[BRIEFING.COM] The stock market finished a volatile week on a mostly lower note, with an afternoon retreat leaving the major averages near their session lows despite a rebound in semiconductor and other AI-related stocks. The S&P 500 (+0.3%) and Nasdaq Composite (+1.1%) held on to modest portions of their earlier gains, while the DJIA (-0.5%) finished lower. All three indices ended the week with sizable losses, underscoring the limited recovery from Thursday's steep selloff.

The information technology sector (+1.3%) led the market after plunging 7.3% yesterday, supported by a 4.2% rebound in the PHLX Semiconductor Index following its 12.3% decline on Thursday. NVIDIA (NVDA 186.64, +5.04, +2.78%) and Advanced Micro Devices (AMD 449.04, +44.64, +11.04%) were among the standouts, while Lam Research (LRCX 200.44, +15.24, +8.23%) rallied after authorizing a $25 billion share repurchase program and declaring a quarterly dividend of $0.33 per share.

The rebound was helped by comments from Texas Governor-elect Gina Hinojosa indicating that she does not oppose data centers outright, along with President Trump's reiterated support for their development. Still, semiconductor stocks recovered only a fraction of yesterday's losses and remained down sharply for the week.

Earnings provided some additional pockets of strength. Cloudflare (NET 268.75, +24.24, +9.91%) surged after reporting accelerating revenue growth and issuing upbeat Q4 guidance, while AppLovin (APP 391.22, +35.12, +9.86%) extended yesterday's post-earnings rally despite broader weakness among software stocks. Microchip (MCHP 58.35, -6.50, -10.02%), however, was a notable semiconductor laggard after its largely in-line quarterly guidance disappointed investors. Outside technology, Moderna (MRNA 254.19, +12.73, +5.27%) outperformed following an earnings beat and an increase to its FY26 revenue outlook.

The communication services sector (+0.5%) retained about half of its earlier advance, supported by a recovery in mega-cap names including Meta Platforms (META 610.15, +5.07, +0.84%) and Alphabet (GOOG 283.93, +2.19, +0.78%). The Vanguard Mega Cap Growth ETF gained 1.1%, reflecting continued leadership from the market's largest growth stocks.

The consumer discretionary sector (+0.1%) also surrendered most of its earlier strength after trading more than 1.0% higher. Tesla (TSLA 358.22, +14.53, +4.23%) remained a standout following news that the company plans to wind down Cybertruck production around mid-2027 to expand Cybercab output, raising hopes for improved capital efficiency. Airbnb (ABNB 189.99, +19.86, +11.67%) was another notable gainer after topping earnings expectations and issuing stronger-than-expected Q4 revenue guidance.

The industrials sector (+0.1%) also eked out a gain, helped by a rebound in aerospace and defense stocks following yesterday's broad selling pressure. Participation weakened considerably as the session progressed, leaving just four S&P 500 sectors in positive territory.

The consumer staples sector (-1.2%) was the biggest laggard after outperforming during Thursday's selloff, while the financials (-0.7%) and real estate (-0.6%) sectors also underperformed. The S&P 500 Equal Weighted Index (-0.5%) finished firmly lower, contrasting with the gain in its market-cap-weighted counterpart. The Russell 2000 (+0.9%) and S&P Mid Cap 400 (+0.6%) fared better, however, reflecting some resilience among smaller stocks.

The October employment report added another consideration for investors, showing stronger-than-expected payroll growth and wage gains alongside a decline in the unemployment rate. San Francisco Fed President Mary Daly (2027 FOMC voter) subsequently indicated that further policy tightening will likely be necessary. The probability of a 25-basis-point rate hike at the December FOMC meeting rose to 79.1% from 66.9% yesterday, according to the CME FedWatch tool.

The CBOE Volatility Index fell 8.9% to 25.67, but remained well above the 20 mark and finished the week up 32%. Ultimately, today's rebound provided only limited relief following Thursday's broad selloff, with fading afternoon gains and persistent weekly losses highlighting the market's fragile footing heading into next week.

U.S. Treasuries finished the week on a lower note, but even with today's losses that were concentrated in shorter tenors, the complex recorded its fifth consecutive week of gains. The 2-year note yield settled up four basis points to 4.53% (+6 basis points this week), and the 10-year note yield settled up two basis points to 4.86% (-7 basis points this week). 

