After Hours Report

The stock market finished the week with mixed performance as investors navigated uneven sector leadership, mega-cap rotation, and Fed commentary that tempered December rate-cut expectations. The DJIA (+0.3% WTD) and S&P 500 (+0.1% WTD) ended slightly higher, while the Nasdaq Composite (-0.5% WTD), Russell 2000 (-1.8% WTD), and S&P MidCap 400 (-1.2% WTD) lagged. The health care (+3.9% WTD) and energy (+2.5% WTD) sectors led gains, while the consumer discretionary (-2.7% WTD), communication services (-0.8% WTD), and utilities (-1.2% WTD) sectors underperformed. Despite early-week strength in mega-cap technology, the Vanguard Mega Cap Growth ETF managed only a 0.2% gain for the week, and the PHLX Semiconductor Index finished in negative territory (-2.0% WTD).

Early-week optimism around an end to the government shutdown supported broad-market participation, with AI-related technology stocks, chipmakers, and health care leaders like Eli Lilly, UnitedHealth, Viatris, and Moderna driving early strength. Midweek, tech-heavy sectors struggled, though the DJIA reached a record closing above 48,000, supported by the financials (+0.1% WTD) and industrials (-0.9% WTD) sectors. The S&P 500 Equal Weighted Index highlighted rotation beyond mega-cap growth, reflecting broader participation.

Later in the week, hawkish Fed commentary from officials reduced odds of a December rate cut to coin-flip probabilities, pressuring growth-oriented and high-beta names. Thursday’s broad-based weakness pushed the S&P 500 and Nasdaq Composite lower, though Friday saw a partial rebound as chipmakers and other technology stocks stabilized, helping the S&P 500 and Nasdaq reclaim technical support above their 50-day moving averages. The week reflected a market balancing selective sector rotation against caution on policy and stretched valuations.

• DJIA: +0.3% WTD
• S&P 500: +0.1% WTD
• Nasdaq Composite: -0.5% WTD
• S&P MidCap 400: -1.2% WTD
• Russell 2000: -1.8% WTD

Monday:

Stocks advanced to start the week as renewed buying interest in mega-cap names lifted the major averages, while solid breadth reinforced broader market participation.

The S&P 500 (+1.5%), Nasdaq Composite (+2.3%), and DJIA (+0.8%) all captured gains that put the major averages within striking distance of their unchanged month-to-date levels. 

Equity futures pointed to a higher open this morning after the Senate passed a procedural vote on Sunday to end the government shutdown. CBS News reported this afternoon that Senate Majority Leader John Thune hopes for a final Senate vote on the government funding deal "in the very near future" but noted the Senate still has procedural hurdles to overcome. 

The extent to which optimism for a funding deal contributed to today's advance can be debated, but what is certain is that there was strong buying interest across the market's largest names. 

The Vanguard Mega-Cap Growth ETF climbed 2.5% as gains swelled throughout the session, which kept the information technology (+2.7%) and communication services (+2.5%) sectors jockeying for position atop today's leaderboard. 

Renewed confidence in the AI trade saw the PHLX Semiconductor Index (+3.0%) capture a solid gain, supported by strong efforts from Micron (MU 253.20, +15.28, +6.42%), NVIDIA (NVDA 199.00, +10.85, +5.77%), and others. Advanced Micro Devices (AMD 244.18, +10.64, +4.56%) traded higher ahead of its financial analyst event tomorrow. 

Though not a member of the SOX Index, Palantir Technologies (PLTR 193.63, +15.70, +8.82%) is synonymous with the broader AI trade and captured the widest gain among S&P 500 names today, which saw the stock rally back above its 50-day moving average (178.45). 

Alphabet (GOOG 290.57, +10.87, +3.89%) also continued its recent trend of outperformance since announcing it will make its powerful Ironwood AI chip widely available in the coming weeks.  

The consumer discretionary sector did not capture quite as high of a gain as other mega-cap heavy sectors, though Tesla (TSLA 445.26, +15.74, +3.66%) was still a standout. 

