[BRIEFING.COM] The major averages staged an afternoon recovery on Friday, leaving the S&P 500 (+0.2%) and Nasdaq Composite (+0.4%) with modest gains while the DJIA (-0.2%) finished slightly lower. The improvement followed a weaker first half of the session, when rising Treasury yields and broad selling pressure had pushed the major averages to their session lows.

The recovery was driven largely by renewed strength in technology stocks and select mega-cap names rather than a broad-based advance. Only three S&P 500 sectors finished higher, while the Russell 2000 (-0.5%) and S&P Mid Cap 400 (-0.3%) continued to trail the large-cap indices. That divergence left the Nasdaq Composite as the only major index to finish the week with a week-to-date gain.

Semiconductor stocks provided the clearest source of leadership during the afternoon. The PHLX Semiconductor Index surged 2.8%, helping the information technology sector (+0.8%) finish atop the sector standings. Memory and storage names were particularly strong, with Sandisk (SNDK 1791.82, +177.43, +10.99%), and Seagate Tech (STX 858.79, +55.66, +6.93%) posting sizable gains amid continued enthusiasm surrounding AI data-center demand and tight storage supply.

Coherent (COHR 317.36, +21.38, +7.22%) was another standout, finishing among the best-performing S&P 500 components after announcing an expansion of its Pluggable Optical Line System portfolio targeting high-capacity interconnect requirements for cloud and AI infrastructure.

Mega-cap strength provided another source of support, leaving the Vanguard Mega Cap Growth ETF up 0.4%.

Amazon (AMZN 253.71, +2.52, +1.00%) was a standout and helped the consumer discretionary sector finish unchanged despite broader weakness within the group. The industrials sector (+0.5%) was another of the three sectors to finish higher, while the financials sector (+0.1%) received some support from continued strength in Coinbase Global (COIN 194.25, +20.28, +11.66%) and Robinhood Markets (HOOD 119.82, +10.01, +9.12%) following yesterday's announcement of the SEC's "Innovation Exemption" allowing crypto exchanges to offer tokenized equities and a surge in Bitcoin past the $81,000 mark.

The afternoon improvement came despite renewed pressure from Treasury yields. The 10-year note yield rose five basis points to 5.00%, leaving it two basis points higher for the week and reversing most of Thursday's decline. Rate-sensitive areas consequently remained under pressure, with the utilities sector (-1.3%) finishing at the bottom of the standings and the iShares U.S. Home Construction ETF falling 1.3%.

The materials sector (-1.1%) was another pronounced laggard as Nucor (NUE 248.38, -16.76, -6.32%) and Steel Dynamics (STLD 235.26, -10.09, -4.11%) remained under pressure following disappointing third-quarter earnings guidance.

The communication services sector (-0.7%) also finished lower after beginning the session on a stronger note, with Netflix (NFLX 71.77, -3.54, -4.70%) weighed down by a Wells Fargo downgrade to Underweight from Equal Weight.

Crude oil moved in the opposite direction of Treasury yields, with WTI settling 1.8% lower at $100.24 per barrel, nearly flat for the week.

Friday's session ultimately featured a meaningful recovery from broad morning weakness, but participation remained relatively narrow. Semiconductor and mega-cap strength was enough to lift the S&P 500 and Nasdaq into positive territory despite higher Treasury yields, weakness in small and mid-cap stocks, and losses across most S&P 500 sectors. The Nasdaq's relative strength was also sufficient to leave it as the only major index with a gain for the week.

U.S. Treasuries had a poor finish to the week, which locked in weekly losses for the 10-year note and shorter tenors while the long bond continued its recent show of outperformance, recording a modest gain for the week. The 2-year note yield settled up five basis points to 4.74% (+10 basis points this week), and the 10-year note yield settled up five basis points to 5.00% (+2 basis points this week). 

• Russell 2000: +15.3% YTD
• Nasdaq Composite: +14.1% YTD
• S&P 500: +11.8% YTD
• S&P Mid Cap 400: +10.5% YTD
• DJIA: +7.5% YTD

[BRIEFING.COM] The major averages remain mostly higher as the market enters the final half hour of the session, though only the Nasdaq Composite is on pace for a week-to-date gain.

While semiconductor stocks have provided support to the major averages over the past two sessions, previous weakness leaves the PHLX Semiconductor Index (+1.5%) down 0.5% for the week. Meanwhile, the iShares GS Software ETF (-1.2%) is up 3.0% week to date, helping keep the information technology sector (+0.2%) on pace for a modest weekly gain. This week has highlighted a recent trend of diverging performance between software and semiconductor stocks, with strength frequently rotating between the two groups rather than occurring simultaneously.

