[BRIEFING.COM] The stock market finished Tuesday's session on a mixed note, with a rebound in semiconductor and mega-cap technology stocks lifting the S&P 500 (+0.4%) and Nasdaq Composite (+0.8%), while the DJIA (-0.4%) ended lower. The gains represented a partial recovery from Monday's technology-led selloff, although participation was considerably weaker than yesterday, when strength across much of the broader market contrasted with pronounced losses in technology stocks.

The major averages traded in relatively narrow ranges for much of the morning before the S&P 500 and Nasdaq reached their session highs early in the afternoon, climbing as much as 0.7% and 1.2%, respectively. Some of that strength faded later in the session as semiconductor stocks surrendered a portion of their earlier gains. The DJIA remained in negative territory throughout the day, reflecting the uneven nature of the rebound.

The information technology sector (+1.3%) led the four S&P 500 sectors that finished higher, supported by renewed buying interest in semiconductor stocks following Monday's sharp retreat. The PHLX Semiconductor Index (+2.6%) recovered a substantial portion of yesterday's 3.4% decline, although it finished below its best levels of the session. NVIDIA (NVDA 206.69, +4.63, +2.29%) was among the mega-cap standouts, while Advanced Micro Devices (AMD 483.90, +17.06, +3.65%) also rallied ahead of its quarterly earnings report after today's close.

AMD's results represent another important test for the AI trade following recent concerns about elevated infrastructure spending and growth expectations. Investors will be particularly focused on the company's Q4 outlook, Data Center revenue growth, supply availability, and the ramp of its Helios AI infrastructure platform.

The technology sector's advance came despite earnings-related weakness in Apple (AAPL 331.90, -6.42, -1.90%) and Palantir Technologies (PLTR 175.40, -2.94, -1.65%). Apple declined despite reporting better-than-expected quarterly results and strong iPhone and Mac sales, as concerns about slowing Services revenue growth, rising memory costs, and additional AI development expenses overshadowed the results. Palantir also faced selling pressure despite strong earnings and upbeat guidance, with investors focusing on a sharp slowdown in bookings growth.

The industrials sector (+1.0%) was another notable outperformer, benefiting from strength in electrical equipment and power infrastructure companies alongside the semiconductor rebound. GE Vernova (GEV 918.20, +55.95, +6.49%) and Bloom Energy (BE 214.01, +17.76, +9.05%) were among the standouts, reflecting continued investor interest in companies positioned to benefit from the expansion of AI infrastructure.

The communication services sector (+0.9%) also finished higher, aided by strength in Meta Platforms (META 621.03, +14.30, +2.36%). The company reportedly plans to raise at least $20 billion in an upcoming bond sale, according to The Wall Street Journal, highlighting the substantial financing requirements associated with AI infrastructure development. The Vanguard Mega Cap Growth ETF (+0.9%) reflected the broader recovery among large growth-oriented companies, while the real estate sector (+0.2%) was the only other S&P 500 sector to finish in positive territory.

Outside these areas, the broader market struggled to participate in the advance. The materials (-1.9%) and consumer staples (-1.8%) sectors were the biggest laggards, reversing some of their outperformance from Monday's session. The consumer staples sector faced additional pressure from disappointing earnings-related developments, with Sysco (SYY 74.11, -7.63, -9.33%) and ADM (ADM 70.60, -5.17, -6.82%) declining following weaker-than-expected quarterly revenue. Keurig Dr Pepper (KDP 34.74, -2.08, -5.65%)) also traded lower despite beating earnings and revenue expectations, as concerns about a slower recovery in its U.S. coffee business weighed on sentiment.

The narrow leadership was particularly evident in the S&P 500 Equal Weighted Index (-0.4%), which underperformed its market-cap-weighted counterpart after outperforming substantially yesterday. The Russell 2000 (+0.2%) and S&P Mid Cap 400 (+0.2%) managed to finish modestly higher, although both surrendered the bulk of their earlier gains as buying interest faded across the broader market.

Crude oil experienced a volatile session, initially recovering some of Monday's steep decline overnight before retreating sharply in the morning. Prices subsequently recovered from their session lows, with WTI crude ultimately settling $0.35 lower (-0.4%) at $96.16 per barrel. The energy sector (-0.8%) was among the relative laggards.

