[BRIEFING.COM] The stock market kicked off the week with index-level gains that saw the S&P 500 (+0.5%) and Nasdaq Composite (+0.9%) secure new all-time intraday and closing highs, while the DJIA (+0.1%) lagged. Gains were largely concentrated in a select group of mega-cap leaders, which continued to flex their influence over index performance.

Shares of Tesla (TSLA 410.04, +14.10, +3.56%) surged early after it was reported that CEO Elon Musk purchased around 2.6 million shares of stock worth nearly $1 billion on Friday, his first open market purchase of the stock since February 2020. Though the stock finished well off its session highs, it still added substantial gains to its impressive September run and helped the consumer discretionary sector (+1.1%) finish among the best-performing S&P 500 sectors.

The communication services sector (+2.3%) comfortably outpaced all other sectors today as Alphabet (GOOG 251.76, +10.38, +4.30%) hit fresh records, becoming just the fourth U.S. company to surpass $3 trillion in market value.

With additional solid showings from Amazon (AMZN 231.43, +3.28, +1.44%), Meta Platforms (META 764.70, +9.11, +1.21%), and Microsoft (MSFT 515.36, +5.46, +1.07%), the Vanguard Mega Cap Growth ETF advanced 0.9% today. 

The information technology sector (+0.8%) traded flattish out of the gate, nursing a loss in NVIDIA (NVDA 177.75, -0.07, -0.04%), which traded lower following reports that China found the company to be in violation of its anti-monopoly law. The company issued a statement in response reaffirming their compliance with the law "in all respects," and the stock finished near its flatline. 

Elsewhere in the sector, Seagate Tech (STX 211.12, +15.13, +7.72%) and Western Digital (WDC 102.39, +4.73, +4.84%) furthered their strong recent runs as HDD prices continue to increase due to tight supply and strong demand for large-capacity drives fueled by AI-driven storage requirements.

The industrials (+0.5%) and utilities (+0.2%) round out the five S&P 500 sectors that advanced today. 

Of the six sectors that finished lower, only the consumer staples (-1.2%), health care (-1.0%), and materials (-0.8%) finished with losses wider than 0.5%.

While today's action resulted in decent index level gains, the advance was dependent on the strong performances of several mega-cap names. The S&P 500 Equal Weighted Index (-0.2%) finished with a loss today, markedly underperforming the market-weighted S&P 500 (+0.5%). 

Today's gains came on lighter-than-average volume, reflecting a cautious tone as investors await this week's FOMC meeting for clarity on the policy path ahead.

With a 25-basis point rate cut already fully priced in, homebuilder stocks retreated in what looked like an early 'sell-the-news' move, leaving the iShares U.S. Home Construction ETF down 1.3%.

Meanwhile, smaller-cap names delivered a mixed showing after their recent strength on firming rate cut expectations, with the Russell 2000 closing with a 0.3% gain while the S&P MidCap 400 slipped 0.1%.

On the trade front, the U.S. and China reached a framework agreement to transition TikTok to U.S. ownership, with a scheduled call between President Trump and President Xi on Friday to finalize discussions.

U.S. Treasuries began the week with gains across the curve. The 2-year note yield settled down three basis points to 3.53%, and the 10-year note yield settled down three basis points to 4.03%. 

• Nasdaq Composite: +15.7% YTD
• S&P 500: +12.5% YTD
• DJIA: +7.9% YTD
• Russell 2000: +7.9% YTD
• S&P Mid Cap 400: +5.1% YTD

Reviewing today's data:

• The Empire State Manufacturing survey fell to -8.7 in September (Briefing.com consensus 3.0) from 11.9 in August.

[BRIEFING.COM] The S&P 500 (+0.4%) and Nasdaq Composite (+0.8%) look to capture record closing highs to go along with their fresh all-time highs, as a quiet afternoon has kept the major averages with the bulk of their early gains.

