[BRIEFING.COM] The major averages continue to build on their opening gains, with the S&P 500 (+1.9%), Nasdaq Composite (+2.5%), and DJIA (+1.6%) moving firmly higher amid strong leadership from mega-cap technology stocks. The Vanguard Mega Cap Growth ETF is up 2.6%, reflecting renewed buying interest in the market's largest growth stocks.

Alphabet (GOOG 291.93, +8.00, +2.82%) is among the standouts after unveiling two new configurations of its eighth-generation tensor processing units, expanding its offerings for enterprise AI workloads. The new systems are designed to support more demanding AI applications and provide enhanced security for sensitive data, potentially broadening adoption among enterprise and government customers.

Semiconductor stocks are adding to their early gains as well, with the PHLX Semiconductor Index now up 5.4%. 

[BRIEFING.COM] The stock market is off to a strong start this week as investors buy into last week's steep selloff, while declining oil prices provide additional support to the broader market. The S&P 500 (+1.7%), Nasdaq Composite (+2.2%), and DJIA (+1.6%) are firmly higher, supported by broad strength and solid leadership across mega-cap tech stocks.

Nine S&P 500 sectors move higher this morning, with consumer discretionary (+3.8%) leading the advance amid strength in Amazon (AMZN 271.97, +12.67, +4.89%), while a host of consumer-facing names move sharply higher as oil retreats. Meta Platforms (META 638.82, +28.66, +4.70%) is another mega-cap standout, and the communication services sector (+2.9%) is also firmly higher.

The information technology sector (+1.5%) is also enjoying a nice opening pop, supported by a 4.6% gain in the PHLX Semiconductor Index, which shed over 12% last week. However, NVIDIA (NVDA 178.14, -8.50, -4.55%) is a notable drag on the sector amid reports that the company will be launching an internal investigation into CEO Jensen Huang after allegations that he had an affair with a Chinese spy.

The rebound across semiconductor stocks is also pushing other AI-infrastructure names in the industrials sector (+2.5%) higher as well.

Meanwhile, the defensive consumer staples sector (-0.2%) lags amid the enthusiasm across tech stocks, while the energy sector (-0.2%) also retreats as crude oil moves $3.29 (-3.6%) lower to $87.51 per barrel.

On the data front, September wholesale inventories increased 0.7% (Briefing.com consensus: 0.6%), following an upwardly revised 0.6% increase (from 0.5%) in August.

Equity futures continue to point to a higher opening this morning, supported in part by a sharp decline in crude oil prices after President Trump suggested renewed strikes on Iran are highly unlikely as long as negotiations continue to make progress.

There is also some renewed buying interest in AI-related stocks following last week's steep losses, although NVIDIA (NVDA 175.60, -11.04, -5.92%) continues to move lower amid reports that CEO Jensen Huang was targeted by an alleged Chinese intelligence operative, prompting an independent investigation by the company's board.

The S&P 500 futures currently trade 66 points above fair value. 

Asian markets finished mixed on Monday as Japan rebounded from last week's steep losses, while lingering concerns about AI investment and uneven corporate performance limited gains elsewhere in the region. Japan's Nikkei climbed 2.3% after losing more than 9% last week, with Mizuho Financial (+5%), Mitsubishi UFJ (+4%), Sumitomo Mitsui (+4%), Nintendo (+5%), Toyota Motor (+5%), and Fast Retailing (+4%) leading the recovery. China's Shanghai Composite gained 0.3% while the Shenzhen Component slipped 0.3%, with Cambricon Technologies (+6%), Foxconn Industrial Internet (+5%), and Bank of China (+2%) advancing after Beijing extended its suspension of additional tariffs on U.S. goods through January. Chinese consumer inflation eased to 0.7% yr/yr in October, below e

+ectations, while producer price inflation accelerated to 5.7%, its highest level in more than four years, highlighting persistent price pressures despite softer consumer inflation. Hong Kong's Hang Seng edged down 0.1% as Meituan (-5%) retreated following a broker downgrade and Kingboard Laminates (-9%), Trip.com (-1%), and Lenovo (-1%) also declined, offsetting selective strength in technology shares. South Korea's KOSPI fell 0.8% for a third consecutive session, with Samsung SDI (-11%), LG Energy Solution (-6%), and Hyundai Motor (-3%) leading losses, while SK Hynix (+1%) and Samsung Electronics (flat) stabilized following last week's semiconductor rout. Reports of an internal Nvidia investigation involving CEO Jensen Huang and allegations of Chinese espionage added to uncertainty surrounding the chip industry, although bargain hunting provided some support to previously battered shares. India's Sensex edged up 0.1%, underscoring the uneven regional recovery despite improving U.S.-China trade relations.

