After Hours Report

The major averages started the week on a lower note as a sharp selloff in semiconductor stocks and another increase in crude oil overshadowed strength across software, defensive groups, and select mega-cap names. The S&P 500 (-0.5%), Nasdaq Composite (-0.6%), and DJIA (-0.3%) finished with modest losses after spending much of the session well below their opening levels, while the S&P 500 Equal Weighted Index ended unchanged.

Selling was considerably more pronounced during the morning, when the S&P 500 briefly slipped below 7,600 as crude oil topped $104 per barrel and the 10-year note yield moved above 5.0%. Those pressures moderated as the day progressed, allowing the major averages to recover a sizable portion of their early declines.

The retreat in oil from its session high was an important factor behind the market's recovery. WTI crude settled $1.15 higher (+1.2%) at $101.23 per barrel, well below its morning peak. The initial surge followed the shutdown of Saudi Arabia's East-West pipeline and the postponement of planned discussions between Gulf states and Iran regarding shipping through the Strait of Hormuz. Some of the geopolitical pressure subsequently eased after President Trump said Iran wants to reach an agreement quickly and that the U.S. is open to talks.

The day's most pronounced weakness was concentrated in semiconductor and AI infrastructure stocks. The PHLX Semiconductor Index plunged 5.9%, dragging the information technology sector (-1.7%) lower as renewed debate surrounding AI safety raised the possibility that development of increasingly powerful models could eventually face constraints. Weakness spilled into other beneficiaries of the AI infrastructure buildout, contributing to the industrials sector's (-1.4%) decline. Corning (GLW 143.50, -22.90, -13.76%), Teradyne (TER 329.20, -50.52, -13.30%), and Coherent (COHR 266.50, -38.87, -12.73%) were among the worst-performing S&P 500 components, with Corning facing the additional headwind of a prospectus supplement related to an equity distribution agreement covering up to $2 billion of common stock.

OpenAI CEO Sam Altman's indication that an IPO this year would be ill-advised provided another talking point surrounding the AI landscape.

The other side of the AI trade looked dramatically different. The iShares GS Software ETF surged 5.0%, led by outsized gains in cybersecurity stocks as concerns surrounding increasingly autonomous AI systems drew greater attention to potential security threats. CrowdStrike (CRWD 235.38, +28.64, +13.85%), Palo Alto Networks (PANW 373.94, +43.29, +13.09%), and Gartner (IT 197.07, +17.48, +9.73%) finished among the best-performing S&P 500 components, creating a stark contrast with the heavy selling across semiconductor stocks.

Strength elsewhere also helped keep the broader market's losses relatively contained. Alphabet (GOOG 345.71, +10.26, +3.06%) and Meta Platforms (META 665.60, +17.57, +2.71%) powered the communication services sector (+2.8%) to the top of the standings, while investors also gravitated toward defensive areas.

The health care (+1.4%) and consumer staples (+1.3%) sectors posted solid gains, with Kroger (KR 60.91, +2.42, +4.14%) extending its positive momentum following last week's earnings report. The utilities sector (-1.3%) was a notable exception to the defensive strength.

Monday's session ultimately featured a sharp rotation beneath relatively modest losses for the major averages. Semiconductor and AI infrastructure stocks bore the brunt of the selling, while software, cybersecurity, communication services, and defensive groups provided meaningful offsets. The recovery from the morning lows also coincided with some easing in two major macro headwinds as crude retreated from above $104 and the 10-year yield moved back below 5.0%, although soft market breadth suggested buying interest remained selective. Attention now shifts to Wednesday's FOMC decision as the week's primary scheduled catalyst.

There was no economic data of note today.

U.S. Treasuries began the week with modest gains in most tenors after an early continuation of last week's selling found mid-morning resistance, sparking a shallow bounce. The 2-year note yield settled down one basis point to 4.63% and the 10-year note yield settled down one basis point to 4.96%. 

• Russell 2000: +16.5% YTD
• Nasdaq Composite: +12.7% YTD
• S&P Mid Cap 400: +11.3% YTD
• S&P 500: +11.3% YTD
• DJIA: +9.1% YTD

There was no economic data of note today. 