A lack of corporate headlines has kept the market trading in a stable manner, as investors largely await the outcome of Wednesday's FOMC meeting. 

Additionally, the market has yet to receive an update on Stephen Miran's Fed Governor confirmation vote in the Sentate, which is set to take place today. 

[BRIEFING.COM] Despite a steady decline in breadth figures and sector strength, the S&P 500 (+0.4%), Nasdaq Composite (+0.8%), and DJIA (+0.1%) have not changed much since their initial moves this morning. 

Advancers outpaced decliners by a nearly 2-to-1 ratio this morning but now hold a slim 5-to-4 advantage on the NYSE and an even thinner 6-to-5 edge on the Nasdaq.

The consumer discretionary sector (+0.8%) has seen a nearly 2.0% early gain halved, as Tesla (TSLA 406.26, +10.32, +2.61%) now trades well off its morning highs. 

Additionally, homebuilder stocks are exhibiting notable weakness ahead of Wednesday's FOMC meeting, possibly experiencing an early "sell-the-news" reaction as a rate cut is fully anticipated.

Since the beginning of July, shares of D.R. Horton (DHI 171.45, -6.42, -3.61%) have rallied by 27%, while Lennar (LEN 133.07, -4.20, -3.06%) has gained 19%, Toll Brothers (TOL 141.04, -2.43, -1.69%) has jumped by 24%, and KB Home (KBH 64.84, -1.04, -1.59%) has rallied by 22%.

With today's losses, the iShares U.S. Home Construction ETF is down 1.6%. 

[BRIEFING.COM] The S&P 500 (+0.38%) is in second place on Monday afternoon, up about 25 points.

Briefly, S&P 500 constituents Seagate Tech (STX 211.81, +15.82, +8.07%), Albemarle (ALB 81.01, +5.03, +6.62%), and Estee Lauder (EL 86.76, +3.11, +3.72%) dot the top of the standings. STX follows general HDD strength with BofA Securities upping their target on STX this morning on their view that the HDD cycle remains strong, while EL also caught a target raise out of Evercore ISI.

Meanwhile, Corteva (CTVA 70.06, -4.23, -5.69%) is lagging as the market questioned the strategic and financial merits of a potential Seed/Crop Protection split, with analysts warning it could dilute synergies, create two weaker entities, and offer unclear value creation.

[BRIEFING.COM] The Nasdaq Composite (+0.83%) is in first place among the major averages with about two hours to go on Monday.

Gold futures settled $32.40 higher (+0.9%) at $3,719.00/oz, as traders bet heavily on Fed rate cuts in the weeks ahead. The move to fresh highs came amid mounting expectations that soft U.S. labor data and easing inflation pressures will prompt policymakers to pivot toward looser monetary policy. A weaker dollar and declining Treasury yields further underpinned bullion, while lingering geopolitical and policy uncertainty added to safe-haven flows.

Meanwhile, the U.S. Dollar Index is down about -0.3% to $97.30.

[BRIEFING.COM] The Dow Jones Industrial Average (-0.05%) is narrowly lower as we step into the final few hours of trading on Monday afternoon.

A look inside the DJIA shows that Amgen (AMGN 272.90, -3.49, -1.26%), 3M (MMM 156.05, -1.82, -1.15%), and McDonald's (MCD 302.32, -3.08, -1.01%) are among today's top laggards.

Meanwhile, IBM (IBM 257.02, +3.58, +1.41%) is outperforming.

The DJIA now stands +0.58% higher on the month.

[BRIEFING.COM] Strong performances from the mega-caps amid broad market strength propelled the S&P 500 (+0.5%) and Nasdaq Composite (+0.9%) to new all-time high levels, while the DJIA (+0.1%) oscillates around its flatline. 

Smaller cap indices such as the Russell 2000 (+0.4%) and S&P MidCap 400 (+0.2%) are relatively in line with the broader market. 

