[BRIEFING.COM] The major indices are sitting near their highs for the day, paced by the strength in the technology sector and many stocks wrapped up in the AI trade. The Nasdaq Composite is up 2.2%, while the Russell 2000 has strengthened to a 1.0% gain. That combination points to some participation beyond mega-cap growth stocks, although the sector picture remains decidedly tilted toward technology.

The S&P 500 information technology sector is up 3.7%, and the Philadelphia Semiconductor Index is up 7.7%. CoreWeave's (CRWV 61.65, +12.92, +26.5%) better-than-expected revenue, raised fiscal 2026 outlook, improving operating margin, and sizable backlog remain the foundation for the rebound in the AI infrastructure trade.

The response has eased some concerns about the capital demands associated with the company's expansion and supported related chip, server, memory, storage, and cloud-capacity names. Other big winners include Dell (DELL 381.91, +47.53, +14.2%), Micron (MU 822.92, +97.81, +13.5%), Seagate Tech (STX 563.60, +61.98, +12.4%), Oracle (ORCL 130.28, +12.30, +10.4%), and Corning (GLW 123.20, +11.07, +9.9%) to name a few.

NVIDIA (NVDA 176.49, +7.60, +4.50%) is participating in the semiconductor surge despite Robert W. Baird downgrading the stock to Neutral from Outperform. That resilience underscores the strength of today's buying interest in AI-related shares.

The advance is not confined entirely to AI infrastructure. Apple (AAPL 354.49, +5.98, +1.7%) is contributing to large-cap technology leadership after China Renaissance upgraded the stock to Buy from Hold. The industrials sector is up 1.6%, the communication services sector is up 1.4%, and energy is higher by 1.2%. Those gains give the market some cyclical support alongside the technology-led move.

There are still clear pockets of weakness. Health care is down 0.5%, consumer discretionary is lower by 0.5%, consumer staples is down 0.3%, and real estate trails by 0.2%. Amazon (AMZN 266.22, -4.65, -1.7%) has weighed on consumer discretionary, which stands out as a laggard despite the broader advance. The softness in several defensive areas also reinforces the session's preference for growth-oriented shares.

The Russell 2000's improvement indicates that participation has widened modestly as the session has progressed, but the Nasdaq's larger gain and the outsized move in semiconductors show that leadership remains concentrated.

The midday picture is therefore constructive but uneven: AI and large-cap technology are driving the headline strength, industrials and communication services are adding support, and several defensive and consumer-oriented groups remain below their starting levels.

The Treasury market is closed today for Veterans Day.

Reviewing today's data:

• 11/07 MBA Mortgage Applications Index 6.2%; prior -1.2%

[BRIEFING.COM] Semiconductor leadership has strengthened further as the major indices extend their gains. The Philadelphia Semiconductor Index is now up 7.7%, compared with 6.6% increase earlier, while the Nasdaq Composite has moved higher since the prior update.

NVIDIA (NVDA 176.21, +7.32, +4.33%) is contributing to the semiconductor surge, although it continues to trail other AI infrastructure stocks rallying in response to CoreWeave's (CRWV 60.84, +12.11, +24.85%) earnings report and raised outlook. CoreWeave's improving operating margins, customer prepayments, and financing plans have helped ease some concerns surrounding the capital demands of its expansion.

The Treasury market is closed for Veterans Day, so market-rate behavior is not serving as a direct catalyst today. The latest 10-year yield reference is 4.99%. Rates could become more consequential when Treasury trading resumes tomorrow, particularly if the recent push higher continues.

WTI crude futures are up 1.3% to $87.17 per barrel, but that increase has not created undue concern. Oil remains well below its recent highs, and today's advance is not tied to military action.

[BRIEFING.COM] Market breadth has improved as the major indices have pushed to session highs, extending the advance from the prior update. The Nasdaq Composite is now up 2.0%, while the Russell 2000 is up 0.8%. The advance-decline line still points to a mixed market, however, as decliners retain a slim lead over advancers at the NYSE while advancers hold a relatively narrow 13-to-9 advantage at the Nasdaq.

Strength across many mega-cap stocks continues to provide disproportionate support to the market-cap-weighted indices. The Vanguard Morningstar Mega Cap Growth ETF (MGK 87.10, +1.80, +2.1%) is up 2.1%.