In total, eight S&P 500 sectors finished higher. Several sectors moved lower in the late morning, which briefly sent the DJIA (+0.8%) beneath its flatline, though the major averages quickly rebounded from session lows.

Only the defensive consumer staples (-0.3%) and utilities (-0.1%) sectors, along with the real estate sector (-0.1%), finished lower as investors rotated back into more growth-oriented pockets of the market. 

Today's trend of a higher risk appetite was evidenced by a 1.6% gain in the Invesco S&P 500 High Beta ETF. 

However, the market's advance was not solely driven by its titans today. Advancers outpaced decliners by a roughly 2-to-1 ratio on both the NYSE and Nasdaq nearly the entire session, and of the eight S&P 500 sectors that finished higher, seven closed with gains wider than 0.5%. 

Outside of the S&P 500, the Russell 2000 (+1.1%) and S&P Mid Cap 400 (+0.8%) also posted solid performances. 

While the market will likely see any further developments to end the government shutdown as another tailwind heading into the end of the year, today's action came on relatively little news flow, reflecting confidence in the broader market and a willingness to still buy dips in mega-cap names. 

U.S. Treasuries started the week on a lower note, pressured by signs that the government shutdown will come to an end soon, though an intraday resilient showing helped the complex recover some of its starting losses. The 2-year note yield settled up three basis points to 3.59% and the 10-year note yield settled up two basis points to 4.11%. 

Tuesday:

The stock market showed resilience today as strength in the broader market propelled the major averages to a mixed finish despite weakness across tech names. 

The DJIA (+1.2%) outperformed from the open, while the S&P 500 (+0.2%) managed a modest gain, and pressure in the information technology sector (-0.7%) kept the Nasdaq Composite (-0.3%) pinned beneath its baseline. 

Some profit-taking across the mega-caps was not unlikely considering yesterday's rally, though headlines of Softbank (SFTBY 75.00, +2.60, +3.59%) selling its entire stake in NVIDIA (NVDA 193.16, -5.89, -2.96%) for $5.8 billion added fuel to the sell-off. Even though Softbank is set to put the proceeds towards a $22.5 billion investment in OpenAI, chipmakers were unable to shake their early sluggishness. 

Advanced Micro Devices (AMD 237.52, -6.46, -2.65%) moved lower despite making some impressive claims at its financial analyst day event. The company projects $100 billion in data center revenue over the next three to five years, with the total addressable data center market increasing to $1 trillion by 2030. The PHLX Semiconductor Index closed with a 2.5% loss. 

While pressure across chipmakers kept NVIDIA lower for the day, several of the technology sector's other mega-cap names posted solid performances. 

Apple (AAPL 275.25, +5.82, +2.16%) was a standout among the group, trading higher as President Trump said the U.S. is nearing a trade deal with India, one of the largest manufacturers of iPhones.

Meanwhile, Microsoft (MSFT 508.68, +2.68, +0.53%) shook off its early sluggishness, rising above its flatline with the S&P 500 shortly after midday. 

The consumer discretionary (+0.2%) and communication services (+0.5%) sectors also reversed earlier losses as mega-cap performance improved. The Vanguard Mega Cap Growth ETF finished just 0.1% lower. 

With the AI trade taking a backseat in today's action, the market relied on broad participation to facilitate gains at the index level, with nine S&P 500 sectors finishing higher. The S&P 500 Equal Weighted Index (+0.6%) finished with a solid gain as a result. 

Investors continued this month's trend of bargain hunting within the health care sector (+2.3%), which now holds a 4.5% gain for the month, the best among S&P 500 sectors. 

The sector also benefitted from the FDA's move to lift "black box" warnings from hormone replacement therapy products while also approving two new drugs to treat menopausal symptoms.

