[BRIEFING.COM] The major averages recovered from a broad morning retreat on Thursday, with a sharp reversal in Treasury yields helping stocks regain their footing and strength across technology, semiconductors, and other AI-related names providing additional support. The S&P 500 (+0.2%) finished modestly higher, while the Nasdaq Composite (flat) and DJIA (flat) ended little changed. The recovery was more pronounced across the broader market. The Russell 2000 (+0.5%) and S&P Mid Cap 400 (+1.1%) both rebounded from morning losses and outperformed the major averages, marking a notable improvement in participation as the session progressed.

Stocks opened with modest gains before selling pressure quickly broadened, sending the major averages to their session lows late in the morning. Treasury yields were a significant early headwind, particularly at the long end of the curve, as generally solid economic data pushed longer-dated yields back toward their overnight highs. The tone improved considerably as the session progressed, however, as yields reversed lower across the curve.

The retreat helped stocks recover their morning losses and also encouraged better participation beneath the surface. Fed Vice Chair Phillip Jefferson, a voting FOMC member, provided some additional encouragement for expectations that the Fed will leave rates unchanged at its October meeting. Jefferson said future policy adjustments should be determined by trends in the data, the evolving outlook, and the balance of risks, adding that policymakers will need to come to their own judgment and that doing so "may take more time." The CME FedWatch Tool now assigns a 76.2% probability to the Fed keeping rates steady at the October meeting, up from 62.4% yesterday.

Technology stocks provided another important source of support. The information technology sector (+0.8%) finished among five S&P 500 sectors in positive territory, while the PHLX Semiconductor Index gained 1.6%. Micron (MU 1097.39, +32.28, +3.03%) was a notable contributor to the semiconductor group's strength after reversing an early post-earnings decline and finishing higher. The turnaround followed an initially cautious response to the company's better-than-expected Q4 results and strong Q1 guidance, with enthusiasm surrounding AI-driven memory demand ultimately helping the stock find its footing.

Accenture (ACN 212.73, +29.36, +16.01%) was another standout after beating Q4 expectations, as its results and stronger bookings increased confidence that AI is becoming a growth driver rather than a disruption risk for the company. Synopsys (SNPS 490.54, +55.60, +12.78%) also ranked among the best-performing S&P 500 components following its Investor Day.

Strength across AI-infrastructure names extended beyond the technology sector, helping the industrials sector (+1.0%) finish among the day's leaders.

The utilities sector (+0.6%) also benefited from the reversal lower in Treasury yields, while the financials sector (+0.2%) also finished modestly.

The energy sector (+1.9%) led the standings as crude oil extended its recent advance. WTI crude settled $2.48 higher (+2.7%) at $93.02 per barrel amid continued geopolitical uncertainty.

At the other end of the standings, the communication services sector (-1.2%) and health care sector (-1.3%) were clear laggards. Alphabet (GOOG 334.93, -5.81, -1.71%)) weighed on the communication services sector after reversing an opening gain that followed the unveiling of Gemini 4 Argon. Paramount Skydance (PSKY 9.34, -0.99, -9.58%) also remained under pressure as investors digested news that its merger with Warner Bros. Discovery (WBD 30.95, +0.00, +0.00%) is expected to close on October 6.

Ultimately, the session featured a meaningful improvement from the broad weakness seen during the morning. The reversal lower in Treasury yields relieved some of the pressure that has recently weighed on equities, while continued strength across semiconductors, technology, and AI-infrastructure stocks helped the S&P 500 finish higher. The outperformance of small- and mid-cap stocks also represented a welcome improvement in participation after the narrow leadership that characterized much of September, although pronounced weakness in the communication services and health care sectors kept the S&P 500's advance relatively modest, leaving the major averages firmly lower heading into Friday's session.

U.S. Treasuries had a volatile session, with yields ultimately settling near their lows for the day even though oil prices traded higher. The 2-year note yield settled down 10 basis points to 4.79%, and the 10-year note yield settled down six basis points to 5.24%.

