[BRIEFING.COM] The S&P 500 (-0.4%) and Nasdaq Composite (-0.4%) are recovering from their earlier lows amid some improvement across mega-cap and technology stocks.

The information technology sector (-0.3%) is now among the better-performing S&P 500 sectors, significantly narrowing today's loss. The PHLX Semiconductor Index (-1.7%) and iShares Expanded Tech-Software ETF (-1.1%) remain firmly lower, though both have recovered a considerable chunk of their earlier weakness.

Meanwhile, memory names such as Micron (MU 1075.52, +29.96, +2.87%) and Sandisk (SNDK 1714.27, +53.81, +3.24%) are outperforming after a firmly lower finish for the group yesterday.

Hewlett Packard Enterprise (HPE 72.84, +2.36, +3.35%) is also among the best-performing S&P 500 components, extending yesterday's push to fresh record highs. The company introduced four new ProLiant Gen13 servers powered by AMD's 6th Gen EPYC processors, targeting AI, inference and other compute-intensive workloads, providing another catalyst for a stock already benefiting from enthusiasm surrounding AI infrastructure and networking demand.

[BRIEFING.COM] The S&P 500 (-0.6%), Nasdaq Composite (-0.7%), and DJIA (-1.1%) are firmly lower just before midday as rising Treasury yields pressure the market following yesterday's record-setting session for the S&P 500 and Nasdaq.

The 10-year note yield is up four basis points to 5.31%, having climbed as high as 5.36% this morning. The retreat from that high has done little to alleviate the pressure on stocks.

The broad participation seen during the first two sessions of the week has reversed sharply, with decliners outpacing advancers by roughly 4-to-1 on the NYSE and nearly 3-to-1 on the Nasdaq. At the same time, recent technology and mega-cap leaders are offering little support, evidenced by a 1.8% decline in the PHLX Semiconductor Index and a 0.6% loss for the Vanguard Mega Cap Growth ETF.

Rate-sensitive areas are seeing even sharper losses. The iShares U.S. Home Construction ETF is down 3.4%, while several AI-infrastructure names are among the S&P 500's weakest performers, contributing to a 2.5% decline in the industrials sector. The Russell 2000 (-1.4%) and S&P Mid Cap 400 (-2.0%) are also underperforming, underscoring the broad nature of today's retreat.

[BRIEFING.COM] The major averages continue to drift lower. 

SpaceX (SPCX 168.45, -3.47, -2.02%) has turned lower following a report from the Financial Times that the company is seeking $40 billion in financing to purchase NVIDIA (NVDA 237.18, -2.06, -0.86%) AI chips, highlighting the substantial capital requirements associated with its compute expansion. The proposed package reportedly includes roughly $10 billion in bank loans and $30 billion in investment-grade debt.

The financing plans are drawing added attention with the 10-year Treasury yield at 5.31%, as elevated borrowing costs could increase the expense associated with funding the buildout. The decline also follows a roughly 16% advance for SpaceX from October 1 through October 6, leaving the stock susceptible to some profit-taking as investors weigh the additional financial obligations against the potential returns from its expanding compute capacity.

[BRIEFING.COM] The S&P 500 (-0.6%), Nasdaq Composite (-0.7%), and DJIA (-1.1%) are little changed from their opening lows. 

The industrials sector (-2.0%) is seeing some of the market's sharpest losses this morning as rising Treasury yields coincide with profit-taking across several recent winners tied to the AI-infrastructure buildout. Caterpillar (CAT 817.90, -45.54, -5.27%) is the worst-performing DJIA component and among the weakest stocks in the S&P 500, while other industrial names with significant AI-infrastructure exposure, including Comfort Systems (FIX 1708.59, -109.37, -6.02%) and Vertiv (VRT 239.97, -13.17, -5.20%), are also firmly lower. The weakness suggests the renewed rise in yields is putting valuation pressure on some of the group's recent leaders following their strong runs. While Caterpillar is nearly 24% below its June 30 all-time high, the stock is still up nearly 43% year-to-date. 