• Russell 2000: +11.0% YTD
• S&P Mid Cap 400: +9.0% YTD
• S&P 500: +7.8% YTD
• DJIA: +6.7% YTD
• Nasdaq Composite: +5.8% YTD

Reviewing today's data:

• Oct Nonfarm Payrolls 165K (Briefing.com consensus 65K; Prior 60K revised from 29K)
• Oct Nonfarm Private Payrolls 159K (Briefing.com consensus 50K; Prior 78K revised from 46K)
• The October employment report left the market in a mixed state of emotion after its release. The good news is that the nonfarm payrolls increase of 165,000 was stronger than expected, the 4.1% unemployment rate was lower than expected, and the 0.4% increase in average hourly earnings was higher than expected. The bad news is that the 3.1% year-over-year growth in average hourly earnings is below the latest CPI and PCE inflation rates of 3.7% and 3.6%, respectively, so workers' wages are not keeping up with inflation.
  • The key takeaway from the report that is contributing to the mixed view surrounding it is that it was strong enough to keep a December rate hike by the Fed on the table.
• Oct Average Workweek 34.4 (Briefing.com consensus 34.4; Prior 34.4)
• The preliminary reading for the University of Michigan Consumer Sentiment Index for November increased to 51.0 (Briefing.com consensus: 47.2) from the final reading of 48.0 for October. In the same period a year ago, the index also stood at 51.0.
  • The key takeaway from the report is that cost-of-living concerns were the biggest issue weighing on consumer sentiment, which remains at depressed levels.
• Consumer credit increased by $27.8 bln in September (Briefing.com consensus $11.0 bln) while the August increase was revised down to $8.2 bln from $8.3 bln.

[BRIEFING.COM] The major averages are approaching a mostly higher finish as semiconductor stocks continue to lead today's rebound from yesterday's steep selloff. 

The consumer discretionary sector (+0.5%) has surrendered much of its earlier gain, although Tesla (TSLA 359.78, +16.09, +4.68%) remains a mega-cap standout. Shares are recovering after plunging approximately 14% over the previous two sessions, helped by news that Tesla plans to wind down Cybertruck production at its Texas factory around mid-2027 to make room for increased Cybercab output. The shift has raised hopes for more efficient capital spending and improved long-term growth prospects as the company redirects resources toward autonomous transportation.

[BRIEFING.COM] The S&P 500 (+0.7%) and Nasdaq Composite (+1.5%) remain firmly higher as the market enters the final hour of trading, while the DJIA (-0.2%) holds a modest loss. The Russell 2000 (+1.0%) is back near session highs after giving up the bulk of its early gain around midday.

September consumer credit increased by $27.8 billion (Briefing.com consensus: $11.0 billion), following a downwardly revised $8.2 billion increase (from $8.3 billion) in August.

[BRIEFING.COM] The S&P 500 (+0.7%) trades a bit below its morning high, trimming this week's loss to 2.3% while the Nasdaq (+1.4%) outperforms, but is still down 3.0% for the week.

Technology stocks have only recovered a portion of their losses from yesterday, leaving the S&P technology sector (+1.6%) down 6.5% for the week while the PHLX Semiconductor Index (+4.3%) is still down 12.1% for the week. Meanwhile, other areas of the market have done a better job recovering from yesterday's selling.

Military contractors have bounced well, helping the SPDR S&P Aerospace & Defense ETF (XAR 224.14, +9.91, +4.63%) recover yesterday's entire loss. This has helped the industrials sector (+0.5%) stay in positive territory, though roughly half of the sector's components trade lower. Transport stocks are among the laggards with the Dow Jones Transportation Average (-1.3%) widening this week's drop to 2.5%.

[BRIEFING.COM] The rebound effort has regained some momentum since the prior update. The Nasdaq Composite is now up 1.4%, compared with 1.0% earlier, while the Russell 2000 is up 1.0%, showing improved participation beyond large-cap growth stocks.

Semiconductors remain at the center of the recovery, but today's advance is modest when set against Thursday's selloff. The PHLX Semiconductor Index is up 4.0%, a sizable gain in isolation, yet it remains well short of recouping yesterday's 12.3% plunge. It is also off an earlier gain of as much as 6.8%, underscoring that the rebound has not proceeded in a straight line.

The same perspective applies to the S&P 500 information technology sector. Its gain has improved to 1.5%, but that advance recovers only a small portion of Thursday's 7.3% loss. The stronger Nasdaq showing is encouraging for the rebound effort, although the comparison with yesterday's damage continues to frame today's action as a partial recovery rather than a reversal of the selloff.

[BRIEFING.COM] The S&P 500 (+0.5%) and Nasdaq Composite (+1.0%) have temporarily stabilized from their recent slide to session lows, while the DJIA (-0.1%) remains modestly lower.

While much of the market's attention today has centered on the AI trade's attempt to rebound from yesterday's selloff, macroeconomic developments are also influencing expectations for the Fed's policy path. This morning's October employment report showed stronger-than-expected hiring, with nonfarm payrolls increasing by 165,000 (Briefing.com consensus: 65,000) and the unemployment rate declining to 4.1% (Briefing.com consensus: 4.2%). Average hourly earnings also rose a stronger-than-expected 0.4%, reinforcing expectations that the Fed may need to maintain a restrictive policy stance.