• Nasdaq Composite: +15.6% YTD
• Russell 2000: +13.1% YTD
• S&P 500: +12.0% YTD
• S&P Mid Cap 400: +9.9% YTD
• DJIA: +6.0% YTD

Reviewing today's data:

• For the week ending September 26, initial jobless claims fell by 1,000 to 197,000 (Briefing.com consensus: 200,000). Continuing jobless claims for the week ending September 19 decreased by 11,000 to 1.701 million.
  • The key takeaway from the report remains the same: layoff activity continues to run at low levels that reflect a solid demand environment.
• Sep S&P Global U.S. Manufacturing PMI - Final 55.9 (Briefing.com consensus 55.3; Prior 57.0)
• Construction spending increased 0.9% month-over-month in August (Briefing.com consensus: 0.3%) following a 0.1% decline in July. On a year-over-year basis, construction spending was down 1.7%.
  • The key takeaway from the report was the strength seen in private construction, which included solid increases for both residential and nonresidential spending.
• The ISM Manufacturing Index decreased to 54.5% in September (Briefing.com consensus: 55.2%) from 54.6% in August. The dividing line between expansion and contraction is 50.0%, so the September figure suggests manufacturing activity expanded in September from the prior month but at a slightly slower pace.
  • The key takeaway from the report is that it showed an ongoing expansion in manufacturing activity that was accompanied by a faster acceleration in prices paid, which will continue to foment concerns about pass-through effects for customers.
• 09/26 EIA Natural Gas Inventories +64 bcf (Prior +53 bcf)

[BRIEFING.COM] The S&P 500 (+0.3%) and Nasdaq Composite (+0.3%) remain near session highs, while the DJIA continues to drift near its flat line.

Micron (MU 1088.34, +23.23, +2.18%) has reversed an early post-earnings decline and is trading near session highs, helping the PHLX Semiconductor Index (+1.5%) extend its gain as investors warm to the company's beat-and-raise results and strong AI-driven memory demand.

Elsewhere, NIKE (NKE 35.47, +0.07, +0.20%) reports Q1 results after today's close, with investors looking for signs of continued progress in its "Win Now" turnaround, particularly through better full-price selling, cleaner inventory, and improved marketplace health despite continued pressure on revenue and a challenging footwear backdrop.

[BRIEFING.COM] Solid tech leadership and mixed strength in the broader market keep the major averages on track for a mostly higher finish as the market enters the final hour of the session.

Crude oil futures settled today's session near their highs, finishing $2.48 higher (+2.7%) at $93.02 per barrel.

The afternoon has provided a mixed bag of geopolitical headlines, with President Trump vowing to "hit Iran very hard" if it is found to be responsible for the incident on the Flydubai aircraft.

More recently, Bloomberg reported that Iran is offering to restore access to nuclear inspectors if sanctions are eased.

[BRIEFING.COM] The S&P 500 (+0.2%), Nasdaq Composite (+0.2%), and DJIA (flat) have settled into a relatively stable range this afternoon.

Participation has improved significantly from earlier in the session when the energy (+1.9%) and information technology (+0.8%) sectors were the only S&P 500 sectors in positive territory, as five sectors now hold gains.

Advancers outpace decliners by a roughly 7-to-6 ratio on the Nasdaq, while decliners still hold an 11-to-10 edge on the Nasdaq. Decliners had previously outpaced advancers by a nearly 2-to-1 clip on both exchanges at session lows.

[BRIEFING.COM] The major averages remain mostly higher following an intraday retreat in Treasury yields.

Fed Vice Chair Phillip Jefferson (voting FOMC member) added some encouragement to the notion that the Fed may keep rates on hold at the next FOMC meeting in a recent speech, saying, "My view is that any future adjustments in policy should be determined by carefully examining trends in the data, the evolving outlook, and the balance of risks; My colleagues and I will need to come to our own judgment, which may take more time."

The CME FedWatch tool now assigns a 74% probability to the Fed keeping rates on hold at the October FOMC meeting, up from 62.4% yesterday and 31.4% yesterday.

[BRIEFING.COM] The S&P 500 (+0.2%), Nasdaq Composite (+0.2%), and DJIA (+0.1%) now sit modestly higher.

Treasury yields continue to move lower, with the 10-year note yield now down nine basis points to 5.21%.

At the same time, tech stocks are padding their gains for the day, with both the information technology sector (+0.8%) and PHLX Semiconductor (+1.8%) both at session highs. Coherent (COHR 321.13, +33.32, +11.58%) and Lumentum (LITE 1052.89, +81.63, +8.40%) are among the best performers in the group.