While six S&P 500 sectors trade higher, the communication services (+2.0%) and consumer discretionary (+1.6%) are by far the top advancers, supported by notable gains in their largest constituents.

Tesla (TSLA 418.89, +22.95, +5.80%) is dominating corporate headlines today, with the stock moving higher after it was disclosed that CEO Elon Musk bought around 2.6 million shares of stock worth nearly $1 billion on Friday, his first open market purchase of the stock since February 2020. The stock is now up 25% in the month of September. 

Alphabet (GOOG 248.91, +7.53, +3.12%) has also been on an impressive run recently, with today's gains making the company the fourth to surpass $3 trillion in market cap. 

The Vanguard Mega Cap Growth ETF is up 0.8%. 

The information technology sector (+0.5%) holds a more modest gain as its largest component, NVIDIA (NVDA 177.74, -0.08, -0.04%), faced early pressure following reports that China found the company to be in violation of its anti-monopoly law. 

Elsewhere in the sector, Intel (INTC 24.94, +0.86, +3.59%) trades higher after the company disclosed in an SEC filing that it now expects FY25 adjusted operating expenses to be $16.8 billion, down from its prior forecast of $17.0 billion.

Though sector strength has decreased throughout the session, losses are modest, with defensive sectors such as health care (-1.0%) and consumer staples (-0.8%) facing the widest losses. 

While today's early gains pushed the S&P 500 and Nasdaq Composite further into record territory, the action comes on lower than average volume, suggesting some market participants may be waiting on the sidelines ahead of Wednesday's FOMC meeting. The gains are also strongly tied to the market's largest names, as the market-weighted S&P 500 (+0.4%) outperforms the S&P 500 Equal Weighted Index (-0.1%). 

On the trade front, the U.S. and China have agreed on a framework deal that will bring TikTok under U.S. ownership, with a call between President Trump and Chinese President Xi Jinping to follow on Friday.

Reviewing today's data:

• September Empire State Manufacturing -8.7 (Briefing.com consensus 3.0); Prior 11.9

[BRIEFING.COM] The major averages hold on to their early gains as the session approaches midday. 

The health care sector (-1.0%) is the worst-performing S&P 500 sector today, facing losses in a majority of its components.

Managed care names Molina Healthcare (MOH 174.90, -5.98, -3.31%) and Centene (CNC 32.30, -0.96, -2.87%) see some profit-taking today after both companies traded higher last week in response to reaffirmed FY25 guidance. 

The sector also faces pressure in its biotechnology names, with the iShares Biotechnology ETF down 0.7%. 

[BRIEFING.COM] The DJIA (-0.1%) has slipped beneath its flatline, as the S&P 500 (+0.5%) and Nasdaq Composite (+0.9%) continue to trade higher. 

The U.S. and China reached a framework deal to move TikTok to U.S. ownership, according to Reuters. The deal will culminate in a call between President Trump and Chinese President Xi Jinping on Friday. 

Treasury Secretary Bessent also commented that the U.S. would not impose tariffs on Chinese goods as it relates to the purchase of Russian oil unless other European countries act in kind and signaled the possibility of tougher sanctions on Russia.

[BRIEFING.COM] The S&P 500 (+0.5%) and Nasdaq Composite (+0.7%) captured all-time highs shortly after the open, supported by significant mega-cap gains and relatively broad market strength.

Meanwhile, the price-weighted DJIA (+0.2%) trades with a more modest gain.

In the communication services sector (+1.6%), Alphabet (GOOG 248.64, +7.26, +3.01%) traded to an all-time high, becoming just the fourth company to exceed $3 trillion in market cap. 

The consumer discretionary sector (+1.8%) holds a similar gain, with Tesla (TSLA 421.06, +25.12, +6.34%) trading higher after CEO Elon Musk bought nearly $1 billion in stock, his first open-market purchase since February 2020.

The Vanguard Mega Cap Growth ETF is up 0.8% today.