Viatris (VTRS 11.20, +1.03, +10.13%) captured the widest gain in the S&P 500 today, while Moderna (MRNA 26.41, +1.65, +6.66%), Merck (MRK 90.95, +4.20, +4.84%), and Amgen (AMGN 338.45, +14.79, +4.57%) also posted solid performances. 

Elsewhere, the energy sector (+1.3%) moved higher as crude oil futures settled today's session $0.88 higher (+1.5%) at $61.02 per barrel, and the consumer staples (+1.2%), materials (+1.1%), and real estate (+1.1%) sectors captured gains wider than 1.0%. 

Macro developments were relatively slim today.

The Senate passed a bill to fund the government through January 30, with a House vote expected on Wednesday. While an end to the government shutdown will likely be viewed as a tailwind for the markets, airlines warn that it will take time for flight schedules to return to normal when the government reopens later this week, potentially impacting Thanksgiving travel, according to The Washington Post. United Airlines (UAL 94.95, -1.19, -1.24%), Delta Air Lines (DAL 57.73, -0.83, -1.42%), and Southwest Air (LUV 31.98, -0.68, -2.08%) all traded lower today, keeping the industrials sector (flat) from closing with a gain. 

Q3 earnings are also winding down, though Paramount Skydance (PSKY 16.74, +1.49, +9.77%) moved sharply higher despite missing earnings estimates. The company's core DTC business is scaling profitably, and substantial cost reductions, plus boosted synergy forecasts, are improving margin outlook and investor confidence.

Outside of the S&P 500, the Russell 2000 (+0.1%) and S&P Mid Cap 400 (flat) reversed earlier losses.

Although weakness in tech and mixed performances across mega-cap names kept the major averages from closing higher across the board, the market benefited from its second consecutive day of broad-based participation this week, helping to limit downside pressure even as leadership rotated away from tech. While high beta names underperformed today, the retreat is modest in comparison to yesterday's advance, leaving the major averages heading into the midweek session with solid week-to-date gains. 

The U.S. Treasury market was closed today in observance of Veteran's Day. 

Reviewing today's data:

• October NFIB Small Business Optimism 98.2 (Briefing.com consensus 98.3); Prior 98.8

Wednesday:

The stock market posted another day of mixed strength as the S&P 500 (+0.1%) and Nasdaq Composite (-0.3%) remained near their flatlines as mega-cap tech lagged, while a rotation into more value-oriented holdings saw the DJIA (+0.7%) capture record highs and close above the 48,000 mark for the first time. 

Despite the tech-heavy Nasdaq's underperformance, the PHLX Semiconductor Index gained 1.5%, helped by a sharp advance in Advanced Micro Devices (AMD 258.89, +21.37, +9.00%) following details from its financial analyst day. AMD projected $100 billion in data center revenue over the next three to five years and expects a $1 trillion total addressable AI market by 2030.

NVIDIA (NVDA 193.80, +0.64, +0.33%), however, advanced minimally, as mega-cap names underwhelmed again today. 

Not even news of Anthropic investing $50 billion in American AI infrastructure could prompt momentum from the mega-cap tech group, as all of the magnificent seven names, with the exception of NVIDIA and Microsoft (MSFT 511.14, +2.46, +0.48%), traded lower. The information technology sector closed with a modest 0.3% gain. 

The communication services sector (-1.2%) faced the brunt of the mega-cap weakness, with Meta Platforms (META 609.01, -18.07, -2.88%) furthering its slide this month while Alphabet (GOOG 287.43, -4.31, -1.48%) faced some profit-taking after a strong start to the week. 

Elsewhere, the consumer discretionary sector (-1.1%) embodied the recent trend of mega-cap underperformance pitted against solid breadth. Amazon (AMZN 244.20, -4.90, -1.97%) and Tesla (TSLA 430.60, -9.02, -2.05%) moved lower, inflicting losses on the sector despite a majority of its components trading higher. 

Meanwhile, the energy sector (-1.4%) was the weakest performer as crude oil futures settled today's session $2.52 lower (-4.1%) at $58.50 per barrel after Reuters reported that OPEC now expects global oil supply to match demand by 2026, shifting from a previously anticipated supply deficit.