San Francisco Fed President Mary Daly (2027 FOMC voter) described the employment report as good news, highlighting improving labor force participation and continued strength in labor market conditions. She also indicated that she expects the Fed will need to tighten policy further.

According to the CME FedWatch tool, the probability of a 25-basis-point rate hike at the December FOMC meeting has increased to 79.1% from 66.9% yesterday.

[BRIEFING.COM] The stock market is holding on to a portion of its earlier gains at midday, recovering from yesterday's steep selloff as semiconductor and mega-cap stocks attract renewed buying interest. The S&P 500 (+0.4%) and Nasdaq Composite (+0.9%) remain higher, although both have retreated from their morning highs, while the DJIA (-0.2%) trades slightly lower. Despite today's rebound, the S&P 500 and Nasdaq Composite remain on pace for weekly declines of more than 2.0%.

The information technology sector (+1.1%) is among the leaders after plunging 7.3% yesterday. The PHLX Semiconductor Index (+2.9%) is also rebounding from Thursday's 12.3% decline, although it has surrendered much of its earlier advance. NVIDIA (NVDA 185.90, +4.30, +2.37%) and Advanced Micro Devices (AMD 436.39, +31.99, +7.91%) are among the standouts, while Lam Research (LRCX 199.34, +14.14, +7.63%) is another notable gainer after authorizing a $25 billion share repurchase program and declaring a quarterly dividend of $0.33 per share. Buying interest in AI infrastructure stocks has also been supported by comments from Texas Governor-elect Gina Hinojosa indicating that she does not oppose data centers outright, along with President Trump's reiterated support for their development.

There are some notable earnings-driven moves as well. Microchip (MCHP 55.18, -9.67, -14.91%) is a semiconductor laggard after its largely in-line quarterly guidance disappointed investors despite better-than-expected results. Meanwhile, Cloudflare (NET 272.31, +27.80, +11.37%) is surging following its earnings beat and upbeat Q4 outlook, while AppLovin (APP 388.00, +31.90, +8.96%) is extending yesterday's post-earnings rally despite broader weakness among software stocks.

Outside technology, Moderna (MRNA 257.97, +16.51, +6.84%) is among the best-performing S&P 500 components after comfortably exceeding Q3 earnings and revenue expectations and raising its FY26 revenue outlook above consensus, helping the health care sector (flat) avoid a loss.

Mega-cap buying is also supporting the communication services (+1.0%) and consumer discretionary (+0.6%) sectors, although both have pulled back from their earlier highs. Meta Platforms (META 616.95, +11.87, +1.96%) and Alphabet (GOOG 283.93, +2.19, +0.78%) are recovering some of yesterday's losses, while Amazon (AMZN 261.08, +0.87, +0.33%) and Tesla (TSLA 356.45, +12.76, +3.71%) are providing support to the consumer discretionary sector. The Vanguard Mega Cap Growth ETF is up 0.9%. Airbnb (ABNB 190.94, +20.81, +12.23%) is another consumer discretionary standout following its earnings beat, accelerating booking growth, and stronger-than-expected Q4 revenue outlook.

Ultimately, participation remains mixed, with only six S&P 500 sectors trading higher. The consumer staples sector (-0.7%) is the biggest laggard following yesterday's defensive outperformance, while losses elsewhere are relatively modest. The S&P 500 Equal Weighted Index is flat, trailing its market-cap-weighted counterpart as gains remain concentrated in semiconductor and mega-cap stocks.

The Russell 2000 is also flat after surrendering an earlier advance, while the S&P Mid Cap 400 (+0.8%) is showing relative strength.

Overall, today's advance has provided some relief following Thursday's broad selloff, but the retreat from earlier highs and limited participation suggest buying interest remains selective. With the major averages still facing weekly losses, the rebound has yet to meaningfully reverse the damage from yesterday's session.

[BRIEFING.COM] The major averages are little changed from their previous levels, with the S&P 500 (+0.9%) and Nasdaq Composite (+1.6%) maintaining solid gains while the DJIA is flat. 

Earnings reports are driving some notable stock-specific moves. Moderna (MRNA 259.95, +18.49, +7.66%) is among the best-performing S&P 500 components after comfortably exceeding Q3 earnings and revenue expectations and raising its FY26 revenue outlook above consensus. The strength is helping the health care sector (flat) avoid a loss despite broader weakness among its components, while the iShares Biotechnology ETF is up 1.7%.

Meanwhile, Microchip (MCHP 55.79, -9.06, -13.97%) is a notable semiconductor laggard despite the broader rebound in chip stocks. The company topped Q3 earnings and revenue expectations, but its largely in-line guidance for the next quarter has disappointed investors, sending shares to their lowest level since early December.

[BRIEFING.COM] The major averages have settled into relatively stable trading ranges around midday, holding on to much of their earlier gains as technology stocks continue to lead the rebound.

