[BRIEFING.COM] The stock market started the week on a higher note, with the S&P 500 (+0.7%), Nasdaq Composite (+0.8%), and DJIA (+0.3%) recovering some of last week's losses as renewed buying interest in semiconductor stocks, AI infrastructure companies, and other growth-oriented names provided support. The S&P 500 briefly eclipsed its 50-day moving average (7,698) during the session but failed to close above that level.

Today's rebound followed a difficult stretch for the AI trade, particularly Thursday's sharp selloff, when concerns about the financing requirements of expanding AI infrastructure weighed heavily on technology stocks. Reports that Meta Platforms (META 630.56, -12.06, -1.88%) is seeking to raise $95 billion in equity for its AI expansion, alongside SpaceX's (SPCX 146.90, -0.59, -0.40%) $40 billion debt financing for GPU purchases, brought renewed attention to the enormous investments being made in the industry. Anthropic also filed its S-1 registration statement ahead of a potential IPO, reporting rapid revenue growth that reinforced expectations for expanding demand for AI services, even as questions about infrastructure costs and returns on investment persist.

The information technology sector (+1.5%) led the advance, supported by a strong rebound in semiconductor stocks that lifted the PHLX Semiconductor Index 2.8%. NVIDIA (NVDA 216.02, +5.06, +2.40%) was among the notable beneficiaries of renewed interest in the AI trade, while the industrials sector (+1.4%) also received support from AI infrastructure-related names. The consumer discretionary sector (+1.1%) was another standout, helped by a sizable gain in Tesla (TSLA 391.62, +19.40, +5.21%) following an upgrade to Overweight from Equalweight at Barclays.

Lower oil prices also provided a tailwind for a variety of consumer discretionary stocks, with WTI crude futures settling $1.41 lower (-1.4%) at $101.76 per barrel. Late in the session, The Wall Street Journal reported that DoorDash (DASH 168.44, -10.94, -6.10%) is in discussions to acquire Instacart (CART 60.88, +4.44, +7.87%).

Mega-cap growth stocks made an outsized contribution to the broader market's advance, with the Vanguard Mega Cap Growth ETF (+0.9%) outperforming the S&P 500 Equal Weighted Index (+0.3%). Apple (AAPL 343.91, -3.82, -1.10%) was a notable exception to the technology strength, The gains across smaller and mid-sized companies reflected some participation beyond the largest stocks, although leadership remained concentrated in growth-oriented areas.

The communication services sector (-1.4%) was the session's clear laggard, weighed down by weakness in mega-cap constituents Meta Platforms (META 630.56, -12.06, -1.88%) and Alphabet (GOOG 314.19, -3.09, -0.97%), alongside several company-specific declines. Verizon (VZ 43.11, -1.55, -3.47%) fell despite beating earnings expectations and raising its FY26 outlook, as a revenue shortfall and concerns about future wireless competition overshadowed the positive developments. Netflix (NFLX 63.90, -1.95, -2.96%) also struggled following a Bloomberg report about declining time spent on the platform.

Defensive areas generally lagged, with the health care and utilities sectors finishing flat and the consumer staples sector (-0.1%) slipping slightly. Dollar General (DG 128.42, -4.27, -3.22%) was among the notable laggards after the FTC and state partners filed a lawsuit alleging that the retailer charged consumers more than advertised for numerous products.

The energy sector (+0.5%) finished higher despite the decline in crude oil prices, with refiner names outperforming. EQT Corp. (EQT 54.85, -0.78, -1.40%) fell following its agreement to acquire Range Resources (RRC 53.58, +8.06, +17.71%) in an all-stock transaction, while Range Resources rallied.

The early-week advance comes ahead of a considerably busier stretch for both corporate earnings and economic data, beginning tomorrow. According to FactSet, 179 S&P 500 companies are scheduled to report earnings this week, including major technology companies whose results will be closely watched for indications of AI spending trends and profitability.

On the policy front, Wednesday's FOMC decision remains another important event, with markets widely expecting the Fed to leave interest rates unchanged.

U.S. Treasuries started a busy week, which will feature a midweek release of the October FOMC Statement, on a mixed note, with losses in shorter tenors and modest gains on the long end. The early afternoon brought some light pressure on the front end after the U.S. Treasury kicked off this week's note auction slate with a weak 2-year note sale while the long end was essentially unmoved by the result. The 2-year note yield settled up three basis points to 4.71%, and the 10-year note yield finished unchanged at 4.99%.

