[BRIEFING.COM] The stock market finished Monday's session with a mixed showing, as an early rebound in semiconductor and mega-cap technology stocks lost considerable momentum during the afternoon. The S&P 500 (+0.4%) and Nasdaq Composite (+1.1%) held on to gains, although both finished well below their session highs, while the DJIA (-0.1%) slipped into negative territory. The S&P 500 also failed to hold an early move above its 50-day moving average (7,705.63), settling back below that closely watched technical level. Still, the CBOE Volatility Index fell 7.9% to 18.41, offering an encouraging sign that some of the market's recent anxiety had eased.

The session began with investors stepping back into semiconductor and other AI-related stocks following last week's sharp selloff, which was driven in part by concerns about the reliance on debt to finance the massive AI infrastructure buildout. The PHLX Semiconductor Index surged as much as 3.7% after falling 11.4% last week, its worst weekly performance since April 2025. However, the rebound faded considerably as the session progressed, leaving the index with a 1.6% gain and underscoring the lingering uncertainty surrounding the group. Memory-related stocks were among the stronger performers, with Micron (MU 904.90, +26.06, +2.97%) and Sandisk (SNDK 1370.59, +71.29, +5.49%) participating in the recovery. Intel (INTC 92.03, +2.18, +2.43%) also moved higher following an upgrade to Neutral from Underweight at JPMorgan.

Meanwhile, CoreWeave (CRWV 61.12, -0.27, -0.44%) illustrated the fragile sentiment surrounding AI infrastructure companies, reversing an early gain of more than 7% to trade lower despite an upgrade to Buy from Neutral at Goldman Sachs.

Despite the afternoon pullback, the information technology sector (+1.2%) remained one of the market's strongest groups. Software stocks also participated in the rebound, with Datadog (DDOG 260.36, +13.25, +5.36%) and Palantir Technologies (PLTR 194.15, +8.12, +4.36%) standing out among the S&P 500's top performers.

The Vanguard Mega Cap Growth ETF (+1.1%) also reflected continued buying interest in some of the market's largest growth-oriented companies. The consumer discretionary sector (+2.7%) finished atop the sector leaderboard, supported primarily by sizable advances in Amazon (AMZN 262.45, +12.45, +4.98%) and Tesla (TSLA 368.06, +13.34, +3.76%). Amazon benefited in part from Morgan Stanley naming the stock a Top Pick, while Tesla attracted buying interest ahead of its earnings report Wednesday after the close.

However, the sector's strong headline performance masked considerable weakness among its other components, including homebuilders, which gave back some of last week's rebound as Treasury yields moved higher.

The reversal in Treasury yields added pressure to rate-sensitive areas of the market, particularly the utilities (-2.0%) and real estate (-1.2%) sectors, which finished at the bottom of the leaderboard. NRG Energy (NRG 99.35, -4.40, -4.24%) and Alexandria RE (ARE 40.62, -1.00, -2.40%) were among the notable laggards.

Crude oil prices also reversed an overnight decline, with WTI futures settling $1.84 higher (+1.8%) at $103.24 per barrel, weighing on transportation-related stocks.

Elsewhere, the communication services (+0.3%) and materials (+0.1%) sectors posted modest gains, leaving seven of the S&P 500's 11 sectors in negative territory. Alphabet (GOOG 340.16, +3.25, +0.96%) provided support for the communication services sector, although weakness in Meta Platforms (META 705.44, -3.88, -0.55%) limited the group's advance.

The broader market struggled to keep pace with the technology-led advance, with the S&P 500 Equal Weight Index (-0.3%) finishing lower as seven sectors recorded losses. However, the Russell 2000 (+0.3%) managed to post a modest gain, while the S&P Mid Cap 400 finished flat, suggesting that buying interest was not entirely confined to the market's largest stocks.

On the earnings front, Fifth Third (FITB 50.51, +0.14, +0.28%) gave up the bulk of aits early gain following an earnings beat and constructive profitability outlook, while Cleveland-Cliffs (CLF 14.10, +1.98, +16.34%), which is not an S&P 500 component, rallied after reporting better-than-expected earnings and projecting adjusted EBITDA exceeding $4 billion in 2027.

