[BRIEFING.COM] The stock market has weakened further, with selling broadening beyond the technology-led decline seen earlier. All 11 S&P 500 sectors are now in negative territory, while the Russell 2000 (-1.2%) is underperforming the Nasdaq Composite (-0.9%). That combination points to widespread pressure rather than weakness confined to a few heavily weighted stocks.

Treasury yields remain a central consideration after this morning's CPI report. The 2-yr note yield is up 19 basis points to 4.75%, and the 10-year note yield is up 13 basis points at 5.00% again. Today's jump in Treasury yields reflects concerns that the Fed will keep raising rates to get inflation back to its 2.0% target.

That concern is offsetting the potential benefit of today's decline in oil prices ($85.95, -0.90, -1.0%).

CNBC reported that Dallas Fed President Lorie Logan said the Fed needs to implement at least two quarter-point hikes before pausing, make policy modestly restrictive, and potentially raise rates more rapidly this winter. Her comments keep the policy outlook in focus as investors weigh lower energy prices against the prospect of tighter financial conditions.

[BRIEFING.COM] The major averages have dipped toward their opening levels with the S&P 500 (-0.8%) slipping to a fresh low for the day while the Nasdaq (-1.0%) remains just above its starting low.

The overall market has been guided by the early performance of the top-weighted technology sector (-1.2%), which has shown some early volatility with recent action seeing a pullback toward the sector's opening low after a brief rise into positive territory.

NVIDIA (NVDA 167.78, -10.89, -6.10%) has slipped past yesterday's low in recent trade, approaching its low from March (164.27), which marked the stock's low point of the year. Meanwhile, the PHLX Semiconductor Index (-1.3%) is back in the red after a brief rise past yesterday's high.

[BRIEFING.COM] The major averages attempted a quick recovery off their starting lows with the Nasdaq (-0.4%) finding some resistance after a brief rise into positive territory.

Technology (-0.6%) stocks have been at the forefront of the recent volatility in the market, so the skittish start is not a surprise, but the early show of resilience in chip stocks is encouraging. Like yesterday, the PHLX Semiconductor Index (+0.6%) is on the rise without the participation of industry leader NVIDIA (NVDA 171.58, -7.09, -3.97%), which briefly slipped past yesterday's low (170.24), touching a level not seen since late March.

In tech-related news, Anthropic will seek a $1.33 trillion value in its IPO, aiming to price the offering between $70 and $78. Roughly 20% of the IPO is expected to go to the public, according to CNBC, citing sources.

[BRIEFING.COM] The stock market has gotten off to a lower start with the Nasdaq (-0.3%) starting behind the S&P 500 (-0.4%) before pulling ahead of the benchmark index.

Eight sectors are among the early decliners with technology (-0.5%) showing some relative weakness. Chipmakers have faced some immediate profit taking, but the PHLX Semiconductor Index (+0.4%) is now back in positive territory, looking to build on yesterday's 6.9% jump. Software stocks have also faced some profit taking, but the iShares Expanded Tech-Software Sector ETF (IGV 101.03, -0.43, -0.43%) is fighting to stay above its opening low.

Treasuries have widened their initial losses after the release of the hotter-than-expected October CPI (0.4%; Briefing.com consensus 0.3%), lifting the 10-yr yield to its highest level of the month. The benchmark yield is up 12 basis points at 4.99% with its 50-day moving average (5.041%) just a few basis points above.

Futures have weakened ahead of the open as investors digest a firmer-than-expected core inflation reading. Core CPI increased 0.3% in October versus the 0.2% Briefing.com consensus, matching September's increase. The lack of moderation in underlying inflation keeps the policy outlook in focus and leaves the market with a softer opening indication than it had immediately after the release.

The 2-yr note yield has climbed 13 basis points to 4.69%, and the 10-yr note yield has risen 10 basis points to 4.96%.

The CME FedWatch Tool shows the fed funds futures market has now fully priced in a 25-basis-point hike in December and has injected a 13.6% probability of a 50-basis-point hike.

Equity futures have deteriorated noticeably after a firmer-than-expected October CPI report. Total CPI rose 0.4% and core CPI increased 0.3%, each one-tenth above the Briefing.com consensus.

Some support factors remain in place. Crude oil futures continue to decline, while technology strength in Europe and semiconductor gains in Asia have provided a positive overseas backdrop.

Still, there are a lot of moving parts as the market considers the inflation data and the policy outlook.

