[BRIEFING.COM] The stock market finished mostly higher on Tuesday, extending yesterday's rebound as renewed enthusiasm for AI-related stocks fueled another strong showing from technology and other growth-oriented areas. The S&P 500 (+0.6%) and Nasdaq Composite (+1.2%) posted solid gains, while the DJIA finished little changed as weakness in several components offset strength elsewhere. Notably, the S&P 500 reclaimed its 50-day moving average (7,696), which it had failed to close above yesterday.

The advance was driven largely by continued buying interest in AI infrastructure stocks, building on yesterday's enthusiasm surrounding Anthropic's potential IPO and substantial AI investment commitments. Reports of a $63 billion financing arrangement to support Anthropic's purchases of Broadcom (AVGO 342.33, +13.16, +4.00%) chips and networking equipment provided another catalyst for semiconductor and AI infrastructure names. The information technology sector (+1.5%) led the market, with the PHLX Semiconductor Index (+3.6%) extending its recovery from last week's sharp selloff. Broadcom and Advanced Micro Devices (AMD 560.26, +28.98, +5.45%) were notable outperformers, while Seagate Tech (STX 667.85, +23.64, +3.67%) rallied ahead of its earnings report after the close.

AI infrastructure names also rebounded sharply, including Nebius Group N.V. (NBIS 170.47, +17.20, +11.22%) and other holdings of the Roundhill Neocloud ETF (NCLD 16.74, +1.36, +8.84%). Oracle (ORCL 130.53, +4.47, +3.55%) benefited from announcements expanding its AI and cloud infrastructure partnerships, including agreements involving OpenAI and Google.

The consumer discretionary sector (+1.4%) also outperformed, supported by gains in Tesla (TSLA 407.46, +15.84, +4.04%) and Amazon (AMZN 253.10, +4.01, +1.61%), while lower oil prices provided an additional tailwind for consumer-facing stocks. The industrials sector (+0.5%) also advanced amid strength in AI infrastructure-related names, although Boeing (BA 168.18, -20.13, -10.69%) was a significant laggard following disappointing earnings and continued losses in its commercial aircraft business. In contrast, Pentair (PNR 62.29, +7.07, +12.80%) was the S&P 500's top performer following its earnings report.

Participation was mixed despite the gains in the major averages, with six S&P 500 sectors finishing higher. Strength in mega-cap growth stocks, reflected in the Vanguard Mega Cap Growth ETF (+1.1%), helped the market-cap-weighted S&P 500 outperform its equal-weighted counterpart (+0.1%). The Russell 2000 (+1.2%) also posted a solid gain, while the S&P Mid Cap 400 (+0.4%) advanced more modestly.

The energy sector (-2.2%) was the weakest performer as crude oil prices retreated and refiners gave back some of their recent gains. WTI crude futures settled $1.89 lower (-1.9%) at $99.87 per barrel. The consumer staples (-0.9%) and real estate (-0.9%) sectors also lagged amid the renewed preference for technology stocks, with Coca-Cola (KO 91.18, -1.52, -1.64%) declining following its earnings report.

Other earnings reactions were mixed, with SoFi Technologies (SOFI 16.40, +1.94, +13.42%), Royal Caribbean (RCL 295.92, +15.32, +5.46%), and UPS (UPS 106.14, +5.82, +5.80%) posting strong gains following their respective quarterly reports.

The market's technology-led rebound comes ahead of tomorrow's FOMC decision, with the CME FedWatch Tool indicating a 92.8% probability that rates will remain unchanged. Investors will also receive another consequential round of mega-cap earnings tomorrow after the close, providing an important test of the renewed optimism surrounding AI investment and its potential returns.

U.S. Treasuries recorded slim losses on Tuesday, though the overall trading range remained narrow for the third day in a row, leading into tomorrow's release of the October FOMC Statement. Shorter tenors underperformed slightly, but they still held above their morning lows even though today's $70 billion 5-year note sale met weak demand after yesterday's 2-year note auction that was also underwhelming. The 2-year note yield settled up three basis points to 4.78%, and the 10-year note yield settled up one basis point to 4.99%.