Ultimately, Monday's session showed that investors remain willing to revisit beaten-down semiconductor and mega-cap growth stocks, but the afternoon retreat illustrated the limits of that buying interest. The S&P 500's inability to hold its 50-day moving average, combined with weakness across most sectors and continued underperformance in the equal-weighted index, left the broader market looking considerably less convincing than the Nasdaq's headline gain suggested.

U.S. Treasuries gave back some of last week's gains on Monday, after a modestly higher start ran into immediate selling pressure that continued throughout the morning, leaving the market near lows at the close. The 2-year note yield settled up two basis points to 4.76%, and the 10-year note yield settled up four basis points to 5.14%. 

• Nasdaq Composite: +13.7% YTD
• S&P 500: +12.4% YTD
• Russell 2000: +9.9% YTD
• S&P Mid Cap 400: +9.4% YTD
• DJIA: +8.1% YTD

Reviewing today's data:

• Oct NAHB Housing Market Index 29 (Briefing.com consensus 31; Prior 32)

[BRIEFING.COM] The S&P 500 (+0.6%), Nasdaq Composite (+1.3%), and DJIA (+0.1%) are holding on to their gains late in the session.

Investors will receive a modest batch of earnings after the close today, including results from S&P 500 components Steel Dynamics (STLD 243.88, +3.34, +1.39%) and W.R. Berkley (WRB 74.00, -1.42, -1.89%). Earnings season will continue to gain momentum tomorrow, with several notable S&P 500 and Dow components, including 3M (MMM 162.92, -1.83, -1.11%), GE Aerospace (GE 313.44, -0.40, -0.13%), and Halliburton (HAL 33.06, -0.44, -1.33%), reporting before the open, followed by the start of mega-cap earnings with SpaceX (SPCX 147.16, +1.13, +0.77%) after the close.

[BRIEFING.COM] The S&P 500 (+0.6%), Nasdaq Composite (+1.2%), and DJIA (+0.1%) continue to move in a relatively stable range as the market enters the final hour of the session. Notably, the S&P 500 sits just below its 50-day moving average (7,705.63), which it moved above earlier in the session.

The index's worst performers include electric utilities names such as Eversource Energy (ES 64.15, -2.70, -4.04%) and real estate investment trusts such as Alexandria RE (ARE 40.21, -1.41, -3.39%), with both groups moving firmly lower amid the reversal in Treasury yields today.

Trucking names such as FedEx Freight (FDXF 109.36, -3.85, -3.40%) and J.B. Hunt Transport (JBHT 222.71, -6.07, -2.65%) are also under increased pressure amid rising ol prices, with crude oil futures settling today's session $1.84 higher (+1.8%) at $103.24 per barrel.

[BRIEFING.COM] The S&P 500 (+0.5%) is back near its opening level after facing some selling pressure over the past three hours. Today's opening rally lifted the benchmark index back above its 50-day moving average (7705), but the subsequent pullback has pressured it back below that mark.

Even with the pullback from its morning high, the market has been able to stay in positive territory thanks to solid gains in just two sectors-technology (+1.2%) and consumer discretionary (+2.6%). Communication services (+0.2%) and materials (+0.3%) also trade in positive territory, but much closer to their flat lines. This makes for a mirror image of action seen last week where weakness in technology was countered, but not fully offset, by gains in most other sectors.

Besides the lack of strength in most sectors, the market has had to contend with intraday selling in the Treasury market (10-yr yield +4 bps to 5.14%), which has given back a portion of last week's gains, and continued upward pressure on oil, which has WTI crude just $3/bbl below its high from September (106.75). Oil dipped back below $100/bbl to begin the week amid some speculation about another U.S.-Iran deal taking shape, but that speculation has not translated into any concrete reports so far today.

[BRIEFING.COM] The semiconductor rebound has lost considerable momentum this afternoon. The PHLX Semiconductor Index is now up 1.6% after being up as much as 3.7%, reducing the group's contribution to the broader advance. The Nasdaq Composite remains ahead with a 1.2% gain, while the S&P 500 is up 0.5%, both below their earlier highs.