[BRIEFING.COM] The S&P 500 (-0.1%), Nasdaq Composite (-0.2%), and DJIA (-0.2%) have recovered from their session lows and are approaching their flat lines at midday, helped by a reversal lower in Treasury yields and continued strength across several technology and AI-infrastructure stocks.

The broader market is also recovering after losses widened considerably during the morning. The Russell 2000 (-0.3%) remains modestly lower but has moved off its low, while the S&P Mid Cap 400 (+0.8%) is a notable outperformer.

Treasury yields were a significant early headwind. Longer-dated yields returned to their overnight highs during the morning as generally solid economic data added to the recent pressure in the bond market. That move has since reversed across the curve, however, with the 10-year note yield now down seven basis points to 5.23%. The retreat in yields has coincided with the recovery in stocks from their session lows.

The information technology sector (+0.4%) continues to provide support at the index level, with strength extending across several areas tied to the AI trade. Accenture (ACN 216.10, +32.72, +17.85%) is among the session's standout performers after beating Q4 expectations, with the sharp gain reflecting increased confidence that AI is becoming a growth driver rather than a disruption risk as consulting growth and bookings improve. Synopsys (SNPS 482.36, +47.42, +10.90%) is also among the best-performing S&P 500 components following its Investor Day.

Semiconductor stocks are contributing as well, with the PHLX Semiconductor Index up 1.0% despite Micron (MU 1060.46, -4.65, -0.44%) trading lower following its better-than-expected Q4 results and strong Q1 guidance.

Strength in AI-infrastructure names is also benefiting the industrials sector (+0.8%), while the utilities sector (+0.5%) has improved alongside the retreat in Treasury yields.

The energy sector (+1.5%) remains the strongest-performing group as crude oil extends its recent advance. WTI crude is trading above $92 per barrel, providing another source of support for energy stocks.

Meanwhile, the communication services sector (-1.2%) sits at the bottom of the standings. Paramount Skydance (PSKY 9.46, -0.86, -8.37%) is the worst-performing S&P 500 component as investors digest news that its merger with Warner Bros. Discovery (WBD 30.93, -0.02, -0.06%) is expected to close on October 6. Alphabet (GOOG 333.96, -6.78, -1.99%) has also reversed a firm opening gain that followed the unveiling of Gemini 4 Argon.

The health care sector (-1.0%) is another notable laggard, with Amgen (AMGN 410.11, -11.40, -2.70%) among the weakest DJIA components.

Overall, stocks have regained considerable ground from their morning lows as the reversal in Treasury yields has eased one of the market's most prominent recent headwinds. Still, participation remains uneven, with strength concentrated in several technology, AI-infrastructure, and energy names while sizable losses in the communication services and health care sectors continue to limit the major averages.

[BRIEFING.COM] The S&P 500 (flat), Nasdaq Composite (-0.1%), and DJIA (-0.1%) are recovering from session lows and approaching their flat lines just after midday.

Paramount Skydance (PSKY 9.62, -0.72, -6.92%) is the worst-performing S&P 500 component today as investors digest news that its merger with Warner Bros. Discovery (WBD 30.94, -0.02, -0.05%) is expected to close on October 6. The decline is adding pressure to the communication services sector (-0.9%), which is also contending with weakness in Alphabet (GOOG 336.02, -4.72, -1.39%) after it reversed an earlier gain, while TKO Group Holdings (TKO 172.44, -7.28, -4.05%)) and Fox (FOX 54.36, -1.94, -3.45%) are among the other worst-performing S&P 500 components.

[BRIEFING.COM] The major averages remain near session lows at midday, with broad-based weakness continuing to outweigh pockets of strength across the technology sector. Decliners maintain a nearly 2-to-1 advantage over advancers on both the NYSE and Nasdaq, keeping the relatively weak breadth seen throughout September in focus.

One apparent outlier among S&P 500 components is Corteva (CTVA 12.11, -65.54, -84.40%), which is down roughly 85% following the completion of its Vylor (VYLR) spinoff. The headline decline is largely a mechanical adjustment rather than a comparable loss of shareholder value, as CTVA shareholders received one VYLR share for every CTVA share owned. With CTVA near $12.50 and VYLR around $70.50, the two securities have a combined value of roughly $83 per former CTVA share, compared with CTVA's $77.65 closing price Wednesday. The transaction leaves CTVA as a pure-play crop-protection company, while VYLR houses the larger, higher-margin seed and genetics business. Accordingly, CTVA's outsized percentage decline is distorting the day's leaderboard but does not reflect an equivalent deterioration in the value of the former combined company.