Thursday's broad technology rally was a notable exception, as both groups finished higher, while today's relative strength has shifted back toward semiconductors.

[BRIEFING.COM] The S&P 500 (+0.1%), Nasdaq Composite (+0.2%), and DJIA (-0.1%) are decently improved from their session lows, now mostly higher with just an hour left in Friday's session.

Strength has broadened this afternoon, with five S&P 500 sectors now trading higher. The information technology sector (+0.3%) holds the widest gain for the day, supported by strength across semiconductor stocks.

Memory and storage names are among the more notable outperformers, with Sandisk (SNDK 1740.66, +126.27, +7.82%), Seagate Tech (STX 856.47, +53.34, +6.64%), Western Digital (WDC 442.51, +18.64, +4.40%), and Micron (MU 1009.05, +31.55, +3.23%) benefiting from continued enthusiasm surrounding AI data-center demand and tight storage supply. Comments from Intel (INTC 107.11, -1.69, -1.55%) CEO Lip-Bu Tan that memory-chip prices have risen sharply and supply constraints could persist into next year have reinforced expectations for favorable pricing, while a Reuters report highlighting a global NAND shortage tied to AI servers has provided additional support for the group.

[BRIEFING.COM] The S&P 500 (-0.06%) is now in second place on Friday afternoon, down about 4 points.

Briefly, S&P 500 constituents Qualcomm (QCOM 178.93, -9.78, -5.18%), General Motors (GM 82.42, -4.20, -4.85%), and Lennar (LEN 76.27, -3.43, -4.30%) dot the bottom of the standings. GM slips as Volkswagen's (VWAGY 8.72, -0.73, -7.73%) sharp profit-margin cut raises broader concerns over auto-industry profitability amid tariffs, rising costs and intensifying Chinese competition, while LEN falls as its Q3 earnings miss and weaker Q4 guidance highlight deteriorating demand, persistent affordability headwinds and mounting margin pressure, prompting multiple analysts to cut price targets.

Meanwhile, Cooper (COO 55.83, +2.05, +3.82%) is decently higher after activist investor Jana Partners called for leadership and strategic changes, including an external CEO search, new board chair and potential asset sales, including CooperVision.

[BRIEFING.COM] The tech-heavy Nasdaq Composite (-0.01%) is less than 2 points lower on Friday afternoon.

Gold futures settled $25.20 higher (+0.6%) at $4,424.90/oz, +0.4% on the week, as easing oil prices and lower Treasury yields reduce concerns about an energy-driven inflation shock and prolonged Fed tightening. The move also reflects short-covering after the Fed's hawkish rate hike, although a stronger dollar and expectations for further rate increases are limiting gains.

Meanwhile, the U.S. Dollar Index is flat to $100.23.

[BRIEFING.COM] The Dow Jones Industrial Average (-0.39%) is in last place among the major averages on Friday, down about 201 points.

A look inside the DJIA shows that IBM (IBM 230.17, -7.58, -3.19%), Walt Disney (DIS 103.01, -2.34, -2.22%), and Salesforce (CRM 239.09, -3.76, -1.55%) are underperforming.

Meanwhile, Amgen (AMGN 382.68, +2.90, +0.76%) is narrowly atop the average.

The DJIA is now -1.90% lower week-to-date.

Also, at the top of the hour, Baker Hughes (BKR 57.11, +0.55, +0.97%) announced a weekly U.S. rotary rig count of 595, +5 w/w and +53 yr/yr.

[BRIEFING.COM] The S&P 500 (-0.2%) remains below its flat line, with nine sectors trading lower, while the energy sector (flat) holds the top spot in the standings.

Refiners remain a pocket of notable strength, with Marathon Petroleum (MPC 423.54, +1.58, +0.37%), Valero Energy (VLO 411.08, -1.45, -0.35%), and Phillips 66 (PSX 273.45, -0.76, -0.28%) reaching fresh record highs and extending their year-to-date gains to 163%, 155%, and 114%, respectively. Those advances have contributed to the energy sector's 43% gain since the end of 2025. The sector's modest headline gain understates some of the underlying strength, as losses in heavyweight components Exxon Mobil (XOM 162.86, -0.41, -0.25%) and Chevron (CVX 211.04, -0.53, -0.25%) mask gains in roughly half of the remaining components. Meanwhile, WTI crude has recovered most of an overnight decline and moved back above $101 per barrel.

[BRIEFING.COM] The major averages sit at session lows at midday as weakness continues to broaden and semiconductor stocks give back some of their early gains.

Decliners now outpace advancers by a greater than 2-to-1 ratio on the NYSE and a roughly 2-to-1 clip, while only the energy sector (+0.3%) remains in positive territory.