• Nasdaq Composite: +13.9% YTD
• Russell 2000: +13.6% YTD
• S&P 500: +12.8% YTD
• S&P Mid Cap 400: +10.7% YTD
• DJIA: +9.0% YTD

[BRIEFING.COM] Stocks remain on track for a higher finish this afternoon, with continued strength in technology and AI-related names supporting the major averages. Investors are also looking ahead to another sizable round of quarterly earnings reports after today's close, including results from Seagate Tech (STX 674.47, +30.26, +4.70%), which is trading sharply higher ahead of its release.

Attention will then turn to tomorrow's FOMC decision, with the CME FedWatch Tool indicating a 92.8% probability that the Fed will leave interest rates unchanged. Another round of closely watched mega-cap earnings is also scheduled for tomorrow after the close, with results likely to provide further insight into AI spending trends and profitability.

[BRIEFING.COM] The S&P 500 (+0.6%), Nasdaq Composite (+1.2%), and DJIA (flat) remain on track for a mostly higher finish as the market enters the final hour of the session.

Five S&P 500 sectors are lower on the day, with the energy sector (-2.3%) at the bottom of the standings today amid pronounced weakness in refiner names and lower oil prices. Crude oil futures settled today's session $1.89 lower (-1.9%) at $99.87 per barrel.

Bloomberg reports that United Nations nuclear inspectors have not detected any efforts by Iran to rebuild its nuclear facilities, amid a relatively quiet week for U.S.-Iran headlines.

[BRIEFING.COM] The S&P 500 (+0.5%) has dipped from its session high, but it continues holding the bulk of today's gain with its 50-day moving average about 20 points below current levels.

Only six sectors sport gains at this time, but top-weighted technology (+1.4%) and consumer discretionary (+1.4%) have done some heavy lifting today, masking softness in financials (-0.3%), health care (-0.1%), and energy (-1.9%). AI/data center infrastructure names have benefited from some rebound action, which has lifted the Roundhill Neocloud ETF (NCLD 16.68, +1.30, +8.42%) off its record low. All components of the ETF trade with solid gains this afternoon, led by small caps WhiteFiber (WYFI 10.83, +1.31, +13.76%) and Boost Run (BRUN 8.20, +0.72, +9.56%), though large cap Nebius (NBIS 169.95, +16.68, +10.88%) is also among today's leaders in the group.

Broadcom's (AVGO 342.66, +13.49, +4.10%) huge $63 bln deal to provide infrastructure to Anthropic has contributed to the strength in the group, which saw several of its components hit 52-week lows just yesterday.

[BRIEFING.COM] The market has changed little since the prior update, but the shape of the advance remains notable. Mega-cap growth stocks, reflected by the Vanguard Morningstar Mega Cap Growth ETF (MGK 90.52, +0.96, +1.07%), continue to outperform, while the Russell 2000 is also up 1.01%. Advancers lead decliners at both the NYSE and Nasdaq, though the margins are relatively narrow, pointing to positive but not broad-based participation.

The Dow Jones Industrial Average remains near its unchanged level despite outperformance from Goldman Sachs (GS 910.92, +17.64, +1.98%). Earnings reactions among other Dow names are mixed. Boeing (BA 170.70, -17.61, -9.35%) remains a weak spot after its quarterly loss exceeded expectations, while commercial-aircraft losses and production-related costs overshadowed revenue growth and a record backlog. Management also said intervals between production-rate increases are expected to lengthen at higher levels.

Coca-Cola (KO 91.84, -0.86, -0.93%) is roughly flat following a beat-and-raise report supported by continued volume strength. Sherwin-Williams (SHW 326.36, -8.80, -2.63%) is also contributing to the mixed earnings picture after missing the quarterly earnings estimate while beating the revenue estimate and issuing in-line FY26 EPS guidance.

[BRIEFING.COM] Stocks have settled into a relatively stable trading range, with the S&P 500 (+0.6%) and Nasdaq Composite (+1.1%) sporting solid gains while teh DJIA remains flat. 

U.S. Treasuries have dipped from their starting levels, but they found some intraday support shortly after longer tenors turned negative in late morning trade. Shorter tenors are a step behind, though they also bounced off their late-morning lows, remaining above those levels at this time. The market is holding steady in reaction to the just completed $70 billion 5-year note sale, which met soft demand, as the high yield (4.845%) tailed the when-issued yield by 0.4 basis points while the bid-to-cover ratio (2.33x vs 2.37x average) and indirect takedown (60.0% vs 63.4%) were a bit below average. The U.S. Treasury will complete this week's note auction slate with a $44 billion 7-year note sale on Thursday since tomorrow afternoon will feature the release of the October FOMC Statement.

