After Hours Report

Wednesday's session ended with modest losses for the major averages, but the relatively mild declines at the index level understated considerably weaker performance across the broader market. The S&P 500 (-0.2%) and Nasdaq Composite (-0.2%) finished near their best levels of the day after recovering from much steeper morning losses, while the DJIA (-0.7%) remained a notable laggard.

The recovery was concentrated largely among mega-cap and technology stocks and accelerated as Treasury yields retreated from their morning highs. The 10-year note yield climbed as high as 5.36% before a strong $39 billion 10-year note reopening helped spark a rebound across the Treasury market. Stocks responded favorably, although the improvement did not spread meaningfully to many of the areas that had been hit hardest by elevated borrowing costs.

That divergence was evident in the Russell 2000 (-1.3%) and S&P Mid Cap 400 (-1.6%), which remained near their session lows despite the recovery in the major averages. Rate-sensitive pockets of the market also stayed under pressure, leaving the iShares U.S. Home Construction ETF down 2.6%.

The industrials sector (-2.1%) was the day's weakest performer, pressured by steep losses among several recent winners tied to the AI-infrastructure trade. Caterpillar (CAT 813.72, -49.72, -5.76%) was among the S&P 500's biggest decliners, with the stock also facing company-specific pressure after the FTC and USDA sought public comment on agricultural equipment manufacturing and distribution market practices.

The materials sector (-1.5%) and real estate sector (-1.3%) were also notable laggards. Gold and silver settled lower as elevated Treasury yields and a stronger dollar weighed on precious metals, pressuring Newmont Corporation (NEM 113.55, -2.84, -2.44%) and other mining-related names.

Meanwhile, the improvement in mega-cap and technology stocks helped the information technology sector narrow its decline to just 0.1%, while the Vanguard Mega Cap Growth ETF finished down 0.2%. Apple (AAPL 336.67, +3.04, +0.91%) posted a solid gain, and the PHLX Semiconductor Index recovered from a much steeper morning decline to finish down 1.2%. Memory names Micron (MU 1088.00, +42.44, +4.06%) and Sandisk (SNDK 1692.42, +31.96, +1.92%) bucked the broader semiconductor weakness with gains.

The consumer discretionary sector (+0.2%) also reversed an earlier loss as Amazon (AMZN 259.92, +3.63, +1.42%) emerged as a mega-cap standout, while the communication services sector finished flat.

SpaceX (SPCX 167.66, -4.26, -2.48%) remained under pressure after the Financial Times reported that the company is seeking $40 billion in financing to purchase NVIDIA (NVDA 237.36, -1.88, -0.79%) AI chips, including roughly $10 billion in bank loans and $30 billion in investment-grade debt.

Defensive areas provided support throughout the session. The health care sector (+1.1%) led the market, with Eli Lilly (LLY 1188.60, +31.11, +2.69%) and Moderna (MRNA 196.48, +9.02, +4.81%) among the notable gainers. The consumer staples sector (+0.1%) also attracted some defensive interest, with Constellation Brands (STZ 118.39, +2.72, +2.35%) advancing following its earnings report.

The market had a muted response to the release of the September FOMC minutes, which showed that most policymakers see a high likelihood of another rate hike by year-end. That view was largely consistent with existing market expectations for another 25-basis-point increase before the end of the year.

Ultimately, the afternoon recovery softened the losses for the S&P 500 and Nasdaq, but it did little to change the day's weaker underlying picture. The retreat in Treasury yields provided relief for mega-cap and technology stocks, while smaller companies and other rate-sensitive areas remained under pronounced pressure, leaving the broader market notably weaker than the major averages suggested.

U.S. Treasuries recovered sharply from early losses on Wednesday, helped by fading oil prices and strong demand for the $39 billion 10-year note reopening. The 2-year note finished higher, while longer tenors remained modestly lower after the 10- and 30-year yields reached fresh 2026 highs earlier in the session. The 2-year note yield settled down two basis points to 4.77%, and the 10-year note yield settled up one basis point to 5.28%. 

• Nasdaq Composite: +18.5% YTD
• S&P 500: +14.0% YTD
• Russell 2000: +12.5% YTD
• S&P Mid Cap 400: +10.1% YTD
• DJIA: +6.5% YTD

Reviewing today's data: 

• The weekly MBA Mortgage Index was down 4.2% to follow last week's 6.0% decrease. The Refinance Index was down 7.5% while the Purchase Index was down 2.1%.
• Weekly crude oil inventories decreased by 3.19 mln barrels after increasing by 922,000 barrels a week ago.
• Consumer credit increased by $8.3 billion in August (Briefing.com consensus $15.2 bln) while the July increase was revised down to $17.7 billion from $18.1 billion.
  
