US Stocks Hit Records, Oil Rebounds on October 7 2026

1. WALL STREET SETS FRESH RECORDS
Wall Street set fresh records as oil steadied. The S&P 500 rose 0.58% to 7,818.93, its first record close since Aug 13, while the Nasdaq added 0.45% to 27,599.79 and the Dow gained 0.49% to 51,521.28. Easing Treasury yields and stable oil shifted focus to the third-quarter earnings season; utilities led gains and healthcare was the only S&P sector to fall.

2. OIL REBOUNDS AFTER SHARP INTRADAY DROP
Brent crude settled up 0.9% at $101.12 per barrel. NYMEX WTI for November rose 0.41% to $89.84 per barrel. Prices were pressured by G7/IEA plans to release 100 million barrels of crude and diesel from strategic reserves and by Saudi Arabia restoring East-West pipeline capacity to 5.8 million barrels per day, while attacks on tankers near Hormuz and fighting in Yemen supported prices. The EIA raised its 2026 and 2027 oil price forecasts to $98 and $84 per barrel. The IEA is expected to finalize the release plan on Oct 14-15; US President Donald Trump said he is considering suspending the federal gasoline tax.

3. US TRADE DEFICIT WIDENS
US trade deficit widened. The gap hit $105.6 billion in August, according to the Census Bureau and BEA, up 13.7% month-on-month and above expectations, driven by surging imports including AI data-center components. The deficit with China was $16.4 billion.

4. DOLLAR SLIPS, GOLD GAINS
US dollar index fell, gold gained. The DXY fell 0.27% to 101.84. EUR/USD rose 0.34% to 1.1259, its strongest gain in seven weeks, as French bond yields eased and eurozone debt concerns receded. Spot gold added 0.56% to $4,163.69 per ounce, helped by lower yields and a softer dollar.

5. CENTRAL BANKS SIGNAL POLICY PATHS
The BOJ intends to keep raising rates. Governor Kazuo Ueda said the Bank of Japan will continue raising rates in line with economic, price and financial conditions; according to some sources, the BOJ may signal that underlying inflation has reached its 2% target. ECB chief economist Philip Lane called the recent energy price surge a second wave of the energy supply shock. Traders priced about an 80% chance the Federal Reserve holds in October and nearly 70% odds of a December increase.

6. US SEPTEMBER JOBS REPORT RAISES CONCERN
US September jobs report raises concern. According to some market reports, the US economy added only 29,000 jobs in September and the unemployment rate rose to 4.2%; this has not been officially confirmed. If confirmed, it would be much weaker than expected and could influence the Federal Reserve's rate stance.

7. EUROPEAN AND ASIAN MARKETS MIXED
Hong Kong and European stocks rose. The Hang Seng gained 1.00% to 24,281; Germany's DAX added 0.77%, the FTSE 100 rose 0.42%, and the Euro Stoxx 50 increased 0.48%. Mainland Chinese markets remained closed for the National Day holiday. In Vietnam, the VN-Index rose 5.88 points, or 0.34%, to 1,759.08; HOSE turnover reached VND 19,637 billion, about 18% above the 20-session average, but analysts said the recovery signal was not yet confirmed.

8. MIDDLE EAST TENSIONS ESCALATE
Fighting intensified in Yemen and near Hormuz. Yemeni government forces launched an offensive on the Houthi-held capital Sanaa after retaking the Red Sea port of Mokha; Iran stepped up attacks on tankers transiting Hormuz; and the Saudi-led coalition said it intercepted a Houthi ballistic missile. Iranian state media reported a US military helicopter crashed in the Red Sea, but the US denied the report; Qatar said talks to end the regional conflict were continuing.

What to watch today: The Fed meeting minutes are scheduled for release, potentially clarifying the October and December rate stance.

*Information is compiled for reference and reflects multiple sources at the time of publication.*