Netflix (NFLX 71.49, -3.82, -5.07%) is one of the weakest-performing S&P 500 components after Wells Fargo downgraded the stock to Underweight from Equal Weight, with a target price of $77. The communication services sector (-0.5%) started the session as one of the strongest S&P 500 sectors, but has since moved lower as Alphabet (GOOG 345.59, +1.91, +0.56%) has given up the bulk of its early gain.

[BRIEFING.COM] Stocks are mostly lower just before midday, pressured by rising Treasury yields after yesterday's retreat in rates helped fuel broad gains across equities. The S&P 500 (-0.1%) and DJIA (-0.4%) are modestly lower, while the Nasdaq Composite (unch) remains on its flatline as gains in semiconductor stocks help offset broader weakness.

Meanwhile, the underperformance of the Russell 2000 (-0.8%) suggests some weakness in rate-sensitive pockets of the market. Though crude oil is little changed for the day, Treasury yields have crept higher and erased most of yesterday's progress, with the 10-year note yield up five basis points to 5.00%.

Nine S&P 500 sectors trade lower, with the rate-sensitive utilities sector (-1.1%) among the most prominent laggards. The materials sector (-1.3%) holds the widest loss, with Steel Dynamics (STLD 234.00, -11.35, -4.63%) and Nucor (NUE 249.80, -15.34, -5.79%) moving sharply lower after issuing disappointing guidance.

Elsewhere, the energy sector (+0.3%) recently moved to the top of the sector leaderboard, while the information technology sector remains little changed as a 1.3% gain in the PHLX Semiconductor Index helps offset weakness elsewhere.

[BRIEFING.COM] The major averages remain mostly lower, little changed from previous levels amid a relatively quiet Friday morning of corporate news items.

Coinbase Global (COIN 192.44, +18.47, +10.62%) and Robinhood Markets (HOOD 118.03, +8.22, +7.49%) are among the top-performing S&P 500 components today, following Bitcoin (+5.9%) as it reclaims the $80,000 mark. Yesterday, the SEC announced the rollout of their "Innovation Exemption" allowing crypto exchanges to offer tokenized equities.

[BRIEFING.COM] The S&P 500 (-0.2%), Nasdaq Composite (-0.1%), and DJIA (-0.3%) are now lower across the board as the early broad weakness now outweighs some lingering strength in semiconductor stocks.

Nucor (NUE 251.59, -13.55, -5.11%) and Steel Dynamics (STLD 236.29, -9.06, -3.69%) are both moving lower after guiding Q3 EPS below analyst expectations, surprising investors given that Q3 is seasonally important for steelmakers as warmer weather typically supports higher shipments and stronger demand from nonresidential construction, infrastructure, and related fabrication. While the cautious outlooks may temper near-term enthusiasm, both companies pointed to higher steel selling prices, with STLD also expecting lower scrap costs. The setup remains constructive for domestic steelmakers, as tight supply, trade protection, low customer inventories, and solid end-market demand continue to support pricing even without a broad-based demand boom.

[BRIEFING.COM] The S&P 500 (-0.1%), Nasdaq Composite (+0.2%), and DJIA (-0.4%) are mixed near their flat lines just after the open.

Weakness is relatively broad-based as oil prices and Treasury yields creep higher after moving lower yesterday. The 10-year note yield is up five basis points to 5.00%, which weighs on the utilities sector (-1.2%). The materials sector (-1.2%) holds a similar loss, with steel names sharply lower after several companies issued disappointing guidance.

Meanwhile, lingering strength in mega-cap and tech names keeps the Nasdaq in positive territory. Semiconductor stocks are extending yesterday's rally, with the PHLX Semiconductor Index up 1.2%. That keeps the information technology sector (+0.1%) above its baseline despite weakness elsewhere.

The communication services sector (+0.5%) is the only other S&P 500 sector in positive territory, supported by a solid early gain in Alphabet (GOOG 351.29, +7.61, +2.21%).

Just released, the leading economic index decreased 0.1% in August (Briefing.com consensus 0.2%) from a prior increase of 0.2%. 

Industrial production was unchanged month-over-month in August (Briefing.com consensus: 0.3%) following an unrevised 0.2% increase in July. The capacity utilization rate was 76.3% (Briefing.com consensus: 76.4%) and unchanged from July. Total industrial production was up 1.4% year-over-year. The capacity utilization rate was 3.1 percentage points below its long-run average.

The key takeaway from the report is that the softness stemmed from a decline in manufacturing output, yet that downturn could have been a simple case of attrition following increases in manufacturing output for seven consecutive months.