  • Revolving credit decreased by $4.8 billion while nonrevolving credit was up $13.1 billion.

Overseas:

• Europe: DAX -1.4%, FTSE -0.8%, CAC -1.2%
• Asia: Nikkei -0.9%, Hang Seng -0.6%, Shanghai market closed

Commodities:

• Crude Oil +0.11 @ 89.44
• Nat Gas +0.04 @ 3.11
• Gold +30.90 @ 4188.30
• Silver +0.29 @ 61.61
• Copper +0.01 @ 6.65

After-Hours Spotlight:

• Applied Digital (APLD) beats by $0.29, beats on revs...APLD +2.0%
• Centinel Spine (CNTL) files IPO prospectus with the SEC; Number of shares offered and expected price range not yet determined
• Costco (COST) September comparable sales rise 11.4%; e-commerce sales up 19%...COST -0.3%
• General Dynamics (GD) names Danny Deep CEO effective Jan. 1; Phebe Novakovic to become executive chairman...GD -0.2%
• Levi Strauss (LEVI) beats by $0.12, misses on revs; provides Q4 (Dec) and FY26 guidance; Board authorizes $0.100 bln buyback program...LEVI -1.6%
• Profound Medical (PROF) guides Q3 revenue above consensus...PROF +19.7%
• Starbucks (SBUX) increases quarterly dividend to $0.63/share from $0.62/share...SBUX+0.1%
• Valneva SE (VALN)provides update on IXCHIQ in the United Kingdom...VALN -3.6%
• Wolfspeed (WOLF) announces conditional 30-year, $1.5 bln loan commitment from U.S. Department of War to advance domestic wide bandgap supply chain...WOLF +26.5%

For a full rundown of today's market and after hours developments, see Live In Play

• Earnings/Guidance (Full Earnings Calendar):
  • BioMarin Pharmaceutical (BMRN) discloses that it expects GAAP and non-GAAP financial results for Q3 to include pre-tax charges of approximately $283 mln of acquired in-process research and development expense
  • Constellation Brands (STZ) beats by $0.19, beats on revs; reaffirms FY27 EPS guidance; acquired Spikedade subsequent to the quarter
  • Helmerich & Payne (HP) provides Q4 outlook, expects direct margins for North America Solutions, International Solutions, and Offshore Solutions businesses all at or near the high-end of the previously issued guidance ranges
  • Neogen (NEOG) beats by $0.03, beats on revs; provides FY27 guidance
  • OR Royalties (OR) issues Q3 guidance, including revenues from royalties and streams
  • Penguin Solutions (PENG) beats by $0.23, beats on revs; guides FY27 EPS above consensus, revs above consensus
  • Triple Flag Precious Metals (TFPM) Corp posts Q3 revenue of $106.7 mln, sees FY26 GEO sales between midpoint and high end of guidance
  • Worthington Steel (WS) misses by $0.35, misses on revs
  • ZIM Integrated Shipping (ZIM) raises full-year adjusted EBITDA guidance
• General News
  • Skydance announces Board, adding Ynon Kreiz, Laurene Powell Jobs and Bobby Kotick as Directors and Tony Blair as Advisor
  • President Trump will make an announcement from the White House at 1:00 PM ET, per White House schedule
  • Vice President JD Vance says Iran must make meaningful reductions in nuclear enrichment to meet U.S. demands. He said U.S. U.S. speaking with Iranian officials. Reuters
  • French Finance Minister Roland Lescure says France is ready to use emergency powers to cut billions in spending without parliamentary vote. WSJ
  • Houthis attacked two airports in Saudi Arabia. WSJ
  • President Trump will speak with Russian President Putin soon to discuss the pneumonic plague. NBC News
  • Tropical Storm Isaias formed and could hit the U.S. Gulf coast as a hurricane this weekend. CBS News
