U.S. stocks tumbled as rising yields pressured the markets, with the S&P 500 dropping 1% to close at a two-week low on Monday Oct. 7. The Dow Jones Industrial Average fell 0.9% and the Nasdaq composite declined 1.2%. U.S. Treasury yields surpassed 4% for the first time since August, closing at 4.03%. Oil prices increased 3.8% to $77.29 per barrel.

On Tuesday, stocks rebounded from Monday’s losses, with the S&P 500 rising 1%, the Dow gaining 0.3% and the Nasdaq advancing 1.4%. China’s CSI 300 saw a sharp 8% drop as optimism around economic stimulus faded, following a prior rally of 35%.

Stocks advanced on Wednesday after the Federal Reserve highlighted policymakers’ optimism about the economy and hints of a potential slowdown in interest rate hikes. Investors responded positively to the outlook, sparking a market rally despite ongoing geopolitical concerns. The S&P 500 rose 0.7%, the Dow gained 1% and the Nasdaq added 0.6%, with both the S&P and Dow hitting all-time highs.

Markets slipped on Thursday as the Consumer Price Index report dented investor confidence. The U.S. CPI increased 0.2% month-over-month, driven primarily by higher housing and food costs. Core CPI also rose 0.3%, signaling moderate underlying inflation pressures. The S&P 500 fell 0.2%, while the Dow and Nasdaq both declined 0.1%.

Stocks ended the week with gains, as the S&P 500 rose 0.6%, the Dow climbed 1% and the Nasdaq added 0.3%. Optimism around potential Fed rate cuts and a strong start to the corporate earnings season, particularly from major banks, fueled the rally. However, higher-than-expected inflation data earlier in the week and rising Treasury yields continued to apply some pressure on the markets.

In a volatile week, U.S. markets saw significant fluctuations driven by rising Treasury yields, inflation concerns, and geopolitical tensions.

Despite early losses and a mixed economic outlook, optimism around potential Fed rate cuts and strong corporate earnings helped stocks finish the week with gains.