herr Capital described the week as one of choppy trading, noting that the Nasdaq reached a record intraday high during Monday's session before falling midweek and recovering on Friday.

Portfolio Terminal reported that the technology sector fund XLK gained 3.52% for the week, while utilities (XLU) fell 3.87%, energy (XLE) fell 3.53% and real estate (XLRE) fell 2.28%. Among individual stocks, Meta Platforms rose 12.90% to $751.66 and Microsoft rose 4.53% to $516.17, while Amazon and Alphabet each slipped about 1.6%.

Yields keep climbing

Bond prices fell during the week. The 10-year Treasury yield ended at about 5.18%, up 19 basis points, according to First Financial Trust. Portfolio Terminal put the close at 5.184%, up from 4.998% a week earlier, and said it was the highest close since July 6, 2007. The 30-year yield finished at 5.504%, according to Portfolio Terminal.

According to Portfolio Terminal, a business survey that came in hot on Wednesday coincided with oil rising above $100 a barrel. Oil prices later fell as U.S. and Iranian negotiators discussed a truce and the reopening of the Strait of Hormuz, the report said. First Financial Trust said crude oil ended the week lower.

Herr Capital also pointed to hawkish comments from Federal Reserve Governor Michael Barr, which it said suggested openness to a rate move at the Fed's October meeting.

Economic data

The University of Michigan's final consumer sentiment reading for September fell to 48.1 from 51.7 in August, which Portfolio Terminal attributed to fuel prices and trade disputes. First Financial Trust reported that new single-family home sales rose 6.4% in August from July but were 2.0% lower than a year earlier, and that initial unemployment insurance claims totaled 197,000 for the week ended September 19. The national average gasoline price was $4.478 a gallon on September 21, it said.

Why it matters

The week showed a narrow market. Gains were concentrated in large technology stocks, while small companies, utilities and real estate fell as the 10-year yield moved further above 5%. The rise in yields came with the Federal Reserve's policy rate at 3.75% to 4.00%, consumer sentiment weakening and fuel prices high, leaving investors weighing strong technology earnings against tighter financial conditions.

Sources

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.