The initial rebound followed an 11.4% drop in the SOX last week, its worst week since April 2025. Intel (INTC 92.27, +2.42, +2.69%) provided early support following an upgrade to Neutral from Underweight at JPMorgan, while Micron (MU 906.14, +27.30, +3.11%) and Sandisk (SNDK 1375.00, +75.70, +5.83%) participated in an early recovery among memory-related names after sharp prior-session weakness.

Confidence remains fragile amid concerns about debt-funded AI and data-center spending, with CoreWeave (CRWV 59.85, -1.54, -2.51%) remaining central to that debate despite an upgrade to Buy from Neutral at Goldman. CoereWeave had been up as much as 7.3% today but has given back the entirety of that gain and then some.

Separately, BTIG said a near-term semiconductor rebound was plausible but maintained that the broader setup remains vulnerable, a view that could encourage investors to reduce exposure into strength. The SOX retreat has consequently taken some momentum out of the technology-led recovery and limited the overall market's progress this afternoon.

[BRIEFING.COM] The major averages remain little changed from previous levels amid a relative lack of corporate news items today.

The communication services sector (+0.2%) continues to wrestle with its flatline as Meta Platforms (META 701.23, -8.10, -1.14%) is a mega-cap laggard today ahead of its earnings release Wednesday afternoon, offsetting a nice gain in Alphabet (GOOG 340.16, +3.25, +0.96%).

Apple (AAPL 341.92, -1.54, -0.45%) is also a "Magnificent Seven" underperformer despite the company describing iPhone Duo preorder demand as "extraordinary,", according to Bloomberg, with initial delivery allocations exhausted within minutes and shipping estimates extending into January 2027.

[BRIEFING.COM] The  major averages are mostly higher just after midday, with technology and select mega-cap stocks leading a rebound from last week's sharp selloff. The S&P 500 (+0.6%) and Nasdaq Composite (+1.4%) are holding solid gains, while the DJIA (flat) trails as buying interest remains concentrated in some of the market's largest companies. The S&P 500 has also reclaimed its 50-day moving average (7,705), although participation beneath the surface remains relatively weak.

Much of today's advance reflects investors stepping back into semiconductor and other AI-related stocks following last week's retreat, which was driven in part by concerns about the reliance on debt to finance the massive AI infrastructure buildout. The PHLX Semiconductor Index (+2.6%) is attempting to snap an eight-session losing streak, providing a substantial boost to the top-weighted information technology sector (+1.6%). Memory-related stocks are among the semiconductor group's outperformers, while Intel (INTC 93.18, +3.32, +3.70%) is also moving sharply higher after JPMorgan upgraded the stock to Neutral from Underweight and raised its price target to $85.

Software stocks are also participating in the rebound, with the iShares GS Software ETF (+1.7%) moving firmly higher and Datadog (DDOG 263.42, +16.31, +6.60%) standing out as the S&P 500's top-performing component.

The Vanguard Mega Cap Growth ETF (+1.4%) further underscores the strength among the market's largest growth-oriented companies.

The consumer discretionary sector (+2.8%) is leading the sector leaderboard, although its sizable gain masks considerable weakness among its individual components. Amazon (AMZN 262.92, +12.92, +5.17%) and Tesla (TSLA 369.15, +14.43, +4.07%)) are driving much of the advance, while roughly two-thirds of the sector's other components trade lower. Amazon is benefiting in part from Morgan Stanley naming the stock a Top Pick and raising its price target to $350 from $335, while Tesla is moving higher ahead of its earnings report Wednesday after the close.

Homebuilders are among the notable areas of weakness within the consumer discretionary sector, with the iShares U.S. Home Construction ETF (-1.2%) giving back some of last week's rebound as Treasury yields move higher.

The 10-year note yield, which initially moved lower this morning, has reversed course and is now up five basis points to 5.15%. Meanwhile, crude oil prices have recovered much of their sharper overnight decline and are now only modestly lower, providing limited additional relief from the elevated energy prices that have recently weighed on the market.