Equity futures continue to point to a flattish open this morning.

On the data front, industrial production was flat month-over-month in August (Briefing.com consensus: 0.3%) following a 0.2% increase in July.

The capacity utilization rate was 76.3% (Briefing.com consensus: 76.4%), unchanged from July.

U.S. equity futures remain modestly higher as investors weigh a Bank of Japan rate hike and a softer European session.

Equity indices in the Asia-Pacific region ended the week on a mostly higher note with South Korea's Kospi (+2.7%) returning to little changed for the week. The U.S. will reportedly delay the implementation of tariffs on excess manufacturing capacity until after the visit of China's President Xi. China is targeting CNY3.5 trillion in pharmaceutical revenue by 2030. The Bank of Japan raised its policy rate by 25 basis points to 1.25%, as expected, though two policymakers voted against a change, inviting some pressure on the yen. Separately, Reserve Bank of Australia Governor Bullock said that the rise in global bond yields has not been disorderly, but he conceded that some upside risks to inflation are materializing.

• In economic data:
  • China's August FDI was -5.3% YTD (last -6.2%).
  • Japan's August National CPI was up 0.1% m/m (last 0.5%) and 1.9% yr/yr (last 1.9%).
  • Japan's August National Core CPI was up 1.7% yr/yr (expected 1.8%; last 1.8%).
  • South Korea's August PPI was up 0.2% m/m (last -0.4%) and 7.9% yr/yr (last 7.7%).
  • New Zealand's August FPI was up 0.3% m/m (last 0.1%).
  • New Zealand's August trade deficit narrowed to NZD1.35 bln (expected deficit of NZD1.775 bln; last deficit of NZD2.118 bln).

---Equity Markets---

• Japan's Nikkei: +1.4%
• Hong Kong's Hang Seng: +0.6%
• China's Shanghai Composite: +0.9%
• India's Sensex: UNCH
• South Korea's Kospi: +2.7%
• Australia's ASX All Ordinaries: +0.1%

Major European indices are on course for a lower finish to the week. Iran reportedly struck another tanker operating in the Strait of Hormuz, but oil has retreated, nonetheless. French Prime Minister Lecornu said that he is looking for EUR54 bln worth of savings in the budget for 2027, which should keep the deficit below 5.5% of GDP. British Chancellor Healey is lobbying EU officials to include the U.K. in its "Made in Europe" policy. A couple ECB officials spoke about the importance of avoiding second-round effects of inflation while ECB President Lagarde said that rate decisions will be made on a meeting-by-meeting basis.

• In economic data:
  • The eurozone's July current account surplus was EUR27.6 bln (expected surplus of EUR30.7 bln; last surplus of EUR35.1 bln).
  • The eurozone's July construction output was unchanged m/m (last -1.53%).
  • U.K. August retail sales were up 0.5% m/m (expected -0.2%; last -0.5%) and 2.4% yr/yr (expected 1.9%; last 1.2%).
  • U.K. August core retail sales were up 0.6% m/m (expected -0.2%; last -0.9%) and 2.7% yr/yr (expected 1.9%; last 1.8%).
  • Germany's August PPI was up 1.1% m/m (expected 0.6%; last 1.1%) and 4.6% yr/yr (expected 4.1%; last 3.0%).

---Equity Markets---

• STOXX Europe 600: -0.9%
• Germany's DAX: -1.2%
• U.K.'s FTSE 100: -1.1%
• France's CAC 40: -1.2%
• Italy's FTSE MIB: -1.4%
• Spain's IBEX 35: -0.7%

Equity futures are off their best levels, with the S&P 500 futures currently trading just one point above fair value. 

On (ONON 29.00, +1.67, +6.11%) is moving hgiher after signing Kylian Mbapp as a partner, giving the athletic brand a prominent global football ambassador. Rivals Nike (NKE 36.16, -0.20, -0.55%) and Adidas (ADDYY 80.75, -1.21, -1.48%) are lower in premarket trade. 

Nike finished modestly higher yesterday after announcing that Alexandre Arnault has been appointed to the Board. Arnault is Deputy CEO of Mot Hennessy, LVMH's wines and spirits division.

Equity futures point to a mostly higher opening this morning, supported by another pullback in crude oil prices and continued momentum across technology and mega-cap stocks. WTI crude is on track for a potential third consecutive decline, providing some additional relief after elevated oil prices and Treasury yields presented significant headwinds earlier in the week.

