[BRIEFING.COM] The major averages finished Wednesday's session with solid gains as a significant pickup in third-quarter earnings reports helped restore technology stocks to a leadership position. The S&P 500 (+0.6%), Nasdaq Composite (+1.1%), and DJIA (+0.7%) all advanced, although the Nasdaq Composite enjoyed the strongest showing as renewed enthusiasm for AI-related stocks fueled gains across semiconductor, hardware, and software names.

The day's advance was driven largely by favorable earnings developments, particularly strong results and upbeat guidance from SpaceX (SPCX 159.28, +11.49, +7.77%) and Super Micro Computer (SMCI 35.55, +3.08, +9.49%). Both companies reinforced expectations for continued investment in AI computing infrastructure, helping revive buying interest in a group that had struggled to maintain its momentum during yesterday's choppy session.

The PHLX Semiconductor Index (+2.0%) posted a sizable gain, while strength in software and other technology stocks lifted the information technology sector (+1.6%) to the top of the S&P 500 standings. The renewed enthusiasm extended to several influential mega-cap names, with NVIDIA (NVDA 221.86, +5.39, +2.49%) contributing to the advance and Tesla (TSLA 386.47, +12.76, +3.41%) standing out ahead of its quarterly earnings report after the close. The Vanguard Mega Cap Growth ETF (+0.9%) outperformed the broader market, reflecting a shift back toward the large-cap growth stocks that had taken a back seat during yesterday's more broadly based rally.

Some of the strength in AI-related stocks also carried into the industrials sector (+0.9%), where companies tied to electronic production equipment and data center infrastructure benefited from the positive outlook for AI spending. United Airlines (UAL 101.67, +3.90, +3.99%) was another notable contributor to the sector's performance following a favorable earnings reaction.

Despite the technology-led advance, participation was less uniform than the gains in the major averages might suggest. Seven of the 11 S&P 500 sectors finished higher, while the communication services sector (-1.3%) was the weakest performer. Netflix (NFLX 65.04, -3.65, -5.31%) declined after disappointing fourth-quarter guidance and a reduction in its full-year advertising revenue outlook overshadowed its earnings beat. AT&T (T 21.91, -1.51, -6.45%) also faced substantial selling pressure despite exceeding earnings expectations, as slowing subscriber additions raised concerns about competitive conditions in the wireless industry. Alphabet (GOOG 330.95, -5.45, -1.62%) was another notable drag on the communication services sector, contrasting with the strength across several other influential technology-related stocks.

Elsewhere, the real estate (-0.8%), consumer staples (-0.6%), and health care (-0.5%) sectors finished lower, reflecting some reversal of yesterday's rotation into areas outside the technology trade.

The Russell 2000 (+0.3%) and S&P Mid Cap 400 (+0.4%) registered more modest gains, further illustrating the difference between today's mega-cap-led advance and yesterday's stronger participation among smaller companies.

The market's upward trajectory was briefly interrupted during the afternoon following a report suggesting the State Department was preparing to order the departure of certain personnel from U.S. embassies across the Persian Gulf. Stocks retreated modestly and crude oil prices ticked higher before State Department spokesperson Tommy Pigott clarified that the order applied only to non-emergency U.S. government employees and their families in Saudi Arabia. The clarification helped stocks recover much of the brief pullback, while WTI crude had already settled $0.66 lower (-2.1%) at $97.16 per barrel following the front-month contract's roll to December. The relatively subdued movement in oil prices and Treasury yields for much of the session allowed earnings and corporate developments to remain the primary drivers of trading.

The Nasdaq Composite also reclaimed its 50-day moving average, joining the S&P 500 and DJIA above their respective technical levels, as the major averages maintained the bulk of their gains into the close. Today's performance offered another example of the market's shifting leadership, with AI-related stocks regaining momentum after investors favored a much broader range of sectors and smaller companies yesterday. While the continued willingness to rotate between market groups remains an encouraging feature of the broader market, the contrast between technology's strength and weakness in several other sectors underscores the selective nature of today's advance.

With Meta Platforms (META 697.52, +3.27, +0.47%), Tesla, and others reporting after the close, the next round of results will be particularly important in determining whether renewed enthusiasm for AI investment can sustain the market's recent gains.

U.S. Treasuries ended the midweek session with losses after a mostly sideways session gave way to some late selling. The 2-year note yield settled up three basis points to 4.82%, and the 10-year note yield settled up three basis points to 5.15%.