The broader market did not see quite as strong participation as yesterday's trade, with advancers and decliners finishing nearly even on both the NYSE and the Nasdaq. 

The S&P 500 Equal Weighted Index (+0.2%) still closed higher, but a 0.2% dip in the Vanguard Mega Cap Growth ETF limited the advance of the market-weighted S&P 500 (+0.1%). 

Six S&P 500 sectors captured gains, with notable performances across a number of blue-chip stocks contributing to the DJIA's record-setting performance. 

The health care sector (+1.4%) continued its recent hot streak that seats it with a 4.6% week-to-date gain. The sector's largest component, Eli Lilly (LLY 1017.78, +29.16, +2.95%), was once again a top contributor, expanding on recent strength after reaching an agreement with the Trump administration last week to lower the price of its GLP-1 obesity drugs. The stock is up 10.1% for the week and 18.0% for the month. 

Managed care names, such as Dow component UnitedHealth (UNH 339.06, +11.61, +3.55%), were among the top performers in the health care sector. 

Elsewhere, the financials sector (+0.9%) also captured a solid gain. President Trump is set to dine with JPMorgan Chase (JPM 320.51, +4.89, +1.55%) (a Dow component) CEO Jamie Dimon and other top finance executives this evening, adding to positive sentiment across major banking names such as Goldman Sachs (GS 839.05, +28.74, +3.55%) (another Dow component). 

Optimism surrounding a potential end to the government shutdown provided another supportive undertone. The House is expected to vote tonight on a funding bill, and House Speaker Mike Johnson told CNN he is "very optimistic" about its passage.

Airline stocks, which had faced pressure amid air traffic disruptions, rallied on the improved outlook. Delta Air Lines (DAL 60.47, +2.73, +4.73%) moved higher after CEO Ed Bastian said operations should return "close to normal" by Saturday if the government reopens, with United Airlines (UAL 99.97, +5.02, +5.29%) and Southwest Air (LUV 33.36, +1.37, +4.28%) helping to keep the industrials sector (+0.1%) above its flatline. 

Dovish investors look towards the end of the government shutdown and the ensuing data releases for further signs of softening in the labor market, which could prompt the FOMC to move forward with another 25-basis point rate cut in December. 

White House Press Secretary Karoline Leavitt said that the October jobs and CPI reports will likely never be released due to the government shutdown and added that Q4 GDP will likely be 200 basis points lower due to the shutdown.

Atlanta Fed President Raphael Bostic (FOMC non-voting) reiterated that inflation remains a greater concern than the labor market and supports holding rates steady until the 2% target is in clear sight, according to Bloomberg. Mr. Bostic also announced plans to retire at the end of his term on February 28, 2026.

Meanwhile, National Economic Council Director Kevin Hassett told Bloomberg that he believes rates could be "a lot lower" and added he would accept the Fed Chair nomination if offered by President Trump.

None of the Fed commentary had a significant effect on the market's current rate cut odds or the standing of the major averages, which traded in a steady range for the majority of the session. Today's mixed finish masked an encouraging rotation into previously overlooked sectors, suggesting investors are broadening their exposure beyond the year's familiar growth leaders.

U.S. Treasuries climbed on Wednesday, making for a solid bounce from Monday's retreat despite an afternoon dip from highs that followed the completion of a lousy $42 billion 10-year note sale. The 2-year note yield settled down two basis points to 3.57%, and the 10-year note yield settled down four basis points to 4.07%. 

Reviewing today's data:

• The weekly MBA Mortgage Index rose 0.6% after falling 1.9% a week ago. The Purchase Index was up 5.8% while the Refinance Index fell 3.4%.

Thursday:

The stock market faced a broad-based retreat, which sent the S&P 500 (-1.7%), Nasdaq Composite (-2.3%), and DJIA (-1.7%) firmly lower as investors grappled with diminished expectations for further Fed easing this year. 