• In economic data:
  • China's October CPI was unchanged m/m (expected 0.0%; prior +0.2%) and up 0.7% yr/yr (expected +0.8%; prior +0.9%); PPI increased 5.7% yr/yr (expected +5.3%; prior +5.0%).
  • Australia's September Building Approvals increased 5.1% m/m (expected +5.1%; prior -5.2%) and fell 0.8% yr/yr (expected -0.8%; prior +12.1%); Private House Approvals fell 5.3% m/m (prior +5.4%).
  • Japan's September Coincident Indicator increased 0.7% m/m (prior -1.8%); the Leading Index was 116.4 (expected 116.7; prior 118.0) and fell 1.6% m/m (prior +0.4%).
  • Japan's October Foreign Reserves totaled USD1,179.1 bln (prior USD1,178.4 bln).

European markets are rebounding following last week's selloff, with lower oil prices and easing geopolitical tensions supporting sentiment as investors continue to assess the potential impact of tighter U.S. AI regulation. Germany's DAX gains 0.9%, with SAP (+2%) advancing following a JPMorgan upgrade, Commerzbank (+3%) rising after UniCredit raised its profit target, and Rheinmetall (+2%) recovering from last week's losses, while Hochtief (-4%) retreats after ACS denied takeover speculation. France's CAC 40 climbs 0.6%, supported by Airbus (+1%) after announcing a share buyback program of up to EUR5 bln and Safran (+2%) following new defense contracts, although Credit Agricole (-1%) and luxury names LVMH (-2%), Hermes (-1%), and Kering (-1%) lag. London's FTSE 100 rises 0.7%, led by mining shares Endeavour (+3%), Fresnillo (+3%), Antofagasta (+3%), and Anglo American (+3%) amid higher metals prices, while Shell and BP face pressure from weaker crude prices as Brent falls below $98 per barrel. Germany's September exports rebound 2.0% m/m, exceeding expectations, although a larger 4.2% increase in imports narrows the trade surplus to EUR15.6 bln, while Eurozone investor confidence eases slightly in November. The STOXX Europe 600 advances 0.8%, with Italy's FTSE MIB outperforming at +1.9% and Spain's IBEX 35 gaining 1.4%, reflecting a broad regional recovery despite lingering uncertainty surrounding technology regulation and economic growth.

• In economic data:
  • Germany's September Trade Balance was EUR15.6 bln (expected EUR19.2 bln; prior EUR17.8 bln); Exports increased 2.0% m/m (expected +0.5%; prior -0.4%) and Imports increased 4.2% m/m (expected +0.5%; prior +0.6%).
  • Eurozone November Sentix Investor Confidence was 2.4 (expected 2.1; prior 2.7).

Equity futures continue to point to a higher open as oil prices move lower, with the S&P 500 futures currently trading 60 points above fair value.

On the earnings front, Berkshire Hathaway (BRK.B 570.00, -0.89, -0.16%) is little changed following its Q3 earnings report, which showed a 5.8% year-over-year decline in operating earnings to $12.71 billion, largely due to weaker insurance results. Insurance underwriting earnings fell 42.9%, while insurance investment income declined 14.1%, offsetting stronger performances from BNSF, Berkshire Hathaway Energy, and its manufacturing, service, and retailing businesses. The company also repurchased approximately $9.6 billion of its shares during the quarter.

Equity futures point to a higher opening this morning as a sharp decline in crude oil prices provides some support following last week's broad market selloff. Oil futures are down $3.45 (-3.7%) to $87.38 per barrel after President Trump said renewed strikes on Iran are "highly unlikely" as long as negotiations continue to make progress. Secretary of State Marco Rubio, however, indicated that Iran's demands remain unacceptable, tempering some of the optimism surrounding a potential diplomatic resolution, according to CNN.

The market is also looking to build on Friday's partial recovery in the AI trade, which followed Thursday's steep selloff in semiconductor and other AI infrastructure stocks. Chipmakers are showing mixed action this morning amid news that NVIDIA's (NVDA 177.20, -9.44, -5.06%) board has launched an independent investigation following reports that CEO Jensen Huang was targeted by a foreign intelligence effort. The board said it has no reason to believe national security or company secrets were compromised and reiterated its confidence in Huang and the leadership team.

Looking ahead, another round of earnings reports is on tap this week, including results from several key AI-related companies that could influence sentiment toward the group following last week's volatility. The economic calendar is relatively light, although the October Consumer Price Index (Briefing.com consensus: 0.3%) and Producer Price Index (Briefing.com consensus: 0.4%) reports have the potential to influence expectations for the Fed's policy path.