Tuesday's trading reinforced the market's rapidly shifting leadership, with investors returning to semiconductor and AI-related stocks just one day after those same groups suffered substantial losses. The rebound provided enough support to lift the S&P 500 and Nasdaq, but weakness across most sectors and the underperformance of the equal-weighted index underscored the limited breadth of the advance. With AMD's earnings due after the close and additional corporate results on Wednesday's calendar, investors will be looking for further evidence that AI infrastructure demand can support elevated growth expectations and substantial capital investment commitments.

U.S. Treasuries pulled back from their recent strength on midterm Election Day with longer tenors leading the retreat after outperforming on Monday. The 2-year note yield settled up three basis points to 4.62%, and the 10-year note yield settled up six basis points to 4.95%. 

• Russell 2000: +13.3% YTD
• S&P Mid Cap 400: +12.0% YTD
• S&P 500: +10.6% YTD
• Nasdaq Composite: +9.2% YTD
• DJIA: +7.8% YTD

Reviewing today's data: 

• Factory orders increased 1.8% month-over-month in September (Briefing.com consensus: 1.2%) following an upwardly revised 0.3% increase (from 0.1%) in August. Excluding transportation, factory orders increased 1.3% on the heels of a 0.4% increase in August. Shipments of manufactured goods jumped 1.3% after a 0.1% increase in August.
  • The key takeaway from the report is that the increase in new order activity was broad-based in September. Orders for transportation equipment, primary metals, fabricated metal products, machinery, and computers and electronic products were all up month-over-month.
• Sep JOLTs - Job Openings 7.523M (Briefing.com consensus 7.100M; Prior 7.190M revised from 7.079M)

[BRIEFING.COM] The major averages remain mixed with just half an hour left in the session, as attention turns toward another round of corporate earnings.

Advanced Micro Devices (AMD 489.09, +22.25, +4.77%) is scheduled to report after today's close, with investors particularly focused on Data Center growth, the ramp of its Helios AI infrastructure platform, and the company's Q4 outlook. Expectations remain elevated despite recent concerns about AI infrastructure spending and supply constraints, placing added importance on AMD's ability to deliver on its growth projections.

Looking ahead to tomorrow morning, McDonald's (MCD 262.41, -3.23, -1.22%) is scheduled to report before the open. Investors will be watching for signs of improvement in U.S. comparable sales and customer traffic following last quarter's slowdown, along with updates on the company's value initiatives and broader turnaround strategy.

[BRIEFING.COM] The S&P 500 (+0.3%) and Nasdaq Composite (+0.6%) remain on track for a higher finish, although both have retreated from their session highs as semiconductor stocks surrender some of their earlier gains.

Meanwhile, the DJIA (-0.5%) remains firmly lower, with crude oil prices recovering from their earlier lows and adding to pressure on the broader market. WTI crude futures settled $0.35 lower (-0.4%) at $96.16 per barrel.

[BRIEFING.COM] The S&P 500 (+0.6%) trades near its best level of the session, rising from its lowest close since the end of July. The strength is largely owed to outperformance in the top-weighted technology sector (+1.4%) with some secondary support from solid gains in communication services (+1.3%) and industrials (+1.3%) while most other sectors trade lower.

The Nasdaq (+1.0%) has fared even better than the S&P 500 due to its bias toward technology stocks while the price-weighted Dow (-0.3%) has been kept in the red amid losses in all but eight of its components.

The highest priced Dow component-Goldman Sachs (GS 896.45, -2.27, -0.25%)-is among today's laggards while the next two largest components-Caterpillar (CAT 624.98, +11.36, +1.85%) and Microsoft (MSFT 521.09, +13.97, +2.75%)-trade firmly higher, reflecting the relative strength in their respective sectors.

[BRIEFING.COM] Buying in AI-linked shares remains the defining feature this afternoon, although participation in today's advance remains uneven. The equal-weighted S&P 500 (-0.2%) continues to underperform its market-cap-weighted counterpart, reversing yesterday's action when strength was concentrated outside the largest technology names.

The Philadelphia Semiconductor Index is up 3.0% on the heels of yesterday's weakness. Renewed buy-the-dip interest is supporting Advanced Micro Devices (AMD 490.29, +23.45, +5.02%), NVIDIA (NVDA 207.71, +5.65, +2.79%), and Analog Devices (ADI 422.77, +9.92, +2.40%). That rebound follows sharp recent declines in portions of the AI trade rather than a new market-wide catalyst.

Advanced Micro Devices will provide the next important test when it reports quarterly results after today's close. The stock entered the session nearly 30% below its October 6 record high. Investors will be focused on the company's fourth-quarter outlook, supply availability, data center growth, and the Helios ramp after Intel's (INTC 60.28, +0.30, +0.51%) disappointing outlook and renewed concerns about AI infrastructure spending weighed on sentiment heading into the report.