President Trump signed a bill to fund the government through January 30, ending the longest government shutdown in U.S. history. While some viewed the move and pending data releases as potential fuel for another rate cut, uncertainty over the timing of those reports clouds the outlook for doves ahead of the December FOMC meeting. White House Press Secretary Karoline Leavitt said some reports, such as the October employment and October CPI reports, will likely never see the light of day.

The end to the government shutdown this week was largely priced in, but the market was seemingly caught off guard by recent Fed commentary, which has leaned more hawkish. 

Boston Fed President Susan Collins (voting FOMC member) said yesterday evening that "it will likely be appropriate to keep policy rates at the current level for some time," while St. Louis Fed President Alberto Musalem (voting FOMC member) said that the Fed "needs to lean against above-target inflation," according to Bloomberg. Cleveland Fed President Beth Hammack, who is not a voting FOMC member but will be in 2026, echoed a similar sentiment, saying policy should "remain somewhat restrictive to continue putting pressure to bring inflation down," according to Reuters. 

Commentary from Fed officials combined to see a further dampening in the market's expectations for a December rate cut. The CME FedWatch tool now assigns a 51.6% probability to a 25-basis-point rate cut at the December FOMC meeting, down from 62.9% yesterday and 95.5% a month ago. 

Equities retreated in response, with growth-oriented stocks incurring particularly heavy losses. 

The consumer discretionary (-2.7%) and information technology (-2.4%) sectors finished with the heaviest losses as weakness in the market's largest names pushed the Vanguard Mega Cap Growth ETF (-2.1%) to its flat line for the week. 

Tesla (TSLA 401.88, -28.72, -6.67%) was a laggard among the underperforming group, falling below its 50-day moving average (428.61). 

NVIDIA (NVDA 186.97, -6.83, -3.52%) and other chipmakers also posted weak performances, sending the PHLX Semiconductor Index (-3.7%) into negative territory for the week.

Cisco (CSCO 77.38, +3.42, +4.62%) was a rare bright spot in the technology sector after topping earnings estimates and issuing upbeat guidance for Q2 (Jan) and FY26. 

The same cannot be said for Walt Disney (DIS 107.57, -9.08, -7.78%), which was one of the worst-performing S&P 500 names after a mixed earnings report that saw the company beat EPS expectations but miss on revenues, which were down 0.5% year-over-year to $22.46 billion, marking the company's first annual revenue decline since 1Q24.

Disney's loss weighed on the communication services sector (-1.7%) and contributed to the DJIA finishing with a similar loss to that of the other major averages. 

Despite a recent trend of mega-cap weakness, the DJIA has been able to escape the past several sessions with solid gains as investors rotated into more value-oriented holdings. 

While mega-caps certainly underperformed again, today's action reflected less of a rotation and more of a broader-market sell-off. 

Eight S&P 500 sectors finished lower, and seven of those finished with losses of 1.0% or wider. Breadth figures were abysmal, with decliners outpacing advancers by a roughly 4-to-1 ratio on both the NYSE and the Nasdaq. 

While the S&P 500 Equal Weighted Index (-1.2%) still outperformed the market-weighted S&P 500 (-1.7%), it too incurred a notable loss. 

Only the energy sector (+0.3%) closed with a gain as crude oil futures settled today's session $0.24 higher (+0.4%) at $58.74 per barrel, a modest rebound from yesterday's 4.1% slide. 

The health care sector finished flat after holding a gain wider than 1.0% earlier in the session, while the consumer staples sector also managed a flat finish. 

Outside of the S&P 500, the Russell 2000 (-2.8%) and S&P Mid Cap 400 (-1.9%) incurred significant losses as the market displayed a firm risk-off posturing. 