While much of the information technology sector's (+1.9%) strength is concentrated in semiconductor stocks, the iShares Expanded Tech-Software Sector ETF (IGV) is up a more modest 0.5%. Still, several software names are among the session's top individual performers. AppLovin (APP 386.26, +30.16, +8.47%) is extending its post-earnings rally after surging more than 30% yesterday. Cloudflare (NET 271.29, +26.78, +10.95%) is another standout following its better-than-expected Q3 results and upbeat Q4 guidance. The company reported accelerating revenue growth of 39.2% year-over-year, supported by strong enterprise demand, growing adoption of its developer platform for AI applications, and increased cybersecurity needs.

[BRIEFING.COM] The stock market is mostly higher just ahead of midday, with the S&P 500 (+1.0%) and Nasdaq Composite (+1.7%) posting solid gains amid a rebound in semiconductor and other AI-related stocks. Both indices remain on pace for weekly declines of more than 2.0%, while the DJIA (+0.1%) is holding a modest gain and tracking toward a smaller weekly decline of 0.5%.

The information technology sector (+2.0%) is among the leaders, supported by a 4.4% rebound in the PHLX Semiconductor Index, which remains down approximately 12% for the week. Buying interest has been helped by comments from Texas Governor-elect Gina Hinojosa indicating that she does not oppose data centers outright, along with President Trump's reiterated support for their development. NVIDIA (NVDA 188.93, +7.33, +4.04%) and Advanced Micro Devices (AMD 445.29, +40.89, +10.11%) are among the mega-cap standouts, helping lift the Vanguard Mega Cap Growth ETF by 1.9%.

Mega-cap strength is also supporting the communication services (+1.4%) and consumer discretionary (+1.0%) sectors.

The energy sector (+1.0%) is another outperformer as crude oil rises $0.37 (+0.4%) to $90.89 per barrel. Still, only six S&P 500 sectors are trading higher, with advancers outpacing decliners by roughly 7-to-6 at the NYSE and 3-to-2 at the Nasdaq. The Russell 2000 (+0.4%) and S&P Mid Cap 400 (+0.3%) are posting more modest gains, reflecting the concentration of strength in large-cap stocks.

[BRIEFING.COM] The major averages are holding on to their gains, with the Nasdaq Composite (+1.6%) and S&P 500 (+0.9%) leading amid a rebound in semiconductor and mega-cap stocks, while the DJIA (+0.1%) maintains a more modest advance.

The consumer discretionary sector (+1.0%) is among the better performers, benefiting from solid gains in Amazon (AMZN 263.20, +2.99, +1.15%) and Tesla (TSLA 357.56, +13.87, +4.04%). Tesla and SpaceX (SPCX 130.76, +7.14, +5.77%) are both recovering some of their sharp losses from the past two sessions, which followed Democratic election victories that raised concerns about potential regulatory scrutiny of an eventual merger between the two companies.

Airbnb (ABNB 185.91, +15.78, +9.28%) is another standout in the sector and one of the best-performing S&P 500 components following its Q3 earnings report. The company topped earnings and revenue expectations, reported accelerating booking growth, and issued stronger-than-expected Q4 revenue guidance. Improved booking trends and AI-driven customer support efficiencies also helped expand margins, providing additional encouragement to investors.

[BRIEFING.COM] The DJIA (+0.1%) now joins the S&P 500 (+1.0%) and Nasdaq Composite (+1.7%) in positive territory following an uptick in participation throughout the broader market. Eight S&P 500 sectors trade higher, with only the consumer staples sector (-0.8%) holding a loss wider than 0.5%.

The preliminary reading for the University of Michigan Consumer Sentiment Index for November increased to 51.0 (Briefing.com consensus: 47.2) from the final reading of 48.0 for October. In the same period a year ago, the index also stood at 51.0.

The key takeaway from the report is that cost-of-living concerns were the biggest issue weighing on consumer sentiment, which remains at depressed levels.

[BRIEFING.COM] The major averages are mostly higher this morning, with the S&P 500 (+1.0%) and Nasdaq Composite (+1.9%) recovering a portion of yesterday's steep losses while the DJIA (-0.2%) trails with a modest decline.

Semiconductor and other AI infrastructure stocks are leading the rebound, lifting the information technology sector (+2.9%) after its 7.3% plunge yesterday. The PHLX Semiconductor Index (+6.6%) is also bouncing back after tumbling more than 12% in Thursday's session. Advanced Micro Devices (AMD 455.77, +51.37, +12.70%) is among the leaders of the rebound, while memory stocks are also showing notable strength after being among yesterday's hardest-hit groups. Lam Research (LRCX 205.07, +19.87, +10.73%) is another standout after authorizing a $25 billion share repurchase program and declaring a quarterly dividend of $0.33 per share.