[BRIEFING.COM] The S&P 500 (+0.7%) and Nasdaq Composite (+1.2%) are charting session highs this afternoon, while the DJIA (-0.2%) moves closer to its flatline.

The consumer discretionary sector (+0.1%) has surfaced in positive territory, with Amazon (AMZN 250.88, +5.25, +2.14%) participating in today's mega-cap rally, outweighing a loss in Tesla (TSLA 398.37, -5.45, -1.35%) and considerable weakness across homebuilder names.

Meanwhile, the health care sector (+0.2%) is also modestly higher, with Revvity (RVTY 167.54, +15.94, +10.51%) among the best-performing S&P 500 components after beating revenue expectations and issuing upside guidance.a

[BRIEFING.COM] The stock market is mixed early this afternoon, with a rebound in semiconductor and mega-cap technology stocks supporting the S&P 500 (+0.5%) and Nasdaq Composite (+1.0%), while the DJIA (-0.3%) lags. The major averages remain little changed for the week following yesterday's technology-led selloff, although today's advance is characterized by considerably narrower participation than the broad strength seen in Monday's session.

The information technology sector (+1.4%) leads the three S&P 500 sectors trading higher, benefiting from renewed buying interest in semiconductor stocks following yesterday's sharp afternoon reversal. The PHLX Semiconductor Index (+3.2%) has recovered most of Monday's losses, with NVIDIA (NVDA 208.30, +6.24, +3.09%) among the mega-cap standouts. Advanced Micro Devices (AMD 490.49, +23.65, +5.07%) is also trading higher ahead of its quarterly earnings report after today's close.

However, earnings-related weakness in Apple (AAPL 331.40, -6.92, -2.04%) and Palantir Technologies (PLTR 174.34, -4.00, -2.25%) is limiting the sector's advance. Apple is trading lower despite better-than-expected results, as concerns about slowing Services revenue growth and rising costs weigh on sentiment. Palantir is also under pressure despite strong earnings and upbeat guidance, with investors focused on a sharp slowdown in bookings growth.

The industrials sector (+1.1%) is another notable outperformer, with strength in electrical equipment and power infrastructure stocks accompanying the semiconductor rebound. GE Vernova (GEV 920.88, +58.62, +6.80%) and Bloom Energy (BE 213.87, +17.62, +8.98%) are among the standouts, reflecting continued interest in companies tied to the expansion of AI infrastructure.

The communication services sector (+1.0%) rounds out the three sectors in positive territory, aided by strength in Meta Platforms (META 623.00, +16.27, +2.68%). The company is reportedly looking to raise at least $20 billion in an upcoming bond sale, according to The Wall Street Journal, another indication of the substantial financing requirements associated with the ongoing AI infrastructure buildout.

Outside these areas, participation is considerably weaker. Seven S&P 500 sectors are trading lower, with the consumer staples (-1.7%) and materials (-1.7%) sectors among the biggest laggards after outperforming yesterday. The consumer staples sector is also facing earnings-related pressure, with Sysco (SYY 74.45, -7.29, -8.92%) and ADM (ADM 72.12, -3.66, -4.82%) declining following disappointing quarterly revenue results. Keurig Dr Pepper (KDP 35.00, -1.82, -4.96%) is another notable laggard as concerns about the pace of recovery in its U.S. coffee business overshadowed better-than-expected earnings and revenue.

The S&P 500 Equal Weighted Index (-0.3%) is also modestly lower, contrasting with its substantial outperformance yesterday. Decliners hold a slight advantage over advancers at the NYSE and a roughly 4-to-3 edge at the Nasdaq, underscoring the relatively narrow nature of today's gains.

Nevertheless, the Russell 2000 (+0.7%) and S&P Mid Cap 400 (+0.9%) are both posting solid advances, indicating that strength is not confined entirely to the largest technology companies.

Meanwhile, crude oil has experienced a choppy session after initially recovering some of yesterday's steep decline overnight before retreating sharply this morning. WTI crude is currently down $0.65 (-0.7%) to $95.81 per barrel, having moved off its earlier lows. Treasury yields are rising despite the decline in oil prices, with the 10-year note yield up six basis points to 4.95%. The increase is creating a headwind for interest-rate-sensitive stocks, particularly homebuilders, with the iShares U.S. Home Construction ETF (-3.0%) giving back much of yesterday's strength.