[BRIEFING.COM] The S&P 500 (-0.3%), Nasdaq Composite (-0.4%), and DJIA (-0.6%) are at session lows just before midday, reflecting a similar pattern seen in yesterday's trade.

Stocks are mostly lower, with decliners outpacing advancers by a nearly 2-to-1 ratio on both the NYSE and the Nasdaq. After a modestly higher open, losses quickly widened and broadened, with several sharp swings across some of the market's largest names contributing to the retreat.

Alphabet (GOOG 337.52, -3.22, -0.95%) gave up a firm opening gain as the initial enthusiasm surrounding the unveiling of Gemini 4 Argon has faded, while Micron (MU 1048.21, -16.90, -1.59%) moves lower despite an impressive beat-and-raise earnings report.

Still, there is some lingering strength across tech stocks, with the top-weighted information technology sector (+0.2%) helping soften losses at the index level. The PHLX Semiconductor Index is up 0.6%.

On the macro front, crude oil is moving higher today, currently up $2.26 (+2.5%) to $92.67 per barrel. U.S. Treasuries are off their overnight highs, but yields remain near multi-year highs, presenting another headwind for a market already contending with increasingly narrow participation and weakening breadth beneath the major averages.

[BRIEFING.COM] The major averages have settled into a relatively tight trading range modestly below their baselines.

Select tech stocks continue to provide support, with Accenture (ACN 216.18, +32.82, +17.90%) sharply higher today after beating expectations in its Q4 (Aug) report this morning. EPS of $3.29 beat expectations, while revenue increased 6.2% to $18.68 billion, also nicely above expectations. ACN guided FY27 EPS to $14.39-14.81, roughly in line with expectations, while revenue is expected to increase 3-6% in local currency following 5% growth in FY26. The strong move appears to reflect stronger confidence that AI is becoming a growth driver rather than a disruption risk, supported by accelerating Consulting growth, stronger bookings and progress converting AI demand into revenue.

Meanwhile, Micron (MU 1041.14, -23.97, -2.25%) is trading lower despite a sizable Q4 beat and Q1 guidance that is well above expectations, as investors weigh exceptional AI-driven demand and pricing against a smaller-than-recent earnings surprise and rising investment. Micron's earnings story is shifting from the size of each quarterly beat toward the durability of pricing, margins, and cash generation. Take-or-pay agreements, customer deposits, committed 2027 output, and delayed greenfield capacity provide substantially greater visibility than in prior memory cycles. The Q1 margin decline appears cost-driven rather than demand-driven, but investors still need confirmation that margins turn higher afterward as incentive compensation, R&D, and CapEx increase.

However, the stock is off its session lows, which helps the PHLX Semiconductor Index (+0.6%) move more firmly above its baseline.

[BRIEFING.COM] The S&P 500 (-0.3%), Nasdaq Composite (-0.1%), and DJIA (-0.5%) continue to move modestly lower amid weak participation across stocks this morning.

The ISM Manufacturing Index decreased to 54.5% in September (Briefing.com consensus: 55.2%) from 54.6% in August. The dividing line between expansion and contraction is 50.0%, so the September figure suggests manufacturing activity expanded in September from the prior month but at a slightly slower pace.

The key takeaway from the report is that it showed an ongoing expansion in manufacturing activity that was accompanied by a faster acceleration in prices paid, which will continue to foment concerns about pass-through effects for customers.

Construction spending increased 0.9% month-over-month in August (Briefing.com consensus: 0.3%) following a 0.1% decline in July. On a year-over-year basis, construction spending was down 1.7%.

The key takeaway from the report was the strength seen in private construction, which included solid increases for both residential and nonresidential spending.

[BRIEFING.COM] The S&P 500 (-0.3%), Nasdaq Composite (-0.2%), and DJIA (-0.5%) are retreating from their modest opening gains as broad weakness outweighs leadership in tech stocks.

