Economics
U.S. economy avoided recession as 10-year yield stayed above 4.76%
Berkshire Hathaway beat the S&P 500 in Q3 and a US-China tariff pact was reached.
The United States recorded positive GDP growth in each of the first three quarters of 2026, steering clear of a recession. Throughout September the 10-year Treasury yield stayed at or above 4.76%, while the S&P 500 closed the month above $730. In the same period Berkshire Hathaway posted returns that outpaced the S&P 500 and Washington and Beijing announced a tariff agreement.
The yield hovered near the high-forties, reflecting persistent inflation concerns. Investors noted the level as a contrast to earlier expectations of a dip.
The S&P 500 index remained above the $730 mark for the entire month of September.
Berkshire Hathaway delivered a performance that surpassed the S&P 500 in the third quarter. The result placed the conglomerate among the quarter's top earners.
The United States and China finalized a tariff agreement by the end of September. The pact removed several remaining duties and set a framework for future trade. The deal was hailed as a step toward stabilizing bilateral economic relations.
Analysis
The continuation of positive quarterly growth removed the immediate risk of a recession, allowing policymakers to keep a more gradual approach to monetary tightening.
Bond yields remaining above 4.76% signaled that borrowing costs for businesses and consumers stayed elevated, which could dampen investment and housing demand.
Berkshire Hathaway's outperformance highlighted the value of diversified, long-term investment strategies, while the US-China tariff agreement reduced trade uncertainty, potentially supporting export-oriented sectors.
What this was built from
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