Elsewhere, Meta Platforms (META 616.25, +11.17, +1.85%) and Alphabet (GOOG 285.70, +3.96, +1.41%) are recovering some of yesterday's losses, providing support to the communication services sector (+1.2%). The Vanguard Mega Cap Growth ETF is up 2.4%, reflecting renewed buying interest in the market's largest growth-oriented stocks.

Gains are more modest outside technology, with the energy sector (+0.8%) benefiting as crude oil reverses its earlier decline and turns modestly higher. The industrials (+0.5%) and consumer discretionary (+0.4%) sectors are also posting modest advances.

Meanwhile, the defensive consumer staples (-1.6%) and utilities (-0.9%) sectors are lagging after outperforming during yesterday's broad selloff, as investors rotate back toward technology and other growth-oriented stocks.

The preliminary University of Michigan Consumer Sentiment Index for November increased to 51.0 (Briefing.com consensus: 47.2) from the final October reading of 48.0.

Stocks are on track for a rebound from yesterday's rout, with chipmakers and other AI infrastructure names set to lead the gains at the open. The Van Eck Semiconductor ETF is up 5.0% just before the open. 

The October employment report left the market in a mixed state of emotion after its release. The good news is that the nonfarm payrolls increase of 165,000 was stronger than expected, the 4.1% unemployment rate was lower than expected, and the 0.4% increase in average hourly earnings was higher than expected. The bad news is that the 3.1% year-over-year growth in average hourly earnings is below the latest CPI and PCE inflation rates of 3.7% and 3.6%, respectively, so workers' wages are not keeping up with inflation.

The key takeaway from the report that is contributing to the mixed view surrounding it is that it was strong enough to keep a December rate hike by the Fed on the table

Equity futures continue to point to a higher open, with the S&P 500 futures currently trading 16 points above fair value. 

Asian markets finished sharply mixed on Friday as another wave of technology selling swept through Japan and South Korea following Wall Street's semiconductor rout, while India's Sensex bucked the regional weakness. Japan's Nikkei plunged 6.0% to its lowest level since April, extending its weekly decline beyond 9%, with Kioxia Holdings (-37%), Taiyo Yuden (-22%), SoftBank Group (-21%), Advantest (-20%), and Tokyo Electron (-13%) posting steep losses for the week. Japanese wage growth accelerated to 4.6% yr/yr in September, exceeding expectations and reinforcing the prospect of additional Bank of Japan tightening even as equities remain under severe pressure. China's Shanghai Composite fell 1.1% and the Shenzhen Component lost 2.6%, with Zhongji Innolight (-9%), Eoptolink Technology (-7%), Cambricon Technologies (-5%), and Hygon Information Technology (-2%) retreating, although both benchmarks remained higher for the week following Beijing's latest market-support measures. Hong Kong's Hang Seng declined 1.3%, surrendering part of Thursday's sharp advance as Z.AI (-11%), MiniMax (-9%), Kingboard Laminates (-9%), SMIC (-5%), and Tencent (-3%) weakened, while reports of approximately 600,000 Nvidia H200 chips awaiting approval for shipment to mainland China highlighted continuing regulatory uncertainty. South Korea's KOSPI plunged 6.0% to a nine-month low, with SK Hynix (-10%) and Samsung Electronics (-8%) leading losses that triggered a temporary trading halt, prompting officials to pledge measures to contain volatility. Renewed disruptions in the Strait of Hormuz and rising oil prices added to the region's difficulties, while the nearly 8.2-percentage-point performance gap between India's Sensex (+2.2%) and the KOSPI underscored the uneven impact of the global technology selloff.

• In economic data:
  • Japan's September average cash earnings increased 4.6% yr/yr (expected 3.8%; prior 3.9%).
  • Japan's September overtime pay increased 3.6% yr/yr (prior 4.9%).
  • Foreign investment in Japanese stocks totaled JPY1,129.3 bln (prior JPY1,182.2 bln).
  • Japanese investment in foreign bonds totaled JPY1,312.0 bln (prior JPY-81.8 bln).

European markets trade sharply lower as the global selloff sparked by concerns over tighter U.S. AI regulation broadens into financials, industrials, consumer stocks, and other sectors following steep overnight losses on Wall Street and across Asia. Germany's DAX falls 2.4%, with Deutsche Post (-4%), Rheinmetall (-4%), Bayer (-4%), and Daimler Truck (-3%) retreating despite September industrial production rising a better-than-expected 0.7% m/m, while Infineon Technologies (+1%) and Siemens Energy (+1%) buck the broader weakness. France's CAC 40 declines 1.8%, led by a plunge in Teleperformance (-18%) after the company lowered its 2026 sales growth outlook, while L'Oreal (-2%), LVMH (-2%), Safran (-2%), and Publicis (-2%) also weaken as the country's September trade deficit widens to EUR7.3 bln. London's FTSE 100 loses 2.3%, with Antofagasta (-3%), Glencore (-3%), Rio Tinto (-2%), Shell (-2%), BP (-2%), and AstraZeneca (-3%) declining as selling spreads across mining, energy, and defensive heavyweights, while October house prices register their steepest annual decline in three years. Eurozone retail sales unexpectedly fall 0.7% m/m in September, reinforcing concerns about weakening consumer demand even as the broader equity selloff increasingly reflects risk reduction rather than isolated technology-sector weakness. The STOXX Europe 600 drops 1.8%, with Italy's FTSE MIB down 1.3% and Spain's IBEX 35 losing 1.5%, leaving every major regional benchmark in negative territory.