There was no economic data of note today.

• Nasdaq Composite: +12.6% YTD
• Russell 2000: +12.3% YTD
• S&P 500: +12.1% YTD
• S&P Mid Cap 400: +10.2% YTD
• DJIA: +8.9% YTD

[BRIEFING.COM] Stocks remain on track for a higher finish this afternoon, with attention beginning to shift toward a busy stretch of corporate earnings. The reporting calendar will accelerate considerably tomorrow morning, kicking off a week in which 179 S&P 500 companies are scheduled to release quarterly results, according to FactSet.

Among tomorrow morning's notable reports is Boeing (BA 187.20, -1.14, -0.61%), with investors looking for evidence that improving aircraft production and deliveries are translating into stronger profitability and cash generation. Particular attention will be paid to progress on the 737 and 787 production ramps, ongoing supply-chain challenges, and whether the company remains on track to achieve its FY26 free-cash-flow outlook of $1 billion to $3 billion.

[BRIEFING.COM] The S&P 500 (+0.7%), Nasdaq Composite (+0.9%), and DJIA (+0.2%) remain little changed from previous levels as the market enters the final hour of the session.

The energy sector (+0.5%) is one of six S&P 500 sectors that holds a gain, though the sector has experienced some choppiness amid fluctuating oil prices today. WTI crude oil futures settled today's session $1.41 lower (-1.4%) at $101.76 per barrel.

Meanwhile, the defensive consumer staples (-0.4%), health care (-0.4%), and utilities (-0.1%) sectors trade lower amid a relatively strong session for tech and mega-cap stocks.

Meta Platforms (META 632.72, -9.90, -1.54%) and Alphabet (GOOG 313.64, -3.64, -1.15%) are exceptions to the trend, weighing on the communication services sector (-1.5%) which faces several other notable stock-specific declines.

[BRIEFING.COM] The S&P 500 (+0.8%) trades near its best level of the session with its 50-day moving average (7698) looming just above, thanks in large part to a solid rebound in the top-weighted technology sector (+1.7%), though six of the remaining ten sectors also trade in positive territory.

The market has started this week on an upbeat note with no interference from economic data, but the next few days will feature a full economic calendar. Tomorrow, the market will receive the September Durable Orders (Briefing.com consensus 1.0%; prior 0.0%) and October Consumer Confidence (Briefing.com consensus 80.5; prior 81.9), followed by the latest FOMC Statement on Wednesday. Thursday will also be busy with the market set to receive the advance reading of Q3 GDP (Briefing.com consensus 3.0%; prior 2.2%), September Personal Income (Briefing.com consensus 0.3%; prior 0.2%), and September PCE Prices (Briefing.com consensus 0.5%; prior 0.3%) at 8:30 ET. In addition, nearly 200 S&P 500 companies will report their quarterly results this week.

Treasuries have seen limited movement today, leaving the 10-yr yield (-1 bp to 4.98%) just below its 50-day moving average (4.989%) while the 2-yr yield is up four basis points at 4.72% amid some pressure following today's soft $69 bln 2-yr note offering.

[BRIEFING.COM] The major averages have eased from their earlier levels, but the session's buy-the-dip character remains intact. Demand continues to favor many of last week's biggest losers, particularly high-beta stocks, mega-cap growth names, and semiconductor stocks.

The VanEck Semiconductor ETF (SMH 543.45, +16.25, +3.08%) is up 3.1%, while the Invesco S&P 500 High Beta ETF (SPHB 138.86, +2.86, +2.10%) is up 2.1% and the Vanguard Morningstar Mega Cap Growth Index Fund (MGK 89.70, +0.92, +1.04%) is up 1.0%. Those moves contrast with a flat reading for the Invesco S&P 500 Low Volatility ETF (SPLV 75.42, +0.01, +0.01%) and a more modest 0.3% increase in the Russell 3000 Value Index, showing that investors are favoring growth and higher market sensitivity over defensive exposure.

Tody's weakest sectors include the S&P 500 communication services (-1.1%), consumer staples (-0.4%), health care (-0.3%), and utilities (-0.1%) sectors.

Advancers lead decliners by a roughly 5-to-4 margin at the NYSE and by a 13-to-10 margin at the Nasdaq.