Treasury yields had moved higher ahead of the report, and attention now turns to several Fed speakers and the 10-year note auction at 1:00 p.m. ET. Fed Governor Waller said before the release that he supports a 25-basis-point rate increase in December even if inflation improves but that more robust action may be needed if inflation is substantially higher than expected.

Equity futures are pointing to a mixed start with relatively modest changes for the major indices after yesterday's big gains. The main consideration is the October Consumer Price Index at 8:30 ET, although market participants continue to be pleased by lower oil prices (WTI $85.05, -1.80, -2.1%) that are being helped along by efforts to reach a diplomatic solution to the Iran War.

Fed Governor Waller said he supports a 25-basis-point rate increase in December even if inflation improves, while leaving open the possibility of a larger move if inflation is substantially higher than expected. The 2-yr note yield is up six basis points to 4.62%, and the 10-yr note yield is up tree basis points to 4.89%.

The October NFIB Small Business Optimism Index slipped to 97.8 from 97.9 and was slightly below the Briefing.com consensus.

Overseas markets have provided a positive backdrop, with semiconductor shares contributing to broad gains in Asia and technology shares supporting Europe. Still, the CPI report is likely to shape expectations for the next Fed meeting and the opening tone for U.S. equities.

On the U.S. data front:

• October NFIB Small Business Optimism 97.8 vs. 98.0 Briefing.com consensus; prior 97.9

Today's remaining economic calendar:

• 8:30 AM ET: October CPI; Briefing.com consensus 0.3%; prior 0.6%
• 8:30 AM ET: October Core CPI; Briefing.com consensus 0.2%; prior 0.3%

In corporate news:

• Anthropic (ANT) discloses in amended S1 filing that " it is currently estimated that the initial public offering price per share will be between $70.00 and $78.00"; Company to offer 825.0 mln shares
• NVIDIA (NVDA 177.03, -1.64, -0.9%): President Trump says the FBI is investigating Nvidia CEO Jensen Huang's affair.
• Sanmina (SANM 167.37, +17.73, +11.9%) is trading higher following its earnings and guidance report.
• Taiwan Semiconductor Manufacturing (TSM 387.97, -0.65, -0.2%) reported October revenue growth of 59.7% year-over-year and 14.7% sequentially.
• Take-Two Interactive (TTWO 215.00, +7.60, +3.7%) reported a smaller-than-expected quarterly loss, missed revenue expectations, and issued fiscal-year earnings and revenue guidance below consensus.

Reviewing overnight developments:

Nikkei reported that Asian markets finished broadly higher as semiconductor shares extended their recovery from last week's selloff, with easing geopolitical tensions providing additional support.

In news:

• Semiconductor and other large-cap shares led gains in Japan and South Korea, while a sharp rise in KOSPI 200 futures triggered a five-minute buy-side trading curb.
• Indian markets remained closed for Diwali-Balipratipada and are scheduled to reopen Wednesday.

In economic data:

• Japan's September Household Spending -2.8% m/m (expected +0.3%; prior +0.1%) and -6.8% yr/yr (expected -3.1%; prior -3.1%)
• Japan's September Current Account JPY2.372 trln (expected JPY3.354 trln; prior JPY3.993 trln); adjusted Current Account JPY1.82 trln (expected JPY2.81 trln; prior JPY2.91 trln)
• Japan's October Bank Lending +5.2% yr/yr (expected +5.4%; prior +5.2%); Economy Watchers Current Index 46.1 (expected 47.1; prior 47.0)
• China's October Trade Balance USD105.28 bln (expected USD126.50 bln; prior USD133.53 bln); Exports +35.2% yr/yr (expected +33.5%; prior +36.3%) and Imports +41.6% yr/yr (expected +32.0%; prior +31.0%)
• Australia's October NAB Business Confidence -15 (prior -14); Business Conditions -2 (prior -1) --- Equity Markets ---
• Japan's Nikkei : +2.9%
• Hong Kong's Hang Seng : +0.4%
• China's Shanghai Composite : +0.1%
• India's Sensex : Closed for Diwali-Balipratipada
• South Korea's Kospi : +4.4%
• Australia's All Ordinaries : +1.1%

European markets extended their recovery, supported by technology shares and declining oil prices amid increased optimism about a diplomatic resolution to the U.S.-Iran conflict.

In news:

• Infineon Technologies advanced after reporting record quarterly and full-year results and issuing an upbeat revenue outlook.
• U.K. consumer card spending increased 2.3% year-over-year in October, according to Barclays, although the bank's consumer confidence measures weakened.