 Overseas:

• Europe: DAX -0.6%, FTSE +0.4%, CAC -0.8%
• Asia: Nikkei -0.8%, Hang Seng +0.5%, Shanghai -0.1%

Commodities:

• Crude Oil +1.15 @ 101.23
• Nat Gas +0.05 @ 2.89
• Gold -56.80 @ 4352.30
• Silver -1.06 @ 64.16
• Copper -0.14 @ 6.41

After-Hours Spotlight:

• BCE (BCE) signs Saskatchewan MOU to expand Bell AI Fabric by up to 900 MW...BCE -0.1%
• Dave & Buster's (PLAY) misses on EPS and revs...PLAY -13%
• Ecolab (ECL): Director bought 3,690 shares at $276.58 - $277.29 worth ~$1.02 mln...ECL +0.7%
• Enova International (ENVA) withdraws bank regulatory applications; reaffirms guidance...ENVA -18.9%
• Kestra Medical Technologies (KMTS) Reports First Quarter Fiscal 2027 Financial Results...KMTS -11.1%
• NVIDIA (NVDA) CEO Jensen Huang spoke with President Trump by phone about recent AI concerns, according to Axios...NVDA +0.6%
• Radiant Logistics (RLGT) announces Q4 results...RLGT +7.2%
• Revolution Medicines (RVMD) gets FDA Breakthrough Therapy tag for RASONQUE combo in first-line metastatic pancreatic cancer...RVMD +0.2%
• Tempus AI (TEM) CEO backs Anthropic's Dario Amodei in call to slow AI development, according to Bloomberg...TEM -0.2%

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

• Earnings/Guidance (Full Earnings Calendar):
  • Coda Octopus (CODA) reports Q3 results
  • CoinShares International Limited (CSHR) announces first half 2026 results; says digital asset prices recovered from their June 30 levels
  • Hub Group (HUBG) guides FY26 revenue in-line and provides select preliminary results for 1H26
  • NextEra Energy maintains 2026 EPS outlook, targets high end (D); sees 9%+ growth following Dominion combination
• General News
  • Trilogy Metals closes $35.6 mln strategic equity investment by the U.S. Department of War
  • Elmet lands $450 mln Department of War investment; secures up to $2 bln stockpile agreement
  • President Trump signed into law several items on Friday
  • Tariff on Irish whiskey to be scrapped (STZ, BF.B) WSJ
  • AI company leaders worried about speed of development (SPCX, MSFT) WSJ
  • Anthropic to list on the NASDAQ Business Insider
  • TransAlta confirms that its subsidiary, TransAlta Centralia Generation LLC, has received an order from the United States Department of Energy
  • Agents tested by OpenAI attacked multiple targets (MSFT) Reuters
  • Amazon suspends operations with 21 Air (AMZN) WSJ
  • Apollo looking to buy unit from Johnson & Johnson (APO, JNJ) Bloomberg
  • Armata Pharmaceuticals (ARMP) Receives U.S. FDA Breakthrough Therapy Designation for AP-SA02
  • AstraZeneca (AZN) announces update on SERENA-4 Phase III trial of Etcamah in combination with palbociclib; did not meet primary objective
  • AstraZeneca says TAGRISSO showed 8-year survival benefit in Phase III ADAURA trial (AZN)
  • AstraZeneca's Etcamah (AZN) misses primary endpoint in Phase III first-line breast cancer trial
  • AstraZeneca, Daiichi Sankyo's ENHERTU met Phase III PFS endpoint in first-line HER2-mutant NSCLC (AZN)
  • Baker Hughes secures major Venture Global orders for pipeline compression and Plaquemines LNG expansion (BKR)
  • Bally's Corporation secures new financing led by WhiteHawk Capital Partners to fund further development of the Bally’s Bronx project and general corporate purposes (BALY)
