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30-Year Yield Hits 2004 High, Nasdaq Ends Flat

Rates — the 30-year hits its highest since 2004; Oracle and Arm sold, Meta and Intel bought, Nasdaq ends flat

The 30-year Treasury yield touched 5.50% and the 10-year 5.22% before both eased into the close. Stocks sat through it: the Nasdaq recovered a 0.74% midday loss to finish flat, as Meta and the chipmakers selling processors rose while Oracle's data-center notice pulled Arm down 7.9%. Tokyo's chip-equipment makers extended their gains this morning; Hong Kong fell to a two-month low.

In this edition

The Morning 10 Fri, Sep 25, 2026 ~90 seconds 08:00 CET

The ten points

The 30-year Treasury yield touched 5.501% on Thursday, the highest since June 2004, and the 10-year reached 5.223%, the highest since June 2007. Both eased into the close, at 5.461% and 5.162%. Jobless claims fell to 197,000, below the 201,000 expected - another sign of an economy that does not need lower rates.

Stocks absorbed it. The Nasdaq Composite was down 0.74% at midday and closed flat at 26,939.37. Underneath, the market picked sides: Meta rose 4.50%, Intel 3.91% and AMD 2.38%, while Oracle fell 3.47% after a force majeure notice on its New Mexico data-center campus, and Arm fell 7.88%.

Overnight, Tokyo rose 1.3% with Tokyo Electron up 4.6%, the yen firmed to 158.18, and Hong Kong fell 1.4% to a two-month low after a Trump-Xi meeting that produced warm words and two pandas but few concrete results. Costco beat on earnings; its shares barely moved after hours.

  1. The 30-year touched 5.501%, the highest since June 2004, and closed at 5.461%; the 10-year touched 5.223%, the highest since June 2007, and closed at 5.162%; the 5-year closed above 5% at 5.025%; TLT -1.29%
  2. Stocks sat through it: Nasdaq Composite 26,939.37 (+0.01%) after -0.74% at midday, S&P 500 7,704.13 (-0.02%), Dow 51,349.98 (-0.31%), Russell 2000 2,835.57 (-0.11%); equal-weight RSP -0.50%
  3. Oracle's notice on Project Jupiter spread: Oracle $139.54 (-3.47%), Blue Owl $9.25 (-3.65%), Arm $306.34 (-7.88%); in the Rubin index, DC power -1.85% and AI factory systems -1.58%
  4. Meta $777.59 (+4.50%) the day after Connect; the processor makers rose with it - Intel $127.39 (+3.91%), AMD $629.26 (+2.38%); Alphabet +1.34%
  5. Chips split, software sold: SOXX $566.07 (+0.06%); SanDisk $1,753.62 (-3.47%), memory fund DRAM -1.91%, Broadcom -1.30%, Nvidia -0.41%; Micron $1,080.53 (+0.81%); IGV -0.88%, Microsoft -0.53%, cyber fund CIBR -0.79% after its record
  6. Oil rose again: Brent fund BNO +2.45%, WTI fund USO +2.86%; Brent touched $108.23 after Houthi missiles at Saudi Arabia, then eased on a report of talks on a phased reopening of the Strait of Hormuz
  7. Costco beat and barely moved: net sales $93.9bn (+11.2%), EPS $6.75 against $6.55 expected, comparable sales +9.4% (+6.7% without gas and currencies); closed $896.48 (-0.91%) before the report, $898.80 (+0.26%) after hours
  8. Tokyo extended its gains: Nikkei 225 66,356.13 (+1.29%) at 05:52 UTC; Tokyo Electron +4.56%, Advantest +2.48%, Kioxia +2.02%; SoftBank -2.68%; the yen firmer at 158.18 per dollar
  9. Trump and Xi met for about 90 minutes - 'a great meeting', two pandas, few concrete results; Hong Kong's Hang Seng 24,409.45 (-1.42%) at 05:52 UTC, a two-month low, tech shares weakest
  10. US stock futures slightly higher - Nasdaq 100 +0.26%, S&P 500 +0.05% at 05:52 UTC; bitcoin 84,242; today durable goods (12:30 UTC) and final Michigan sentiment (14:00 UTC); inflation data (PCE) and Micron next Wednesday
  1. The 30-year touched 5.501%, the highest since June 2004, and closed at 5.461%; the 10-year touched 5.223%, the highest since June 2007, and closed at 5.162%; the 5-year closed above 5% at 5.025%; TLT -1.29%