[BRIEFING.COM] The S&P 500 (+0.7%), Nasdaq Composite (+1.3%), and DJIA (+0.1%) remain higher shortly after midday, with continued strength in technology and AI-related stocks helping the major averages extend their gains.

Oracle (ORCL 132.02, +5.96, +4.73%) continues to build on its solid gain today following a flurry of announcements highlighting the company's expanding role in AI infrastructure and enterprise applications. Among the most notable developments, Oracle announced an expanded partnership with OpenAI that will integrate ChatGPT, Codex, and OpenAI models across its enterprise applications and cloud infrastructure, allowing customers to incorporate AI capabilities into business workflows. Oracle also announced plans to offer Alphabet's (GOOG 318.31, +4.12, +1.31%) Tensor Processing Units through Oracle Cloud Infrastructure beginning in 2027, alongside an expanded partnership with Snowflake (SNOW 340.68, +5.73, +1.71%) and new cloud networking capabilities designed to support AI workloads.

[BRIEFING.COM] The major averages continue to reach fresh session highs, with strength in technology stocks providing much of the upward momentum. The information technology sector (+1.7%) is outperforming the broader market, supported by continued buying interest in semiconductor and AI infrastructure names.

The PHLX Semiconductor Index (+3.4%) is extending its rebound, while Seagate Tech (STX 682.15, +37.94, +5.89%) is a standout ahead of its quarterly earnings report after today's close. Neocloud stocks are also building on yesterday's recovery from 52-week lows, with the Roundhill Neocloud ETF (NCLD 16.60, +1.22, +7.93%) posting a sizable gain and Nebius Group N.V. (NBIS 169.49, +16.22, +10.58%) among the notable outperformers.

[BRIEFING.COM] The S&P 500 (+0.6%), Nasdaq Composite (+1.0%), and DJIA (+0.1%) are higher just before midday amid mixed strength in the broader market and another solid showing from semiconductor stocks.

Building on yesterday's enthusiasm surrounding Anthropic's potential IPO and major AI spending commitments, semiconductor stocks are extending their rebound, with the PHLX Semiconductor Index up 2.7%. Broadcom (AVGO 340.53, +11.36, +3.45%) is a standout following reports of a $63 billion financing deal that would support Anthropic's purchases of Broadcom chips and networking equipment.

The information technology sector (+1.4%) leads the S&P 500 sectors, followed closely by the consumer discretionary sector (+1.1%). Tesla (TSLA 404.47, +12.85, +3.28%) is extending yesterday's rally, while lower oil prices are providing additional support to consumer discretionary names.

The energy sector (-2.1%) is a laggard as crude oil sheds $1.70 (-1.7%) to $100.06 per barrel. Three other S&P 500 sectors are also trading lower, with weakness in the financials (-0.2%) and consumer staples (-0.6%) sectors contributing to the DJIA's relative underperformance, alongside a sharp post-earnings decline in Boeing (BA 170.34, -17.97, -9.54%).

[BRIEFING.COM] The S&P 500 (+0.4%) and Nasdaq Composite (+0.9%) continue to expand on their opening gains as tech stocks outperform today, while mixed strength in the broader market keeps the DJIA flat. 

SoFi Technologies (SOFI 16.46, +2.00, +13.80%) is surging after exceeding Q3 earnings and revenue expectations and raising its FY26 outlook, while also issuing above-consensus FY27 guidance. Strong deposit growth, expanding lending activity, and increased cross-selling helped drive a 44% year-over-year increase in adjusted revenue, although weakness in its Technology Platform business remained a blemish on the report.

Meanwhile, Boeing (BA 171.38, -16.93, -8.99%) is one of the worst-performing S&P 500 components after an earnings miss and continued commercial aircraft losses overshadowed revenue growth, positive quarterly free cash flow, and a record $745 billion backlog. The company's commercial aircraft business remains under pressure from unfavorable delivery mix and higher projected production costs, highlighting the challenges of translating improving aircraft production and strong demand into sustainable profitability.

On the positive side, Royal Caribbean (RCL 297.77, +17.17, +6.12%) and UPS (UPS 103.14, +2.82, +2.81%) are among the other notable gainers following their respective earnings reports.