[BRIEFING.COM] The S&P 500 (+0.9%), Nasdaq Composite (+1.2%), and DJIA (+0.3%) remain little changed from previous levels early in afternoon trading.

Meanwhile, U.S. Treasuries remain mixed, with modest losses up front and relative strength in longer tenors, which is keeping yields on the10 and 30-year notes near one-month lows, with the 10-year yield sitting right below its 50-day moving average (4.989%). Treasuries climbed off their starting levels during the first couple of hours of trade before finding resistance that returned action toward today's starting levels. The market has faced some light pressure in immediate reaction to today's $69 billion 2-year note sale, which met weak demand, as the high yield (4.708%) tailed the when-issued yield (4.705%) by 0.3 basis points while the bid-to-cover ratio (2.59x vs 2.62x average) and indirect takedown (45.7% vs 58.7%) were below average. The U.S. Treasury will sell $70 billion in 5-year notes tomorrow.

[BRIEFING.COM] The stock market is trading broadly higher at midday, with the S&P 500 (+0.7%), Nasdaq Composite (+0.9%), and DJIA (+0.2%) all holding gains as renewed enthusiasm for the AI trade helps stocks recover from last week's volatility. The major averages have backed off their morning highs, but strength in semiconductor stocks, mega-cap technology names, and AI infrastructure companies continues to provide support.

The rebound follows a difficult stretch for AI-related stocks, particularly during Thursday's sharp selloff, as investors weighed the enormous capital requirements associated with expanding AI infrastructure. Today's buying interest comes amid reports that Meta Platforms (META 641.89, -0.73, -0.11%) is seeking to raise $95 billion in equity to support its AI expansion, while SpaceX (SPCX 148.59, +1.10, +0.75%) has secured $40 billion in debt financing for GPU purchases. The developments have brought renewed attention to the scale of investment flowing into AI, even as questions about financing costs and eventual returns remain unresolved.

Adding to the enthusiasm, Anthropic filed its S-1 registration statement today ahead of a potential IPO around Thanksgiving. The Claude AI developer reported first-half 2026 revenue of approximately $16.3 billion, representing growth of roughly 1,300% year over year, alongside narrowing operating losses. The filing offers another indication of rapidly expanding demand for AI services, although the company's substantial infrastructure expenses highlight the financial demands of supporting that growth.

The information technology sector (+1.3%) is among the strongest performers, with the PHLX Semiconductor Index (+2.8%) staging a sizable rebound from last week's weakness. The industrials sector (+1.3%) is also benefiting from renewed buying interest in AI infrastructure names, while the consumer discretionary sector (+1.3%) is supported by a strong advance in Tesla (TSLA 394.57, +22.35, +6.00%), which is recovering from its recent post-earnings decline following an upgrade from Barclays to Overweight from Equalweight.

Mega-cap stocks are making an outsized contribution to the advance. The Vanguard Mega Cap Growth ETF (+0.9%) is outperforming the S&P 500 Equal Weighted Index (+0.4%), with NVIDIA (NVDA 215.12, +4.16, +1.97%) among the outperformers amid the enthusiasm across the AI trade. Apple (AAPL 342.83, -4.90, -1.41%), however, is lagging as investors continue to distinguish between companies pursuing aggressive AI infrastructure investment and those taking a more measured approach.

Participation is nevertheless reasonably broad, with the Russell 2000 (+0.7%) and S&P Mid Cap 400 (+0.8%) also posting solid gains. Their performance suggests the recovery is not confined entirely to the largest technology companies, even as mega-cap strength remains an important driver of the capitalization-weighted benchmarks.

Meanwhile, the communication services sector (-0.7%) is the weakest performer, weighed down by several notable company-specific declines. Verizon (VZ 43.36, -1.30, -2.90%) is trading lower despite exceeding earnings expectations and raising its FY26 outlook, as a revenue miss and concerns about wireless competition overshadowed improving subscriber trends. Netflix (NFLX 62.94, -2.90, -4.41%) is also a notable laggard, down 3.9% following a Bloomberg report indicating that users are spending less time on the platform, while Reddit (RDDT 136.33, -7.92, -5.49%) is facing selling pressure.

Elsewhere, the health care (-0.3%) and consumer staples (-0.1%) sectors are trading slightly lower as investors favor technology and other growth-oriented areas.