[BRIEFING.COM] The S&P 500 (-0.6%), Nasdaq Composite (-0.8%), and DJIA (-0.9%) are firmly lower this morning as the stock market faces broad pressure amid rising Treasury yields and profit-taking across some of its recent leaders.

To be fair, the S&P 500 and Nasdaq Composite are retreating from fresh record highs established yesterday. While the first two sessions of the week featured a notable improvement in broader market participation, mega-cap and technology stocks still did much of the heavy lifting in getting the major averages back to record territory. Against that backdrop, some profit-taking across recent leaders is not particularly surprising.

Semiconductor stocks are seeing some of the more pronounced weakness, with the PHLX Semiconductor Index down 2.0% as NVIDIA (NVDA 238.68, -0.56, -0.23%) retreats after reaching a record high of its own yesterday. Mega-cap stocks are also under pressure, reflected in a 0.6% decline for the Vanguard Mega Cap Growth ETF.

The pullback is being exacerbated by renewed pressure from the Treasury market. The 10-year note yield is up six basis points to 5.33%, reversing the relief provided by falling yields yesterday and creating an additional headwind for growth stocks and the broader market. The industrials sector (-1.9%) is today's weakest performer, with several AI-infrastructure names among the S&P 500's biggest decliners, while the materials sector (-1.5%) is another notable laggard.

Defensive areas are showing relative strength amid the broader retreat. The health care sector (+1.0%) is attracting buying interest after being the only S&P 500 sector to finish lower yesterday, while the consumer staples sector (+0.5%) also holds a gain. The energy sector (+0.1%) is modestly higher alongside a small increase in crude oil prices.

Equity futures continue to signal a lower open amid rising oil prices and Treasury yields this morning.

So far in the premarket, the less accommodative backdrop has weighed on semiconductors, homebuilders, and other rate-sensitive stocks, though some profit-taking can also be attributed to yesterday's record highs.

The S&P 500 futures currently trade 31 points below fair value. 

Asian markets finished lower on Wednesday, with the rebound in oil prices adding to inflation concerns and prompting profit-taking following recent gains. Japan's Nikkei 225 fell 0.9%, snapping a two-day winning streak after reaching a three-month high, with Disco (-6%), Kioxia (-5%), Fujikura (-3%), Tokyo Electron (-2%), and Advantest (-1%) leading technology losses. Japanese wage growth remained firm, with average cash earnings rising 3.8% yr/yr in August, slightly above expectations, while the Reuters Tankan Index improved to 22 in October from 21. Hong Kong's Hang Seng Index declined 0.6%, with Genscript Biotech (-13%), Z.AI (-3%), Wuxi Biologics (-2%), Tencent (-2%), and Xiaomi (-1%) among the laggards as the rebound in crude overshadowed another record-setting session on Wall Street. The Reserve Bank of India raised its policy rate by 25 bps to 5.50%, matching expectations, while maintaining the cash reserve ratio at 3.00%. China's Shanghai Composite remained closed for the National Day holiday and is scheduled to reopen Thursday.

• In economic data:
  • Japan's August average cash earnings increased 3.8% yr/yr (expected 3.7%; prior 4.3%), while overtime pay rose 5.2% yr/yr (prior 4.5%).
  • Japan's October Reuters Tankan Index increased to 22 from 21.
  • Japan's August Leading Index increased to 118.0 (expected 118.1; prior 117.7), while the Coincident Indicator fell 1.9% m/m (prior 1.7%).
  • Australia's August building approvals fell 6.1% m/m (expected -6.1%; prior -1.9%) and increased 10.3% yr/yr (expected 10.3%; prior 10.9%). Private house approvals rose 3.7% m/m (expected 3.7%; prior -1.9%).
  • The Reserve Bank of India raised its policy rate by 25 basis points to 5.50% (expected 5.50%; prior 5.25%) and maintained the cash reserve ratio at 3.00%.