• Nasdaq Composite: +14.9% YTD
• S&P 500: +13.3% YTD
• Russell 2000: +12.1% YTD
• S&P Mid Cap 400: +10.9% YTD
• DJIA: +10.0% YTD

Reviewing today's data:

• 10/17 MBA Mortgage Applications Index -5.3% (Prior -2.7%)
• 10/17 EIA Crude Oil Inventories -3.061M (Prior -8.557M)

[BRIEFING.COM] The major averages are recovering from a modest afternoon pullback that followed a report suggesting the State Department was preparing to order the departure of certain personnel from U.S. embassies across the Persian Gulf. The report briefly pressured stocks and prompted an uptick in crude oil prices amid renewed concerns about regional tensions.

The market subsequently regained some ground after State Department spokesperson Tommy Pigott disputed the report, clarifying that the ordered departure applies only to non-emergency U.S. government employees and their families in Saudi Arabia, citing increased attacks by Iranian-backed Houthis.

Just before the brief afternoon uptick, WTI crude settled $0.66 lower (-2.1%) at $97.16 per barrel, reflecting the front-month contract's roll to December.

[BRIEFING.COM] The major averages remain near session highs with little change from earlier levels as the market approaches the final hour of trading. Attention is increasingly turning toward another round of closely watched earnings reports after today's close, including results from Tesla (TSLA 387.13, +13.42, +3.59%).

Tesla's report will provide an important test of whether stronger vehicle deliveries are translating into improved profitability as the company continues to invest heavily in AI, autonomous driving, and robotics. The company delivered 486,532 vehicles in Q3, exceeding production, although investors will be looking closely at automotive margins, cash flow, and energy-storage profitability amid plans for more than $25 billion in capital expenditures this year.

Updates on Robotaxi commercialization and Full Self-Driving adoption will also be closely watched, along with any additional details regarding a potential merger with SpaceX (SPCX 158.86, +11.07, +7.49%). FactSet consensus calls for adjusted EPS of $0.45 on revenue of $28.06 billion, with Tesla's earnings call scheduled for 5:30 p.m. ET.

[BRIEFING.COM] The S&P 500 (+0.7%) hovers near its best level of the session, drawing support from gains in seven sectors while four groups remain in the red with communication services (-0.9%) and health care (-0.6%) showing the widest losses.

The benchmark index has been trading near its 50-day moving average (7705) for the past week, including a dip to that level at the start of today's session before rebounding in search of its best close since last Tuesday. Improved sentiment surrounding the AI trade has helped the market stay in positive territory today and it has helped the Nasdaq (+1.3%) stay ahead of the S&P 500 throughout the day.

This week has been very quiet in terms of economic data, and things will remain that way for another few days leading into next Wednesday's FOMC rate decision at 14:00 ET, which will be followed by advance Q3 GDP and the September Personal Income/Outlays report on Thursday.

[BRIEFING.COM] Mega-cap strength continues to define the afternoon advance. The Dow has firmed since the prior update, and there is decent buying interest across the broader market, but breadth still points to an advance paced by large-cap leadership. Advancers lead decliners by a 7-to-6 margin at the NYSE and by a 14-to-9 margin at the Nasdaq.

The Vanguard Morningstar Mega Cap Growth ETF (MGK 91.80, +0.98, +1.07%) is outperforming the broader market, serving as a useful proxy for the rebound in influential growth stocks. Strong quarterly results from SpaceX (SPCX 158.71, +10.92, +7.39%) have helped revive enthusiasm for the AI trade, while optimism ahead of Meta Platforms' (META 708.10, +13.85, +2.00%) report tonight is adding support.

Meta's report will test whether AI-driven improvements in advertising impressions, pricing, recommendations, and engagement can continue to offset rising infrastructure costs. Investors will also be watching Q4 revenue guidance, updates to the company's $130-$145 billion FY26 capital-spending outlook, and initial indications about FY27 spending.

A fresh legal development adds another consideration. CNBC reported that New Mexico ordered Meta (META 708.10, +13.85, +2.00%) to pay $25 billion in penalties related to the Cambridge Analytica scandal, reinforcing uncertainty around the company's legal costs even as investors position for its earnings report.

[BRIEFING.COM] The S&P 500 (+0.7%), Nasdaq Composite (+1.3%), and DJIA (+0.4%) remain in a relatively tight range near session highs.