The energy sector (+0.4%) has experienced choppy trading as WTI crude futures recovered from an early decline of more than 2.0%, with oil now down jsut $0.40, (-0.4%) to $102.89 per barrel. EQT Corp. (EQT 53.98, -1.66, -2.98%) is under pressure following its agreement to acquire Range Resources (RRC 52.79, +7.27, +15.97%) in an all-stock transaction.

The market's early-week recovery comes ahead of another consequential stretch of earnings and monetary policy developments. Microsoft (MSFT 529.55, +5.04, +0.96%), Alphabet (GOOG 315.34, -1.94, -0.61%), and Amazon (AMZN 249.07, +1.07, +0.43%) are all scheduled to report this week, with their results likely to shape expectations for AI spending and profitability.

On the policy front, Wednesday's FOMC decision also looms, with the CME FedWatch Tool assigning a 89.5% probability to the Fed leaving interest rates unchanged.

There is no economic data of note today.

[BRIEFING.COM] The S&P 500 (+0.8%), Nasdaq Composite (+1.0%), and DJIA (+0.3%) have settled into a relatively stable trading range shortly after midday.

Notably, the market-cap-weighted S&P 500 is comfortably outperforming the S&P 500 Equal Weighted Index (+0.3%), highlighting the significant role mega-cap stocks are playing in today's advance. The Vanguard Mega Cap Growth ETF is up 1.1%, supported by a sizable gain in Tesla (TSLA 395.25, +23.03, +6.19%) and continued strength in NVIDIA (NVDA 215.58, +4.62, +2.19%) amid renewed enthusiasm for the AI trade.

Apple (AAPL 344.55, -3.18, -0.91%), however, is a notable laggard among mega-cap technology stocks. CNBC reported that traders at Goldman Sachs highlighted an unusual divergence between Apple and the Nasdaq-100, with the stock's correlation to the index reportedly turning negative this year for the first time. The trailing three-month correlation coefficient stands near -0.1, reflecting Apple's increasingly distinct trading pattern as the company pursues a less aggressive AI infrastructure investment strategy than other major technology companies.

[BRIEFING.COM] The major averages are off their session highs as oil prices begin to recover from an early retreat.

The energy sector (+0.3%) has seen some choppy trading today, recovering from earlier losses as crude oil prices have rebounded from their session lows. WTI crude futures are down just $0.59 (-0.6%) to $102.68 per barrel after falling more than 2.0% earlier in the session. Refiners have provided some support, with Marathon Petroleum (MPC 469.47, +12.25, +2.68%), Phillips 66 (PSX 289.26, +6.08, +2.15%), and Valero Energy (VLO 425.94, +6.66, +1.59%) posting solid gains near record highs.

Meanwhile, EQT Corp. (EQT 53.20, -2.43, -4.37%) is trading lower after announcing an agreement to acquire Range Resources (RRC 52.09, +6.57, +14.43%) in an all-stock transaction valued at approximately $12.8 billion in equity consideration, representing a 20.6% premium. Range Resources is rallying on the news, while EQT faces selling pressure amid concerns about the acquisition premium, integration costs, and weaker natural gas prices. The combined company would have an enterprise value exceeding $50 billion, with management targeting $325 million in annual synergies within two years and potentially greater savings over the longer term.

[BRIEFING.COM] The S&P 500 (+1.0%) and Nasdaq Composite (+1.3%) have erased last week's losses this morning amid renewed enthusiasm for the AI trade, with the S&P 500 also climbing back above its 50-day moving average (7,698). A solid showing from the broader market supports a decent gain in the DJIA (+0.5%) as well.

Semiconductors and other AI-infrastructure stocks are recovering from a weaker showing last week amid reports that Meta Platforms (META 643.30, +0.68, +0.11%) is looking to raise $95 billion in equity to fund AI expansion, while SpaceX (SPCX 149.85, +2.36, +1.60%) closed a $40 billion debt deal for the purchase of GPUs. Adding to the focus on AI, Anthropic filed for a potential IPO today, revealing explosive revenue growth that is helping renew enthusiasm for the industry's growth prospects despite lingering concerns about infrastructure spending. The PHLX Semiconductor Index is up 3.0%, pushing the information technology sector (+1.7%) to the top of the sector leaderboard.

AI infrastructure names in the industrials sector (+1.5%) are also among today's top performers, while lower oil prices and a solid gain in Tesla (TSLA 396.48, +24.26, +6.52%) lead the consumer discretionary sector (+1.5%) higher.