• In economic data:
  • Eurozone September retail sales fell 0.7% m/m (expected -0.1%; prior +0.4%) and increased 0.4% yr/yr (expected +0.6%; prior +1.3%).
  • Germany's September industrial production increased 0.7% m/m (expected 0.0%; prior +1.0%) and 0.55% yr/yr (prior +0.77%).
  • France's September trade deficit widened to EUR7.3 bln (expected EUR5.8 bln; prior EUR6.0 bln), with exports at EUR55.3 bln (prior EUR54.3 bln) and imports at EUR62.7 bln (prior EUR60.3 bln).
  • France's September current account deficit widened to EUR2.7 bln (prior EUR1.4 bln).
  • The U.K.'s October Lloyds House Price Index fell 0.6% m/m (expected 0.0%; prior -0.1%) and 1.2% yr/yr (expected -0.3%; prior -0.1%).
  • Spain's September industrial production increased 2.0% yr/yr (prior +1.3%).
  • Switzerland's Q4 SECO Consumer Climate fell to -43 (expected -35; prior -33).

The S&P 500 futures currently trade 20 points above fair value. 

October nonfarm payrolls increased by 165,000 (Briefing.com consensus: 65,000), following an upwardly revised increase of 60,000 (from 29,000) in September.

October private nonfarm payrolls increased by 159,000 (Briefing.com consensus: 50,000), following an upwardly revised increase of 78,000 (from 46,000) in September.

The unemployment rate declined to 4.1% (Briefing.com consensus: 4.2%) from 4.2% in September.

Average hourly earnings increased 0.4% (Briefing.com consensus: 0.3%), following an upwardly revised 0.3% increase (from 0.1%) in September.

The average workweek was unchanged at 34.4 hours (Briefing.com consensus: 34.4 hours).

Equity futures point to a modestly higher opening this morning as stocks look to recover a portion of yesterday's steep losses, which saw the S&P 500 (-4.4%), Nasdaq Composite (-5.5%), and DJIA (-3.4%) suffer their worst declines since April 2025. The selloff was driven by heavy pressure on semiconductor and AI infrastructure stocks amid concerns that Democratic victories in the midterm elections could lead to tighter regulation and slow the pace of data center development. The weakness spread throughout the broader market, sending the Nasdaq Composite into correction territory.

Semiconductor stocks are finally attracting some buying interest this morning, helped in part by more encouraging headlines surrounding the outlook for data center development. According to MarketWatch, Texas Governor-elect Gina Hinojosa said she does not oppose data centers outright, although she believes the state should pause development until new legislation is enacted. President Trump also separately reiterated his support for data centers. Lam Research (LRCX 205.31, +20.11, +10.86%) is a notable premarket standout, jumping 11.7% after authorizing a $25 billion share repurchase program and declaring a quarterly dividend of $0.33 per share.

Elsewhere, crude oil prices are modestly lower and remain on track for a substantial weekly decline amid continued optimism surrounding a potential diplomatic resolution to the conflict with Iran.

Attention is also turning to this morning's October employment report, which could have important implications for monetary policy expectations. According to the CME FedWatch tool, the probability of a 25-basis-point rate hike at the December FOMC meeting currently stands at 75%, leaving investors particularly sensitive to any surprises in the labor market data.

Today's remaining economic calendar:

• 8:30 AM ET: October Nonfarm Payrolls; Briefing.com consensus 65K; prior 29K
• 8:30 AM ET: October Nonfarm Private Payrolls; Briefing.com consensus 50K; prior 46K
• 8:30 AM ET: October Unemployment Rate; Briefing.com consensus 4.2%; prior 4.2%
• 8:30 AM ET: October Average Hourly Earnings; Briefing.com consensus 0.3%; prior 0.1%
• 8:30 AM ET: October Average Workweek; Briefing.com consensus 34.4; prior 34.4
• 10:00 AM ET: November Univ. of Michigan Consumer Sentiment - Prelim; Briefing.com consensus 47.2; prior 48.0
• 3:00 PM ET: September Consumer Credit; Briefing.com consensus $11.0B; prior $8.3B

In corporate news:

• Cloudflare (NET 295.05, +49.87, +20.34%) topped third-quarter earnings and revenue estimates, with revenue increasing 39.2% year-over-year, and projected full-year non-GAAP operating income of $462.0-$463.0 million.
• Airbnb (ABNB 193.40, +23.27, +13.68%) exceeded third-quarter earnings and revenue estimates as gross booking value increased 21% and nights and seats booked rose 16%; its fourth-quarter revenue outlook was above consensus.
• Moderna (MRNA 250.87, +9.41, +3.90%) beat third-quarter earnings and revenue estimates and raised its fiscal 2026 revenue growth outlook while reducing its research and development expense forecast.