Today's trading reflects another shift in market leadership following Monday's pronounced divergence between technology stocks and the broader market. Semiconductor and AI-related names are recovering from yesterday's losses, providing enough support to lift the S&P 500 and Nasdaq despite weakness across most sectors. The contrasting performance of the equal-weighted index and the major averages illustrates the uneven nature of the rebound, while continued strength in small- and mid-cap stocks suggests that buying interest extends beyond the mega-cap technology trade.

Reviewing today's data: 

• Factory orders increased 1.8% month-over-month in September (Briefing.com consensus: 1.2%) following an upwardly revised 0.3% increase (from 0.1%) in August. Excluding transportation, factory orders increased 1.3% on the heels of a 0.4% increase in August. Shipments of manufactured goods jumped 1.3% after a 0.1% increase in August.
  • The key takeaway from the report is that the increase in new order activity was broad-based in September. Orders for transportation equipment, primary metals, fabricated metal products, machinery, and computers and electronic products were all up month-over-month.
• Sep JOLTs - Job Openings 7.523M (Briefing.com consensus 7.100M; Prior 7.190M revised from 7.079M)

[BRIEFING.COM] The major averages are little changed from their earlier levels shortly after midday, with crude oil modestly lower while Treasury yields continue to rise. The 10-year yield is up seven basis points to 4.96%, creating a headwind for rate-sensitive stocks. The iShares U.S. Home Construction ETF (ITB) is down 3.1%, giving back much of yesterday's strength and weighing on the consumer discretionary sector (-0.4%).

Meanwhile, mega-cap stocks continue to add to their gains, with the Vanguard Mega Cap Growth ETF (MGK) up 1.0%. Meta Platforms (META 623.06, +16.33, +2.69%) is a relative standout, helping the communication services sector (+0.9%) extend its advance. Elsewhere in the sector, Fox Corporation (FOXA 67.10, +4.34, +6.92%) is among the best-performing S&P 500 components following its better than expected earnings report yesterday.

[BRIEFING.COM] The consumer staples sector (-1.5%) is among today's weakest performers, trailing the S&P 500 (+0.5%) by a wide margin as investors rotate out of defensive stocks and back into technology names following recent volatility. Earnings-related weakness has added to the pressure, with several notable components trading sharply lower.

Sysco (SYY 75.24, -6.50, -7.95%) and Archer-Daniels-Midland (ADM 71.60, -4.17, -5.50%) are among the biggest laggards after both companies reported disappointing third quarter revenue. Keurig Dr Pepper (KDP 35.01, -1.81, -4.92%) is also under pressure despite topping earnings and revenue expectations, as concerns about a slower than anticipated recovery in its U.S. coffee business overshadowed the results.

Elsewhere, Dollar General (DG 131.52, -4.26, -3.13%) and Target (TGT 154.23, -4.15, -2.62%) are contributing to the sector's weakness, with the former giving back yesterday's gain.

Clorox (CLX 92.39, +2.49, +2.77%) is a notable exception, advancing after delivering better than expected quarterly results and issuing upbeat earnings guidance.

[BRIEFING.COM] The stock market is mixed at midday, reflecting some churn and renewed buying interest in semiconductor stocks following yesterday's sharp selloff. The S&P 500 (+0.4%) and Nasdaq Composite (+0.7%) are decently higher, while mixed participation across the broader market has kept the DJIA (-0.2%) modestly lower. Despite today's gains, the major averages remain little changed for the week.

The same can be said for the PHLX Semiconductor Index (+3.3%), which has recovered nearly all of yesterday's losses. The information technology sector (+1.3%) is among the top performers, although earnings-related weakness in Palantir Technologies (PLTR 172.24, -6.10, -3.42%) and Apple (AAPL 331.62, -6.70, -1.98%) has limited its advance. The industrials sector (+1.4%) is also outperforming, aided by strength in electrical equipment stocks alongside the semiconductor rebound.

Gains have been more modest elsewhere, with some of yesterday's broader market strength fading as investors rotate back into semiconductor stocks. The consumer staples (-1.3%) and materials (-1.4%) sectors are among the weakest performers, giving back some of yesterday's outperformance.

Overall, six of the 11 S&P 500 sectors are trading higher, although participation remains mixed. Decliners hold a slim advantage over advancers at the NYSE, while advancers outpace decliners by roughly a 5-to-3 margin at the Nasdaq.

[BRIEFING.COM] The major averages have traded in relatively stable ranges, with the information technology sector (+1.3%) continuing to lead amid outperformance from semiconductor stocks.