European markets trade sharply lower, with Brent crude back above $100 per barrel amid renewed attacks on shipping in the Strait of Hormuz, adding to inflation and interest-rate concerns as investors await the Federal Reserve's meeting minutes. Germany's DAX falls 1.4%, potentially snapping a three-session winning streak despite industrial production rising a stronger-than-expected 2.0% m/m in August, with Infineon (-4%), Siemens Energy (-2%), Deutsche Bank (-1%), and Vonovia (-1%) among the laggards. France's CAC 40 declines 1.1% to its lowest level since March as concerns over the country's fiscal outlook compound the broader risk-off sentiment, while BNP Paribas (-1%), Crdit Agricole (-1%), and Socit Gnrale (-2%) retreat. London's FTSE 100 loses 0.8%, with a stronger dollar and rising bond yields adding to the pressure, although Shell edges higher after indicating that its energy trading division performed strongly during the third quarter. Expectations for tighter monetary policy are also building, with U.K. swaps now pricing more than 100 bps of Bank of England rate increases by the end of next year. The broader STOXX Europe 600 falls 1.0%, while Italy's FTSE MIB (-2.0%) and Spain's IBEX 35 (-1.6%) underperform.

• In economic data:
  • Germany's August industrial production increased 2.0% m/m (expected 0.5%; prior -1.2%) and 2.33% yr/yr (prior -1.74%).
  • France's August trade deficit narrowed to EUR6.1 billion (expected EUR6.5 billion; prior EUR6.6 billion), while the current account deficit narrowed to EUR1.5 billion from EUR3.9 billion.
  • The U.K.'s September Lloyds House Price Index was unchanged m/m (expected 0.0%; prior -0.3%). The prior yr/yr reading was -0.4%.

Equity futures continue to point to a lower open this morning as Treasury yields rise above Monday's highs. The S&P 500 futures currently trade 35 points below fair value.

Semiconductor stocks are poised for weakness at the open, which will weigh on the major averages. The VanEck Semiconductor ETD is down 2.0% in the premarket as NVIDIA (NVDA 236.78, -2.46, -1.0%) backs off from yesterday's record high, while Marvell (MRVL 281.00, -6.01, -2.1%) also retreats despite being upgraded to Buy from Hold at TD Cowen, with a target price of $350.

Equity futures point to a lower opening this morning after the S&P 500 and Nasdaq Composite reached fresh record highs yesterday. Rising Treasury yields and oil prices are creating renewed pressure after stocks received some relief from both fronts to start the week, while mega-cap and technology names are also trading lower in the pre-market.

The rebound in oil comes as geopolitical uncertainty remains elevated. Vice President JD Vance said the U.S. remains in discussions with Iranian officials but that Iran must make meaningful reductions in nuclear enrichment to meet U.S. demands, according to Reuters.

The September FOMC Minutes at 2:00 p.m. ET will be the main item on today's U.S. calendar. Weekly crude oil inventory data are due at 10:30 a.m. ET, followed by August Consumer Credit at 3:00 p.m. ET.

On the U.S. data front:

• 10/03 MBA Mortgage Applications Index -4.2%; prior -6.0%

Today's remaining economic calendar:

• 10:30 AM ET: 10/03 EIA Crude Oil Inventories; prior 0.922M
• 2:00 PM ET: September FOMC Minutes
• 3:00 PM ET: August Consumer Credit; Briefing.com consensus $15.2B; prior $18.1B

In corporate news:

• Constellation Brands (STZ 108.00, -7.67, -6.3%) beat EPS expectations by $0.19, beat on revenue expectations, and reaffirmed its FY27 EPS guidance. The company acquired Spikedade subsequent to the quarter.
• SpaceX (SPCX 168.00, -3.92, -2.3%) is looking to raise $40 billion to purchase Nvidia (NVDA 237.38, -1.86, -0.8%) chips, according to Financial Times. 
• Nikkei reports that Taiwan Semiconductor Manufacturing (TSM 473.20, -9.10, -1.89%) and its peers in Taiwan are increasing artificial intelligence investment in the U.S. and Southeast Asia as global demand grows.