Stocks finished firmly higher on Thursday, with the S&P 500 snapping a three-session losing streak as semiconductor and mega-cap strength powered a broad rebound from Wednesday's post-FOMC selloff. The Nasdaq Composite led the advance, while lower Treasury yields provided another source of support. Despite yesterday's rebound, the major averages are currently on track for a mixed week-to-date finish. The tech-heavy Nasdaq Composite sits modestly higher for the week, reflecting the relative strength of technology and AI-related stocks despite considerable volatility elsewhere.

The market will also hear from several Federal Reserve officials this morning, including Fed Governor Michelle Bowman and Kansas City Fed President Jeffrey Schmid, as investors continue to assess the policy outlook following Wednesday's rate hike and Fed Chair Kevin Warsh's comments on persistent inflation.

Today's remaining economic calendar:

• 9:15 AM ET: August Industrial Production; Briefing.com consensus 0.3%; prior 0.2%
• 9:15 AM ET: August Capacity Utilization; Briefing.com consensus 76.4%; prior 76.3%
• 10:00 AM ET: August Leading Economic Index; Briefing.com consensus 0.2%; prior 0.2%

In corporate news:

• Netflix (NFLX 72.97, -2.34, -3.2%) moves lower after Wells Fargo downgraded the stock to Underweight from Equal Weight, with a target price of $77.
• Nucor (NUE 261.50, -3.64, -1.37%) issued third-quarter EPS guidance below the FactSet consensus. The company expects improvement in its steel mills and steel products segments, while raw materials earnings are expected to decline.
• Coherent (COHR 300.38, +4.40, +1.49%) expanded its optical line systems portfolio with a full C-band amplifier designed for AI data center networks and 800G coherent optics.
• SK hynix (SKHY 184.91, +1.92, +1.05%) launched SK hynix Ventures to pursue investments and technology partnerships across AI computing, data centers, system software, and optical interconnect technologies.

Reviewing overnight developments:

Markets finished mostly higher, with South Korea returning to little changed for the week. The Bank of Japan raised its policy rate as expected. Japan's Nikkei: +1.4%, Hong Kong's Hang Seng: +0.6%, China's Shanghai Composite: +0.9%, India's Sensex: UNCH, South Korea's Kospi: +2.7%, Australia's ASX All Ordinaries: +0.1%.

In news:

• The Bank of Japan raised its policy rate by 25 basis points to 1.25%, though two policymakers opposed the change.
• The U.S. will reportedly delay tariffs targeting excess manufacturing capacity until after Chinese President Xi's visit.
• China is targeting CNY3.5 trillion in pharmaceutical revenue by 2030.
• Reserve Bank of Australia Governor Bullock said rising global bond yields have not been disorderly, while acknowledging that some upside inflation risks are materializing.

In economic data:

• China's August FDI -5.3% YTD (last -6.2%)
• Japan's August National CPI 0.1% m/m (last 0.5%); 1.9% yr/yr (last 1.9%). August National Core CPI 1.7% (expected 1.8%; last 1.8%)
• South Korea's August PPI 0.2% m/m (last -0.4%); 7.9% yr/yr (last 7.7%)
• New Zealand's August FPI 0.3% m/m (last 0.1%). August trade deficit NZD1.35 bln (expected deficit of NZD1.775 bln; last deficit of NZD2.118 bln)

Major indices are lower and on course for a weaker finish to the week, with inflation commentary and fiscal developments in focus. STOXX Europe 600: -0.5%, Germany's DAX: -0.9%, U.K.'s FTSE 100: -0.8%, France's CAC 40: -0.9%, Italy's FTSE MIB: -1.2%, Spain's IBEX 35: -1.1%.

In news:

• Iran reportedly struck another tanker operating in the Strait of Hormuz, though oil prices have retreated.
• French Prime Minister Lecornu is seeking EUR54 billion in savings in the 2027 budget to keep the deficit below 5.5% of GDP.
• British Chancellor Healey is lobbying EU officials to include the U.K. in the bloc's Made in Europe policy.
• ECB officials emphasized avoiding second-round inflation effects, while ECB President Lagarde reiterated that rate decisions will be made meeting by meeting.

In economic data:

• Eurozone's July Current Account surplus EUR27.6 bln (expected surplus of EUR30.7 bln; last surplus of EUR35.1 bln). July Construction Output 0.0% m/m (last -1.53%)
• U.K.'s August Retail Sales 0.5% m/m (expected -0.2%; last -0.5%); 2.4% yr/yr (expected 1.9%; last 1.2%). August Core Retail Sales 0.6% m/m (expected -0.2%; last -0.9%); 2.7% yr/yr (expected 1.9%; last 1.8%)
• Germany's August PPI 1.1% m/m (expected 0.6%; last 1.1%); 4.6% yr/yr (expected 4.1%; last 3.0%)