The information technology sector (+0.2%) clings to a modest gain, one of just two S&P 500 sectors that trade higher this morning. The iShares GS Software ETF (IGV 107.81, +1.33, +1.25%) is off to another hot start, with Synopsys (SNPS 490.32, +55.38, +12.73%) among the best-performing S&P 500 components after issuing upside guidance at its investor day.

Semiconductor stocks are also providing support, though the gains are more modest. The PHLX Semiconductor Index is up 0.1%, though Micron (MU 1032.42, -32.69, -3.07%) moves firmly lower despite another impressive beat-and-raise earnings report.

The energy sector (+0.8%) is a standout this morning as crude oil prices creep modestly higher.

Losses across the other nine S&P 500 sectors are widening from their open levels, with the materials sector (-1.4%) holding the widest loss as Corteva (CTVA 12.29, -65.36, -84.17%) plummets after announcing it has successfully spun off its advanced seed and genetics business and will move forward as a leading, pure-play global crop protection company

On the data front, construction spending increased 0.9% month-over-month in July (Briefing.com consensus: 0.3%) following a previous decrease of 0.1%.

The ISM Manufacturing Index decreased to 54.5% in September (Briefing.com consensus: 55.2%) from 54.6% in August.

The final September S&P Global U.S. Manufacturing PMI came in at 55.9, above the Briefing.com consensus of 55.3 but down from the prior reading of 57.0.

The major averages remain on track for a modestly higher open, supported by some early momentum across the AI trade this morning.

For the week ending September 26, initial jobless claims fell by 1,000 to 197,000 (Briefing.com consensus: 200,000). Continuing jobless claims for the week ending September 19 decreased by 11,000 to 1.701 million.

The key takeaway from the report remains the same: layoff activity continues to run at low levels that reflect a solid demand environment.

The S&P 500 futures currently trade 21 points above fair value.

Asian markets were led sharply higher by Japan on Thursday, with Micron's upbeat outlook providing another catalyst for the region's AI and semiconductor shares. Japan's Nikkei 225 surged 3.4% to a six-week high, while the Topix gained 1.7%, with Lasertec (+11.1%), Advantest (+9.8%), Murata Manufacturing (+8.4%), Taiyo Yuden (+8.3%), and Kioxia (+5.6%) leading the advance. Nidec (-10.8%) bucked the rally after its auditor declined to issue an opinion on the company's long-awaited financial statements. Japanese manufacturing sentiment also improved in the third quarter to its highest level in more than eight years, while broader business conditions reached their strongest levels in decades. China's Shanghai Composite and Hong Kong's Hang Seng Index were closed for the National Day holiday.

• In economic data:
  • Japan's Q3 Tankan Large Manufacturer Index rose to 24 (expected 25; prior 22), while the Large Non-Manufacturers Index fell to 35 (expected 36; prior 37).
  • Japan's September S&P Global Manufacturing PMI fell to 54.1 (expected 54.1; prior 54.9).
  • Australia's September S&P Global Manufacturing PMI fell to 49.6 (expected 49.3; prior 52.0).
  • Australia's August imports increased 5.8% (prior -2.4%), while exports increased 3.7% (prior -3.6%).
  • South Korea's September imports increased 26.0% (expected 21.5%; prior 22.4%), while exports increased 83.5% (expected 61.7%; prior 68.7%).
  • South Korea's September S&P Global Manufacturing PMI rose to 53.9 (prior 52.3).
  • India's September HSBC Manufacturing PMI rose to 55.1 (expected 55.7; prior 52.8).

European markets trade lower, illustrating the broader pressure that remains outside the AI trade as elevated bond yields, rising oil prices, and persistent inflation concerns weigh on equities. Germany's DAX 40 fell earlier to its lowest level since July, with Deutsche Bank, Bayer, Zalando, SAP, Heidelberg Materials, Fresenius, and Deutsche Post each dropping more than 2%, while Infineon Technologies (+1.7%) bucks the weakness. France's CAC 40 hit its lowest level since late March amid concerns over public finances ahead of the government's 2027 budget proposal, with BNP Paribas (-2.6%), Crdit Agricole (-2.7%), and Socit Gnrale (-2.6%) leading financial-sector losses. London's FTSE 100 tumbled to its lowest level since June, with higher bond yields and renewed oil-price strength overshadowing softer-than-expected US PCE inflation data. UK house prices fall 0.2% month-over-month in September, while annual growth slows to 0.8%, its weakest pace of the year. Improved Gulf energy flows offer some relief from supply concerns, but stalled US-Iran negotiations keep oil prices and the broader inflation threat firmly in focus.