The communication services sector (+0.3%) is the only other S&P 500 sector in positive territory, supported by a gain in Alphabet (GOOG 340.82, +3.91, +1.16%). The remaining eight sectors are trading lower, with the rate-sensitive utilities (-1.7%) and real estate (-1.2%) sectors facing the steepest declines.

The divergence between the major averages and the broader market is particularly notable. The S&P 500 Equal Weight Index (-0.2%) remains in negative territory despite the cap-weighted index's solid advance, reflecting the relatively narrow nature of today's leadership. Decliners outnumber advancers by nearly a 2-to-1 margin on the NYSE, although advancers maintain a slim edge on the Nasdaq.

There are some encouraging signs outside the largest companies, however, as the Russell 2000 (+0.5%) maintains a respectable gain and the S&P Mid Cap 400 (+0.1%) trades modestly higher. Their performance suggests that buying interest is not entirely confined to mega-cap stocks, even as overall participation remains mixed.

On the earnings front, Fifth Third (FITB 50.74, +0.36, +0.72%) is trading higher after reporting better-than-expected earnings despite a revenue miss, supported by improving profitability and expectations for further operating leverage following its Comerica integration. Steelmaker Cleveland-Cliffs (CLF 14.16, +2.04, +16.83%), which is not an S&P 500 component, is also posting a sizable gain after topping earnings expectations and projecting adjusted EBITDA exceeding $4 billion in 2027.

Overall, today's action reflects a meaningful rebound in semiconductor and mega-cap growth stocks, helping the S&P 500 recover an important technical level. However, the weakness in the equal-weighted index, losses across eight sectors, and uneven market breadth suggest that the recovery has yet to translate into a broadly supported advance.

Reviewing today's data: 

• Oct NAHB Housing Market Index 29 (Briefing.com consensus 31; Prior 32)

[BRIEFING.COM] The S&P 500 (+0.7%), Nasdaq Composite (+1.5%), and DJIA (flat) continue to move in a relatively stable range as tech stocks lead the market higher in the first session of an earnings-heavy week.

While much of the S&P 500 trades lower and market breadth remains mixed, with decliners outnumbering advancers by a 3-to-2 margin on the NYSE and advancers holding a narrow 11-to-10 edge on the Nasdaq, the Russell 2000 (+0.5%) is trading near session highs, suggesting that today's buying interest is not entirely concentrated among the market's largest stocks.

[BRIEFING.COM] The major averages remain near session highs at midday, supported by a 3.2% gain in the PHLX Semiconductor Index as it looks to snap an eight-session losing streak. 

Meanwhile, some rate-sensitive pockets of the market are facing pressure as Treasury yields begin to creep higher. The 10-year note yield is currently up four basis points to 5.14%. The utilities (-1.6%) and real estate (-1.1%) sectors remain today's worst-performing S&P 500 sectors.

While the consumer discretionary sector (+2.8%) remains at the top of the leaderboard due to strength in its mega-cap components, homebuilder stocks are a point of considerable weakness, with the iShares US Home Construction ETF down 1.0%.

[BRIEFING.COM] The S&P 500 (+0.6%), Nasdaq Composite (+1.5%), and DJIA (+0.1%) are at session highs just before midday, with the S&P 500 reclaiming its 50-day mvoing average (7,705).

Technology and select mega-cap stocks are leading the market higher following last week's sharp selloff, which was driven in part by concerns about the reliance on debt to finance the massive AI infrastructure buildout. Investors have bought into the recent weakness, with the PHLX Semiconductor Index up 2.6%. The iShares GS Software (IGV 105.98, +1.64, +1.58%) is also up, and the top-weighted information technology sector (+1.8%) is charting session highs as a result.

The consumer discretionary sector (+2.6%) boasts an even wider gain as Tesla (TSLA 367.62, +12.90, +3.64%) and Amazon (AMZN 261.55, +11.55, +4.62%) move sharply higher, with Tesla set to report earnings Wednesday after the close.