[BRIEFING.COM] The S&P 500 (+0.1%), Nasdaq Composite (+0.3%), and DJIA (-0.2%) remain mixed this morning as investors digest a busy round of quarterly earnings reports and economic data releases.

New home sales decreased 0.6% month-over-month in September to 676,000 (Briefing.com consensus: 655,000) from a downwardly revised 680,000 (from 684,000) in August. On a year-over-year basis, new home sales were down 5.3%.

The key takeaway from the report is that new home sales stalled in September despite a lower median price, as rising mortgage rates posed an offsetting affordability constraint for prospective homeowners.

The Conference Board's Consumer Confidence Index increased to 91.7 in October (Briefing.com consensus: 80.5) from an upwardly revised 84.2 (from 81.9) in September. In the same period a year ago, the index stood at 95.5.

The key takeaway from the report is that the improvement in confidence was rooted in both the present situation and expectations indexes, which coincided with an easing in gas prices.

[BRIEFING.COM] The S&P 500 (+0.1%) and Nasdaq Composite (+0.3%) are off to a modestly higher start amid some lingering enthusiasm across semiconductor stocks and other AI-related names, while a lower tilt to the broader market pushed the DJIA (-0.2%) modestly lower.

The information technology sector (+0.5%) is once again out in front of the other S&P 500 sectors, supported by a 1.9% gain in the PHLX Semiconductor Index. Yesterday's enthusiasm around Anthropic's IPO and increased AI spending by hyperscalers is met with buzz around this morning's news of a Broadcom (AVGO 341.02, +11.85, +3.60%)-backed $63 billion AI compute financing structure formed for Anthropic.

Computer hardware stocks are also higher, with the strength once again expanding into electronic equipment names in the industrials sector (+0.3%).

Strength is mixed elsewhere, with several S&P 500 sectors hovering at their unchanged levels.

Losses are relatively modest, though the energy sector (-0.8%) lags amid a modest decrease in oil prices, while the real estate sector (-0.9%) also faces pressure.

On the data front, new home sales decreased 0.6% month-over-month in September to 676,000 (Briefing.com consensus: 655,000) from a downwardly revised 680,000 (from 684,000) in August.

The Conference Board's Consumer Confidence Index expanded to 91.7 in October (Briefing.com consensus 80.5) from an upwardly revised 84.2 (from 81.9) in September.

The stock market remains poised for a higher open this morning as investors assess the latest round of earnings and economic data.

Just released, the FHFA Housing Price Index rose 0.3% in August (Briefing.com consensus 0.2%), from a prior 0.2% increase.

The S&P Case-Shiller Home Price Index rose 2.7% in August (Briefing.com consensus 2.8%), from a prior increase of 2.5%.

Released earlier, durable goods orders increased 1.8% month-over-month (Brieifng.com consensus: 1.0%) following an upwardly revised 0.1% increase (from 0.0%) for August. Excluding transportation, durable goods orders rose 0.5% month-over-month (Briefing.com consensus: 0.6%) following a 0.3% increase in August.

The key takeaway from the report is the ongoing strength in business spending, captured in the 0.5% increase in new orders for nondefense capital goods excluding aircraft, which came on top of a 1.6% increase in August and a 0.6% increase in July.

The S&P 500 futures currently trade 28 points above fair value. 

Asian markets finished mixed on Tuesday, with an AI-driven rebound in Japan and South Korea contrasting with renewed technology weakness in China. Japan's Nikkei 225 jumped 1.7% to snap a three-day losing streak, led by Advantest (+10%), Ibiden (+9%), SoftBank Group (+5%), Lasertec (+5%), and Tokyo Electron (+3%) as investors returned to beaten-down AI and semiconductor shares. China's Shanghai Composite fell 1.3% and the Shenzhen Component sank 2.5%, with Cambricon Technologies (-6%), Eoptolink Technology (-6%), Hygon Information Technology (-6%), NAURA Technology (-6%), and SMIC (-3%) highlighting a striking divergence from the technology rebound elsewhere in the region. The People's Bank of China announced plans for an emergency liquidity facility for non-bank financial institutions facing large-scale redemptions, providing a potential backstop against financial-market stress even as Chinese equities remained under pressure. Hong Kong's Hang Seng lost 0.7%, with Duality Biotherapeutics (-22%), Xiaomi (-2%), Meituan (-2%), and Akeso (-1%) outweighing pockets of technology strength. South Korea's KOSPI surged 3.1%, with SK Square (+11%), SK Hynix (+7%), and Samsung Electronics (+5%) leading the rebound as third-quarter GDP expanded a stronger-than-expected 1.0% q/q, supported by semiconductor-driven exports and investment. The simultaneous strength in Korean economic growth and semiconductor shares offers a notable counterpoint to recent concerns surrounding AI investment returns, although China's technology selloff shows investors remain highly selective within the theme. Easing oil prices and hopes for reduced Middle East tensions provide another tailwind ahead of major technology earnings and this week's Federal Reserve and Bank of Japan policy decisions.