  • Beta Bionics (DXCM) gets FDA clearance for Mint patch pump; submits 3D Intelligence algorithm via 510(k)
  • Boeing awarded a $13.4 bln modification to previously awarded Air Force contract for the addition of Foreign Military Sales scope of work (BA)
  • COMPASS Pathways: Strata Mental Health awarded U.S. healthcare provider training grant from Compass Pathways (CMPS)
  • Cullinan, Taiho report Phase III REZILIENT3 met PFS endpoint for zipalertinib plus chemo in first-line NSCLC (CGEM)
  • Definium says Phase 3 Panorama study of DT120 ODT in GAD met primary, all key secondary endpoints (halted) (DFTX)
  • Definium to webcast Phase III Panorama topline GAD results Sept. 14 (DFTX)
  • Elemental Royalty Corporation has been added to the MVIS Global Junior Gold Miners Index, the underlying benchmark index for the VanEck Junior Gold Miners ETF (INDXCH)
  • EverCommerce boosts buyback authorization by $25 mln, extends program through Dec. 31, 2027 (EVCM)
  • Flowserve (FLS) names Brian Ezzell CFO, effective Oct. 1, 2026
  • GSK-licensed Ris-Rez cuts risk of death 54% in Phase III relapsed small cell lung cancer trial
  • Hormel (HRL) launches SPAM Hot Honey, partners with Win Son Bakery on limited-time menu
  • HSBC looking for CFO (HSBC) Bloomberg
  • Hub Group (HUBG) names Patrick O'Donnell CFO-elect; David Yeager returns as CEO
  • Johnson & Johnson's RYBREVANT plus chemotherapy shows final OS benefit in Phase III PAPILLON study (HALO)
  • L'Oreal sued in Arizona over cancer risk (LRLCY) Reuters
  • MediWound (MDWD) announces that the independent Data and Safety Monitoring Board completed its pre-specified periodic safety review of the ongoing Phase III VALUE study evaluating the safety and efficacy of EscharEx in patients with venous leg ulcers
  • Nanobiotix reports encouraging Phase I JNJ-1900 lung cancer data; additional enrollment planned
  • NVIDIA looking to invest in Anthropic (NVDA) Reuters
  • Pfizer seeking payment for unwanted/unused COVID shots (PFE) WSJ
  • Phreesia partners with DeepIntent to add ProviderConnect audiences to marketplace (PHR)
  • Restaurant Brands Int'l (QSR) announces that the Toronto Stock Exchange accepted notice of its intention to renew its normal course issuer bid, which is being conducted in furtherance of the board-approved share repurchase authorization allowing for repurchase up to 1.0 bln of common shares
  • Roche's Tam-Peli cuts risk of death 54% in Phase III relapsed small-cell lung cancer trial (RHHBY)
  • Scholar Rock (SRRK) receives FDA approval for ISEMBYLD in spinal muscular atrophy; U.S. launch underway
  • Senseonics partners with Beta Bionics (BBNX) to integrate Eversense 365 with iLet system
  • SL Green says 2026 Manhattan office leasing reaches nearly 1.76 mln sq. ft.; pipeline tops 1.0 mln sq. ft. (SLG)
  • Summit partner Akeso (MRK) reports ivonescimab OS win over pembrolizumab in Phase III NSCLC study
  • TAT Technologies partners with Beyond Aero on thermal management for hydrogen-electric aircraft program (TATT)
  • Telix (TLX) wins FDA approval for Pixclara brain cancer imaging drug
  • TuHURA (HURA) gets FDA IND clearance for TBS-2025 AML study
  • VinFast (VFS) names Pham Nhat Quan Anh CEO, succeeding founder Pham Nhat Vuong