A nice gain in Alphabet (GOOG 341.36, +4.45, +1.32%)keeps the communication services sector (+0.6%) higher, while seven S&P 500 sectors hold losses.

The divergence between the largest tech stocks and the rest of the market is notable as the S&P 500 Equal Weighted Index (-0.3%) charts session lows. The utilities (-1.7%) and real estate (-1.0%) sectors hold the widest losses amid the enthusiasm around tech stocks today and Treasury yields moving modestly higher across the curve.

[BRIEFING.COM]  The major averages remain mostly higher as technology stocks continue to provide firm but relatively narrow leadership. 

On the earnings front, Fifth Third (FITB 51.01, +0.64, +1.27%) is trading higher after reporting better-than-expected earnings despite a modest revenue miss. Investors are responding favorably to improving profitability and management's outlook for further operating leverage following the completion of its Comerica systems conversion, which has secured an $850 million annualized expense-synergy run rate for the fourth quarter.

Outside the S&P 500, steelmaker Cleveland-Cliffs (CLF 13.65, +1.53, +12.62%) is also posting a sizable gain following its quarterly report. Although revenue fell slightly short of expectations, stronger-than-expected earnings and improving steel prices, shipments, and production costs helped drive a substantial increase in profitability. Management also projected adjusted EBITDA exceeding $4 billion in 2027, reinforcing expectations for a sustained earnings recovery.

[BRIEFING.COM] The DJIA (+0.1%) has managed to reclaim its flat line, while the Nasdaq Composite (+1.4%) and S&P 500 (+0.7%) add to their early gains.

While the broader market has improved slightly, there is still a considerable amount of divergence between large tech stocks and the rest of the market, which leaves the S&P 500 Equal Weighted Index (-0.2%) in modestly negative territory. Outside of the S&P 500, the Russell 2000 (+0.1%) holds on to a slight gain, while the S&P Mid Cap 400 (-0.2%) has retreated from a positive opening.

[BRIEFING.COM] The S&P 500 (+0.4%) and Nasdaq Composite (+0.9%) are firmly higher shortly after the open as semiconductor stocks and select mega-cap names rebound from a sharp selloff last week. The buy-the-dip bid weighs on the broader market, however, leaving the DJIA (-0.1%) modestly lower.

The top-weighted information technology sector (+1.2%) boasts a solid opening gain, supported by an early rebound in the PHLX Semiconductor Index (+2.1%). Memory names are among the top performers, while Intel (INTC 93.47, +3.62, +4.03%) also climbs after JPMorgan upgraded the stock to Neutral from Underweight, with a target price of $85.

The consumer discretionary sector (+1.2%) holds an identical gain, with Amazon (AMZN 256.80, +6.80, +2.72%) and Tesla (TSLA 361.42, +6.70, +1.89%) moving firmly higher. The Vanguard Mega Cap Growth ETF is up 0.9%.

Meanwhile, seven S&P 500 sectors trade lower, though the losses are generally modest in nature. The utilities sector (-1.0%) holds the widest loss, while the real estate sector (-0.9%) is also firmly lower.

Just released, the NAHB Housing Market Index contracted to 29 in October (Briefing.com consensus 31), down from the prior level of 31.

The stock market remains on track for a higher open this morning, supported by a rebound in AI-related stocks following last week's sharp selloff.

Stable Treasury yields are also providing a more favorable backdrop for equities, while a decline in crude oil prices is easing some of the pressure stemming from last week's escalation of hostilities in the Middle East. Together, these developments are helping improve sentiment ahead of the opening bell.

S&P 500 futures point to a higher open as buy-the-dip interest in AI shares and stabilization in Treasury yields provide support.