While the mega-caps are certainly demonstrating their ability to move the market at the index level, the broader market is off to a good start to the week.

Eight S&P 500 sectors trade higher, with only the health care (-0.8%), consumer staples (-0.6%), and materials (-0.4%) sectors holding losses.

Smaller cap indices are also on the advance, with the Russell 2000 up 0.6% and the S&P MidCap 400 up 0.5%.

[BRIEFING.COM] The major averages now trade at session highs as the S&P 500 (+0.5%) and Nasdaq Composite (+0.7%) push further into record territory, while the DJIA (+0.3%) sits more confidently above its flatline. 

While today's gains are largely attributed to mega-cap strength in the communication services (+1.7%) and consumer discretionary (+1.7%) sectors, the information technology sector (+0.2%) sees only modest growth.

NVIDIA (NVDA 175.16, -2.66, -1.50%) trades lower today after China found the company to be in violation of the country's anti-monopoly law.

Separately, NVIDIA and CoreWeave (CRWV 119.38, +7.42, +6.63%) entered into a new order form under the existing Master Services Agreement ("MSA") dated as of April 10, 2023, which has an initial value of $6.3 billion, that establishes an arrangement with respect to the sale by the Company of reserved cloud computing capacity to its customers and provides NVIDIA access to any residual unsold cloud computing capacity.

NVIDIA's early loss limits gains in the technology sector despite strong early showings from Apple (AAPL 236.88, +2.81, +1.20%) and Microsoft (MSFT 512.76, +2.86, +0.56%). 

[BRIEFING.COM] The S&P 500 (+0.4%), Nasdaq Composite (+0.6%), and DJIA (+0.2%) are trading in a stable manner following their opening moves. 

The communication services (+2.1%) sector widens its gain past 2.0% as the majority of its components trade higher.

The sector's largest component, Alphabet (GOOG 251.96, +10.58, +4.39%), continues its impressive run, currently holding an 18.1% gain for the month of September. 

Elsewhere in the sector, TKO Group Holdings (TKO 210.22, +7.78, +3.84%) advances after the company announced it has entered into an accelerated share repurchase agreement to repurchase $800 mln of its outstanding Class A common stock.

[BRIEFING.COM] The S&P 500 (+0.4%) and Nasdaq Composite (+0.6%) set fresh record highs, while the DJIA (+0.2%) holds a more modest gain. 

Seven S&P 500 sectors trade in positive territory, led by the communications services (+1.5%) and consumer discretionary sectors (+1.4%).

Strong performances across several of the market's largest names are driving the early growth, with Tesla (TSLA 417.87, +21.93, +5.54%), Alphabet (GOOG 249.01, +7.63, +3.16%), and Amazon (AMZN 231.48, +3.33, +1.46%) all trading higher. 

Losses are modest in the early going, with only the consumer staples sector (-0.5%) holding a loss wider than 0.3%.

The stock market is poised for a higher opening this morning, with only modest gains needed to once again secure new record highs for the S&P 500 and Nasdaq Composite.

Tesla's (TSLA 428.81, +32.87, +8.3%) move higher after CEO Elon Musk purchased nearly $1 billion is supporting the push. The stock has been on a tear recently, boasting an 18.6% gain in September before today's session. 

Meanwhile, NVIDIA (NVDA 175.56, -2.26, -1.3%) trades lower after China found the company to be in violation of its anti-monopoly law. 

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

Equity indices in the Asia-Pacific region began the week on a mixed note while Japan's Nikkei was closed for a holiday. China reported underwhelming growth figures for August with Industrial Production growth (5.2% yr/yr) decelerating to its slowest pace of the year. China's National Bureau of Statistics described the external environment as "very severe." China launched two investigations into U.S. trade policy ahead of tomorrow's planned meeting in Spain, according to Reuters.