• Upgrades:
  • Affirm (AFRM) upgraded to Outperform from Peer Perform at Wolfe Research, tgt $90
  • Allegiant Travel (ALGT) upgraded to Buy from Neutral at UBS, tgt $107
  • CEVA (CEVA) upgraded to Buy from Hold at StoneX, tgt $42
  • 4D Molecular Therapeutics (FDMT) upgraded to Overweight from Neutral at Cantor Fitzgerald, tgt $20
  • IREN (IREN) upgraded to Overweight from Underweight at JPMorgan, tgt $65
  • Rogers Communications (RCI) upgraded to Buy from Hold at Desjardins
  • Somnigroup (SGI) upgraded to Overweight from Equal Weight at Stephens, tgt $80
  • ZIM Integrated Shipping Services (ZIM) upgraded to Equal Weight from Underweight at Barclays, tgt $30
• Downgrades:
  • Accenture (ACN) downgraded to Equal Weight from Overweight at Wells Fargo, tgt $194
  • Addus HomeCare (ADUS) downgraded to Neutral from Buy at BofA, tgt $125
  • Crown Castle (CCI) downgraded to Underweight from Neutral at JPMorgan, tgt $80
  • Charter Communications (CHTR) downgraded to Underperform from Peer Perform at Wolfe Research, tgt $118
  • Dick's Sporting Goods (DKS) downgraded to Neutral from Outperform at Robert W. Baird, tgt $150
  • Energy Recovery (ERII) downgraded to Neutral from Buy at Seaport Research
  • GE Aerospace (GE) downgraded to Hold from Buy at Melius Research, tgt $350
  • HEICO (HEI) downgraded to Hold from Buy at Melius Research, tgt $350
  • Honeywell International (HON) downgraded to Hold from Buy at Melius Research, tgt $190
  • HP Enterprise (HPE) downgraded to In Line from Outperform at Evercore ISI, tgt $65
  • Lennox International (LII) downgraded to Hold from Buy at Deutsche Bank, tgt $444
  • MARA Holdings (MARA) downgraded to Underweight from Overweight at JPMorgan, tgt $11
  • McCormick (MKC) downgraded to Hold from Buy at TD Cowen, tgt $55
  • Rocky Brands (RCKY) downgraded to Neutral from Outperform at Robert W. Baird, tgt $50
  • Stellantis (STLA) downgraded to Underweight from Equal Weight at Morgan Stanley, tgt $5.20
  • TransDigm (TDG) downgraded to Hold from Buy at Melius Research, tgt $1,331
  • VF Corp. (VFC) downgraded to Neutral from Outperform at Robert W. Baird, tgt $15
  • Woodward (WWD) downgraded to Hold from Buy at Melius Research, tgt $388
• Others:
  • Algonquin Power & Utilities (AQN) initiated with an Outperform at Huntington, tgt $7
  • Banc of California (BANC) initiated with a Neutral at UBS, tgt $20
  • Chesapeake Utilities (CPK) initiated with an Outperform at Huntington, tgt $150
  • Deere (DE) initiated with an Outperform at CICC, tgt $760
  • First Citizens BancShares (FCNCA) resumed with a Neutral from Buy at UBS, tgt $2,250
  • F.N.B. Corporation (FNB) initiated with a Neutral at UBS, tgt $20
  • GE Vernova (GEV) initiated with a Sell at GLJ Research, tgt $470
  • GSI Technology (GSIT) initiated with a Buy at Needham, tgt $9
  • InflaRx (IFRX) initiated with a Buy at Needham, tgt $8
  • James Hardie Industries (JHX) initiated with a Buy at Loop Capital, tgt $35
  • Korsana Biosciences (KRSA) initiated with a Buy at Stifel, tgt $43
  • Korsana Biosciences (KRSA) initiated with a Buy at TD Cowen
  • Lyntris (LYNX) initiated with a Buy at BofA, tgt $21
  • Lyntris (LYNX) initiated with a Buy at Guggenheim, tgt $20
  • Lyntris (LYNX) initiated with an Outperform at Evercore ISI, tgt $22
  • Lyntris (LYNX) initiated with an Outperform at Raymond James, tgt $18
  • Lyntris (LYNX) initiated with an Outperform at William Blair
  • New Jersey Resources (NJR) initiated with an Outperform at Huntington, tgt $68
  • NET Power (NPWR) initiated with an Outperform at Northland, tgt $2.75
  • Northwest Natural Gas (NWN) initiated with an Outperform at Huntington, tgt $58
  • RGC Resources (RGCO) initiated with an Outperform at Huntington, tgt $27
  • Spire (SR) initiated with an Outperform at Huntington, tgt $93
  • T1 Energy (TE) initiated with a Neutral at JPMorgan, tgt $5
  • UGI Corporation (UGI) initiated with an Outperform at Huntington, tgt $54
  • UMB Financial (UMBF) initiated with a Neutral at UBS, tgt $155
  • Unitil Corporation (UTL) initiated with an Outperform at Huntington, tgt $63
  • X-Energy (XE) initiated with a Buy at Texas Capital, tgt $22
  • Zions Bancorp (ZION) resumed with a Buy from Neutral at UBS, tgt $78

• Econ Data (Tuesday):
  • 8:30 ET: September Empire State Manufacturing (Briefing.com consensus 14.1; prior 20.6)

• Earnings:
  • Monday (September 14)
    • Pre-Market: None
    • After-Hours: PLAY
  • Tuesday (September 15)
    • Pre-Market: None
    • After-Hours: TCOM
  • Wednesday (September 16)
    • Pre-Market: None
    • After-Hours: LEN
  • Thursday (September 17)
    • Pre-Market: None
    • After-Hours: None
  • Friday (September 18)
    • Pre-market: None
    • Afternoon: None