October 3, 2026 Market Update

Market Recap: Under Construction

Renewed geopolitical tensions and continued strong corporate earnings made for a bumpy ride down Wall Street this week. Equities struggled early in the week as oil prices spiked, and Treasury yields climbed. Volatility persisted through Thursday, when stocks hit their low for the week, before a sharp rally on Friday pushed the major indexes to a modest gain by the close of trading.

After one of their worst quarters in decades, bond investors finally received some good news. The Commerce Department’s latest PCE report showed inflation rising less than expected, Friday’s weaker-than-expected employment report pointed to a cooling labor market, and New York Fed President John Williams pronouncement that there was “no need for urgency” to raise interest rates again. Fiscal and political concerns in Europe also boosted demand for U.S. Treasuries, sending yields lower across much of the curve and bond prices higher.

The recent rise in interest rates has generated plenty of discussion about money being diverted from stocks to increasingly attractive bonds. History suggests the relationship is not nearly that simple. Stocks have often performed quite well during periods of rising interest rates, particularly when higher yields accompany strong economic growth and rising corporate profits. When it comes to investing, rules of thumb tend to get broken. 

Market Performance

Market Commentary: An Educated Decision

For decades, attending college has been viewed as one of the surest paths to financial success. But with America’s college graduates burdened by $1.9 trillion in student loans and yearly costs exceeding $100,000 at some private universities, high school graduates and their parents are increasingly asking whether the traditional four-year college experience is worth the cost.

Artificial intelligence could add to those questions. A recent Census Bureau study found that graduates from majors most exposed to AI have already experienced lower initial employment and earnings since the arrival of generative AI. That does not make college obsolete, but it makes what students study and what they pay to study more important than ever.

College, of course, has always provided more than job training. It offers independence, friendships, intellectual development, career connections and, for many students, is a memory-filled rite of passage. Those benefits have value. But as costs rise and technology reshapes the workplace, families must carefully weigh that value against the cost.

In Case You Missed It: A Head Start

More than 60 million children are expected to be automatically enrolled in Trump Accounts under new rules that eliminate the need for parents or guardians to sign up. However, families must still take action to claim the government-funded $1,000 initial contribution available to eligible children born from 2025 through 2028. Families may contribute up to $5,000 a year. Withdrawals prior to age 18 are restricted, and withdrawals thereafter are generally subject to the same tax and penalty rules that apply to traditional IRAs.