Gains in the sector have been tempered by weakness in Palantir Technologies (PLTR 175.58, -2.76, -1.55%) and Apple (AAPL 328.98, -9.34, -2.76%) following their earnings reports.

Palantir is trading lower despite reporting another strong quarter that featured accelerating revenue growth and upbeat guidance. Investors have instead focused on a sharp slowdown in bookings growth, with total contract value bookings increasing just 6% year-over-year compared to 49% growth in the prior quarter, raising questions about the sustainability of the company's rapid expansion.

Meanwhile, Apple has recovered from steeper overnight losses but remains under pressure despite better than expected earnings and strong iPhone and Mac sales. Concerns about slowing Services revenue growth, rising memory costs, and additional expenses tied to AI development have overshadowed the otherwise encouraging results, particularly as the company faces the prospect of increased margin pressure in coming quarters.

[BRIEFING.COM] The S&P 500 (+0.4%), Nasdaq Composite (+0.8%), and DJIA (-0.5%) remain mostly higher as a rebound in AI-related names, including NVDA, provides enough support to offset weakness across much of the broader market.

Factory orders increased 1.8% month-over-month in September (Briefing.com consensus: 1.2%) following an upwardly revised 0.3% increase (from 0.1%) in August. Excluding transportation, factory orders increased 1.3% on the heels of a 0.4% increase in August. Shipments of manufactured goods jumped 1.3% after a 0.1% increase in August.

The key takeaway from the report is that the increase in new order activity was broad-based in September. Orders for transportation equipment, primary metals, fabricated metal products, machinery, and computers and electronic products were all up month-over-month.

[BRIEFING.COM] The S&P 500 (+0.3%), Nasdaq Composite (+0.7%), and DJIA (-0.6%) are mixed shortly after the open as semiconductor and AI infrastructure names rebound from yesterday's late selloff while the broader market gives back some of its previous gains.

The information technology sector (+1.5%) leads the four S&P 500 sectors that trade higher, supported by a solid buy-the-dip bid across semiconductor stocks. The PHLX Semiconductor Index (+2.8%) has reclaimed the majority of yesterday's losses. That strength has carried over to the industrials sector, with electrical product names such as Bloom Energy (BE 217.92, +21.67, +11.04%) and Eaton (ETN 392.95, +26.88, +7.34%) among the top-performing S&P 500 components.

Meanwhile, some of yesterday's outperformers, including stocks in the consumer staples (-1.4%) and materials (-1.0%) sectors are taking a step back amid the renewed buying interest across AI-related names.

Just released, September factory orders increased 1.8% (Briefing.com consensus 1.2%), while the prior month's increase was revised upward to 0.3% from 0.1%.

September JOLTS job openings totaled 7.523 million (Briefing.com consensus 7.10 million), while the prior month's figure was revised upward to 7.19 million from 7.079 million.

Equity futures now point to a mostly higher open for the major averages, reflecting an improvement in sentiment as crude oil prices retreat and semiconductor stocks rebound from yesterday's sharp selloff.

The improvement follows an unconfirmed report from Middle Eastern media suggesting that the U.S. and Iran have reached a consensus regarding Iran's nuclear program and frozen funds. The report has not been corroborated by U.S. media outlets, but it has nevertheless helped push oil prices toward their session lows and S&P 500 futures toward their highs. WTI crude is down $1.25 (-1.3%) to $95.25 per barrel, extending yesterday's steep decline and providing some relief from concerns about elevated energy costs.

Technology stocks are also contributing to the improved outlook, with semiconductor names showing renewed buying interest following yesterday's late-session retreat. The VanEck Semiconductor ETF is up 2.8% in premarket trading, suggesting an early rebound effort in a group that has faced substantial selling pressure recently.

The S&P 500 futures currently trade 17 points above fair value. 

