After Hours Report

Wednesday's session ended on a decidedly weaker note after a sharp final-hour selloff erased earlier gains, putting an exclamation point on a September marked by increasingly narrow market leadership. The S&P 500 (-0.3%) and DJIA (-0.9%) finished near their session lows, while the Nasdaq Composite (+0.2%) held onto a slim gain despite giving back most of an earlier 1.0% advance.

The reversal left the S&P 500 down 0.5% for September and the DJIA down 4.3%, while the Nasdaq Composite still finished the month with a 1.9% gain. That divergence reflected one of the defining features of September: strength in mega-cap growth and AI-related stocks contrasted with considerably weaker performance across much of the broader market. That pattern was evident again for much of today's session. The Vanguard Mega Cap Growth ETF rose 0.4% and finished September up 3.2%, while the information technology sector (+0.6%) was the day's best-performing sector and gained 4.4% for the month.

Software stocks were particularly strong, with the iShares Expanded Tech-Software Sector ETF (IGV) gaining 1.2%. Semiconductor stocks were little changed today, leaving the PHLX Semiconductor Index flat, but the group was one of September's clear standouts with a 9.5% monthly gain.

Micron (MU 1065.11, +0.03, +0.00%) will put that strength back in focus when it reports earnings after today's close, with investors looking for indications that strong memory pricing and AI-related demand can continue to support growth as capital spending rises.

There were several pronounced moves elsewhere in the technology landscape. Hewlett Packard Enterprise (HPE 63.89, +2.40, +3.90%) was a standout after raising its Networking outlook and increasing its expected Juniper cost synergies ahead of its Networking Investor Day. Jabil (JBL 286.76, -32.08, -10.06%), meanwhile, was among the session's weakest stocks despite better-than-expected results and an upbeat outlook, as elevated expectations surrounding its AI-driven growth prospects tempered the response.

The communication services sector (flat) surrendered a sizable earlier gain as Meta Platforms (META 725.18, -13.61, -1.84%) and Alphabet (GOOG 340.74, +3.42, +1.01%) sold off sharply into the close, contributing to the broader market's late retreat. Still, the sector gained 4.3% in September.

The consumer discretionary sector (+0.1%) was the only other S&P 500 sector to finish above its flat line today, supported by strength in Amazon (AMZN 249.15, +2.48, +1.01%).

Weakness was much more pronounced elsewhere by the close. The consumer staples sector (-1.7%) finished at the bottom of the standings, followed by the health care (-1.4%), industrials (-1.3%), and financials (-1.2%) sectors. Moderna (MRNA 192.57, -10.89, -5.35%) was a notable laggard in the health care sector after being downgraded to Sell from Neutral at Citigroup.

Breadth deteriorated substantially as the session progressed, with decliners ultimately outpacing advancers by roughly 9-to-5 on the NYSE and by a slim margin on the Nasdaq. The Russell 2000 (-0.3%) and S&P Mid Cap 400 (-0.5%) also finished lower, extending their September losses to 5.3% and 4.3%, respectively. Their monthly declines stand in sharp contrast to the gains for mega-cap growth, technology, and semiconductor stocks and underscore just how concentrated the market's September leadership became.

Earlier support came from slightly cooler-than-expected inflation data. The August PCE Price Index increased 0.3% month-over-month (Briefing.com consensus: 0.4%), while the core PCE Price Index rose 0.2% (Briefing.com consensus: 0.3%). The data increased expectations for the Fed to leave rates unchanged at its October meeting, although Treasury yields remained elevated and provided little relief for the broader market as inflation still remains firmly above the Fed's target. 

Crude oil also moved higher after yesterday's sharp decline, settling $1.28 higher (+1.4%) at $90.54 per barrel. CNBC reported that crude oil exports through the Strait of Hormuz have returned to pre-war levels, although refined-product flows remain constrained.

Ultimately, the final session of the third quarter captured many of the trends that defined September. Mega-cap growth, technology, and AI-related stocks produced substantial gains, but that strength was accompanied by significant weakness across smaller companies and many areas of the broader market. Wednesday's late selloff only sharpened that contrast, leaving the Nasdaq higher for the month even as the S&P 500, DJIA, Russell 2000, and S&P Mid Cap 400 all finished September in negative territory.