The equal-weighted S&P 500 (+0.5%) is higher by a more modest amount than the market cap-weighted S&P 500 (+1.3%), reinforcing that the headline index gains remain stronger than the participation beneath the surface.

The improved breadth is constructive, but the split advance-decline readings temper the signal.

[BRIEFING.COM] The advance has broadened modestly since the prior update, with the Russell 2000 improving to a 0.8% gain while the Nasdaq Composite has extended its advance to 1.9%. The Nasdaq remains the stronger performer, but the latest move shows some additional participation beyond the technology-heavy index.

The sector picture continues to favor a more aggressive posture. Health care (-0.7%), consumer staples (-0.5%), real estate (-0.4%), and utilities (-0.1%) are all lower, underscoring the relative weakness of areas with a more defensive orientation. Consumer discretionary (-0.5%) is also down, due in large part to weakness in Amazon (AMZN 267.16, -3.72, -1.37%) and a broader lack of buying interest across the space.

Separately, the New York Fed's latest report on household finances showed that credit card debt reached a record $1.29 trillion in the third quarter. That figure keeps household borrowing conditions in focus even as the major indices maintain sizable gains.

[BRIEFING.COM] The S&P 500 regrouped and has made its way back above 7,600 after encountering resistance around that level earlier. The Nasdaq Composite (+1.8%) has extended its relative lead over the Russell 2000 (+0.6%), reflecting continued strength in technology-oriented shares. The S&P 500 information technology sector is up 3.1%, and the Philadelphia Semiconductor Index is up 6.6%, both trading at their highs for the session.

The recovery is receiving help from strong gains across the AI complex. CoreWeave (CRWV 59.89, +11.16, +22.90%) remains central to the rebound, but participation extends to Dell Technologies (DELL 374.31, +39.93, +11.94%) and Super Micro Computer (SMCI 30.66, +2.86, +10.31%) in AI servers and infrastructure, Micron Technology (MU 815.35, +90.24, +12.44%) and Seagate Technology (STX 556.12, +54.50, +10.86%) in memory and storage, Corning (GLW 121.40, +9.28, +8.27%) in optical connectivity, Oracle (ORCL 127.00, +9.02, +7.64%) in cloud capacity, and Applied Materials (AMAT 396.60, +24.06, +6.46%) in semiconductor equipment.

Separately, Apple (AAPL 353.13, +4.62, +1.33%) is providing another important source of leadership for the market-cap-weighted indices, showing that the index strength is not limited solely to the AI infrastructure trade. Apple received an upgrade to Buy from Hold at China Renaissance.

[BRIEFING.COM] The post-open advance has featured a more aggressive tilt for the Nasdaq Composite, which is up 1.3%. The S&P 500 is up 0.8%, yet the Dow Jones Industrials Average is down 0.3%.

The Invesco S&P 500 High Beta ETF (SPHB 137.70, +3.80, +2.8%) is outperforming the Invesco S&P 500 Low Volatility ETF (SPLV 77.71, -0.38, -0.5%), signaling stronger participation from higher-beta stocks. That is a reversal of yesterday's trade, when SPLV outperformed SPHB, and marks a shift away from the more defensive positioning seen in the prior session.

Energy is another area of relative strength. The S&P 500 energy sector is up 1.53%, coinciding with a 1.7% jump in WTI crude futures to $87.49 per barrel. The crude move appears to be a bounce from a short-term oversold condition. Questions remain, however, about whether diplomatic efforts with Iran can produce a breakthrough that leads to an unfettered reopening of the Strait of Hormuz, leaving the underlying supply outlook unsettled.

[BRIEFING.COM] The cash market opened higher as equity futures had indicated, with technology driving the early advance. The Nasdaq Composite is up 1.3%, ahead of the Russell 2000's 0.5% gain, but the S&P 500 encountered resistance after testing a break above the 7,600 level.

The S&P 500 information technology sector is up 2.3%, while the PHLX Semiconductor Index is up 4.0%. Those moves reflect renewed buying in AI-linked shares, giving the opening advance a distinct growth-stock tilt.

CoreWeave's (CRWV 57.89, +9.16, +18.80%) results supplied the key catalyst for the AI trade. Revenue exceeded expectations, management raised its fiscal 2026 revenue and adjusted operating-income outlooks, and adjusted operating margin improved sequentially to 10% from 5%. Backlog reached $132.5 billion, reinforcing the demand outlook while easing some concerns about the company's capital-intensive expansion.