Asian markets finished mixed on Tuesday, with another sharp technology selloff weighing on China and South Korea while Japanese markets were closed for Culture Day. China's Shanghai Composite fell 0.8% and the Shenzhen Component lost 1.2% despite additional market-support measures from the PBOC, including a lower relending rate for share buybacks, as Cambricon Technologies (-11%), Zhongji Innolight (-8%), Victory Giant Technology (-4%), and NAURA Technology (-2%) remained under pressure. The inability of those measures to stabilize technology shares contrasts with Monday's policy-supported advance and suggests that concerns surrounding AI valuations and earnings expectations are overwhelming Beijing's latest efforts to support equities. Hong Kong's Hang Seng gained 0.6%, with Trip.com (+6%), PICC Property and Casualty (+3%), Xiaomi (+2%), Meituan (+2%), and Tencent (+1%) advancing as easing oil prices and China's support measures provided some relief. South Korea's KOSPI plunged 3.6%, reversing Monday's 2.2% rebound as SK Hynix (-6%), Samsung Electronics (-5%), Hyundai Motor (-4%), and LG Energy Solution (-3%) retreated, while October inflation eased only slightly to 2.8% yr/yr. The renewed pressure on Korean semiconductor shares comes just one day after record exports and a 259% surge in chip shipments highlighted exceptionally strong underlying demand, reinforcing the disconnect between AI fundamentals and increasingly demanding equity valuations. India's Sensex climbed 1.6%, providing another pocket of relative strength as investors await AMD's results for the next major test of the AI trade, according to Nikkei.

• In economic data:
  • South Korea's October CPI increased 2.8% yr/yr (expected 2.9%; prior 2.9%) and 0.2% m/m (expected 0.3%; prior 0.3%).
  • The Reserve Bank of Australia raised its cash rate to 4.85% from 4.60%, as expected.
  • New Zealand's September Building Consents fell 7.9% m/m (prior +5.3%).
  • Hong Kong's Q3 GDP increased 1.9% q/q (prior -0.6%) and 5.2% yr/yr (prior +4.3%).
  • Hong Kong's September Retail Sales increased 6.4% yr/yr (prior +5.6%).

European markets trade broadly lower as renewed concerns about elevated AI valuations combine with uncertainty surrounding the U.S. midterm elections and another escalation in Middle East tensions. Germany's DAX falls 0.7%, with SAP, Infineon Technologies, and Siemens Energy each down about 3% as the global technology selloff spreads into Europe, while Bayer (+6%) bucks the weakness after raising its 2026 profit outlook and Lufthansa (+3%) advances following better-than-expected quarterly profit. France's CAC 40 declines 0.3%, with STMicroelectronics (-3%), Dassault Systemes (-2%), Schneider Electric (-1%), Safran (-1%), and Airbus (-1%) retreating as technology and industrial shares remain under pressure, while concerns surrounding France's fiscal outlook linger following Fitch's negative outlook revision. London's FTSE 100 falls 0.7% as weaker metals prices pressure Antofagasta (-3%), Fresnillo (-3%), Endeavour Mining (-2%), and other miners, while Associated British Foods (-3%) retreats after reporting lower annual profit. The combination of falling technology shares and renewed strength in oil marks a less favorable setup than Monday, when declining crude helped cushion European industrials, while Switzerland's hotter-than-expected October inflation adds another sign that regional price pressures remain sticky. The STOXX Europe 600 falls 0.5%, with Italy's FTSE MIB down 0.6% and Spain's IBEX 35 losing 0.8% as selling extends across every major European benchmark.

• In economic data:
  • Switzerland's October CPI increased 0.2% m/m (expected 0.0%; prior 0.0%) and 1.5% yr/yr (expected 1.3%; prior 1.0%).
  • France's September Government Budget Balance was EUR-159.2 bln (prior EUR-159.6 bln).

Equity futures are now pointing to a mostly higher open as oil retreats from its earlier highs. 

The U.S. carried out limited strikes after Iran fired at a U.S. aircraft, while President Trump characterized the action as minor. WTI crude futures, however, have reversed their earlier gains, with oil making a sharp move lower towards the $94 per barrel level.

Equity futures point to a mixed open this morning, although Nasdaq futures are modestly higher as investors show some renewed buying interest in technology stocks following yesterday's sharp afternoon selloff. Dow futures are under pressure following Apple's earnings release, while the broader market appears poised to give back some of yesterday's gains.

Crude oil is recovering a portion of yesterday's steep decline amid reports suggesting that the U.S. and Iran may be further from a diplomatic agreement than earlier reporting indicated. The rebound in oil prices is removing some of the support that helped fuel yesterday's broad advance outside the technology sector.

Another round of corporate earnings is on the calendar this morning, while investors are also looking ahead to the results of the midterm elections this evening. The balance of power in Congress will be a key consideration for investors, with the results potentially reshaping expectations for fiscal policy, taxation, regulation, and the administration's ability to advance its legislative agenda. A divided Congress could make major policy changes more difficult to enact, while unified control would provide greater scope for legislative action.