Today's remaining economic calendar:

• 10:00 AM ET: September Wholesale Inventories; Briefing.com consensus 0.6%; prior 0.5%

In corporate news:

• NVIDIA (NVDA 177.20, -9.44, -5.06%) formed a committee of independent directors to investigate reports involving CEO Jensen Huang and a foreign intelligence effort. The board said it has no reason to believe national security or company secrets were compromised.
• Alphabet (GOOG 291.95, +8.02, +2.82%) is moving higher following reports that the company plans to introduce two new variations of its tensor processing units (TPUs), according to Bloomberg.
• Barrick Mining (B 41.53, +0.97, +2.39%) topped quarterly earnings expectations but missed revenue estimates and maintained its fiscal 2026 gold and copper production guidance.

Reviewing overnight developments:

Asian markets finished mixed, with Japan rebounding from last week's steep losses while weakness in South Korean battery shares and select Hong Kong names limited the regional recovery, according to Nikkei.

In news:

• Beijing extended its suspension of additional tariffs on U.S. goods through January.
• Reports of an internal NVIDIA (NVDA 177.20, -9.44, -5.06%) investigation involving CEO Jensen Huang added to uncertainty surrounding the chip industry.

In economic data:

• China's October CPI unchanged m/m (expected 0.0%; prior +0.2%) and +0.7% yr/yr (expected +0.8%; prior +0.9%); PPI +5.7% yr/yr (expected +5.3%; prior +5.0%)
• Australia's September Building Approvals +5.1% m/m (expected +5.1%; prior -5.2%) and -0.8% yr/yr (expected -0.8%; prior +12.1%); Private House Approvals -5.3% m/m (prior +5.4%)
• Japan's September Coincident Indicator +0.7% m/m (prior -1.8%); Leading Index 116.4 (expected 116.7; prior 118.0) and -1.6% m/m (prior +0.4%)
• Japan's October Foreign Reserves USD1,179.1 bln (prior USD1,178.4 bln)

Equity Markets:

• Japan's Nikkei : +2.3%
• Hong Kong's Hang Seng : -0.1%
• China's Shanghai Composite : +0.3%
• India's Sensex : +0.1%
• South Korea's Kospi : -0.8%
• Australia's All Ordinaries : +0.2%

European markets are rebounding from last week's selloff, with lower oil prices and easing geopolitical tensions providing support as investors assess tighter U.S. AI regulation.

In news:

• Airbus announced a share repurchase program of up to EUR5 billion.
• ACS denied takeover speculation involving Hochtief.

In economic data:

• Germany's September Trade Balance EUR15.6 bln (expected EUR19.2 bln; prior EUR17.8 bln); Exports +2.0% m/m (expected +0.5%; prior -0.4%) and Imports +4.2% m/m (expected +0.5%; prior +0.6%) Eurozone November Sentix Investor Confidence 2.4 (expected 2.1; prior 2.7)

Equity Markets:

• STOXX Europe 600 : +0.8%
• Germany's DAX : +0.9%
• U.K.'s FTSE 100 : +0.7%
• France's CAC 40 : +0.6%
• Italy's FTSE MIB : +1.9%
• Spain's IBEX 35 : +1.4%

[BRIEFING.COM] The stock market finished a volatile week on a mostly lower note, with an afternoon retreat leaving the major averages near their session lows despite a rebound in semiconductor and other AI-related stocks. The S&P 500 (+0.3%) and Nasdaq Composite (+1.1%) held on to modest portions of their earlier gains, while the DJIA (-0.5%) finished lower. All three indices ended the week with sizable losses, underscoring the limited recovery from Thursday's steep selloff.

The information technology sector (+1.3%) led the market after plunging 7.3% yesterday, supported by a 4.2% rebound in the PHLX Semiconductor Index following its 12.3% decline on Thursday. NVIDIA (NVDA 186.64, +5.04, +2.78%) and Advanced Micro Devices (AMD 449.04, +44.64, +11.04%) were among the standouts, while Lam Research (LRCX 200.44, +15.24, +8.23%) rallied after authorizing a $25 billion share repurchase program and declaring a quarterly dividend of $0.33 per share.

The rebound was helped by comments from Texas Governor-elect Gina Hinojosa indicating that she does not oppose data centers outright, along with President Trump's reiterated support for their development. Still, semiconductor stocks recovered only a fraction of yesterday's losses and remained down sharply for the week.