• In economic data:
  • China's August House Prices -2.5% yr/yr (last -2.8%). August Retail Sales 3.4% yr/yr (expected 3.8%; last 3.7%), August Industrial Production 5.2% yr/yr (expected 5.7%; last 5.7%); 6.2% YTD (last 6.3%). August Fixed Asset Investment 0.5% yr/yr (expected 1.5%; last 1.6%), and August Unemployment Rate 5.3% (expected 5.2%; last 5.2%)
  • South Korea's August trade surplus $6.51 bln, as expected (last surplus of $9.08 bln). August Imports -4.1% yr/yr (expected -4.0%; last 3.3%) and Exports 1.2% yr/yr (expected 1.3%; last 4.3%)
  • Hong Kong's Q2 Industrial Production 0.8% yr/yr (last 0.7%) and Q2 PPI 4.0% yr/yr (last 4.8%)
  • India's August WPI Inflation 0.52% yr/yr (expected 0.30%; last -0.58%). August trade deficit $26.49 bln (last deficit of $27.35 bln)

---Equity Markets---

• Japan's Nikkei: HOLIDAY
• Hong Kong's Hang Seng: +0.2%
• China's Shanghai Composite: -0.3%
• India's Sensex: -0.2%
• South Korea's Kospi: +0.4%
• Australia's ASX All Ordinaries: -0.1%

Major European indices trade on a mostly higher note. European Central Bank policymaker Kazimir said that rates are in a good place and there is no need to react to "tiny deviations" from target. Italy's finance ministry expects 0.6% growth in 2025, followed by 0.8% growth in 2026. There was some ratings action in the region, as Fitch lowered France's credit rating to A+ from AA- and revised the outlook to Stable from Negative due to high debt, a weak fiscal standing, and ongoing political uncertainty. Separately, Fitch raised Portugal's rating to A from A- and revised the outlook to Stable from Positive while Standard & Poor's raised Spain's rating to A+ from A with a Stable outlook.

• In economic data:
  • Eurozone's July trade surplus EUR12.4 bln (expected EUR11.7 bln; last EUR8.0 bln)
  • Germany's August WPI -0.6% m/m (expected 0.2%; last -0.1%); 0.7% yr/yr (last 0.5%)
  • Italy's July trade surplus EUR7.908 bln (expected surplus of EUR5.500 bln; last surplus of EUR5.384 bln)

---Equity Markets---

• STOXX Europe 600: +0.6%
• Germany's DAX: +0.4%
• U.K.'s FTSE 100: UNCH
• France's CAC 40: +1.3%
• Italy's FTSE MIB: +1.1%
• Spain's IBEX 35: +0.6%

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

Just released, the Empire State Manufacturing Survey registered at -8.70 (Briefing.com consensus: 3.0) for September, from a prior reading of 11.9 in August.

Equity futures point to a modestly higher opening this morning after Friday's broad-based advance pushed the S&P 500 and Nasdaq Composite to new record highs, securing decent week-to-date gains across the major averages.

The market eagerly anticipates the September FOMC meeting, which kicks off on Wednesday. A 25-basis point rate cut has been fully priced in for some time now, so barring a surprise 50-basis-point rate cut, much of the focus will center around members' updated economic projections and the updated dot plot.

Last week's spike in initial jobless claims solidified the market's expectation of 75-basis points in rate cuts before the end of the year, though several voting FOMC members have echoed concerns about the current inflation rate. 

In other Fed news, the Senate is set to vote on Stephen Miran's Fed Governor nomination, with confirmation giving him the green light to sit as a voting participant in this week's meeting. 

On the trade front, negotiations between the U.S. and China continue in Madrid. Reuters reports that the U.S. has threatened a TikTok ban if the company does not move to U.S. ownership, though a deal is reportedly near.