Meanwhile, several defensive-oriented sectors are hovering near their flat lines as buying interest concentrates in technology stocks, while the communication services sector (-0.2%) lags amid weakness in Verizon (VZ 43.78, -0.88, -1.97%) following its earnings report and selling pressure in Reddit (RDDT 137.09, -7.16, -4.96%).

[BRIEFING.COM] The major averages continue to climb to fresh session highs, supported by renewed buying interest across the AI trade. The information technology sector (+1.4%) is moving firmly higher, while the PHLX Semiconductor Index (+2.2%) is also trading near its best levels of the session following last week's pronounced weakness.

Adding to the focus on AI, Anthropic filed its S-1 registration statement today, setting the stage for a potential IPO around Thanksgiving. The Claude AI developer plans to list on the Nasdaq under the ticker ANT, although the offering size, pricing, and trading date have yet to be determined.

The filing revealed explosive revenue growth, with first-half 2026 revenue reaching $16.3 billion, up approximately 1,300% year over year, while operating losses narrowed considerably despite substantial computing and infrastructure expenses. The potential offering represents an important test of investor appetite for AI-related companies, particularly as concerns about the enormous capital requirements and potential shareholder dilution associated with the industry's expansion remain in focus.

[BRIEFING.COM] The S&P 500 (+0.7%), Nasdaq Composite (+0.8%), and DJIA (+0.7%) are moving to their best levels of the session, which coincides with the communication services sector (-0.3%) moving off its opening lows.

Verizon (VZ 43.59, -1.07, -2.40%) remains a notable laggard in the sector despite reporting better-than-expected earnings and raising its FY26 guidance for the third consecutive quarter. The company reported improving subscriber growth, lower churn, and stronger profitability, but a revenue miss and declining equipment sales have overshadowed those positives. Lingering concerns about increased wireless competition, including SpaceX's (SPCX 147.47, -0.02, -0.01%) potential entry into the nationwide carrier market, are also weighing on sentiment.

[BRIEFING.COM] The S&P 500 (+0.4%), Nasdaq Composite (+0.3%), and DJIA (+0.4%) are modestly higher just after the open on Monday morning.

The AI trade is off to a better start this morning after a choppy previous week that featured a sharp selloff on Thursday. The PHLX Semiconductor Index is up 1.0%, helping the information technology sector (+0.4%) jump out to a nice early gain, with the strength spilling over into AI infrastructure names in the industrials sector (+0.7%) as well.

Strength is broad this morning, with 10 total S&P 500 sectors trading higher. The communication services sector (+1.4%) leads the advance, supported by broad strength in its components as oil prices move lower this morning and a solid gain in Tesla (TSLA 391.59, +19.37, +5.20%), which is recovering some of last week's post-earnings weakness after Barclays upgraded the stock to Overweight from Equal Weight.

Only the communication services sector (-1.0%) moves lower, pressured by Meta Platforms (META 630.26, -12.36, -1.92%)after the company announced it is launching a $35 billion equity financing plan to support its AI infrastructure and personal superintelligence investments. Verizon (VZ 43.30, -1.36, -3.06%) retreats after earnings, while Reddit (RDDT 138.05, -6.20, -4.29%) is also among the worst-performing S&P 500 components.

Stocks remain on track for a modestly higher open this morning as the market enters the final trading week of October. The major averages are mixed for the month, with the S&P 500 (-0.4%) and Nasdaq Composite (-3.4%) trading lower while the DJIA (+2.6%) has significantly outperformed.

The divergence reflects considerable weakness in mega-cap technology stocks, with the information technology (-5.1%) and communication services (-7.3%) sectors both down sharply for the month. That makes this week's earnings reports from Microsoft (MSFT 526.96, +2.45, +0.5%), Alphabet (GOOG 319.13, +1.85, +0.6%), and Amazon (AMZN 250.76, +2.76, +1.1%) particularly important, as investors look for reassurance about AI spending and growth prospects following the recent selloff.

The S&P 500 futures currently trade 16 points above fair value.