• In economic data:
  • The eurozone's September HCOB Manufacturing PMI rose to 52.9 (expected 52.7; prior 52.7).
  • The eurozone's August unemployment rate was unchanged at 6.4% (expected 6.4%; prior 6.4%).
  • Germany's September HCOB Manufacturing PMI fell to 53.9 (expected 53.8; prior 54.3).
  • Spain's September HCOB Manufacturing PMI rose to 51.0 (expected 50.2; prior 49.5).
  • Italy's September HCOB Manufacturing PMI rose to 50.4 (expected 50.1; prior 49.6).
  • Italy's August unemployment rate rose to 6.2% (expected 5.8%; prior 6.0%).
  • France's September HCOB Manufacturing PMI fell to 50.6 (expected 50.3; prior 51.1).
  • The U.K.'s Nationwide HPI fell 0.2% month-over-month (expected 0.0%; prior 0.2%) and increased 0.8% year-over-year (expected 1.3%; prior 1.6%) in September.
  • The U.K.'s September S&P Global Manufacturing PMI rose to 51.9 (expected 52.0; prior 51.7).
  • Switzerland's September CPI was unchanged month-over-month (expected 0.0%; prior 0.4%) and increased 0.8% year-over-year (expected 1.3%; prior 1.6%).
  • Switzerland's August retail sales increased 3.2% year-over-year (expected 2.1%; prior 2.6%).

The S&P 500 futures currently trade 33 points above fair value.

Initial claims decreased by 1,000 to 197,000 (Briefing.com consensus: 203,000) for the week ending September 26, down from the revised level of 198,000 (from 197,000).

Continuing claims decreased 11,000 to 1.701 million for the week ending September 19 from the downwardly revised prior level of 1.712 million (from 1.719 million).

Equity futures point to a higher opening this morning amid renewed enthusiasm surrounding the AI trade, supported by Alphabet's new Gemini 4 Argon model and another impressive earnings report from Micron (MU).

Stocks are coming off a mostly lower session in which strength among mega-cap growth stocks helped soften broader losses, extending a trend that was evident throughout September as market leadership narrowed and breadth weakened. Micron's results have provided another boost to the AI trade this morning after semiconductor stocks were one of the market's strongest groups last month.

Still, some familiar headwinds remain in place. U.S. Treasury yields remain elevated, while crude oil is moving higher again this morning amid a lack of diplomatic progress, providing a counterweight to the positive tone surrounding AI and technology stocks.

Today's remaining economic calendar:

• 8:30 AM ET: 09/26 Initial Claims; Briefing.com consensus 200K; prior 197K
• 8:30 AM ET: 09/19 Continuing Claims; prior 1719K
• 9:45 AM ET: September S&P Global U.S. Manufacturing PMI - Final; Briefing.com consensus 55.3; prior 57.0
• 10:00 AM ET: August Construction Spending; Briefing.com consensus 0.3%; prior -0.1%
• 10:00 AM ET: September ISM Manufacturing Index; Briefing.com consensus 55.2%; prior 54.6%
• 10:30 AM ET: 09/26 EIA Natural Gas Inventories; prior +53 bcf

In corporate news:

• Accenture (ACN 214.00, +30.63, +16.70%) topped Q4 revenue estimates, guided Q1 revenue in line with expectations, and projected FY27 revenue growth of 3-6%.
• Alphabet (GOOG 347.49, +6.75, +2.0) is higher in the premarket after CEO Sundar Pichai introduced its newest AI model, Gemini 4 Argon.
• McCormick (MKC 48.65, +2.25, +4.85%) beat Q3 earnings and revenue estimates and reaffirmed its FY26 earnings and revenue guidance. Planning for the Unilever integration remains on track.
• Micron (MU 1056.01, -9.10, -0.85%) beat EPS expectations by $1.70, beat revenue expectations, and reported a Non-GAAP gross margin of 87.0%. The company guided Q1 EPS and revenues above consensus.
• Synopsys (SNPS 450.71, +15.77, +3.63%) issued above-consensus FY27 earnings and revenue guidance at its investor day and outlined a long-term target for mid-teens revenue growth through FY30.