Ultimately, today's action reflected a clear shift in sentiment as investors reassessed the policy outlook and revisited concerns of stretched valuations, leaving stocks particularly vulnerable to disappointing catalysts. The broad-based retreat, along with a sharp spike in volatility (the VIX Volatility Index surged 18.0% to 20.66), underscored growing unease about the Fed's policy path and the market's ability to sustain recent gains.

U.S. Treasuries retreated on Thursday, lifting yields on 10s and 30s back above their 50-day moving averages, though intraday action was largely uneventful. The 2-year note yield settled up two basis points to 3.59%, the 10-year note yield settled up five basis points to 4.11%, and the 30-year note yield settled up four basis points to 4.70%. 

Friday:

The stock market clawed back from steep early losses, with a tech-driven rebound lifting the S&P 500 (-0.1%) and Nasdaq Composite (+0.1%) back above their 50-day moving averages after briefly slipping below them at the open. Mixed strength in the broader market saw the DJIA (-0.7%) close with a wider loss, though it finished well off of its session lows and joined the S&P 500 in positive week-to-date territory. 

The session began much like recent ones, with mega-caps absorbing the heaviest losses and fresh hawkish Fed remarks further eroding expectations for a December rate cut. The CME FedWatch tool now places the odds of a 25-basis-point cut at 45.9%, down from 50.1% yesterday and 94.4% a week ago. Kansas City Fed President Schmid (voting FOMC member) signaled he is inclined to oppose a December cut, echoing comments from Minneapolis Fed President Kashkari (nonvoting FOMC member), who said he did not support the October move and remains unsure about December.

While the major averages faced losses over 1.0%, the technology sector showed resilience, dipping only slightly beneath its flatline. That resilience soon turned to exuberance in the midmorning, as chipmakers rallied, helping the S&P 500 and Nasdaq Composite reclaim their 50-day moving averages and move into positive territory for the day. 

The PHLX Semiconductor Index (-0.1%), which also moved beneath its 50-day moving average this morning, held gains as wide as 1.2%, though chipmakers faced some pressure this afternoon and the index closed slightly lower. Micron (MU 246.83, +9.88, +4.17%) and NVIDIA (NVDA 190.17, +3.31, +1.77%) still managed to capture solid gains, while Microsoft (MSFT 510.18, +6.89, +1.37%) and Oracle (ORCL 222.85, +5.28, +2.43%) helped the broader technology sector (+0.7%) close with a gain despite the late pressure in semiconductor names. 

As many as seven S&P 500 sectors traded higher, though only three finished in positive territory. 

The energy sector (+1.4%) was the day's top performer, supported by a 2.3% rebound in crude oil to $60.08 per barrel following Wednesday's 4.1% slide. The real estate sector (+0.3%) managed a more modest gain, while the industrials and utilities sectors finished flat. 

Losses were relatively modest compared to early session levels, though there were a few laggards. 

The materials sector (-1.2%) saw a majority of its components trade lower, while the financials sector (-1.0%) faced pressure in its major banking names.

Mixed performances across mega-cap names saw the communication services (-0.8%) and consumer discretionary (-0.6%) sectors finish lower for the day but well above session lows. The Vanguard Mega-Cap Growth ETF closed 0.2% higher. 

Meanwhile, the Russell 2000 (+0.2%) captured a gain, while the S&P Mid Cap 400 (-0.3%) closed lower after a stint above its baseline. 

Despite some late-session weakness, the market's ability to reclaim technical levels and attract buyers in key growth areas helped stabilize sentiment. At face value, the mixed finish appears to be an underwhelming end to a tough week, but under the surface, there were signs of improving breadth and renewed dip-buying interest in semiconductors and other momentum pockets. Those dynamics helped keep the major averages anchored above support and left the broader market in a firmer position heading into next week, which will see NVIDIA report its earnings on Wednesday. 

U.S. Treasuries finished a bumpy abbreviated week with losses across the curve after sliding from their opening highs. The 2-year note yield settled up two basis points to 3.61% (+5 basis points this week), and the 10-year note yield settled up four basis points to 4.15% (+6 basis points this week).