    Context

    TLTLQDIEF

    What
    The selling in bonds that began on Wednesday continued for a second day. The 30-year yield rose to 5.501% during the session - a level last seen in June 2004 - before closing at 5.461%, up from 5.401%. The 10-year touched 5.223% and closed at 5.162%, up from 5.114%. The 5-year closed at 5.025%, above 5%, after touching that level for the first time since 2007 on Wednesday. The long-bond fund TLT fell 1.29% and the investment-grade corporate bond fund LQD 0.71%. Weekly jobless claims fell to 197,000 against 201,000 expected.
    If
    The 30-year closes above 5.50% rather than just touching it.
    Why
    The 30-year is the rate investors demand to lend to the US government for a generation. When it rises this fast on good economic news, the market is asking to be paid for inflation and for the amount of debt it has to absorb - not pricing a recession.
    Then
    Two days of selling have taken the curve to levels last seen before the financial crisis. The durable goods report at 12:30 UTC today is the next test.
  2. Stocks sat through it: Nasdaq Composite 26,939.37 (+0.01%) after -0.74% at midday, S&P 500 7,704.13 (-0.02%), Dow 51,349.98 (-0.31%), Russell 2000 2,835.57 (-0.11%); equal-weight RSP -0.50%

    Structure

    QQQSPYDIAIWMRSP

    What
    At midday the Composite was down 0.74%; by the close it had recovered the whole loss and finished 3 points higher. The S&P 500 ended 0.02% lower, the Dow 0.31% lower and the Russell 2000 0.11% lower - a much calmer day for small companies than Wednesday's 1.77% drop. The equal-weight S&P fund RSP fell 0.50%, more than the cap-weighted index: the recovery was carried by a handful of large names. The VIX rose 3.2% to 15.67.
    If
    The Composite closes lower on a day when yields fall.
    Why
    A market that finishes flat on a day the 30-year reaches a 22-year high is telling you buyers are still there. A narrow recovery, carried by the largest names, is a weaker version of that message than a broad one.
    Then
    Friday closes the week. The weekly change, not Thursday's flat close, is the cleaner read on what two days of rising yields cost.
  3. Agentic Winners 40 Forty names positioned to win the agentic transition — tracked as a live index, daily. Open AW40 →
  4. Oracle's notice on Project Jupiter spread: Oracle $139.54 (-3.47%), Blue Owl $9.25 (-3.65%), Arm $306.34 (-7.88%); in the Rubin index, DC power -1.85% and AI factory systems -1.58%

    Structure

    ORCLOWLARM

    What
    Oracle sent a force majeure notice to the developer of Project Jupiter, a New Mexico data-center campus planned at up to $165 billion and built by a Blue Owl unit. The notice protects Oracle from extra costs if the campus does not come online as expected in 2028. Oracle said the project 'remains on our planned schedule'; Blue Owl said the notice 'does not change the financial commitments'. Oracle closed 3.47% lower and Blue Owl 3.65% lower. Arm fell 7.88% to $306.34, trading between $303.65 and $326.00; reports also cited a sale of 10,400 shares by its finance chief at $300 on 21 September. Inside the Rubin index, the data-center power group fell 1.85% and AI factory systems 1.58%.
    If
    A second large data-center customer uses the same kind of clause.
    Why
    A force majeure notice is a legal shield, not a cancellation. But it is the first time one of the largest buyers of AI data centers has formally prepared for a delay - and the builders and suppliers were priced on those campuses arriving on time.
    Then
    Watch Oracle's bonds as closely as its shares. In Thursday's Midday 10, Oracle was already the only name in the second tier of our credit stress board.

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C · point 11 · members

Today in line 11: the desk's diary entry on a day that split cleanly - why a force majeure notice matters more for the builders than for Oracle, why the processor makers rallied on Meta's agent, and what a flat Nasdaq on a 22-year high in the 30-year says about who is still buying.

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