U.S. Treasuries also continue to navigate a sideways range with modest gains in longer-dated notes while the front end underperforms, keeping the 2-year note little changed for the day. Treasuries followed their modestly higher open with a brief morning extension to fresh highs before giving in to some selling, which pressured action below today's starting levels. The market has taken a small step back in immediate reaction to today's $13 billion 20-year bond reopening, which met soft demand, as the high yield (5.469%) tailed the when-issued yield (5.460%) by nearly a basis point while indirect takedown (58.2%) was below average (64.1%). However, the bid-to-cover ratio (2.73x) was above the prior 12-auction average (2.63x).

[BRIEFING.COM] The stock market is enjoying a technology-led advance at midday as a significant pickup in third-quarter earnings reports provides the primary catalyst for today's trading. The S&P 500 (+0.6%), Nasdaq Composite (+1.3%), and DJIA (+0.4%) have extended their gains from earlier in the session, with renewed enthusiasm for AI-related stocks helping the Nasdaq Composite reclaim its 50-day moving average and join the other two major averages above that key technical level.

Quarterly results and upbeat guidance from SpaceX (SPCX 162.30, +14.52, +9.82%) and Super Micro Computer (SMCI 35.66, +3.20, +9.84%) have been central to today's strength, reinforcing expectations for continued investment in AI computing infrastructure. Their reports have provided a boost to hardware and semiconductor stocks following yesterday's choppy trading, lifting the PHLX Semiconductor Index (+2.1%) and helping the information technology sector (+1.5%) establish a sizable lead over the rest of the market. Software stocks are also participating in the advance, contributing to the sector's broad strength.

Some of that enthusiasm has carried into the industrials sector (+1.0%), where data center infrastructure and electronic production equipment stocks are benefiting from the renewed focus on AI investment. United Airlines (UAL 104.08, +6.31, +6.45%) is another standout in the sector following its earnings report, underscoring the extent to which company-specific developments are influencing today's performance.

Despite the major averages' gains, participation remains mixed, with just five of the 11 S&P 500 sectors trading higher. The communication services sector (-1.1%) is the biggest laggard, weighed down by disappointing reactions to earnings from Netflix (NFLX 65.38, -3.32, -4.83%) and AT&T (T 22.00, -1.42, -6.06%), along with weakness in Alphabet (GOOG 329.72, -6.68, -1.99%). Netflix's softer-than-expected fourth-quarter guidance and reduced advertising revenue outlook have overshadowed its earnings beat, while AT&T's slowing subscriber additions have pressured the stock and raised competitive concerns for other wireless providers. Verizon (VZ 43.50, -1.04, -2.32%) and T-Mobile US (TMUS 153.63, -4.12, -2.61%) are also lower, with SpaceX's plans to expand into the U.S. wireless market adding to concerns about future competition.

The health care sector (-0.9%) is another notable underperformer, giving back some of yesterday's gains as leadership shifts toward technology stocks. Abbott Labs (ABT 98.44, -4.00, -3.91%)  is among the sector's biggest drags after reducing its full-year comparable sales growth outlook despite reporting largely in-line quarterly results.

The reversal in the health care sector, which led yesterday's advance, illustrates the ongoing rotation between market groups as investors respond to earnings developments.

Meanwhile, the Russell 2000 (+0.4%) and S&P Mid Cap 400 (+0.5%) are posting gains roughly in line with the S&P 500, although neither is matching the Nasdaq Composite's technology-driven advance.

Outside of equities, crude oil prices and Treasury yields are both modestly lower, providing a relatively calm backdrop that has allowed earnings and company-specific developments to command most of the market's attention.

With the third-quarter reporting season gaining momentum, investors are increasingly focused on whether corporate results and forward guidance can support elevated expectations, particularly among the technology and AI-related companies driving today's gains. Additional reports from Meta Platforms (META 710.47, +16.22, +2.34%), Tesla (TSLA 387.27, +13.56, +3.63%), and other high-profile tech names after today's close will provide further tests of those expectations.

Reviewing today's data:

• 10/17 MBA Mortgage Applications Index -5.3% (Prior -2.7%)
• 10/17 EIA Crude Oil Inventories -3.061M (Prior -8.557M)

[BRIEFING.COM] The major averages continue to trade in a relatively narrow range, holding their gains from earlier in the session. The communication services sector (-1.2%) remains today's biggest laggard, with weakness among telecommunications providers adding to selling pressure elsewhere in the sector.