The early test now is whether the S&P 500 can clear 7,600. Its initial hesitation at that level contrasts with the stronger follow-through in technology and semiconductors.

Equity futures continue to point to a strong open, paced by rebound action in the AI trade.

Asian markets finished mixed on Wednesday as renewed buying interest in AI-related shares supported Japan and mainland China, while concerns over U.S. monetary policy and technology restrictions weighed on Hong Kong. Japan's Nikkei gained 1.3% for a third consecutive advance, with Taiyo Yuden (+7%), Lasertec (+6%), Advantest (+6%), and Kioxia Holdings (+6%) rallying amid optimism surrounding AI infrastructure demand following CoreWeave's results, while SoftBank Group retreated after reporting its first net loss in nearly two years. China's Shanghai Composite rose 0.5% and the Shenzhen Component climbed 1.3%, led by Cambricon Technologies (+7%), Eoptolink Technology (+6%), Zhongji Innolight (+5%), and Hygon Information Technology (+3%), although persistent weakness in household consumption remained a concern despite the country's year-to-date trade surplus exceeding USD1 trln. Hong Kong's Hang Seng fell 1.0%, with Alibaba (-3%), Tencent (-2%), Xiaomi (-2%), and Wuxi Biologics (-2%) retreating amid firmer U.S. inflation data, hawkish Fed commentary, and uncertainty surrounding technology cooperation ahead of the November 18-19 Trump-Xi meeting. South Korea's KOSPI advanced 2.6%, supported by LG Energy Solution (+2%), Samsung SDI (+2%), KB Financial (+1%), and Shinhan Financial (+1%), even as Samsung Electronics (-1%) and SK Hynix (-1%) lagged. South Korean exports more than doubled to USD33.5 bln during the first 10 days of November, led by a 331.2% increase in semiconductor shipments, highlighting strong underlying demand despite the mixed performance of chip stocks. Japan's November Reuters Tankan index improved to 27 from 22, while South Korea's unemployment rate eased to 2.5% in October, providing additional evidence of economic resilience. India's Sensex gained 1.0% as trading resumed following Tuesday's market holiday, adding to the region's uneven but generally positive performance.

• In economic data:
  • South Korea's October Unemployment Rate 2.5% (prior 2.6%).
  • South Korean exports more than doubled to USD33.5 bln during the first 10 days of November, led by a 331.2% increase in semiconductor shipments.
  • Japan's November Reuters Tankan Index 27 (prior 22).
  • Japan's October M2 Money Stock +1.7% yr/yr (expected +2.1%; prior +1.9%) and M3 Money Supply JPY2,344.4 bln (prior JPY2,342.4 bln).
  • Australia's Q3 Home Loans -5.3% qtr/qtr (prior -2.0%).

European markets trade mostly higher as renewed enthusiasm for AI-related investments, easing geopolitical tensions, and stabilizing commodity prices support sentiment, with Germany's DAX outperforming following a series of favorable corporate developments. The DAX gains 0.8% and reaches record territory, led by Siemens Energy (+6%) after reporting record quarterly revenue, raising its guidance, and announcing plans to expand its share buyback program, while Infineon Technologies (+6%) and Siemens (+2%) also advance and Brenntag (-4%) retreats on profitability concerns. France's CAC 40 rises 0.4%, supported by STMicroelectronics (+4%), Schneider Electric (+2%), Legrand (+2%), and TotalEnergies (+1%), as improving sentiment toward technology and industrial shares offsets weakness in Essilor (-2%). London's FTSE 100 climbs 0.4%, with Antofagasta (+4%), Anglo American (+2%), Glencore (+2%), and Rio Tinto (+2%) benefiting from a recovery in metals prices, while Shell (+1%), BP (+2%), and major banks also contribute to the advance. Germany's October consumer inflation eases to 2.8% yr/yr from 3.3%, in line with expectations, while Italian industrial production rebounds 1.2% m/m in September, exceeding forecasts following the previous month's contraction. The STOXX Europe 600 advances 0.4% and Italy's FTSE MIB edges up 0.1%, while Spain's IBEX 35 trades essentially unchanged, highlighting a more selective regional advance despite continued strength in technology and commodity-linked shares.