Earnings provided some additional pockets of strength. Cloudflare (NET 268.75, +24.24, +9.91%) surged after reporting accelerating revenue growth and issuing upbeat Q4 guidance, while AppLovin (APP 391.22, +35.12, +9.86%) extended yesterday's post-earnings rally despite broader weakness among software stocks. Microchip (MCHP 58.35, -6.50, -10.02%), however, was a notable semiconductor laggard after its largely in-line quarterly guidance disappointed investors. Outside technology, Moderna (MRNA 254.19, +12.73, +5.27%) outperformed following an earnings beat and an increase to its FY26 revenue outlook.

The communication services sector (+0.5%) retained about half of its earlier advance, supported by a recovery in mega-cap names including Meta Platforms (META 610.15, +5.07, +0.84%) and Alphabet (GOOG 283.93, +2.19, +0.78%). The Vanguard Mega Cap Growth ETF gained 1.1%, reflecting continued leadership from the market's largest growth stocks.

The consumer discretionary sector (+0.1%) also surrendered most of its earlier strength after trading more than 1.0% higher. Tesla (TSLA 358.22, +14.53, +4.23%) remained a standout following news that the company plans to wind down Cybertruck production around mid-2027 to expand Cybercab output, raising hopes for improved capital efficiency. Airbnb (ABNB 189.99, +19.86, +11.67%) was another notable gainer after topping earnings expectations and issuing stronger-than-expected Q4 revenue guidance.

The industrials sector (+0.1%) also eked out a gain, helped by a rebound in aerospace and defense stocks following yesterday's broad selling pressure. Participation weakened considerably as the session progressed, leaving just four S&P 500 sectors in positive territory.

The consumer staples sector (-1.2%) was the biggest laggard after outperforming during Thursday's selloff, while the financials (-0.7%) and real estate (-0.6%) sectors also underperformed. The S&P 500 Equal Weighted Index (-0.5%) finished firmly lower, contrasting with the gain in its market-cap-weighted counterpart. The Russell 2000 (+0.9%) and S&P Mid Cap 400 (+0.6%) fared better, however, reflecting some resilience among smaller stocks.

The October employment report added another consideration for investors, showing stronger-than-expected payroll growth and wage gains alongside a decline in the unemployment rate. San Francisco Fed President Mary Daly (2027 FOMC voter) subsequently indicated that further policy tightening will likely be necessary. The probability of a 25-basis-point rate hike at the December FOMC meeting rose to 79.1% from 66.9% yesterday, according to the CME FedWatch tool.

The CBOE Volatility Index fell 8.9% to 25.67, but remained well above the 20 mark and finished the week up 32%. Ultimately, today's rebound provided only limited relief following Thursday's broad selloff, with fading afternoon gains and persistent weekly losses highlighting the market's fragile footing heading into next week.

U.S. Treasuries finished the week on a lower note, but even with today's losses that were concentrated in shorter tenors, the complex recorded its fifth consecutive week of gains. The 2-year note yield settled up four basis points to 4.53% (+6 basis points this week), and the 10-year note yield settled up two basis points to 4.86% (-7 basis points this week). 

• Russell 2000: +11.0% YTD
• S&P Mid Cap 400: +9.0% YTD
• S&P 500: +7.8% YTD
• DJIA: +6.7% YTD
• Nasdaq Composite: +5.8% YTD

Reviewing today's data:

• Oct Nonfarm Payrolls 165K (Briefing.com consensus 65K; Prior 60K revised from 29K)
• Oct Nonfarm Private Payrolls 159K (Briefing.com consensus 50K; Prior 78K revised from 46K)
• The October employment report left the market in a mixed state of emotion after its release. The good news is that the nonfarm payrolls increase of 165,000 was stronger than expected, the 4.1% unemployment rate was lower than expected, and the 0.4% increase in average hourly earnings was higher than expected. The bad news is that the 3.1% year-over-year growth in average hourly earnings is below the latest CPI and PCE inflation rates of 3.7% and 3.6%, respectively, so workers' wages are not keeping up with inflation.
  • The key takeaway from the report that is contributing to the mixed view surrounding it is that it was strong enough to keep a December rate hike by the Fed on the table.
• Oct Average Workweek 34.4 (Briefing.com consensus 34.4; Prior 34.4)
• The preliminary reading for the University of Michigan Consumer Sentiment Index for November increased to 51.0 (Briefing.com consensus: 47.2) from the final reading of 48.0 for October. In the same period a year ago, the index also stood at 51.0.
  • The key takeaway from the report is that cost-of-living concerns were the biggest issue weighing on consumer sentiment, which remains at depressed levels.
• Consumer credit increased by $27.8 bln in September (Briefing.com consensus $11.0 bln) while the August increase was revised down to $8.2 bln from $8.3 bln.