• In economic data:
  • South Korea's Q3 GDP increased 1.0% q/q (expected 0.7%; prior 0.6%) and 3.4% yr/yr (expected 3.0%; prior 3.7%).
  • South Korea's October Consumer Confidence fell to 105.4 from 106.6.
  • Japan's BoJ Core CPI increased 2.5% yr/yr (prior 2.3%).
  • Japan's Corporate Services Price Index increased 3.7% yr/yr (expected 3.7%; prior 3.5%).
  • China's industrial profits increased 15.5% yr/yr year-to-date through September (prior 15.7%).

European markets trade mostly higher, with strength in technology shares helping continental markets overcome mixed corporate results and lingering political and geopolitical uncertainty. Germany's DAX gains 0.4% as Siemens Energy, Infineon Technologies, and SAP participate in the broader AI-related rebound, offsetting weakness in Beiersdorf (-4%) and Mercedes-Benz (-4%) following disappointing corporate updates. France's CAC 40 rises 0.5% despite consumer confidence plunging to 80, its lowest level since 2013, as domestic concerns surrounding fiscal policy, rising borrowing costs, and cost-of-living protests persist. London's FTSE 100 notably underperforms with a 0.6% decline, as HSBC (-6%) retreats following a slight quarterly profit miss and Reckitt (-6%) falls after lowering its annual sales-growth forecast, while mining shares provide some support. The U.K. backdrop is further complicated by shop-price inflation accelerating to 2.1% from 1.4%, adding another inflationary signal at a time when weaker corporate guidance is raising questions surrounding consumer demand. The STOXX Europe 600 gains 0.2%, while Italy's FTSE MIB and Spain's IBEX 35 each rise 0.3% as investors position for this week's Federal Reserve and European Central Bank policy decisions.

• In economic data:
  • U.K. shop-price inflation accelerated to 2.1% from 1.4%.
  • France's October Consumer Confidence fell to 80 (expected 85; prior 85), its lowest level since 2013.
  • Spain's Q3 Unemployment Rate rose to 10.18% (expected 9.90%; prior 9.87%).
  • Eurozone September M3 Money Supply increased 3.5% yr/yr (expected 3.5%; prior 3.5%) to EUR17,717.3 bln (prior EUR17,646.5 bln).
  • Eurozone September Private Sector Loans increased 3.1% yr/yr (expected 3.1%; prior 3.1%), while loans to non-financial corporations increased 4.2% yr/yr (prior 4.2%).

The S&P 500 futures currently trade 27 points above fair value.

Just released, durable goods orders were up 1.8% month-over-month in September (Briefing.com consensus: 1.0%) following an upwardly revised 0.1% increase (from 0.0%) in August.

Excluding transportation, orders rose 0.5% month-over-month (Briefing.com consensus: 0.6%) after a 0.3% increase in August.

Equity futures point to a modestly higher open this morning as investors assess the latest batch of earnings reports while awaiting a relatively full slate of economic data.

Stocks are coming off a winning session in which enthusiasm surrounding Anthropic's potential IPO and major AI spending commitments from hyperscalers helped revive the AI infrastructure trade following last week's selling pressure. Semiconductor stocks are poised for a higher start again today, with Broadcom (AVGO 336.50, +7.33, +2.2%) a standout after CEO Hock Tan intervened to secure a $63 billion debt deal with Anthropic, according to The Wall Street Journal.