Reviewing overnight developments:

Japan led regional trading, while mainland China and Hong Kong were closed for the National Day holiday.

In news:

• Nikkei reported that Japanese AI and semiconductor shares advanced after Micron's (MU 1056.01, -9.10, -0.85%) upbeat outlook.

In economic data:

• Japan's Q3 Tankan Large Manufacturer Index 24 (expected 25; prior 22) and Large Non-Manufacturers Index 35 (expected 36; prior 37); September S&P Global Manufacturing PMI 54.1 (expected 54.1; prior 54.9)
• Australia's September S&P Global Manufacturing PMI 49.6 (expected 49.3; prior 52.0); August Imports 5.8% (prior -2.4%) and Exports 3.7% (prior -3.6%)
• South Korea's September Imports 26.0% (expected 21.5%; prior 22.4%) and Exports 83.5% (expected 61.7%; prior 68.7%); September S&P Global South Korea Manufacturing PMI 53.9 (prior 52.3)
• India's September HSBC Manufacturing PMI 55.1 (expected 55.7; prior 52.8) --- Equity Markets ---
• Japan's Nikkei: +3.4%
• Hong Kong's Hang Seng: closed for holiday
• China's Shanghai Composite: closed for holiday
• India's Sensex: -0.1%
• South Korea's Kospi: +1.9%
• Australia's All Ordinaries: -1.9% --- FX --- USD/JPY: +0.5% to 158.23 USD/INR: +0.3% to 96.395 USD/CNH: +0.2% to 6.7194

European markets trade lower as elevated bond yields, rising oil prices, and inflation concerns weigh on equities.

In news:

• French financial shares are under pressure amid concerns about public finances ahead of the government's 2027 budget proposal.
• Stalled U.S.-Iran negotiations remain in focus as oil prices keep inflation concerns elevated.

In economic data:

• Eurozone's September HCOB Manufacturing PMI 52.9 (expected 52.7; prior 52.7); August Unemployment Rate 6.4% (expected 6.4%; prior 6.4%)
• Germany's September HCOB Manufacturing PMI 53.9 (expected 53.8; prior 54.3)
• Spain's September HCOB Manufacturing PMI 51.0 (expected 50.2; prior 49.5)
• Italy's September HCOB Manufacturing PMI 50.4 (expected 50.1; prior 49.6); August Unemployment Rate 6.2% (expected 5.8%; prior 6.0%)
• France's September HCOB Manufacturing PMI 50.6 (expected 50.3; prior 51.1)
• U.K.'s Nationwide HPI -0.2% m/m (expected 0.0%; prior 0.2%) and 0.8% yr/yr (expected 1.3%; prior 1.6%); September S&P Global Manufacturing PMI 51.9 (expected 52.0; prior 51.7)
• Switzerland's September CPI 0.0% m/m (expected 0.0%; prior 0.4%) and 0.8% yr/yr (expected 1.3%; prior 1.6%); August Retail Sales 3.2% yr/yr (expected 2.1%; prior 2.6%) --- Equity Markets --- STOXX Europe 600 : -0.6%
• Germany's DAX : -0.2%
• U.K.'s FTSE 100 : -1.2%
• France's CAC 40 : -0.7%
• Italy's FTSE MIB : -0.9%
• Spain's IBEX 35 : -0.8% --- FX --- EUR/USD: -0.3% to 1.1292 GBP/USD: -0.3% to 1.3225 USD/CHF: +0.1% to 0.8360

[BRIEFING.COM] Wednesday's session ended on a decidedly weaker note after a sharp final-hour selloff erased earlier gains, putting an exclamation point on a September marked by increasingly narrow market leadership. The S&P 500 (-0.3%) and DJIA (-0.9%) finished near their session lows, while the Nasdaq Composite (+0.2%) held onto a slim gain despite giving back most of an earlier 1.0% advance.

The reversal left the S&P 500 down 0.5% for September and the DJIA down 4.3%, while the Nasdaq Composite still finished the month with a 1.9% gain. That divergence reflected one of the defining features of September: strength in mega-cap growth and AI-related stocks contrasted with considerably weaker performance across much of the broader market. That pattern was evident again for much of today's session. The Vanguard Mega Cap Growth ETF rose 0.4% and finished September up 3.2%, while the information technology sector (+0.6%) was the day's best-performing sector and gained 4.4% for the month.