Today's remaining economic calendar:

• 10:00 AM ET: September Business Inventories; prior 0.4%
• 10:00 AM ET: September Factory Orders; Briefing.com consensus 1.2%; prior 0.1%
• 10:00 AM ET: September JOLTs - Job Openings; Briefing.com consensus 7.100M; prior 7.079M

In corporate news:

• Apple (AAPL 324.96, -13.36, -3.95%) topped fiscal fourth-quarter earnings expectations with help from tariff refunds, reported revenue roughly in line, and posted iPhone revenue above estimates.
• Fiserv (FISV 55.88, +3.95, +7.61%) exceeded third-quarter earnings and revenue expectations, issued in-line fiscal 2026 earnings guidance, and said it expects to repurchase $500 million of stock during the fourth quarter.
• Palantir Technologies (PLTR 166.63, -11.71, -6.6%) beat EPS expectations by $0.03, beat revenue expectations, and guided Q4 revenues above consensus.
• Waters (WAT 460.00, +10.68, +2.38%) beat third-quarter earnings expectations and raised its fiscal 2026 earnings and revenue outlook, although its fourth-quarter earnings guidance was mostly below consensus.
• Vertex Pharmaceuticals (VRTX 565.57, +12.42, +2.25%) missed third-quarter earnings expectations, reported revenue near consensus, and slightly raised fiscal 2026 revenue guidance to a level that remained modestly below consensus.

Reviewing overnight developments:

Nikkei reported that Asian markets finished mixed, with renewed technology selling weighing on China and South Korea while Japan was closed for Culture Day.

In news:

• Nikkei reported that additional PBOC market-support measures, including a lower relending rate for share buybacks, did not prevent continued pressure on Chinese technology shares.
• Nikkei reported that Hong Kong and India showed relative strength, while South Korean semiconductor shares retreated despite recently reported strength in chip exports.

In economic data:

• South Korea's October CPI +2.8% yr/yr (expected +2.9%; prior +2.9%) and +0.2% m/m (expected +0.3%; prior +0.3%) Reserve Bank of Australia raised its cash rate to 4.85% from 4.60%, as expected
• New Zealand's September Building Consents -7.9% m/m (prior +5.3%)
• Hong Kong's Q3 GDP +1.9% q/q (prior -0.6%) and +5.2% yr/yr (prior +4.3%); September Retail Sales +6.4% yr/yr (prior +5.6%)

Equity Markets:

• Japan's Nikkei : closed
• Hong Kong's Hang Seng : +0.6%
• China's Shanghai Composite : -0.8%
• India's Sensex : +1.6%
• South Korea's Kospi : -3.6%
• Australia's All Ordinaries : 0.4%

European markets are broadly lower, with technology and industrial shares under pressure and weaker metals prices weighing on miners.

In news:

• Technology weakness extended across Germany and France, while concerns about France's fiscal outlook remained in view.
• Stronger oil prices and pressure on mining shares contributed to a less favorable backdrop in the U.K.

In economic data:

• Switzerland's October CPI +0.2% m/m (expected 0.0%; prior 0.0%) and +1.5% yr/yr (expected +1.3%; prior +1.0%)
• France's September Government Budget Balance EUR-159.2 bln (prior EUR-159.6 bln)

Equity Markets:

• STOXX Europe 600 : -0.5%
• Germany's DAX : -0.7%
• U.K.'s FTSE 100 : -0.7%
• France's CAC 40 : -0.3%
• Italy's FTSE MIB : -0.6%
• Spain's IBEX 35 : -0.8%

[BRIEFING.COM] The stock market finished Monday's session on a mixed note, with a sharp afternoon selloff in technology stocks erasing an early rally in the major averages despite continued strength across much of the broader market. The S&P 500 (-0.5%) and Nasdaq Composite (-1.1%) ended firmly lower after surrendering gains of more than 1.0% earlier in the session, while the DJIA (+0.4%) managed to hold on to a modest advance.

The session began on a much more encouraging note as a sharp decline in crude oil prices provided relief from the inflationary concerns and economic headwinds associated with elevated energy costs. WTI crude settled $7.55 lower (-7.3%) at $96.51 per barrel amid reports that the U.S. favors pursuing a diplomatic resolution with Iran rather than military action following the midterm elections. The development helped fuel early buying interest across a wide range of cyclical and consumer-facing stocks, although the energy sector (-4.0%) suffered substantial losses as oil prices retreated.