Asian markets finished mixed on Monday, with better-than-expected Chinese economic data and continued bargain hunting in South Korea offset by persistent pressure on Japan's AI-linked shares. Japan's Nikkei 225 fell 0.6%, with Taiyo Yuden (-5%), Lasertec (-4%), Tokyo Electron (-3%), Ibiden (-3%), and SoftBank Group (-2%) extending recent losses amid concerns surrounding the returns on heavy AI infrastructure spending. China's Shanghai Composite gained 0.4% after third-quarter GDP expanded 4.5% yr/yr, slightly above expectations, while September industrial production accelerated to 5.5% and retail sales growth improved to 1.1%, although fixed asset investment remained deeply negative. South Korea's KOSPI rallied 1.8%, extending Friday's rebound with support from Samsung Biologics (+9%), LG Energy Solution (+7%), Kia (+5%), Hyundai Motor (+4%), and Samsung Electronics (+1%). The contrasting moves in Japan and South Korea suggest the regional rebound remains selective, with investors continuing to reassess AI valuations and competitive pressures in memory chips ahead of major U.S. technology earnings this week. Hong Kong's Hang Seng was closed for Chung Yeung Day.

• In economic data:
  • China's Q3 GDP increased 1.2% qtr/qtr (expected 1.1%; prior 0.9%) and 4.5% yr/yr (expected 4.4%; prior 4.3%).
  • China's September Industrial Production increased 5.5% yr/yr (expected 5.4%; prior 5.2%).
  • China's September Retail Sales increased 1.1% yr/yr (expected 0.5%; prior 0.4%).
  • China's September Fixed Asset Investment decreased 7.2% yr/yr (expected -7.3%; prior -7.2%).
  • China's September Unemployment Rate was 5.2% (expected 5.3%; prior 5.3%).
  • China's September House Prices decreased 2.8% yr/yr (prior -3.0%).
  • New Zealand's September Performance of Services Index was 50.9 (prior 51.0).
  • New Zealand's September Trade Balance showed a deficit of NZD1.971 bln (expected deficit of NZD775 mln; prior deficit of NZD1.536 bln), with exports of NZD6.47 bln (prior NZD6.48 bln) and imports of NZD8.44 bln (prior NZD8.02 bln).
  • Japan's August Tertiary Industry Activity Index was -4.10 (prior 0.70).

European markets trade broadly lower, led by France as weekend unrest intensifies concerns surrounding the country's political stability and strained public finances, pressuring French equities and government bonds. France's CAC 40 falls 1.4%, with BNP Paribas (-2%), Credit Agricole (-2%), Societe Generale (-2%), LVMH (-2%), and Airbus (-2%) among the notable decliners, while rising French bond yields relative to German Bunds signal an increasing risk premium on the country's debt. Germany's DAX declines 1.1%, with industrial and financial shares under pressure as Continental, Rheinmetall, Airbus, Vonovia, Commerzbank, and Deutsche Bank fall between 1% and 3%. London's FTSE 100 drops 1.0%, led lower by banks and defense shares, including Barclays (-2%), HSBC (-1%), NatWest (-2%), Rolls-Royce (-2%), and BAE Systems (-3%), although Shell (+1%) and BP (+1%) provide some support. Political and social tensions are weighing more broadly across the region, with Italy's FTSE MIB falling 1.5% and Spain's IBEX 35 dropping 1.5%. The STOXX Europe 600 trades 0.8% lower as investors also look ahead to a busy week of corporate earnings.

• In economic data:
  • The U.K.'s October Rightmove House Price Index increased 1.0% m/m (prior +0.7%) and decreased 0.1% yr/yr (prior -0.8%).

Equity futures continue to point to a higher open this morning as investors buy the dip in semiconductor stocks. The VanEck Semiconductor ETF is up 3.1% in the premarket. 

NVIDIA (NVDA 218.19, +4.06, +1.90%) CEO Jensen Huang has added to the early enthusiasm after saying the benefits of AI will soon outweigh investor concerns, according to Bloomberg.

Equity futures point to a mostly higher open this morning as stocks attempt to rebound from last week's tech-led selloff. Semiconductor stocks and other AI infrastructure-related names faced particularly heavy selling pressure amid growing concerns about the industry's reliance on debt to finance its ambitious expansion plans.

This morning, investors are buying into the recent weakness, sending futures tied to the Nasdaq firmly higher. CoreWeave (CRWV 65.09, +3.59, +5.9%), which plummeted 25% last week amid concerns surrounding stressed credit default swaps, is firmly higher this morning, with an upgrade to Buy from Neutral at Goldman helping the cause.