Verizon (VZ 43.37, -1.17, -2.63%) and T-Mobile US (TMUS 153.43, -4.32, -2.74%) are both trading lower alongside AT&T (T 21.93, -1.49, -6.36%), whose disappointing subscriber trends have weighed on peers despite better-than-expected quarterly earnings. AT&T reported a sequential decline in postpaid phone additions and higher customer churn, raising concerns about competitive pressures across the wireless industry.

Those concerns have been compounded by comments from SpaceX (SPCX 162.50, +14.71, +9.95%), which reiterated plans to expand into the U.S. wireless market through satellite-based mobile services. The company expects to begin deploying next-generation mobile satellites in 2027, with service targeted for early 2028, potentially introducing another source of competition for established carriers.

[BRIEFING.COM] The major averages continue to reach fresh session highs around midday, with today's advance lifting the Nasdaq Composite (+1.1%) above its 50-day moving average, joining the S&P 500 (+0.4%) and DJIA (+0.3%) above that key technical level.

Despite the broader market's gains, several individual stocks are facing notable selling pressure. Chipotle Mexican Grill (CMG 28.32, -1.32, -4.47%) is trading at its lowest level since early June after TD Cowen downgraded the stock to Hold from Buy, citing weaker October sales trends and concerns about the company's ability to generate more than 3% same-store sales growth in 2027.

Abbott Labs (ABT 98.38, -4.07, -3.97%) is also moving sharply lower after reporting largely in-line quarterly results but reducing its FY26 comparable sales growth outlook to approximately 6% from its previous range of 6.5-7.5%. Management pointed to challenges in its Diabetes Care and Electrophysiology businesses, including reimbursement constraints and pricing pressure. The disappointing outlook has overshadowed the company's announcement that it plans to spin off its Nutrition business, which includes brands such as Similac and Ensure, into a separately traded company by the end of 2027.

[BRIEFING.COM] Solid leadership from technology stocks against a backdrop of mixed strength in the broader market keeps the S&P 500 (+0.4%), Nasdaq Composite (+1.0%), and DJIA (+0.2%) near session highs just before midday.

Strong earnings and guidance from SpaceX (SPCX 162.13, +14.34, +9.70%) and Super Micro Computer (SMCI 35.48, +3.02, +9.29%)) have renewed enthusiasm for the AI trade, lifting hardware and semiconductor stocks following yesterday's uneven performance. The information technology sector (+1.2%) leads the S&P 500, supported by a 1.4% gain in the PHLX Semiconductor Index.

The industrials sector (+0.7%) is another relative outperformer, helped by post-earnings strength in United Airlines (UAL 102.10, +4.33, +4.43%).

Meanwhile, the communication services sector (-1.3%) is the weakest performer, weighed down by losses in Netflix (NFLX 65.36, -3.32, -4.84%) after earnings and Alphabet (GOOG 329.07, -7.33, -2.18%). The health care (-0.7%) and real estate (-0.6%) sectors are also lagging after outperforming yesterday, highlighting the rotation back toward technology stocks as market leadership continues to shift between sessions.

[BRIEFING.COM] The major averages have stabilized near their opening levels, with the S&P 500 (+0.3%) holding a modest gain as six sectors trade higher. The communication services sector (-1.4%) is the weakest performer, pressured by disappointing reactions to earnings from Netflix (NFLX 65.58, -3.12, -4.53%) and AT&T (T 21.97, -1.45, -6.19%), along with continued weakness in Alphabet (GOOG 327.94, -8.46, -2.52%).

Netflix is trading at a new 52-week low after its better-than-expected Q3 earnings were overshadowed by disappointing fourth-quarter guidance and a reduction in its FY26 advertising revenue forecast to $2.7 billion from $3.0 billion. The results added to concerns about slowing revenue growth, particularly as management acknowledged delays in advertising initiatives and room for improvement in U.S. content engagement. AT&T is also sharply lower despite beating earnings and revenue estimates, as slower postpaid phone additions and weaker consumer fiber revenue per user tempered enthusiasm for its results.

Meanwhile, Meta Platforms (META 709.53, +15.28, +2.20%) is bucking the sector's weakness ahead of its earnings report after today's close, when investors will be looking for further insight into the company's AI investments and growth outlook.