U.S. Treasuries gave participants a head fake today when yields moved quickly lower following some better-than-feared PCE inflation data in the August Personal Income and Spending report at 8:30 a.m. ET. The realization that a 3.4% PCE inflation rate (3.0% for core) is still well above the Fed's 2.0% target soon set in, however, and that initial move was unwound. The 2-year note yield finished unchanged at 4.89% (+55 basis points this month), and the 10-year note yield settled up four basis points to 5.30% (+56 basis points this month).

• Nasdaq Composite: +15.6% YTD
• Russell 2000: +12.7% YTD
• S&P 500: +11.8% YTD
• S&P Mid Cap 400: +8.8% YTD
• DJIA: +5.9% YTD

Overseas:

• Europe: DAX -0.8%, FTSE -0.3%, CAC -0.9%
• Asia: Nikkei +1.9%, Hang Seng +0.4%, Shanghai +0.3%

Commodities:

• Crude Oil +1.28 @ 90.54
• Nat Gas +0.03 @ 3.03
• Gold +4.40 @ 4184.80
• Silver +0.61 @ 60.54
• Copper unch @ 6.61

After-Hours Spotlight:

• Alphabet (GOOG / GOOGL) CEO Sundar Pichai introduces Gemini 4 Argon in X post...GOOG +1.8%
• Constellation (CEG), Amazon (AMZN) sign 20-year Calvert Cliffs nuclear power deal...CEG +2.9%
• Micron (MU) beats by $1.70, beats on revs, Non-GAAP gross maring of 87.0%; guides Q1 EPS above consensus, revs above consensus...MU -1.1%
• MSG Sports (MSGS) approves spin-off of Rangers business from Knicks business; targets Oct. 26, 2026 distribution...MSGS +1.4%
• Nu Holdings (NU) discloses that it is not pursing a transaction with Monzo...NU +5.9%
• Paramount Skydance (PSKY) names Mattel's Ynon Kreiz co-CEO of anticipated Paramount-Warner Bros. Discovery combinatio...PSKY +0.5%
• Progress Software (PRGS) beats by $0.17, reports revs in-line; guides Q4 EPS below consensus, revs above consensus...PRGS -3.0%
• Synopsys (SNPS) details growth strategy and long-term financial model at Investor Day; guides FY27 EPS and revenue above consensus...SNPS +0.5%
• Vicor (VICR) raises Q3 revenue guidance above consensus...VICR +7.0%

