The stock market clawed back from steep early losses, with a tech-driven rebound lifting the S&P 500 (-0.1%) and Nasdaq Composite (+0.1%) back above their 50-day moving averages after briefly slipping below them at the open. Mixed strength in the broader market saw the DJIA (-0.7%) close with a wider loss, though it finished well off of its session lows and joined the S&P 500 in positive week-to-date territory. 

The session began much like recent ones, with mega-caps absorbing the heaviest losses and fresh hawkish Fed remarks further eroding expectations for a December rate cut. The CME FedWatch tool now places the odds of a 25-basis-point cut at 45.9%, down from 50.1% yesterday and 94.4% a week ago. Kansas City Fed President Schmid (voting FOMC member) signaled he is inclined to oppose a December cut, echoing comments from Minneapolis Fed President Kashkari (nonvoting FOMC member), who said he did not support the October move and remains unsure about December.

While the major averages faced losses over 1.0%, the technology sector showed resilience, dipping only slightly beneath its flatline. That resilience soon turned to exuberance in the midmorning, as chipmakers rallied, helping the S&P 500 and Nasdaq Composite reclaim their 50-day moving averages and move into positive territory for the day. 

The PHLX Semiconductor Index (-0.1%), which also moved beneath its 50-day moving average this morning, held gains as wide as 1.2%, though chipmakers faced some pressure this afternoon and the index closed slightly lower. Micron (MU 246.83, +9.88, +4.17%) and NVIDIA (NVDA 190.17, +3.31, +1.77%) still managed to capture solid gains, while Microsoft (MSFT 510.18, +6.89, +1.37%) and Oracle (ORCL 222.85, +5.28, +2.43%) helped the broader technology sector (+0.7%) close with a gain despite the late pressure in semiconductor names. 

As many as seven S&P 500 sectors traded higher, though only three finished in positive territory. 

The energy sector (+1.4%) was the day's top performer, supported by a 2.3% rebound in crude oil to $60.08 per barrel following Wednesday's 4.1% slide. The real estate sector (+0.3%) managed a more modest gain, while the industrials and utilities sectors finished flat. 

Losses were relatively modest compared to early session levels, though there were a few laggards. 

The materials sector (-1.2%) saw a majority of its components trade lower, while the financials sector (-1.0%) faced pressure in its major banking names.

Mixed performances across mega-cap names saw the communication services (-0.8%) and consumer discretionary (-0.6%) sectors finish lower for the day but well above session lows. The Vanguard Mega-Cap Growth ETF closed 0.2% higher. 

Meanwhile, the Russell 2000 (+0.2%) captured a gain, while the S&P Mid Cap 400 (-0.3%) closed lower after a stint above its baseline. 

Despite some late-session weakness, the market's ability to reclaim technical levels and attract buyers in key growth areas helped stabilize sentiment. At face value, the mixed finish appears to be an underwhelming end to a tough week, but under the surface, there were signs of improving breadth and renewed dip-buying interest in semiconductors and other momentum pockets. Those dynamics helped keep the major averages anchored above support and left the broader market in a firmer position heading into next week, which will see NVIDIA report its earnings on Wednesday. 

U.S. Treasuries finished a bumpy abbreviated week with losses across the curve after sliding from their opening highs. The 2-year note yield settled up two basis points to 3.61% (+5 basis points this week), and the 10-year note yield settled up four basis points to 4.15% (+6 basis points this week). 

• Nasdaq Composite: +18.6% YTD
• S&P 500: +14.5% YTD
• DJIA: +10.8% YTD
• Russell 2000: +7.1% YTD
• S&P Mid Cap 400: +2.7% YTD