[BRIEFING.COM] The S&P 500 (+0.1%) is holding a modest gain, while strength in technology stocks keeps the Nasdaq Composite (+0.5%) more firmly higher. Weakness across the broader market, meanwhile, has weighed on the DJIA (flat).

SpaceX (SPCX 161.92, +14.13, +9.56%) is among the standout performers following strong quarterly results and an upbeat outlook that underscored accelerating demand for AI computing infrastructure. Revenue from its Super Intelligence business surged 195% sequentially to $7.56 billion, while management projected first-quarter 2027 revenue of $33--37 billion, well above the $22.23 billion FactSet consensus. The company also expressed confidence in significantly expanding its operational computing capacity next year, reinforcing expectations for continued growth in AI infrastructure spending.

Adding to investor enthusiasm, SpaceX and Tesla (TSLA 385.58, +11.87, +3.18%) have established independent committees to evaluate a potential merger that could bring together their AI, semiconductor, robotics, and connectivity operations. No terms have been agreed upon, and a transaction remains uncertain. Meanwhile, SpaceX's aggressive expansion plans come with substantial spending requirements, including projected fourth-quarter capital expenditures of $35--40 billion, leaving investors to weigh its rapid revenue growth against the costs of building out its infrastructure.

[BRIEFING.COM] Stocks opened to mixed strength this morning, with solid gains across semiconductor and AI-infrastructure stocks leading the Nasdaq Composite (+0.6%) firmly higher, while the S&P 500 (+0.3%) and DJIA (+0.2%) hold more modest gains.

The AI trade is back in focus today following strong earnings results from SpaceX (SPCX 163.37, +15.58, +10.54%) and Super Micro Computer (SMCI 36.19, +3.72, +11.45%), with the PHLX Semiconductor Index (+1.2%) boasting a solid gain after a choppy session yesterday. Software stocks are also moving higher this morning, and the top-weighted information technology sector (+0.8%) is firmly higher.

Unsurprisingly, that enthusiasm has bubbled over to electronic production equipment and other data center infrastructure stocks in the industrials sector (+1.1%), which holds the widest gain of the four S&P 500 sectors in positive territory.

Meanwhile, the communication services sector (-1.2%) is firmly lower, with Netflix (NFLX 67.04, -1.65, -2.40%) lower after issuing disappointing guidance with its latest earnings release (though it is off its overnight lows), while Alphabet (GOOG 328.97, -7.43, -2.21%) is a mega-cap laggard despite a dearth of corporate news.

The stock market remains on track for a higher opening this morning, with renewed enthusiasm surrounding the AI trade providing much of the early support. Strong earnings and guidance from SpaceX (SPCX), alongside a substantial increase in Super Micro Computer's (SMCI) revenue outlook amid accelerating demand for its AI platforms, have helped ease some of the concerns that weighed on technology stocks in recent sessions.

The positive response is extending across AI infrastructure and semiconductor stocks, with the rebound also receiving support from a strong overnight session in South Korea, where the KOSPI gained 3.3%. Meanwhile, the 10-year note yield is down five basis points to 5.09%, providing an additional tailwind for growth stocks. The early rotation back toward technology follows yesterday's session in which the broader market outperformed despite weakness in several mega-cap names. Investors will be looking to see whether today's early strength can be sustained, particularly with another round of closely watched earnings reports scheduled for after the close.

The S&P 500 futures currently trade 25 points above fair value. 

Asian markets finished mixed on Wednesday, with semiconductor shares rebounding sharply in Japan and South Korea while company-specific weakness weighed on China and Hong Kong. Japan's Nikkei 225 gained 0.9%, with Kioxia Holdings (+3%), Advantest (+2%), Taiyo Yuden (+2%), SoftBank Group (+2%), and Lasertec (+2%) advancing as sentiment toward AI spending improved. Japanese exports increased 16.7% yr/yr in September, marking a 13th consecutive increase but falling short of expectations, while the trade deficit narrowed substantially from August. South Korea's KOSPI rallied 3.3%, led by Samsung Electronics (+6%) and SK Hynix (+6%) after stronger results from U.S. AI server maker Super Micro Computer provided fresh evidence of resilient AI-related demand. The rebound also coincided with a 105.4% yr/yr surge in South Korean exports during the first 20 days of October, including a 222.5% jump in semiconductor shipments, while foreign investors returned as net buyers. China's Shanghai Composite fell 0.6%, with CATL (-12%) tumbling after reporting sharply slower third-quarter profit growth, while PetroChina (-2%) and Kweichow Moutai (-2%) also declined. Hong Kong's Hang Seng lost 0.9% and fell to its lowest level since July, with Pop Mart (-6%), Tencent (-4%), and SMIC (-2%) joining weakness in CATL, although Lenovo (+3%) and Z.AI (+2%) bucked the decline. The divergence across the region suggests investors are becoming increasingly selective toward growth and AI-related exposure, rewarding evidence of strong underlying demand while remaining sensitive to slowing earnings growth and questions surrounding returns on heavy investment.