Software stocks were particularly strong, with the iShares Expanded Tech-Software Sector ETF (IGV) gaining 1.2%. Semiconductor stocks were little changed today, leaving the PHLX Semiconductor Index flat, but the group was one of September's clear standouts with a 9.5% monthly gain.

Micron (MU 1065.11, +0.03, +0.00%) will put that strength back in focus when it reports earnings after today's close, with investors looking for indications that strong memory pricing and AI-related demand can continue to support growth as capital spending rises.

There were several pronounced moves elsewhere in the technology landscape. Hewlett Packard Enterprise (HPE 63.89, +2.40, +3.90%) was a standout after raising its Networking outlook and increasing its expected Juniper cost synergies ahead of its Networking Investor Day. Jabil (JBL 286.76, -32.08, -10.06%), meanwhile, was among the session's weakest stocks despite better-than-expected results and an upbeat outlook, as elevated expectations surrounding its AI-driven growth prospects tempered the response.

The communication services sector (flat) surrendered a sizable earlier gain as Meta Platforms (META 725.18, -13.61, -1.84%) and Alphabet (GOOG 340.74, +3.42, +1.01%) sold off sharply into the close, contributing to the broader market's late retreat. Still, the sector gained 4.3% in September.

The consumer discretionary sector (+0.1%) was the only other S&P 500 sector to finish above its flat line today, supported by strength in Amazon (AMZN 249.15, +2.48, +1.01%).

Weakness was much more pronounced elsewhere by the close. The consumer staples sector (-1.7%) finished at the bottom of the standings, followed by the health care (-1.4%), industrials (-1.3%), and financials (-1.2%) sectors. Moderna (MRNA 192.57, -10.89, -5.35%) was a notable laggard in the health care sector after being downgraded to Sell from Neutral at Citigroup.

Breadth deteriorated substantially as the session progressed, with decliners ultimately outpacing advancers by roughly 9-to-5 on the NYSE and by a slim margin on the Nasdaq. The Russell 2000 (-0.3%) and S&P Mid Cap 400 (-0.5%) also finished lower, extending their September losses to 5.3% and 4.3%, respectively. Their monthly declines stand in sharp contrast to the gains for mega-cap growth, technology, and semiconductor stocks and underscore just how concentrated the market's September leadership became.

Earlier support came from slightly cooler-than-expected inflation data. The August PCE Price Index increased 0.3% month-over-month (Briefing.com consensus: 0.4%), while the core PCE Price Index rose 0.2% (Briefing.com consensus: 0.3%). The data increased expectations for the Fed to leave rates unchanged at its October meeting, although Treasury yields remained elevated and provided little relief for the broader market as inflation still remains firmly above the Fed's target. 

Crude oil also moved higher after yesterday's sharp decline, settling $1.28 higher (+1.4%) at $90.54 per barrel. CNBC reported that crude oil exports through the Strait of Hormuz have returned to pre-war levels, although refined-product flows remain constrained.

Ultimately, the final session of the third quarter captured many of the trends that defined September. Mega-cap growth, technology, and AI-related stocks produced substantial gains, but that strength was accompanied by significant weakness across smaller companies and many areas of the broader market. Wednesday's late selloff only sharpened that contrast, leaving the Nasdaq higher for the month even as the S&P 500, DJIA, Russell 2000, and S&P Mid Cap 400 all finished September in negative territory.

U.S. Treasuries gave participants a head fake today when yields moved quickly lower following some better-than-feared PCE inflation data in the August Personal Income and Spending report at 8:30 a.m. ET. The realization that a 3.4% PCE inflation rate (3.0% for core) is still well above the Fed's 2.0% target soon set in, however, and that initial move was unwound. The 2-year note yield finished unchanged at 4.89% (+55 basis points this month), and the 10-year note yield settled up four basis points to 5.30% (+56 basis points this month).

• Nasdaq Composite: +15.6% YTD
• Russell 2000: +12.7% YTD
• S&P 500: +11.8% YTD
• S&P Mid Cap 400: +8.8% YTD
• DJIA: +5.9% YTD