In economic data:

• France's Q3 Unemployment Rate 8.2% (expected 8.4%; prior 8.3%) --- Equity Markets --- STOXX Europe 600 : +0.8%
• Germany's DAX : +1.2%
• U.K.'s FTSE 100 : +0.4%
• France's CAC 40 : +1.1%
• Italy's FTSE MIB : +1.5%
• Spain's IBEX 35 : +1.3%

[BRIEFING.COM] The stock market started the week with a broad rally, recovering much of last week's steep losses as investors returned to AI-related stocks and a sharp decline in oil prices provided additional support. The S&P 500 (+2.4%), Nasdaq Composite (+2.7%), and DJIA (+2.2%) all finished with sizable gains, with the S&P 500 reclaiming its November 3 (Election Day) closing level of 7,542.60.

All eleven S&P 500 sectors finished higher, with nine posting gains of at least 1.4%. The industrials sector (+3.8%) led the advance, supported by strong rebounds in AI infrastructure names such as Teradyne (TER 246.00, +27.78, +12.73%) and Bloom Energy (BE 193.88, +20.64, +11.91%).

The information technology sector (+2.9%) was another standout, benefiting from a 6.9% surge in the PHLX Semiconductor Index, which recovered a sizable portion of last week's decline of more than 12%. Advanced Micro Devices (AMD 508.58, +59.54, +13.26%) was among the strongest performers in the S&P 500, extending Friday's rebound following its strong Q3 results and an upgrade to Outperform at Oppenheimer. NVIDIA (NVDA 178.67, -7.97, -4.27%), however, lagged amid reports that CEO Jensen Huang had an affair with an alleged Chinese spy, prompting an independent investigation by the company's board.

Mega-cap stocks elsewher also provided strong leadership, with Amazon (AMZN 266.93, +7.63, +2.94%) and Tesla (TSLA 378.05, +19.83, +5.54%) contributing to the consumer discretionary sector's 3.1% gain, while Meta Platforms (META 641.37, +31.22, +5.12%) helped lift the communication services sector (+2.1%). Alphabet (GOOG 286.01, +2.08, +0.73%) also benefited from the unveiling of two new configurations of its eighth-generation tensor processing units, expanding its offerings for enterprise AI workloads.

The Vanguard Mega Cap Growth ETF gained 2.9%, but the rally was far from concentrated in the largest technology stocks. The S&P 500 Equal Weighted Index (+2.3%) nearly matched its market-cap weighted counterpart, while the Russell 2000 (+3.2%) and S&P Mid Cap 400 (+3.2%) outperformed the major averages, reflecting strong participation across market capitalizations.

Falling oil prices provided another tailwind as optimism surrounding a potential diplomatic resolution to the U.S.-Iran conflict continued to build. President Trump said renewed strikes on Iran are "highly unlikely" as long as negotiations continue to make progress, according to CNN. Later reports from Al Arabiya suggested that a preliminary agreement on reducing Iran's uranium enrichment could be reached, with a proposed framework calling for the reopening of the Strait of Hormuz and the lifting of the naval blockade. Those reports have not been confirmed by U.S. officials. WTI crude oil futures settled $3.98 (-4.4%) lower at $86.90 per barrel.

Today's advance marked a meaningful recovery from last week's selloff, with renewed confidence in AI-related stocks, easing geopolitical concerns, and strong participation across sectors and market capitalizations helping restore some of the market's recent losses. Despite the rebound, the S&P 500 and Nasdaq Composite remain lower for the quarter, leaving the sustainability of today's buying interest an important consideration as investors look ahead to another round of AI-related earnings reports and key inflation data later this week.

U.S. Treasuries began the week with losses in shorter tenors while the long end resisted, keeping the long bond near its closing level from Friday. Treasuries held their ground through today's $58 billion 3-year note auction, even though that offering met weak demand. The 2-year note yield settled up three basis points to 4.56%, and the 10-year note yield settled up one basis point to 4.86%. 

• Russell 2000: +14.5% YTD
• S&P Mid Cap 400: +12.4% YTD
• S&P 500: +10.3% YTD
• DJIA: +9.0% YTD
• Nasdaq Composite: +8.7% YTD

Reviewing today's data:

• Wholesale Inventories increased 0.7% in September (Briefing.com consensus 0.6%) after rising a revised 0.6% (from 0.5%) in August.