• In economic data:
  • Japan's September trade deficit narrowed to JPY536.6 bln (expected JPY181.0 bln; prior JPY1,111.9 bln), with exports up 16.7% yr/yr (expected 20.1%; prior 19.3%) and imports up 18.9% yr/yr (expected 19.6%; prior 28.0%).
  • South Korean exports surged 105.4% yr/yr during the first 20 days of October, including a 222.5% increase in semiconductor shipments.
  • South Korea's September PPI increased 0.2% m/m (prior 0.1%) and 7.7% yr/yr (prior 7.9%).
  • New Zealand's September credit card spending increased 6.9% yr/yr (prior 3.6%).

European markets trade mostly higher, with upbeat corporate results and renewed strength in technology shares helping offset elevated oil prices and bond yields. Germany's DAX gains 0.7%, led by Adidas (+2%) after the company raised its full-year earnings forecast following record quarterly sales, while Infineon (+2%) and SAP (+1%) participate in the technology rebound. France's CAC 40 rises 0.6%, with EssilorLuxottica (+12%) surging after stronger-than-expected third-quarter revenue and STMicroelectronics (+2%) benefiting from improved technology sentiment, while Michelin (-5%) retreats after reporting lower nine-month sales. London's FTSE 100 underperforms with a 0.1% gain as September CPI accelerated to a hotter-than-expected 3.5% yr/yr and producer-price pressures intensified, strengthening the case for tighter monetary policy. The U.K.'s fiscal picture adds another headwind, with September public-sector borrowing reaching GBP24.50 bln, above expectations and the year-earlier level, while HSBC (-1%), Lloyds (-1%), and Rio Tinto (-3%) trade lower. The STOXX Europe 600 gains 0.5%, while Italy's FTSE MIB rises 0.6% and Spain's IBEX 35 advances 0.7% as corporate earnings help continental markets withstand the renewed inflation and rate concerns weighing more heavily on the U.K.

• In economic data:
  • U.K. September CPI increased 0.4% m/m (expected 0.3%; prior 0.5%) and 3.5% yr/yr (expected 3.4%; prior 3.1%); core CPI rose 0.2% m/m (expected 0.2%; prior 0.3%) and 2.8% yr/yr (expected 2.8%; prior 2.6%).
  • U.K. September PPI Input increased 1.5% m/m (expected 1.3%; prior 0.5%) and 8.3% yr/yr (expected 7.2%; prior 6.7%); PPI Output rose 0.8% m/m (expected 0.7%; prior 0.7%) and 4.6% yr/yr (expected 4.3%; prior 3.8%).
  • U.K. September public sector net borrowing totaled GBP24.50 bln (expected GBP23.80 bln; prior GBP18.30 bln).
  • Switzerland's September M3 money supply totaled CHF1,238.9 bln (prior CHF1,239.5 bln).

Equity futures continue to point to a higher open this morning, with technology stocks leading the early strength. Enthusiasm surrounding earnings reports from SpaceX (SPCX 160.16, +12.37, +8.37%) and Super Micro Computer (SMCI 36.42, +3.95, +12.17%) is providing a boost to AI-related names, while Reuters reports that Micron (MU 925.76, +20.86, +2.3%) has signed deals with the Taiwan union, adding to the positive sentiment surrounding semiconductor stocks.

The VanEck Semiconductor ETF (SMH) is up 1.6% in premarket trading, suggesting that the group is poised for a rebound following yesterday's choppy session.

Equity futures point to a higher opening this morning, with the AI trade poised for a stronger showing following solid earnings from SpaceX (SPCX), which is moving firmly higher in premarket trading.