Asian markets finished mixed on Monday as lingering concerns surrounding returns on AI investment continued to pressure technology-heavy markets ahead of a pivotal week of corporate earnings and central bank decisions. Japan's Nikkei 225 fell 0.8%, beginning a third consecutive week of declines as Advantest (-4%), Tokyo Electron (-4%), Ibiden (-3%), Disco (-2%), and Kioxia Holdings (-2%) extended the weakness in AI and semiconductor shares. China's Shanghai Composite edged up 0.2%, but the headline gain masked a 1.2% decline in the technology-heavy Shenzhen Component as Eoptolink Technology (-4%), Zhongji Innolight (-3%), Hygon Information Technology (-2%), and SMIC (-1%) retreated ahead of technology earnings and potential policy signals from the Fifth Plenum. Hong Kong's Hang Seng gained 0.5%, with elevated crude prices providing a relative tailwind for PetroChina (+4%), Sinopec (+4%), and CNOOC (+2%), while Sinopharm (+6%) and Meituan (+3%) also advanced. South Korea's KOSPI fell 1.5% ahead of quarterly results from SK Hynix and Samsung Electronics later this week, with Hyundai Motor (-2%), LG Energy Solution (-1%), and Samsung Electronics (-1%) among the decliners. Korea's record $116.63 bln second-quarter current-account surplus, supported by strong semiconductor exports, continues to underscore a disconnect between robust underlying chip demand and investor concerns surrounding valuations and returns on AI-related investment. The contrasting performances of technology-heavy Japan and Korea against oil-supported Hong Kong highlight the increasingly important role of sector composition as elevated crude prices and AI uncertainty pull regional markets in different directions. Investors also face monetary policy decisions from the Federal Reserve, Bank of Japan, and European Central Bank this week, while the possibility of renewed Middle East hostilities keeps energy and inflation risks in focus.

• In economic data:
  • Japan's August Coincident Indicator fell 1.8% m/m (expected -1.9%; prior +1.7%), while the Leading Index rose 0.4% m/m (expected +0.4%; prior +1.5%) to 118.0 (expected 118.0; prior 117.7).
  • Singapore's September Industrial Production rose 3.4% yr/yr (prior +15.4%) and fell 3.9% m/m (prior -1.0%).

European markets trade mostly higher as lower oil prices and easing bond yields provide some relief ahead of a busy week of central bank decisions and corporate earnings. Germany's DAX gains 0.9%, with Bayer (+3%) leading after positive drug-trial results and a regulatory approval in China, while Siemens Energy (+2%), Deutsche Bank (+2%), and Commerzbank (+1%) also advance; Germany's Ifo expectations index improves more than expected even as the assessment of current conditions deteriorates. France's CAC 40 rises 0.7%, with Societe Generale (+2%), BNP Paribas (+1%), and Credit Agricole (+1%) leading financials higher, while Hermes (+3%) advances following its latest sales update. French assets also receive some relief after Moody's affirmed the country's Aa3 sovereign rating, although its negative outlook remains in place amid persistent fiscal and political pressures. London's FTSE 100 gains 0.5%, with Computacenter (+7%) surging after raising guidance on strong AI-related demand, while Shell (-1%) and BP (-1%) retreat as crude prices pull back from six-month highs. The STOXX Europe 600 rises 0.4% and Italy's FTSE MIB gains 0.8%, while Spain's IBEX 35 slips 0.2%, with investors looking ahead to this week's Federal Reserve and European Central Bank decisions and another heavy slate of corporate earnings.

• In economic data:
  • Germany's October Ifo Business Climate Index rose to 90.2 (expected 90.0; prior 89.9), with Business Expectations at 91.6 (expected 90.0; prior 90.4) and the Current Assessment at 88.8 (expected 89.9; prior 89.5).
  • Spain's September PPI rose 18.3% yr/yr (prior +13.2%).
  • The U.K.'s October CBI Distributive Trades Survey improved to -10 (expected -47; prior -55).

The S&P 500 futures currently trade 26 points above fair value.

Semiconductor stocks are on pace for a rebound at the open, with the VanEck Semiconductor ETF up 1.6% in the premarket.

Several mega-cap stocks are also adding to the early enthusiasm, such as Tesla (TSLA 381.18, +8.96, +2.4%), which trades higher after Barclays upgraded the stock to Overweight from Equal Weight, with a target price of $450.

Equity futures point to a modestly higher open to start the week following a mixed finish for the major averages last week, which featured considerable selling pressure across the AI trade and pronounced shifts in market leadership.