Earnings reactions comprise the bulk of this morning's other notable stock-specific moves, with investors responding to a busy round of quarterly results and updated corporate outlooks. The reporting calendar will remain in focus tomorrow, when another round of mega-cap earnings is due after the close, providing an important test of expectations surrounding AI spending and profitability.

On the data front, the September Durable Orders report is due at 8:30 ET, followed by home-price data at 9:00 ET and October Consumer Confidence and September New Home Sales at 10:00 ET.

Today's remaining economic calendar:

• 8:30 AM ET: September Durable Orders; Briefing.com consensus 1.0%; prior 0.0%
• 8:30 AM ET: September Durable Goods -ex transportation; Briefing.com consensus 0.6%; prior 0.3%
• 9:00 AM ET: August FHFA Housing Price Index; Briefing.com consensus 0.2%; prior 0.3%
• 9:00 AM ET: August S&P Case-Shiller Home Price Index; Briefing.com consensus 2.8%; prior 2.5%
• 10:00 AM ET: October Consumer Confidence; Briefing.com consensus 80.5; prior 81.9
• 10:00 AM ET: September New Home Sales; Briefing.com consensus 655K; prior 684K

In corporate news:

• Coca-Cola (KO 92.08, -0.62, -0.67%) beat quarterly earnings and revenue expectations, raised its FY26 comparable EPS growth outlook to at least 11%, and lifted its free cash flow forecast.
• Boeing (BA 189.96, +1.65, +0.88%) reported a wider-than-expected quarterly loss and roughly in-line revenue. Its total backlog increased to a record $745 billion.
• Sherwin-Williams (SHW 322.60, -12.56, -3.75%) missed the quarterly earnings estimate, beat the revenue estimate, and issued in-line FY26 EPS guidance.
• SoFi Technologies (SOFI 15.62, +1.16, +8.02%) is indicated higher following its earnings report and guidance.
• UPS (UPS 101.96, +1.64, +1.63%) is trading higher after exceeding earnings and revenue expectations, issuing in-line Q4 revenue guidance, and raising its FY26 earnings and revenue outlook above consensus estimates.

Reviewing overnight developments:

Nikkei reported that Asian markets finished sharply mixed, as renewed buying in Japanese and South Korean AI and semiconductor shares contrasted with continued technology weakness in China.

In news:

• Nikkei reported that the People's Bank of China announced plans for an emergency liquidity facility for non-bank financial institutions facing large-scale redemptions.

In economic data:

• South Korea's Q3 GDP +1.0% q/q (expected +0.7%; prior +0.6%) and +3.4% yr/yr (expected +3.0%; prior +3.7%)
• South Korea's October Consumer Confidence 105.4 (prior 106.6)
• Japan's BoJ Core CPI +2.5% yr/yr (prior +2.3%)
• Japan's Corporate Services Price Index +3.7% yr/yr (expected +3.7%; prior +3.5%)
• China's industrial profits increased 15.5% yr/yr year-to-date through September (prior +15.7%)

Equity Markets:

• Japan's Nikkei: +1.7%
• Hong Kong's Hang Seng: -0.7%
• China's Shanghai Composite: -1.3%
• India's Sensex: -0.1%
• South Korea's Kospi: +3.1%
• Australia's All Ordinaries: +0.5%

European markets are mixed, with technology strength supporting continental trading while the U.K. market underperforms amid weaker corporate updates.

In news:

• Political and fiscal uncertainty remains in focus in France, while investors await this week's European Central Bank policy decision.
• U.K. shop-price inflation accelerated to 2.1% from 1.4%, adding to inflation concerns.

In economic data:

• France's October Consumer Confidence 80 (expected 85; prior 85)
• Spain's Q3 Unemployment Rate 10.18% (expected 9.90%; prior 9.87%) Eurozone September M3 Money Supply +3.5% yr/yr (expected +3.5%; prior +3.5%) and EUR17,717.3 bln (prior EUR17,646.5 bln) Eurozone September Private Sector Loans +3.1% yr/yr (expected +3.1%; prior +3.1%) and Loans to Non-Financial Corporations +4.2% yr/yr (prior +4.2%)

Equity Markets:

• STOXX Europe 600 : +0.2%
• Germany's DAX : +0.4%
• U.K.'s FTSE 100 : -0.6%
• France's CAC 40 : +0.5%
• Italy's FTSE MIB : +0.3%
• Spain's IBEX 35 : +0.3%

[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