  • Supreme Court appears likely to allow private equity to get involved in retirement accounts. WSJ
  • Aehr Test Systems (AEHR) receives follow-on Sonoma production orders for lead hyperscale customer's next-generation AI processor
  • Aperture AC (APUR) and Atlantic HPC Group Inc. announce that Leo Lin has been appointed CEO, effective October 1, 2026
  • Apollo Global Management (APO) aiming to submit offer to acquire Uniper, according to Reuters
  • Apple (AAPL) planning smart home expansion with LG-developed doorbell, lock, thermostat and other devices, according to Bloomberg
  • Arvinas (PFE) posts Phase 1 ARV-102 Parkinson's data showing oculomotor and biomarker changes
  • Avient (AVNT) increases quarterly cash dividend to $0.2825/share from $0.2750/share
  • Avis Budget (CAR) discloses it was paid a settlement amount of $650 mln in cash
  • Azenta (AZTA) approves Multiomics restructuring; to cut jobs and close three North American labs – 8-K filing
  • Ballard Power (BLDP) lands 4.8 MW fuel cell order from Siemens Mobility for Romanian hydrogen train fleet
  • Bausch (BLCO) + Lomb says FDA meeting supports path for BL1243 dry AMD program
  • Butterfly Network (BFLY) partners with Bridge Neurotech on non-invasive brain-computer interface
  • Circle (CRCL) partners with SAP-backed Tereina to bring USDC and EURC into SAP payment workflows
  • CLEAR (YOU) selected by VA for VA.gov identity pilot
  • Curtiss-Wright (CW) CFO Farkas retires; Gary Ogilby named interim CFO
  • ERock (MSFT) signs multi-year engine long block supply deal with Hyundai unit through 2028
  • EU (AAPL) considering more taxes on large U.S. technology firms (AAPL, AMZN, META, MSFT, NVDA, XLK). FT
  • Fair Isaac (FICO) to cut about 15% of workforce in restructuring – 8-K filing
  • Gilat (GILT) wins over $10 mln in additional SkyEdge IV orders from satellite operator
  • Intel (INTC) aims to continue work with Elon Musk on Terafab. Bloomberg
  • JetBlue Airways (JBLU) wins FAA approval to take over Spirit's LaGuardia slots, according to Bloomberg
  • Marex (MRX) Group plc names former CME CFO John Pietrowicz Chair following Robert Pickering departure
  • Micron (MU) workers at Taiwan union to strike, according to Reuters
  • Northpointe Bancshares (NPB) announces 20% increase in quarterly cash dividend to $0.03/share from $0.025/share
  • SpaceX (SPCX): Barron's out positive on SPCX
  • SpaceX (SPCX) looking to raise $40 bln to purchase Nvidia chips. FT
  • Taiwan Semiconductor Manufacturing (TSM) and peers in Taiwan boosting AI spending in US and Southeast Asia as global AI demand grows, according to Nikkei
  • TechnipFMC (FTI) wins Petrobras flexibles contract for offshore Brazil
  • TOYO (TOYO) completes 2 GW Texas solar module expansion, outlines HJT cell line for Q1 2028
  • Tutor Perini (TPC) unit Fisk Electric wins $24 mln Houston data center electrical contract
  • UK officials investigated Manchester (MANU) City in 2018 over tax issues. FT
  • Unity (GOOG) partners with Google (GOOG / GOOGL) on AI gaming creation platform
  • USANA (USNA) partners with University of Utah Athletics
  • Valaris (E) reports about $220 mln of new contract awards and extensions
  • Webull (BULL) Corporation: Congressional panel will declare that BULL's China connections create a national security risk, according to CNBC
  • Zenas BioPharma (ZBIO) to present multiple sclerosis data and Phase 3 trial designs for orelabrutinib at MSToronto2026