The broader market retained much of that early strength even as the major averages deteriorated throughout the afternoon. Seven S&P 500 sectors finished higher, with the consumer discretionary sector (+2.3%) leading the advance. Amazon (AMZN 245.63, +5.28, +2.20%) was a notable standout after Phillip Securities upgraded the stock to Buy from Accumulate with a $330 price target, while Marriott (MAR 416.30, +17.00, +4.26%)benefited from better-than-expected Q3 earnings and an improved outlook supported by resilient travel demand.

The financials (+1.8%), materials (+1.8%), consumer staples (+1.8%), and industrials (+1.4%) sectors also posted solid gains, reflecting continued investor interest in areas outside the technology trade. Homebuilders and other interest-rate-sensitive stocks benefited from a decline in Treasury yields alongside falling oil prices. Sherwin-Williams (SHW 352.37, +19.76, +5.94%) and Home Depot (HD 341.15, +11.95, +3.63%) were among the DJIA standouts.

The divergence between the broader market and the major averages was particularly evident in the performance of the S&P 500 Equal Weighted Index (+0.8%), which outperformed the market-cap-weighted S&P 500 by 1.3 percentage points. The S&P Mid Cap 400 (+0.8%) also finished higher, although the Russell 2000 (-0.2%) surrendered its earlier gains as selling pressure intensified during the afternoon.

The continued outperformance of the equal-weighted index underscored the market's ongoing rotation away from concentrated mega-cap leadership. Meanwhile, the information technology sector (-2.7%) was a major source of pressure, with the PHLX Semiconductor Index (-3.4%) suffering another substantial decline after briefly climbing nearly 2.0% earlier in the session. The reversal highlighted the persistent caution surrounding AI-related stocks following last week's sharp selloff, as investors continued to scrutinize elevated growth expectations and the substantial capital commitments associated with AI infrastructure development.

Advanced Micro Devices (AMD 466.84, -37.96, -7.52%) remained under pressure following Intel's (INTC 59.97, -5.79, -8.80%) disappointing earnings report last week, with AMD scheduled to report its own quarterly results after Tuesday's close. Tower Semi (TSEM 155.32, -11.16, -6.70%)) also declined despite reporting strong Q3 revenue growth and issuing above-consensus Q4 revenue guidance, reflecting continued skepticism toward AI infrastructure companies even when their underlying results remain encouraging.

Marvell (MRVL 171.41, -24.99, -12.72%) and Lumentum (LITE 684.40, -156.30, -18.59%) were additional semiconductor-related laggards following the announcement of their approximately $115 billion all-stock merger. While the combination would expand Marvell's AI connectivity and optical networking capabilities, concerns about substantial share issuance and integration risks weighed on both stocks.

Elsewhere in the technology sector, Oracle (ORCL 119.10, -11.57, -8.85%) faced significant selling pressure after disclosing plans to raise $20 billion through a combination of debt and equity financing, adding to concerns about the financing requirements of the AI infrastructure buildout. Apple (AAPL 338.32, -6.31, -1.83%) also traded lower ahead of its fiscal Q4 earnings report after the close, with investors awaiting updates on iPhone demand, rising memory costs, and expectations for the holiday quarter.

The weakness extended beyond the information technology sector, with the Vanguard Mega Cap Growth ETF (-1.4%) reflecting broader pressure on large growth-oriented companies. The communication services sector (-0.2%) also finished modestly lower, contributing to the divergence between the technology-heavy Nasdaq and the more resilient DJIA.

Monday's session ultimately reinforced the increasingly divided nature of the market. The steep decline in oil prices and continued rotation into cyclical, defensive, and interest-rate-sensitive stocks provided meaningful support beneath the surface, but that strength was insufficient to prevent another substantial retreat in the major averages as technology selling intensified. The afternoon reversal was particularly notable given the strength of the early rally, suggesting that investors remain willing to reduce exposure to AI-related stocks even when broader market conditions appear favorable. With another busy stretch of earnings ahead, the ability of technology companies to justify elevated expectations and substantial investment commitments remains a central question for the market.

U.S. Treasuries made their way through Monday's trade unscathed, as a sharp drop in oil prices, fueled by speculation of a potential diplomatic solution between the U.S. and Iran, and more struggles for the high-beta stocks drove a bid that led to lower yields across the curve. The 2-year note yield settled down one basis point to 4.58%, and the 10-year note yield settled down three basis points to 4.90%. 

• Russell 2000: +13.1% YTD
• S&P Mid Cap 400: +11.7% YTD
• S&P 500: +10.2% YTD
• Nasdaq Composite: +8.3% YTD
• DJIA: +8.2% YTD