Reviewing overnight developments:

According to Nikkei, Asian markets finished lower as a rebound in oil prices added to inflation concerns and prompted profit-taking after recent gains.

In news:

• Nikkei noted that the Reserve Bank of India raised its policy rate by 25 basis points to 5.50% and maintained its cash reserve ratio at 3.00%.
• Nikkei reported that China's Shanghai Composite remained closed for the National Day holiday and is scheduled to reopen Thursday.

In economic data:

• Japan's August Average Cash Earnings 3.8% yr/yr (expected 3.7%; prior 4.3%) and Overtime Pay 5.2% yr/yr (prior 4.5%); October Reuters Tankan Index 22 (prior 21); August Leading Index 118.0 (expected 118.1; prior 117.7) and Coincident Indicator -1.9% m/m (prior 1.7%)
• Australia's August Building Approvals -6.1% m/m (expected -6.1%; prior -1.9%) and 10.3% yr/yr (expected 10.3%; prior 10.9%); Private House Approvals 3.7% m/m (expected 3.7%; prior -1.9%)
• India's Reserve Bank raised its policy rate by 25 bps to 5.50% (expected 5.50%; prior 5.25%) and maintained the Cash Reserve Ratio at 3.00%

Equity Markets:

• Japan's Nikkei: -0.9%
• Hong Kong's Hang Seng: -0.6%
• China's Shanghai Composite: closed for holiday
• India's Sensex: -0.6%
• South Korea's Kospi: -2.0%
• Australia's All Ordinaries: -0.1%

European markets trade lower with Brent crude back above $100 per barrel amid renewed attacks on shipping in the Strait of Hormuz, adding to inflation and interest-rate concerns.

In news:

• U.K. swaps are pricing more than 100 basis points of Bank of England rate increases by the end of next year.
• France's fiscal outlook remains an additional concern for the region, while Shell indicated that its energy trading division performed strongly during the third quarter.

In economic data:

• Germany's August Industrial Production 2.0% m/m (expected 0.5%; prior -1.2%) and 2.33% yr/yr (prior -1.74%)
• France's August Trade Balance -EUR6.1 bln (expected -EUR6.5 bln; prior -EUR6.6 bln) and Current Account -EUR1.5 bln (prior -EUR3.9 bln)
• U.K.'s September Lloyds House Price Index was unchanged m/m (expected 0.0%; prior -0.3%) and yr/yr (prior -0.4%)

Equity Markets:

• STOXX Europe 600 : -1.0%
• Germany's DAX : -1.4%
• U.K.'s FTSE 100 : -0.8%
• France's CAC 40 : -1.1%
• Italy's FTSE MIB : -2.0%
• Spain's IBEX 35 : -1.6%

[BRIEFING.COM] Tuesday's session produced another solid advance for the stock market, with broad participation and lower Treasury yields helping the S&P 500 (+0.6%) reach its first record high since August 13. The benchmark also closed above 7,800 for the first time, while the Nasdaq Composite (+0.5%) established fresh record highs of its own and the DJIA (+0.5%) posted a comparable gain.

The major averages finished well off their best levels, however, after spending much of the afternoon drifting sideways before giving back some additional ground late in the session. The S&P Mid Cap 400 (+0.6%) still participated in the advance, while the Russell 2000 (-0.6%) stood out as the clear laggard after surrendering an early gain.

Participation beneath the surface remained notably healthy for a second consecutive session. Ten of the 11 S&P 500 sectors finished higher, marking another departure from the narrow leadership that had characterized much of the market's recent action. Lower Treasury yields provided a favorable backdrop, particularly for rate-sensitive areas, even as crude oil recovered from a sharp overnight decline.

The utilities sector (+3.0%) was the clear leader, fueled by a surge in Constellation Energy (CEG 300.40, +32.78, +12.25%) after the company announced a 20-year power purchase agreement with Alphabet (GOOG 344.59, +0.76, +0.22%) supporting 890 MW of new nuclear capacity through upgrades at 11 existing units across six sites in the PJM grid. Vistra Corp. (VST 160.48, +15.59, +10.76%) and NRG Energy (NRG 103.62, +6.82, +7.05%) also posted sizable gains, leaving several electric utility names among the day's strongest S&P 500 performers.