In corporate news:

• BlackRock (BLK 1,123.41, -10.77, -1.0%) is planning to invest up to $678 million in British data centers. 
• NVIDIA (NVDA 175.28, -2.54, -1.4%) has been found to be in violation of China's anti-monopoly law, according to Reuters.
• Tesla (TSLA 428.87, +33.30, +8.4%) shares are higher in the pre-market after CNBC reported CEO Elon Musk purchased around $1 billion in shares on Friday. Bloomberg reports that the company's production factory in Germany has upwardly revised its production plans for the third and fourth quarters. 
• UnitedHealth (UNH 353.0, +0.49, +0.1%) is reportedly hiring Trump allies as the company faces government investigations, according to The Wall Street Journal. 

Reviewing overnight developments:

Equity indices in the Asia-Pacific region began the week on a mixed note while Japan's Nikkei was closed for a holiday. Japan's Nikkei: HOLIDAY, Hong Kong's Hang Seng: +0.2%, China's Shanghai Composite: -0.3%, India's Sensex: -0.2%, South Korea's Kospi: +0.4%, Australia's ASX All Ordinaries: -0.1%.

In news:

• China reported underwhelming growth figures for August with Industrial Production growth (5.2% yr/yr) decelerating to its slowest pace of the year.
• China's National Bureau of Statistics described the external environment as "very severe." China launched two investigations into U.S. trade policy ahead of tomorrow's planned meeting in Spain, according to Reuters

In economic data:

• China's August House Prices -2.5% yr/yr (last -2.8%). August Retail Sales 3.4% yr/yr (expected 3.8%; last 3.7%), August Industrial Production 5.2% yr/yr (expected 5.7%; last 5.7%); 6.2% YTD (last 6.3%). August Fixed Asset Investment 0.5% yr/yr (expected 1.5%; last 1.6%), and August Unemployment Rate 5.3% (expected 5.2%; last 5.2%)
• South Korea's August trade surplus $6.51 bln, as expected (last surplus of $9.08 bln). August Imports -4.1% yr/yr (expected -4.0%; last 3.3%) and Exports 1.2% yr/yr (expected 1.3%; last 4.3%)
• Hong Kong's Q2 Industrial Production 0.8% yr/yr (last 0.7%) and Q2 PPI 4.0% yr/yr (last 4.8%)
• India's August WPI Inflation 0.52% yr/yr (expected 0.30%; last -0.58%). August trade deficit $26.49 bln (last deficit of $27.35 bln)

Major European indices trade on a mostly higher note. STOXX Europe 600: +0.5%, Germany's DAX: +0.5%, U.K.'s FTSE 100: UNCH, France's CAC 40: +1.2%, Italy's FTSE MIB: +1.1%, Spain's IBEX 35: +0.7%.

In news:

• European Central Bank policymaker Kazimir said that rates are in a good place and there is no need to react to "tiny deviations" from target.
• Italy's finance ministry expects 0.6% growth in 2025, followed by 0.8% growth in 2026.
• There was some ratings action in the region, as Fitch lowered France's credit rating to A+ from AA- and revised the outlook to Stable from Negative due to high debt, a weak fiscal standing, and ongoing political uncertainty.
• Separately, Fitch raised Portugal's rating to A from A- and revised the outlook to Stable from Positive while Standard & Poor's raised Spain's rating to A+ from A with a Stable outlook.

In economic data:

• Eurozone's July trade surplus EUR12.4 bln (expected EUR11.7 bln; last EUR8.0 bln)
• Germany's August WPI -0.6% m/m (expected 0.2%; last -0.1%); 0.7% yr/yr (last 0.5%)
• Italy's July trade surplus EUR7.908 bln (expected surplus of EUR5.500 bln; last surplus of EUR5.384 bln)

[BRIEFING.COM] The stock market traded in a mixed fashion on the heels of yesterday's rate cut optimism-fueled rally, though strong performances across the mega-caps pushed the Nasdaq Composite (+0.4%) and S&P 500 (-0.1%) to fresh record highs.