Reviewing overnight developments:

According to Nikkei, technology selling weighed heavily on Japan and South Korea, while India bucked the regional weakness.

In news:

• Nikkei reported that steep losses in semiconductor-related names contributed to the selling in Japan and South Korea, with South Korean officials pledging measures to contain volatility after a temporary trading halt.
• Nikkei reported that regulatory uncertainty remained in focus amid reports that roughly 600,000 Nvidia H200 chips were awaiting approval for shipment to mainland China.

In economic data:

• Japan's September Average Cash Earnings +4.6% yr/yr (expected +3.8%; prior +3.9%); Overtime Pay +3.6% yr/yr (prior +4.9%) Foreign investment in Japanese stocks JPY1,129.3 bln (prior JPY1,182.2 bln); Japanese investment in foreign bonds JPY1,312.0 bln (prior JPY-81.8 bln)

Equity Markets:

• Japan's Nikkei : -6.0%
• Hong Kong's Hang Seng : -1.3%
• China's Shanghai Composite : -1.1%
• India's Sensex : +2.2%
• South Korea's Kospi : -6.0%
• Australia's All Ordinaries : -0.7%

European markets trade broadly lower as selling has spread beyond technology into financials, industrials, consumer names, mining, and energy.

In news:

• Teleperformance fell after lowering its 2026 sales growth outlook.
• Mining and energy names were among the weaker groups in London.

In economic data:

• Eurozone September Retail Sales -0.7% m/m (expected -0.1%; prior +0.4%) and +0.4% yr/yr (expected +0.6%; prior +1.3%)
• Germany's September Industrial Production +0.7% m/m (expected 0.0%; prior +1.0%) and +0.55% yr/yr (prior +0.77%)
• France's September Trade Balance EUR-7.3 bln (expected EUR-5.8 bln; prior EUR-6.0 bln), with Exports EUR55.3 bln (prior EUR54.3 bln) and Imports EUR62.7 bln (prior EUR60.3 bln); Current Account EUR-2.7 bln (prior EUR-1.4 bln) U.K. October Lloyds House Price Index -0.6% m/m (expected 0.0%; prior -0.1%) and -1.2% yr/yr (expected -0.3%; prior -0.1%)
• Spain's September Industrial Production +2.0% yr/yr (prior +1.3%)
• Switzerland's Q4 SECO Consumer Climate -43 (expected -35; prior -33)

Equity Markets:

• STOXX Europe 600 : -1.8%
• Germany's DAX : -2.4%
• U.K.'s FTSE 100 : -2.3%
• France's CAC 40 : -1.8%
• Italy's FTSE MIB : -1.3%
• Spain's IBEX 35 : -1.5%

[BRIEFING.COM] Thursday's session ended with steep losses across the stock market as a deepening selloff in AI-related stocks spread well beyond technology, wiping out Wednesday's post-election rally and sending the major averages to their worst finishes since April 2025. The S&P 500 (-4.4%), Nasdaq Composite (-5.5%), and DJIA (-3.4%) all finished near their session lows, with the Nasdaq entering correction territory, down more than 10% from its October 6 closing high. The DJIA also fell below its 50-day moving average, joining the other two major averages beneath that technical marker.

The reversal followed Wednesday's relief rally in response to the midterm elections, which gave Democrats control of both chambers of Congress. While most stocks participated in yesterday's advance, semiconductor and AI infrastructure names were notable exceptions as investors began weighing the prospect of tighter regulation slowing the development of data centers. Those concerns intensified Thursday, raising questions about whether the companies tied to the AI buildout can deliver the earnings growth needed to justify their elevated valuations.

The information technology sector (-7.3%) suffered the largest decline by a wide margin, dragged lower by a 12.3% plunge in the PHLX Semiconductor Index. NVIDIA (NVDA 181.60, -18.53, -9.26%) fell into bear market territory, while Advanced Micro Devices (AMD 404.40, -84.38, -17.26%) and Arm Holdings plc (ARM 166.72, -25.08, -13.08%) faced particularly heavy selling. Qualcomm (QCOM 156.75, -16.44, -9.49%) added to the weakness after its quarterly results and guidance highlighted continued handset weakness and margin pressure despite progress in its automotive and data center businesses.