Some relief is coming from the energy market this morning, with WTI crude futures down $2.17 (-2.1%) to $101.15 per barrel after settling sharply higher on Friday. The pullback is helping support equity futures by easing some of the concerns surrounding elevated energy costs and their implications for inflation. Investors face another busy week of third-quarter earnings, with Microsoft (MSFT), Alphabet (GOOG), and Amazon (AMZN) all scheduled to report. Their results will be particularly important for assessing AI spending commitments and the returns being generated from those investments following last week's volatility.

On the policy front, the FOMC will announce its latest interest rate decision on Wednesday. The CME FedWatch Tool currently assigns a 90.6% probability that the Fed will leave rates unchanged, putting the focus on policymakers' commentary regarding the outlook for inflation and future policy decisions.

In corporate news:

• Neoclouds are moving lower this morning after SpaceX (SPCX 148.29, +0.80, +0.6%) CEO Elon Musk warned that debt markets have largely cut off financing to companies without substantial revenue outside AI data centers, raising concerns about widespread failures and consolidation across the industry.
• Netflix (NFLX 65.54, -0.31, -0.5%) users are spending less time on the platform, according to Bloomberg. 
• Verizon (VZ 44.72, +0.06, +0.13%) beat the third-quarter earnings consensus, missed the revenue estimate, and raised its fiscal 2026 earnings guidance above consensus.

Reviewing overnight developments:

Nikkei reported that Asian markets finished mixed as concerns about returns on AI investment weighed on technology-heavy markets ahead of major earnings and central bank decisions.

In news:

• Technology and semiconductor shares faced pressure in Japan, China, and South Korea, while elevated crude prices supported energy shares in Hong Kong.
• Investors are awaiting policy decisions from the Federal Reserve, Bank of Japan, and European Central Bank this week.

In economic data:

• Japan's August Coincident Indicator -1.8% m/m (expected -1.9%; prior +1.7%), Leading Index +0.4% m/m (expected +0.4%; prior +1.5%), and Leading Index 118.0 (expected 118.0; prior 117.7)
• Singapore's September Industrial Production +3.4% yr/yr (prior +15.4%) and -3.9% m/m (prior -1.0%)

Equity Markets:

• Japan's Nikkei: -0.8%
• Hong Kong's Hang Seng: +0.5%
• China's Shanghai Composite: +0.2%
• India's Sensex: +0.5%
• South Korea's Kospi: -1.5%
• Australia's All Ordinaries: +0.2%

European markets trade mostly higher as lower oil prices and easing bond yields provide some relief ahead of central bank decisions and a busy earnings week.

In news:

• Moody's affirmed France's Aa3 sovereign rating while maintaining a negative outlook due to fiscal and political pressures.
• Investors are looking ahead to this week's Federal Reserve and European Central Bank decisions.

In economic data:

• Germany's October Ifo Business Climate Index 90.2 (expected 90.0; prior 89.9), Business Expectations 91.6 (expected 90.0; prior 90.4), and Current Assessment 88.8 (expected 89.9; prior 89.5)
• Spain's September PPI +18.3% yr/yr (prior +13.2%)
• U.K.'s October CBI Distributive Trades Survey -10 (expected -47; prior -55)

Equity Markets:

• STOXX Europe 600 : +0.4%
• Germany's DAX : +0.9%
• U.K.'s FTSE 100 : +0.5%
• France's CAC 40 : +0.7%
• Italy's FTSE MIB : +0.8%
• Spain's IBEX 35 : -0.2%

[BRIEFING.COM] The stock market finished broadly lower on Friday, with the S&P 500 (-0.5%), Nasdaq Composite (-0.2%), and DJIA (-1.2%) all ending in negative territory. The relatively modest losses for the S&P 500 and Nasdaq Composite masked a considerably weaker showing beneath the surface, as strength in select technology stocks and the energy sector provided limited support against widespread selling pressure. The session marked another reversal in market leadership following Thursday's sharp technology-led selloff, contributing to a mostly lower finish for the week.

The market opened under pressure before a modest rebound in technology stocks helped the major averages recover from their early lows. The Nasdaq Composite briefly moved into positive territory, although the recovery eventually lost momentum as selling pressure across both cyclical and defensive sectors intensified. The DJIA remained firmly lower throughout the session, while the equal-weighted S&P 500 (-0.8%) also underperformed, reflecting the broad nature of the weakness.