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

• Earnings/Guidance (Full Earnings Calendar):
  • Ares Management (ARES) expects realized net performance income for the quarter ending September 30, 2026 to be approximately $10 million, compared to $9 million in realized net performance income for the quarter ended September 30, 2025
  • Cal-Maine Foods (CALM) misses by $0.49, misses on revs
  • The Cigna Group (CI) announces new "Lead to One" strategy, reaffirms FY26 guidance, and introduces 2026-2030 financial targets
  • Conagra (CAG) beats by $0.13, reports revs in-line, organic net sales decreased 1.1%; reaffirms FY27 EPS guidance
  • Concentrix (CNXC) beats by $0.21, misses on revs; provides Q4 (Dec) and FY26 guidance
  • FactSet (FDS) beats by $0.17, reports revs in-line; guides FY27 EPS below consensus, revs in-line
  • Hewlett Packard Enterprise (HPE) to outline networking priorities for long-term value creation; raises FY27 Networking segment revenue growth outlook to between high teens and low 20s percent
  • Jabil (JBL) beats by $0.35, beats on revs; guides Q1 EPS above consensus, revs above consensus; guides FY27 EPS above consensus, revs above consensus
  • Norwegian Cruise Line (NCLH) expects its Q3 results to exceed the guidance provided in NCLH’s second-quarter 2026 earnings release, primarily driven by better-than-expected revenue performance, and reaffirms its full-year 2026 guidance provided in such earnings release
  • Workday (WDAY) discloses reduction of current workforce of approximately 2.5%; reaffirms Q3 and FY27 guidance
• General News
  • CION repays Israel notes, JPMorgan credit facility; closes senior loan JV
  • President Trump posts "White House Accord on Super Intelligence" on Truth Social
  • President Trump to unveil South Korea's $200 bln U.S. investment plan, including $54 bln for Alaska LNG, according to Bloomberg
  • AbbVie showcases leadership in dermatology research with new clinical and real-world evidence across immune-mediated skin diseases at 2026 EADV Congress
  • White House inaugurates the era of super intelligence
  • U.S. and Iran talks yielded little progress. Axios
  • Positive views on RL & DECK . Barron's
  • Technology executives signed a constitution on artificial intelligence during a White House event (see 5:33 -- NVDA, GOOG, GOOGL, META, MSFT, AMD, INTC, SPCX). Politico
  • President Trump evaluating all options for diesel exports (VLO, MPC, PSX, DK, ADM, GPRE, PBF, DINO). FT
  • DeepSeek is developing technology to program artificial intelligence chips and replace Nvidia. Bloomberg
  • Brazilian beef exports to China will face a 55% tariff (TSN, JBS, HRL, PPC). Bloomberg
  • AbbVie (ABBV) says Phase 2 zumilokibart met primary endpoint in atopic dermatitis; mid-dose picked for Phase 3
  • AbbVie (ABBV) presents Phase 1 ABBV-295 obesity data; supports every-other-week and monthly dosing, Phase 2 move
  • ACRES Commercial Realty (ACR) authorizes continued use of its existing share repurchase program to repurchase an additional $5.0 mln of outstanding shares of its common stock
  • Ameriprise (AMP) authorizes additional $5.5 bln share repurchase program through Sept. 2028
  • Anthropic IPO filing highlights reliance on Amazon (AMZN), Google and concentrated customer base, according to Reuters
  • Apple (AAPL) planning to introduce a smart home hub next month. Bloomberg
  • Applied Materials (AMAT) partners with KIOXIA on next-generation AI memory R&D at EPIC Center
  • BAE Systems (BAESY) awarded a $137.6 mln Navy contract for Virginia-class submarine propulsors
  • Baldwin (BWIN)'s MSI unit partners with Kanguro on multifamily insurance compliance automation
  • Boeing (BA) wins more than $20 bln U.S Navy award contract for F/A-XX program
  • Boeing (BA) wins multi-bln-dollar U.S. Navy F/A-XX fighter contract
  • Candel Therapeutics (CADL) presents phase 3 prostate cancer biomarker data at ASTRO showing durable immune remodeling with aglatimagene
  • Ceribell (CBLL) receives FDA 510(k) clearance for new quantitative EEG and aEEG software features
  • DBV Technologies (DBVT) submits VIASKIN Peanut Patch for FDA approval in children aged 4-7 years
  • Ethiopian Airlines will sign a deal with Boeing (BA) for 10 freighters. Reuters
  • Eupraxia Pharmaceuticals (EPRX) reports 52-week data from the highest dose cohort of EP-104GI in its ongoing Phase 1b/2a RESOLVE trial for the treatment of Eosinophilic Esophagitis
  • Farmers (FMAO) & Merchants Bancorp raises quarterly dividend 4.3% to $0.24/share; declares $0.01/share special dividend
  • Ford Motor (F) CEO Jim Farley CNBC interview
  • General Mills (GIS) names COO Dana McNabb CEO effective Jan. 1, 2027; Jeff Harmening to become executive chair
  • Glencore's Hunter Valley Operations (GLNCY) wins NSW approval for mine-life extension
  • Granite (GVA) JV wins $165 mln Guam defense task order
  • Hartford (HIG) names President Mo Tooker CEO effective March 1; Christopher Swift to become executive chair
  • HII (HII) wins U.S. Navy contract to build 10 ROMULUS unmanned surface vessels
  • HII unit (HII) wins $5.10 bln contract for USS Harry S. Truman refueling and overhaul
  • HPE (AMD) lands first AMD Helios order in $1.2 bln Vultr deal
  • Immunome (IMNM) says FDA clears IND for IM-1340 solid tumor ADC
  • Infosys (INFY) extends ABN AMRO collaboration for IT modernization and AI rollout
  • Jacobs selected by NVIDIA (NVDA) to deploy data center digital twin at U.S. R&D facility
  • Kredittbanken (AMZN) selects FIS PRIME in the Cloud for core platform modernization
  • Lilly (LLY) says Phase 3b ADtouch study met primary, secondary endpoints for EBGLYSS in hand and foot atopic dermatitis
  • Lockheed Martin (LMT) awarded a $244.9 mln modification to previously awarded Navy contract
  • Lockheed Martin (LMT) awarded a $723.9 mln Missile Defense Agency contract
  • Mattel (IT) names Roger Lynch chairman and CEO, succeeding Ynon Kreiz
  • MongoDB (MDB) authorizes additional $1.0 bln for share repurchases – 8-K filing
  • NIQ (GOOG) expands Google partnership with Meridian integration into Cadence
  • Northern Trust (NTRS) CFO Dave Fox to retire; search underway for successor
  • NRx (NRXP) unit wins $11.2 mln DARPA prime contract for depression study combining TMS with NRX-101
  • OPEC (USO) will likely keep targets unchanged at Sunday's meeting (USO, XLE, XOM, CVX, BP, SHEL, OXY, DVN). Reuters
  • Paramount (PSKY) will select Casey Bloys to oversee streaming operations. WSJ
  • Paramount (PSKY) deal delays have increased borrowing costs. Bloomberg
  • Paramount Skydance bond deal draws over $109 bln in orders to help fund Warner Bros. (WBD) acquisition, according to Bloomberg
  • Rafael (RFL) Holdings says Phase 3 Trappsol Cyclo study missed primary endpoint in NPC
  • Sagimet (SGMT) reports 52-week Phase 3 extension data for denifanstat in acne; U.S. Phase 3 screening set for October
  • SK hynix Inc. showcases next-generation AI memory portfolio, (TSM) highlights HBM5 collaboration with TSMC
  • Solstice Advance Materials (SOLS) reaches agreement with plaintiffs to settle litigation related to Metropolis Works operations
  • Takeda (AMGN) says Phase 3 zasocitinib beat deucravacitinib in head-to-head psoriasis study
  • Talen (TLN) names Terry Nutt CEO effective Jan. 1; launches $1.5 bln accelerated share repurchase
  • Tiziana Life Sciences (TLSA) files for orphan drug designation with the FDA for Intranasal Foralumab for the treatment of multiple system atrophy
  • TMSC (TSM) considering investment in Texas. Reuters
  • Toyota Motor (TM) looks to expand Century luxury brand into more overseas markets, according to Bloomberg
  • Vanda (VNDA) says Phase 3 HETLIOZ study met primary endpoint in delayed sleep-wake phase disorder

