Markets steadied heading into the first Friday of Q4 2026, with futures trading higher after a volatile Thursday session across major U.S. indices.
Stocks endured a wild ride Thursday, swinging between positive and negative territory through the morning before ultimately finishing the day in the green.
The small-cap Russell 2000 led the major indices, closing at 2,807, up 0.39%, while the S&P 5000 settled at 7,666, up 0.20% on the session.
The Nasdaq closed at 26,871, up 0.04%, and the Dow Jones Industrial Average finished at 50,927, also gaining 0.04% on the day.
Traders credited an interest-rate turnaround as a significant driver behind the solid start to the fourth quarter of 2026.
Treasury yields fell sharply across the entire curve in the afternoon after Reuters noted hedge funds unwound bullish positions in European debt amid political turmoil in France.
Federal Reserve Vice Chair Philip Jefferson signaled the central bank may exercise patience before raising rates again, which further eased selling pressure on bonds.
The 30-year bond closed at 5.61% and the 10-year note settled at 5.24%, offering relief after longer maturities touched their highest yields in nearly 25 years earlier Thursday.
Oil surged after reports that the United States was sending a third aircraft carrier to the Middle East and China suspended October fuel exports to prioritize domestic supply.
Brent Crude finished at $102.30, up 4.40%, while West Texas Intermediate closed at $92.92, up 2.76%, and natural gas slipped 2.51% to $2.95.
Gold closed at $4,172, up 0.41%, supported by softer-than-expected U.S. inflation data that cooled expectations for aggressive near-term Federal Reserve rate hikes.
A bullish institutional report from Citigroup raised 12-month forecasts for leading digital assets, helping lift Bitcoin to $86,520 and Ethereum to $2,749 by early Friday morning.
On the upgrades side, Abbott Laboratories (NYSE: ABT) was raised to Buy from Neutral at Rothschild and Co Redburn, with the target lifted to $127 from $119.
Airbnb (NASDAQ: ABNB) was upgraded to Overweight from Sector Weight at Keybanc, which assigned a $191 target price to the home-sharing platform.
Cerebras Systems (NASDAQ: CBRS) was upgraded to Buy from Hold at Freedom Capital, with analysts there setting a $209 target price for the shares.
Hewlett Packard Enterprise (NYSE: HPE) was raised to Outperform from Neutral at Daiwa, with a $75 target price attached to the call.
Arko Petroleum (NYSE: APC) was raised to Outperform from Neutral at Mizuho, with analysts establishing a $22 target price on the stock.
Among downgrades, Northrop Grumman (NYSE: NOC) was cut to Sector Perform from Outperform at RBC Capital, which slashed its target to $525 from $640 for the defense contractor.
Edison International (NYSE: EIX) was downgraded to Underperform from Hold at Jefferies, which reduced its target on the utility to $42 from $53.
Pershing Square (NYSE: PS) was cut to Underweight from Equal Weight at Wells Fargo, which moved its price target to $41 from $36 for Bill Ackman’s hedge fund.
AST Space Mobile (NASDAQ: ASTS) was cut to Neutral from Buy at B. Riley, which lowered its target sharply to $65 from $85 on the satellite company.
Synaptics (NASDAQ: SYNA) was trimmed to Equal Weight from Overweight at Wells Fargo, with the target dropping to $123 from $140 on the chipmaker.
Wells Fargo initiated coverage on Coinbase Global (NASDAQ: COIN) with an Equal Weight rating and a $200 target, while starting Robinhood Markets (NASDAQ: HOOD) at Equal Weight with a $125 target.
Intercontinental Exchange (NYSE: ICE) received an Underweight initiation from Wells Fargo with a $150 target, and Regency Centers Corporation (NYSE: REG) was started at Buy by Truist Financial with an $84 target.