Surging crude oil prices were a central influence on Friday's trading. WTI crude futures settled $3.72 higher (+3.7%) at $103.17 per barrel amid renewed concerns about an escalation in hostilities between the United States and Iran. The advance accounted for the bulk of crude oil's approximately $3.90 gain for the week, adding to concerns about inflation and corporate input costs. The energy sector (+2.5%) was Friday's strongest performer and finished the week with a 1.6% gain, the best showing among the 11 S&P 500 sectors.

The information technology sector (+0.4%) also finished higher, although the PHLX Semiconductor Index (+0.4%) recovered only a fraction of Thursday's 6.7% decline. Software stocks provided more meaningful support, with the iShares Expanded Tech-Software Sector ETF (IGV) gaining 1.7% and Palo Alto Networks (PANW 380.55, +25.63, +7.22%) and CrowdStrike (CRWD 257.57, +19.63, +8.25%) ranking among the best-performing S&P 500 components. The divergence between software and semiconductor stocks has been a notable feature of this week's trading, reflecting continued scrutiny of the AI infrastructure buildout.

Those concerns were also evident in earnings reactions. Bloom Energy (BE 193.09, -24.68, -11.33%) faced substantial selling pressure despite reporting strong revenue growth and raising its FY26 outlook, as investors focused on negative free cash flow and expansion costs. Western Digital (WDC 343.67, -10.52, -2.97%) also struggled despite better-than-expected results and upbeat guidance, while Comfort Systems (FIX 1159.99, -119.38, -9.33%)declined following its earnings report.

Outside technology and energy, the real estate sector (+0.2%) was the only other S&P 500 sector to finish higher.

The remaining eight sectors declined, including the consumer staples (-1.8%) and health care (-1.1%) sectors, which surrendered some of their recent defensive outperformance. The reversal underscored the considerable shifts in market leadership throughout the week.

The communication services sector (-1.4%) faced pressure from mega-cap weakness and declines among traditional wireless providers. AT&T (T 20.94, -1.80, -7.94%), Verizon (VZ 44.61, -0.59, -1.31%), and T-Mobile US (TMUS 146.61, -12.18, -7.67%) came under selling pressure following a Bloomberg report that SpaceX (SPCX 147.49, +2.74, +1.89%) is seeking access to at least 80,000 U.S. cell sites, potentially positioning the company to become a fourth nationwide wireless carrier.

Economically sensitive stocks also struggled amid rising oil prices, with the consumer discretionary (-1.4%) and industrials (-1.3%) sectors finishing with sizable losses. The financials sector (-1.3%) was another notable laggard, weighed down in part by American Express (AXP 313.20, -11.98, -3.68%). Despite exceeding adjusted EPS expectations and raising the lower end of its FY26 earnings outlook, the company reported a slight revenue miss and slowing billed business growth. Rising customer-benefit costs also drew attention, while CNBC reported that American Express plans to eliminate approximately 5% of its global workforce.

Friday's decline capped a volatile week characterized by sharp shifts in market leadership, with relatively modest weekly changes in the major averages obscuring much larger moves among individual groups. Looking ahead, the third-quarter earnings season will accelerate further next week, with results from Amazon (AMZN 248.00, -2.38, -0.95%), Microsoft (MSFT 524.51, +3.43, +0.66%), and Alphabet (GOOG 317.28, -3.48, -1.08%) likely to draw particular attention as investors assess AI spending commitments and the prospects for returns on those investments.

U.S. Treasuries retreated on Friday after their big Thursday rally, though even with today's losses across the curve, the complex still secured its third consecutive weekly gain. The 2-year note yield settled up four basis points to 4.68% (-6 basis points this week), and the 10-year note yield settled up four basis points to 4.99% (-11 basis points this week). 

• Russell 2000: +11.9% YTD
• Nasdaq Composite: +11.8% YTD
• S&P 500: +11.4% YTD
• S&P Mid Cap 400: +9.4% YTD
• DJIA: +8.6% YTD

Reviewing today's data:

• The final reading for the University of Michigan Consumer Sentiment Index for October increased to 48.0 (Briefing.com consensus: 46.3) from the preliminary reading of 46.3. The final reading for September was 48.1. In the same period a year ago, the index stood at 53.6.
  
  • The key takeaway from the report is that consumers remain concerned about higher prices reducing their purchasing power.
• The S&P Global U.S. Manufacturing PMI hit 56.0 in the flash reading for October, up from 55.9 in September.
• The S&P Global U.S. Services PMI hit 57.9 in the flash reading for October, down from 58.8 in September.