The consumer discretionary sector (+1.4%) and real estate sector (+1.1%) were also standouts. Mega-cap stocks generally contributed to the advance, reflected in a 0.6% gain for the Vanguard Mega Cap Growth ETF, while lower yields and oil-sensitive names provided additional support. The consumer staples sector (+1.0%) rounded out the day's strongest-performing areas.

The information technology sector (+0.6%) finished higher, although some of its earlier momentum faded. The PHLX Semiconductor Index (+0.3%) ended well off its session high as NVIDIA (NVDA 239.27, +0.37, +0.15%) encountered some profit-taking after reaching a fresh record high and other semiconductor names also backed away from their best levels.

There were still several notable AI-related winners. Marvell (MRVL 287.01, +15.76, +5.81%) surged after management raised its FY28 revenue outlook to $20 billion from $18 billion on stronger optics and switching demand, while Advanced Micro Devices (AMD 649.42, +17.67, +2.80%) rallied after saying it plans to increase supply in 2027 in response to strong AI-product demand, according to Reuters. Citi also raised its price target on AMD to $800 from $575 based on increased CPU demand from agentic applications.

Strength extended into other parts of the technology landscape. Ciena (CIEN 443.66, +53.97, +13.85%) and Corning (GLW 168.98, +9.61, +6.03%) posted sizable gains as Marvell's bullish guidance provided additional reassurance about demand for optical connectivity products. Hewlett Packard Enterprise (HPE 70.56, +2.20, +3.22%) reached a fresh all-time high amid continued strength in AI infrastructure and networking demand.

Conversely, Seagate Tech (STX 805.63, -81.46, -9.18%) and Western Digital (WDC 411.04, -30.60, -6.93%) sold off sharply as reports of a bidding contest for TDK's magnetic-head business added to recent concerns about HDD industry competition.

The health care sector (-0.2%) was the lone sector to finish lower, weighed down by weakness across biotechnology stocks. The iShares Biotechnology ETF fell 2.3%, with Moderna (MRNA 187.46, -15.75, -7.75%) among the notable decliners after reversing an opening gain.

Crude oil ultimately had little influence on the broader market despite a sizable intraday recovery. WTI crude settled $0.11 higher (+0.1%) at $89.44 per barrel after briefly falling below $87 overnight. Bloomberg also reported during the afternoon that Iran is increasing attacks on ships transiting the Strait of Hormuz as oil shipments through the waterway approach pre-war levels.

Tuesday therefore provided another encouraging showing beneath the surface ahead of earnings season. Technology and mega-cap stocks remained important contributors, but gains across ten sectors and lower Treasury yields helped broaden the advance as the S&P 500 and Nasdaq established fresh records.

U.S. Treasuries climbed on Tuesday, with the long bond reclaiming the bulk of loss from Monday while the 10-year note and shorter tenors turned positive for the week. Treasuries held their ground through today's $58 billion 3-year note sale, which was absorbed well by the market, but saw below-average foreign demand, ahead of tomorrow's $39 billion 10-year note reopening. The 2-year note yield settled down four basis points to 4.79%, and the 10-year note yield settled down four basis points to 5.27%. 

• Nasdaq Composite: +18.8% YTD
• S&P 500: +14.0% YTD
• Russell 2000: +14.1% YTD
• S&P Mid Cap 400: +11.9% YTD
• DJIA: +7.2% YTD

Reviewing today's data:

• The trade deficit widened in August to $105.6 billion (Briefing.com consensus: -$93.7 billion) from a downwardly revised $92.8 billion (from -$88.6 billion) in July. Exports were $4.5 billion more than July exports, but imports were $17.2 billion more than July imports.
  • The key takeaway is that demand for crude oil and semiconductors helped drive the increase in exports and imports and can be looked at in part as a good sign for global economic activity.