• In economic data:
  • Germany's October CPI -0.2% m/m (expected -0.2%; prior +0.6%) and +2.8% yr/yr (expected +2.8%; prior +3.3%); HICP -0.1% m/m (expected -0.1%; prior +0.6%) and +2.8% yr/yr (expected +2.8%; prior +3.3%).
  • Italy's September Industrial Production +1.2% m/m (expected +0.7%; prior -1.2%) and -0.1% yr/yr (prior +0.2%).

It is still looking like a good open for the major indices, as the equity futures remain comfortably above fair value.

The upside action is being paced by rebound activity in the AI trade, which is rooted in the relief over CoreWeave's (CRWV) earnings report and outlook.

Semiconductor stocks are expected to be an influential leadership cohort when the opening bell rings.

Equity futures are pointing to a higher open, paced by rebound action in the AI trade that has the Nasdaq 100 futures trading nearly 2.0% above fair value. The advance comes amid renewed rate-policy scrutiny after Chicago Fed President Austan Goolsbee, a non-voter, called October CPI "borderline disturbing," according to Bloomberg.

Strength in AI-linked shares, including CoreWeave (CRWV 56.73, +8.00, +16.42%) and several large semiconductor names, has acted as an underpinning factor. Related buying also supported parts of the Asian and European markets overnight.

The weekly MBA Mortgage Applications Index rebounded 6.2%. No additional U.S. economic releases are scheduled today, with the Treasury market closed for Veterans Day. That leaves Fed commentary and corporate developments as the main considerations for the session.

On the U.S. data front:

• 11/07 MBA Mortgage Applications Index 6.2%; prior -1.2%

In corporate news:

• CoreWeave (CRWV 56.73, +8.00, +16.42%) is indicated higher after topping third-quarter revenue expectations and raising its fiscal 2026 revenue and capital-spending guidance.
• Costco (COST 1075.35, +9.21, +0.9%): declares $30/share special cash dividend, reauthorizes $4 bln buyback
• NVIDIA (NVDA 175.70, +6.91, +4.1%): stock rebounding after losing nearly 10% in wake of CEO Jensen Huang acknowledging an affair with an alleged Chinese spy

Reviewing overnight developments:

Asian markets ended mixed, with AI-related buying supporting Japan and mainland China while U.S. monetary-policy and technology-restriction concerns weighed on Hong Kong, according to Nikkei.

In news:

• Nikkei reported that AI infrastructure optimism following CoreWeave's (CRWV 56.73, +8.00, +16.42%) results supported Japanese technology shares, while SoftBank Group retreated after reporting its first net loss in nearly two years.
• Nikkei reported that South Korean exports more than doubled during the first 10 days of November, led by a sharp increase in semiconductor shipments.

In economic data:

• South Korea's October Unemployment Rate 2.5% (prior 2.6%)
• Japan's November Reuters Tankan Index 27 (prior 22); October M2 Money Stock +1.7% yr/yr (expected +2.1%; prior +1.9%) and M3 Money Supply JPY2,344.4 bln (prior JPY2,342.4 bln)
• Australia's Q3 Home Loans -5.3% qtr/qtr (prior -2.0%)

--- Equity Markets ---

• Japan's Nikkei : +1.3%
• Hong Kong's Hang Seng : -1.0%
• China's Shanghai Composite : +0.5%
• India's Sensex : +1.0%
• South Korea's Kospi : +2.6%
• Australia's All Ordinaries : +0.3%

European markets trade mostly higher, supported by renewed interest in technology and industrial shares, easing geopolitical tensions, and stabilizing commodity prices.

In news:

• Siemens Energy advanced after reporting record quarterly revenue, raising its guidance, and announcing plans to expand its share-repurchase program.
• Technology and industrial shares supported Germany and France, while recovering metals prices helped miners in London.