• Upgrades:
  • Afya (AFYA) upgraded to Overweight from Neutral at JPMorgan, tgt $19
  • Corteva (CTVA) upgraded to Overweight from Sector Weight at KeyBanc, tgt $17
  • Flutter Entertainment (FLUT) upgraded to Buy from Neutral at Citi, tgt $91
  • Humana (HUM) upgraded to Overweight from Neutral at Cantor Fitzgerald, tgt $460
  • Kroger (KR) upgraded to Outperform from Neutral at BNP Paribas, tgt $72
  • Marvell (MRVL) upgraded to Buy from Hold at TD Cowen, tgt $350
  • Moelis (MC) upgraded to Neutral from Sell at UBS, tgt $59
  • NetApp (NTAP) upgraded to Outperform from In Line at Evercore ISI, tgt $300
  • Nexa Resources (NEXA) upgraded to Overweight at Morgan Stanley, tgt $14.20
  • nLight (LASR) upgraded to Buy from Neutral at Northcoast, tgt $75
  • Old Dominion Freight Line (ODFL) upgraded to Peer Perform from Underperform at Wolfe Research
  • XPO (XPO) upgraded to Buy from Neutral at Citi, tgt $224
• Downgrades:
  • Ambev (ABEV) downgraded to Underperform from Neutral at BofA, tgt $3.30
  • AppFolio (APPF) downgraded to Neutral from Buy at UBS, tgt $220
  • Builders FirstSource (BLDR) downgraded to Sector Perform at RBC Capital, tgt $62
  • Caribou Biosciences (CRBU) downgraded to Market Perform from Outperform at Leerink, tgt $1
  • Caribou Biosciences (CRBU) downgraded to Sector Perform from Outperform at RBC Capital, tgt $1
  • Eni (E) downgraded to Neutral from Outperform at BNP Paribas, tgt $56.30
  • Owens Corning (OC) downgraded to Sector Perform from Outperform at RBC Capital, tgt $127
  • PJT Partners (PJT) downgraded to Market Perform from Outperform at Keefe, Bruyette & Woods, tgt $159
  • UWM Holdings (UWMC) downgraded to Market Perform from Outperform at Keefe, Bruyette & Woods, tgt $1.50
• Others:
  • Abbott Laboratories (ABT) initiated at Overweight at Barclays, tgt $120
  • Alcon (ALC) initiated at Equal Weight at Barclays, tgt $70
  • Ambiq Micro (AMBQ) initiated at Buy at Jefferies, tgt $90
  • Anteris Technologies Global (AVR) initiated at Equal Weight at Barclays, tgt $10
  • Atour Lifestyle Holdings (ATAT) initiated at Buy at HSBC, tgt $39.70
  • AxoGen (AXGN) initiated at Overweight at Barclays, tgt $55
  • Bausch + Lomb (BLCO) initiated at Overweight at Barclays, tgt $24
  • Baxter International (BAX) initiated at Underweight at Barclays, tgt $20
  • Beta Bionics (BBNX) initiated at Overweight at Barclays, tgt $30
  • Boston Scientific (BSX) initiated at Equal Weight at Barclays, tgt $48
  • Brown & Brown (BRO) initiated at Outperform at Oppenheimer, tgt $73
  • Citizens Financial Group (CFG) initiated at Strong Buy at Raymond James, tgt $77
  • Cooper Companies (COO) initiated at Equal Weight at Barclays, tgt $60
  • DexCom (DXCM) initiated at Overweight at Barclays, tgt $115
  • Eagle Bancorp (EGBN) initiated at Outperform at Hovde Group, tgt $37
  • Edwards Lifesciences (EW) initiated at Overweight at Barclays, tgt $110
  • GE HealthCare (GEHC) initiated at Overweight at Barclays, tgt $85
  • Honeywell Aerospace (HONA) initiated at Neutral at Goldman Sachs, tgt $190
  • Humacyte (HUMA) initiated at Equal Weight at Barclays, tgt $0.50
  • Inspire Medical Systems (INSP) initiated at Underweight at Barclays, tgt $65
  • Insulet (PODD) initiated at Equal Weight at Barclays, tgt $150
  • Intuitive Surgical (ISRG) initiated at Overweight at Barclays, tgt $485
  • Invesco (IVZ) assumed at Buy at UBS, tgt $41
  • LivaNova (LIVN) initiated at Overweight at Barclays, tgt $105
  • M&T Bank (MTB) initiated at Outperform at Raymond James, tgt $250
  • Medtronic (MDT) initiated at Equal Weight at Barclays, tgt $95
  • MiniMed Group (MMED) initiated at Equal Weight at Barclays, tgt $22
  • Procept BioRobotics (PRCT) initiated at Overweight at Barclays, tgt $30
  • SailPoint (SAIL) initiated at Outperform at Oppenheimer, tgt $30
  • Savara (SVRA) initiated at Overweight at JPMorgan, tgt $12
  • Senseonics Holdings (SENS) initiated at Equal Weight at Barclays, tgt $10
  • Solstice Advanced Materials (SOLS) initiated at Buy at Seaport Research, tgt $80
  • Stryker (SYK) initiated at Overweight at Barclays, tgt $375
  • Tandem Diabetes Care (TNDM) initiated at Equal Weight at Barclays, tgt $18
  • TransMedics Group (TMDX) initiated at Overweight at Barclays, tgt $120
  • Vylor (VYLR) initiated at Sector Weight at KeyBanc, tgt $78
  • Zimmer Biomet (ZBH) initiated at Equal Weight at Barclays, tgt $100

• Econ Data (Thursday):
  • 8:30 ET: Weekly Initial Claims (Briefing.com consensus 200,000; prior 197,000), Continuing Claims (prior 1.701 mln)
  • 10:00 ET: August Wholesale Inventories (Briefing.com consensus 0.7%; prior 1.3%) 
  • 10:30 ET: Weekly natural gas inventories (prior +64 bcf)

• Earnings:
  • Monday (October 5)
    • Pre-Market: None
    • After-Hours: None
  • Tuesday (October 6)
    • Pre-Market: APOG, LW, NEOG, RPM
    • After-Hours: PENG, STZ, WS
  • Wednesday (October 7)
    • Pre-Market: None
    • After-Hours: APLD, LEVI
  • Thursday (October 8)
    • Pre-Market: HELE, PEP
    • After-Hours: None
  • Friday (October 9)
    • Pre-market: DAL
    • Afternoon: None