The early strength follows a session yesterday in which technology and AI-related stocks recovered from steep opening losses but ultimately lagged the broader market. Buying interest instead favored small- and mid-cap stocks, with nine of the 11 S&P 500 sectors finishing higher despite continued weakness among several influential mega-cap names.

Meanwhile, Treasury yields remain relatively stable despite elevated crude oil prices, providing some support for equities as investors turn their attention to another round of major earnings reports. Meta Platforms (META) and Tesla (TSLA) are both scheduled to release quarterly results after today's close, putting additional focus on the outlook for mega-cap growth stocks as the third-quarter earnings season gains momentum.

On the U.S. data front:

• 10/17 MBA Mortgage Applications Index -5.3%; prior -2.7%

Today's remaining economic calendar:

• 10:30 AM ET: 10/17 EIA Crude Oil Inventories; prior -8.557M

In corporate news:

• SpaceX (SPCX 158.23, +10.44, +7.06%) beat Q3 earnings and revenue estimates, with revenue increasing sharply from the year-ago period.
• Netflix (NFLX 63.98, -5.87, -8.4%)  beat EPS expectations by $0.05, reported revenues in-line; guided Q4 EPS below consensus with revenues below consensus, and guided FY26 revs below consensus
• Capital One (COF 206.70, +5.14, +2.55%) exceeded the Q3 earnings consensus, reported revenue roughly in line, and recorded a higher net interest margin.
• Super Micro Computer (SMCI 36.10, +3.63, +11.18%) is indicated sharply higher in reaction to earnings and guidance.
• Zoom Communications (ZM 101.56, +4.10, +4.21%) was upgraded to Outperform from Perform at Oppenheimer, which cited increased confidence in the company's transition toward a broader AI communications and workflow platform.

Reviewing overnight developments:

Nikkei reported that Asian markets finished mixed, as semiconductor strength in Japan and South Korea contrasted with company-specific weakness in China and Hong Kong.

In news:

• Nikkei reported that semiconductor shares advanced in Japan and South Korea amid improved sentiment toward AI spending and signs of resilient AI-related demand.
• Nikkei reported that slowing profit growth at a major battery producer contributed to weakness in China and Hong Kong.

In economic data:

• Japan's September Trade Balance -JPY536.6 bln (expected -JPY181.0 bln; prior -JPY1,111.9 bln), with exports +16.7% yr/yr (expected +20.1%; prior +19.3%) and imports +18.9% yr/yr (expected +19.6%; prior +28.0%)
• South Korea's September PPI +0.2% m/m (prior +0.1%) and +7.7% yr/yr (prior +7.9%)
• New Zealand's September Credit Card Spending +6.9% yr/yr (prior +3.6%)

Equity Markets:

• Japan's Nikkei: +0.9%
• Hong Kong's Hang Seng: -0.9%
• China's Shanghai Composite: -0.6%
• India's Sensex: -0.2%
• South Korea's Kospi: +3.3%
• Australia's All Ordinaries: +0.1%

European markets trade mostly higher, with upbeat corporate results and renewed technology strength helping offset elevated oil prices and bond yields.

In news:

• Technology shares have strengthened across the region, while hotter inflation and fiscal concerns have weighed more heavily on the U.K.

In economic data:

• U.K.'s September CPI +0.4% m/m (expected +0.3%; prior +0.5%) and +3.5% yr/yr (expected +3.4%; prior +3.1%); Core CPI +0.2% m/m (expected +0.2%; prior +0.3%) and +2.8% yr/yr (expected +2.8%; prior +2.6%)
• U.K.'s September PPI Input +1.5% m/m (expected +1.3%; prior +0.5%) and +8.3% yr/yr (expected +7.2%; prior +6.7%); PPI Output +0.8% m/m (expected +0.7%; prior +0.7%) and +4.6% yr/yr (expected +4.3%; prior +3.8%)
• U.K.'s September Public Sector Net Borrowing GBP24.50 bln (expected GBP23.80 bln; prior GBP18.30 bln)
• Switzerland's September M3 Money Supply CHF1,238.9 bln (prior CHF1,239.5 bln)

Equity Markets:

• STOXX Europe 600 : +0.5%
• Germany's DAX : +0.7%
• U.K.'s FTSE 100 : +0.1%
• France's CAC 40 : +0.6%
• Italy's FTSE MIB : +0.6%
• Spain's IBEX 35 : +0.7%