Meanwhile, investors will continue to monitor geopolitical developments in the Middle East after escalating hostilities sent crude oil prices sharply higher last week, adding another layer of uncertainty to the market's outlook. Attention will also turn to the kickoff of mega-cap earnings this week, with Meta Platforms (META) and Tesla (TSLA) scheduled to report. Their results and commentary could provide important insight into AI spending plans and the broader outlook for some of the market's largest companies.

Today's remaining economic calendar:

• 10:00 AM ET: October NAHB Housing Market Index; Briefing.com consensus 31; prior 32

In corporate news:

• Apple (AAPL 342.88, -0.58, -0.2%) iPhone duo demand has been 'extraordinary,' according to Bloomberg.
• Cleveland-Cliffs (CLF 13.72, +1.60, +13.20%) topped the third-quarter earnings estimate but missed the revenue consensus. The company expects fourth-quarter adjusted EBITDA to increase sequentially due to higher pricing, partly offset by seasonality and maintenance outages.
• Intel (INTC 93.29, +3.41, +3.8%) was upgraded to Neutral from Underweight at JPMorgan, with a target price of $85.

Reviewing overnight developments:

According to Nikkei, Asian markets finished mixed as better-than-expected Chinese economic data and continued buying in South Korea offset weakness in Japan's AI-linked shares. Hong Kong was closed for Chung Yeung Day.

In news:

• Nikkei reported that Japanese semiconductor and AI-linked names remained under pressure amid concerns about returns on heavy infrastructure spending.
• Nikkei reported that South Korean shares extended Friday's rebound with support from biotechnology, battery, automobile, and semiconductor names.

In economic data:

• China's Q3 GDP 1.2% qtr/qtr (expected 1.1%; prior 0.9%) and 4.5% yr/yr (expected 4.4%; prior 4.3%)
• China's September Industrial Production 5.5% yr/yr (expected 5.4%; prior 5.2%); Retail Sales 1.1% yr/yr (expected 0.5%; prior 0.4%); Fixed Asset Investment -7.2% yr/yr (expected -7.3%; prior -7.2%); Unemployment Rate 5.2% (expected 5.3%; prior 5.3%)
• China's September House Prices -2.8% yr/yr (prior -3.0%)
• New Zealand's September Performance of Services Index 50.9 (prior 51.0); Trade Balance -NZD1.971 bln (expected -NZD775 mln; prior -NZD1.536 bln), with exports of NZD6.47 bln (prior NZD6.48 bln) and imports of NZD8.44 bln (prior NZD8.02 bln)
• Japan's August Tertiary Industry Activity Index -4.10 (prior 0.70)

Equity Markets:

• Japan's Nikkei: -0.6%
• Hong Kong's Hang Seng: closed for holiday
• China's Shanghai Composite: +0.4%
• India's Sensex: -1.2%
• South Korea's Kospi: +1.8%
• Australia's All Ordinaries: +0.4%

European markets are broadly lower, with French equities and government bonds pressured by intensified weekend unrest and concerns about political stability and public finances.

In news:

• Banks, industrial companies, and defense shares are among the weaker groups across the region, while energy names are providing some support in London.
• Investors are also looking ahead to a busy week of European corporate earnings.

In economic data:

• U.K.'s October Rightmove House Price Index +1.0% m/m (prior +0.7%) and -0.1% yr/yr (prior -0.8%)

Equity Markets:

• STOXX Europe 600 : -0.8%
• Germany's DAX : -1.1%
• U.K.'s FTSE 100 : -1.0%
• France's CAC 40 : -1.4%
• Italy's FTSE MIB : -1.5%
• Spain's IBEX 35 : -1.5%

[BRIEFING.COM] Stocks finished sharply lower Friday, with the Nasdaq Composite falling 2.1%, the Russell 2000 losing 1.7%, the S&P 500 declining 1.1%, and the Dow Jones Industrial Average shedding 0.3%. Concerns about AI financing, elevated valuations, and future investment returns drove a trend-down session that broadened beyond the largest technology names.