The pressure extended to companies providing infrastructure for AI development. CoreWeave (CRWV 43.66, -4.76, -9.83%) fell to its lowest level since May 2025, while the Roundhill Neocloud ETF (NCLD) plunged 12.3% to a fresh record low. The industrials sector (-4.1%) also faced substantial losses as companies tied to data center construction and expansion were caught in the selling.

Unlike Wednesday, when mega-cap hyperscalers largely weathered the weakness in AI infrastructure stocks, Thursday's retreat engulfed much of the market's established leadership. The Vanguard Mega Cap Growth ETF fell 5.8%, contributing to losses in the consumer discretionary (-3.7%) and communication services (-1.9%) sectors. The S&P 500 Equal Weighted Index (-2.8%) substantially outperformed the market-cap-weighted benchmark, illustrating the outsized impact of the largest stocks on the major averages.

Tesla (TSLA 343.69, -41.50, -10.77%) was among the hardest-hit mega-cap names, extending its post-election decline amid concerns that Democratic victories could bring increased scrutiny of Elon Musk's businesses, particularly a potential combination with SpaceX (SPCX 123.62, -12.30, -9.05%). The broader retreat in AI-related valuations compounded those concerns, while Tesla's recent earnings report offered limited reassurance about the profitability of its existing operations.

Elsewhere in the consumer discretionary sector, DoorDash (DASH 179.92, -18.67, -9.40%) faced additional selling pressure following Amazon's (AMZN 260.21, -5.82, -2.19%) announcement of a partnership with Uber (UBER 68.81, -1.06, -1.52%) to integrate Uber Eats into its shopping platform for Prime members. Expedia Group (EXPE 272.48, -43.40, -13.74%) also struggled after its Q4 outlook pointed to slower growth and margin compression.

Software stocks were another source of weakness, with the iShares Expanded Tech-Software Sector ETF (IGV) falling 4.3%. Palantir Technologies (PLTR 154.99, -16.71, -9.73%) extended its recent slide despite reporting better-than-expected quarterly results earlier in the week, as concerns about slowing bookings growth and its premium valuation continued to weigh on sentiment. AppLovin (APP 356.10, +84.35, +31.04%), however, was a notable exception to the widespread technology weakness, rallying sharply after topping Q3 earnings and revenue expectations, issuing upbeat revenue guidance, and announcing a $3.2 billion share repurchase authorization.

All 11 S&P 500 sectors finished lower, with the materials (-2.7%), financials (-2.8%), and health care (-2.5%) sectors among those facing sizable declines. The consumer staples (-0.7%) and utilities (-0.7%) sectors held up relatively well, but even defensive areas were unable to escape the selling.

The energy sector (-2.8%) also finished lower despite WTI crude oil futures rebounding $2.32 (+2.6%) to $90.55 per barrel following Wednesday's steep decline. The selling was equally pronounced outside the large-cap space, with the Russell 2000 (-4.6%) and S&P Mid Cap 400 (-3.9%) suffering sharp losses.

The severity of the retreat also drove a sharp increase in demand for downside protection, sending the CBOE Volatility Index soaring 60.8% to 26.69.

The sharp reversal left the major averages firmly lower for the week and highlighted how quickly concerns surrounding the AI investment cycle have spread into the broader market. What began as weakness in a relatively narrow group of semiconductor and infrastructure stocks has become a widespread retreat, with the loss of mega-cap leadership amplifying the damage across the major averages.

U.S. Treasuries had a strong showing on Thursday, bolstered by another round of gut-wrenching volatility in AI-related stocks that saw some safe-haven buying. The 2-year note yield settled down ten basis points to 4.49%, and the 10-year note yield settled down six basis points to 4.84%. 

• Russell 2000: +9.9% YTD
• S&P Mid Cap 400: +8.3% YTD
• S&P 500: +7.4% YTD
• DJIA: +7.2% YTD
• Nasdaq Composite: +4.6% YTD

Reviewing today's data:

• Nonfarm business sector labor productivity increased 3.6% in the third quarter (Briefing.com consensus: 3.1%) following an upwardly revised 2.1% increase (from 1.4%) in the second quarter. Unit labor costs decreased 0.7% (Briefing.com consensus: 1.4%) following an upwardly revised 1.9% increase (from 1.2%) in the second quarter.
  
  • The key takeaway from the report is that there has been a pickup in productivity that has curtailed labor cost inflation. That is a good combination for corporate earnings prospects.
• Initial jobless claims for the week ending October 31 decreased by 6,000 to 189,000 (Briefing.com consensus: 197,000), which is the lowest level since July. Continuing jobless claims for the week ending October 24 increased by 23,000 to 1.718 million.
  
  • The key takeaway from the report is that there simply isn't much layoff activity. That consideration is an offshoot of a demand environment that is still looked at by employers as being quite solid overall.
• 10/31 EIA Natural Gas Inventories +77 bcf (Prior +80 bcf)