In economic data:

• Germany's October CPI -0.2% m/m (expected -0.2%; prior +0.6%) and +2.8% yr/yr (expected +2.8%; prior +3.3%); HICP -0.1% m/m (expected -0.1%; prior +0.6%) and +2.8% yr/yr (expected +2.8%; prior +3.3%)
• Italy's September Industrial Production +1.2% m/m (expected +0.7%; prior -1.2%) and -0.1% yr/yr (prior +0.2%)

--- Equity Markets --- 

• STOXX Europe 600 : +0.4%
• Germany's DAX : +0.8%
• U.K.'s FTSE 100 : +0.4%
• France's CAC 40 : +0.4%
• Italy's FTSE MIB : +0.1%
• Spain's IBEX 35 : 0.0%

(Editor's note: We removed an earlier mention of TSM raising its capex guidance, as that capex guidance was communicated in the company's earnings call on October 15)

[BRIEFING.COM] Stocks ended Tuesday with the major averages lower but well off their session lows. The Nasdaq Composite, down 1.7% at its low, finished the day down 0.7%. The Russell 2000 lost 0.6% after being down 1.5%, while the market-cap-weighted S&P 500 declined 0.4%, much improved from the larger 1.1% decline seen in early-afternoon trading. The more important distinction was beneath the surface: the equal-weighted S&P 500 finished flat, showing that the closing weakness was concentrated in the largest growth stocks rather than spread evenly across the market.

The S&P 500 information technology sector dropped 1.4%, with NVIDIA (NVDA 168.80, -9.87, -5.53%) and Microsoft (MSFT 533.16, -12.02, -2.20%) among the prominent mega-cap drags.

NVIDIA remained under pressure amid continuing fallout from reports about CEO Jensen Huang's affair with an alleged Chinese spy. NVIDIA's independent directors retained outside counsel to investigate. Microsoft traded lower amid Anthropic's (ANT) beta launch of Claude Whiteboards and Claude Sheets, which will reportedly sharpen competition in workplace software. Relatedly, Anthropic disclosed in an amended S-1 filing that it will offer 825 million shares at an estimated price between $70.00 and $78.00, putting it on track for an IPO before Thanksgiving.

The afternoon recovery effort had a clearer rotational character. The financials and consumer discretionary sectors each gained 0.5%, helping the equal-weighted benchmark erase an earlier decline even as technology remained the main index-level restraint. That divergence explains why the broader market looked healthier at the close than the headline S&P 500 and Nasdaq results suggested.

The hotter-than-expected October CPI report set the day's rate backdrop. Total CPI increased 0.4% month-over-month in October (Briefing.com consensus: 0.3%), while core CPI, which excludes food and energy, jumped 0.3% month-over-month (Briefing.com consensus: 0.2%). The BLS didn't provide a year-over-year reading due to the lack of data last October that resulted from the government shutdown.

The key takeaway from the report is that inflation is not settling in a manner that is going to satisfy the Federal Reserve. A 25-basis-point rate hike at the December FOMC meeting to 4.00-4.25% is now fully priced in by the fed funds futures market, according to the CME FedWatch Tool. There is a 65% probability of at least another 25-basis-point hike at the January FOMC meeting to 4.25-4.50%.

Treasuries sold off sharply after the CPI report. A weak $42 billion 10-year note auction did little to help. The 2-yr yield rose 18 basis points to 4.74%, and the 10-yr yield increased 12 basis points to 4.98%, both closing at November highs.

Oil provided a separate cross-current. WTI crude fell as low as $83.88 per barrel as hopes for a diplomatic resolution involving Iran built, then recovered after Iran's top security official said there were no current talks with the U.S. WTI settled down 0.9% at $86.11 per barrel, leaving less of the energy-price relief that had been evident before the CPI release when WTI crude futures were trading under $84.00 per barrel.

The session ultimately showed a market able to absorb a meaningful rate shock without sustaining its worst levels, but the split between mega-cap technology and the broader market remained pronounced into the close. The Treasury market will be closed Wednesday for Veterans Day, while the New York Stock Exchange will be open for a regular session.

• Russell 2000: +13.8% YTD
• S&P Mid Cap 400: +12.0% YTD
• S&P 500: +9.9% YTD
• DJIA: +8.7% YTD
• Nasdaq Composite: +7.8% YTD

Reviewing today's data:

• October NFIB Small Business Optimism 97.8 vs. 98.0 Briefing.com consensus; prior 97.9
• October CPI 0.4% vs. 0.3% Briefing.com consensus; prior 0.6%
• October Core CPI 0.3% vs. 0.2% Briefing.com consensus; prior 0.3%

Wednesday's economic calendar:

• 7:00 AM ET: 11/07 MBA Mortgage Applications Index; prior -1.2%