CoreWeave (CRWV 61.39, -8.30, -11.91%) remained a focal point for concerns about data center financing and future debt service burdens. Micron (MU 878.84, -52.40, -5.63%), Advanced Micro Devices (AMD 528.75, -33.48, -5.95%), and Sandisk (SNDK 1299.30, -95.53, -6.85%) reflected continued semiconductor weakness as an early rebound attempt faded.

The communication services (-2.5%) and information technology (-2.5%) sectors were the biggest losers, while consumer discretionary was lower by 1.2%. Those heavily weighted groups were unduly influenced by weakness in their mega-cap constituents. It would have been worse for the information technology sector had Apple (AAPL 343.46, +1.46, +0.43%) been caught up in the selling pressure. It bucked the trend, though, with investors responding favorably to reports that the iPhone Duo sold out within minutes of being open for pre-orders.

Participation weakened as the session progressed. Earlier in the day, advancers led decliners at the NYSE by a better than 2-to-1 margin, but by the end of the session, it was decliners that led advancers by a roughly 4-to-3 margin. The lead was nearly 3-to-1 at the Nasdaq.

The Russell 2000's closing loss and a 0.4% decline in the equal-weighted S&P 500 confirmed that selling was not confined to mega-cap growth, but it was concentrated there and in the semiconductor space. The Vanguard Morningstar Mega Cap Growth ETF (MGK) declined 2.3%, while the Philadelphia Semiconductor Index dropped 3.8%, leaving it down 11.4% for the week.

The energy sector (+2.5%) provided the clearest counterpoint. WTI crude climbed 3.6% to $101.40 per barrel amid supply concerns wrapped up in worries about the risk of additional military action between the Houthis and Saudi Arabia and the U.S. and Iran. The advance brought oil's weekly gain to nearly $10 per barrel and renewed inflation concerns as stocks were already struggling.

Treasuries finished mixed as the oil rally countered some late buying tied to equity weakness. The 2-yr yield slipped one basis point to 4.74%, while the 10-yr and 30-yr yields each rose one basis point to 5.10% and 5.44%, respectively. Even so, the 10-yr yield fell 14 basis points for the week, and the 30-yr yield dropped 16 basis points.

The session ultimately reflected a reassessment of higher-valuation and higher-beta exposure rather than a simple response to daily interest rate changes. Lower Treasury yields for the week did not prevent pronounced weakness in AI, semiconductor, software, and small-cap shares, and the market was unable to reproduce Thursday's successful rebound effort.

The CBOE Volatility Index surged 22.5% to 20.16 on increased portfolio hedging activity.

Today's economic reports kept both growth and inflation in view. Industrial output strengthened across manufacturing, mining, and utilities, while capacity utilization remained below its longer-run average, indicating firmer production without industrial resources being fully taxed. At the same time, the import-export price report for September showed an acceleration in inflation pressure that mirrored the CPI and PPI reports earlier in the week.

• Nasdaq Composite: +12.5% YTD
• S&P 500: +11.9% YTD
• Russell 2000: +9.7% YTD
• S&P Mid Cap 400: +9.4% YTD
• DJIA: +8.2% YTD

Reviewing today's data:

• September Import Prices 1.1%; prior revised to 0.5% from 0.7%
• September Import Prices ex-oil 0.7%; prior revised to 0.6% from 0.8%
• September Export Prices 2.2%; prior revised to 1.2% from 0.6%
• September Export Prices ex-ag. 2.1%; prior revised to 1.3% from 0.7%
• September Industrial Production 0.7% vs. 0.4% Briefing.com consensus; prior revised to 0.1% from 0.0%
• September Capacity Utilization 76.9% vs. 76.5% Briefing.com consensus; prior revised to 76.4% from 76.3%
• September Treasury Budget -$26.9B; prior -$166.8B

Monday's economic calendar:

• 10:00 AM ET: October NAHB Housing Market Index; Briefing.com consensus 31; prior 32