The tech-heavy Nasdaq Composite benefitted the most from today's advance, establishing a new all-time high of 22,182.34 and a record closing high of 22,141.10.

The S&P 500 set a record high of 6,600.21 shortly before the close, but the index ran into some round number resistance at that mark and promptly retreated beneath its flatline.

Meanwhile, the DJIA (-0.5%) traded lower for the duration of the session, reflecting pockets of weakness in the broader market. 

Only the utilities (+0.6%), consumer discretionary (+0.6%), information technology (+0.5%), and communication services (+0.2%) sectors closed with a gain, though these sectors (with the exception of the thinly traded utilities sector) have the highest concentration of mega-cap names. 

Most notably, Tesla's (TSLA 395.94, +27.13, +7.36%) strong move saw it finish with a 12.9% gain for the week, helping to mask Amazon's (AMZN 228.15, -1.80, -0.78%) loss in the consumer discretionary sector.

Microsoft (MSFT 509.90, +8.89, +1.77%) and Apple (AAPL 234.07, +4.04, +1.76%) supported the information technology sector, which saw just modest strength in its chipmaker names, pushing the PHLX Semiconductor Index to a 0.2% gain.

Though not mega-caps themselves, Paramount Skydance's (PSKY 18.79, +1.33, +7.62%) potential majority-cash acquisition of Warner Bros. Discovery (WBD 18.91, +2.74, +16.94%) pushed both stocks higher for the second consecutive day in the communication services sector, despite a report from Bloomberg today that the transaction will likely face regulatory headwinds. 

The sector's largest names, Alphabet (GOOG 241.28, +0.50, +0.21%) and Meta Platforms (META 755.59, +4.69, +0.62%), moved slightly higher late in the afternoon, helping the sector finish near session highs. 

Ultimately, the market's heaviest components played a crucial role in limiting losses at the index level. The Vanguard Mega Cap Growth ETF closed with a 0.6% gain, and the market-weighted S&P 500 (-0.1%) outperformed the S&P 500 Equal Weighted Index (-0.8%). 

While losses were relatively broad-based, they were also modest. Only the health care sector (-1.1%) closed with a loss wider than 1.0%. COVID vaccine stocks such as Moderna (MRNA 23.51, -1.88, -7.40%) and Pfizer (PFE 23.89, -0.97, -3.90%) dipped following a Washington Post report that suggested health officials from the Trump administration plan to link COVID vaccines to the deaths of 25 children.

The sector also faced pressure in its biotech names, with the iShares Biotechnology ETF slumping 2.0% today. 

Outside of the S&P 500, smaller cap indices such as the Russell 2000 (-1.0%) and S&P Mid Cap 400 (-1.1%) underperformed after surging yesterday on bolstered rate cut expectations. 

Looking ahead, attention now turns squarely to next week's FOMC meeting. A 25-basis point rate cut is fully priced in, but the updated dot plot and Fed Chair Powell's press conference will put the market's expectations of three total rate cuts by year-end to the test. 

U.S. Treasuries retreated on Friday with longer tenors leading the slide, though even with today's underperformance, 10s and 30s added to their gains from the first week of September while 5s and shorter tenors finished the week in negative territory. The 2-year note yield settled up three basis points to 3.56% (+5 basis points this week) and the 10-year note yield settled up five basis points to 4.06% (-3 basis points this week).

• Nasdaq Composite: +14.7% YTD
• S&P 500: +12.0% YTD
• DJIA: +7.7% YTD
• Russell 2000: +7.5% YTD
• S&P Mid Cap 400: +5.2% YTD

Reviewing today's data:

• The preliminary University of Michigan Consumer Sentiment reading for September checked in at 55.4 (Briefing.com consensus: 59.2) versus the final reading of 58.2 for August. In the same period a year ago, the index stood at 70.1.
  • The key takeaway from the report is that the pullback in consumer sentiment was paced by fading economic views among lower-income and middle-income consumers.