• Upgrades:
  • Grocery Outlet Holding (GO) upgraded to Buy from Neutral at BofA Securities, tgt $15
  • NICE (NICE) upgraded to Outperform from Perform at Oppenheimer, tgt $150
  • Pinnacle Financial Partners (PNFP) upgraded to Overweight from Equal Weight at Wells Fargo, tgt $118
  • Target (TGT) upgraded to Buy from Hold at HSBC, tgt $190
• Downgrades:
  • Ally Financial (ALLY) downgraded to Equal Weight from Overweight at Wells Fargo, tgt $42
  • BankUnited (BKU) downgraded to Equal Weight from Overweight at Wells Fargo, tgt $47
  • BOK Financial (BOKF) downgraded to Underweight from Equal Weight at Wells Fargo, tgt $135
  • Dow Inc. (DOW) downgraded to Neutral from Buy at Citigroup, tgt $30
  • Fair Isaac (FICO) downgraded to Neutral from Buy at BofA Securities, tgt $700
  • Mobileye (MBLY) downgraded to Equal Weight from Overweight at Barclays, tgt $9
  • Moderna (MRNA) downgraded to Sell from Neutral at Citigroup, tgt $80
  • SoundThinking (SSTI) downgraded to Neutral from Buy at Roth Capital, tgt $9
• Others:
  • Achieve Life Sciences (ACHV) initiated with a Buy at Stifel, tgt $18
  • Alto Ingredients (ALTO) initiated with a Buy at StoneX, tgt $7
  • Arista Networks (ANET) initiated with an Outperform at Bernstein, tgt $250
  • Cavco Industries (CVCO) initiated with an Outperform at Oppenheimer, tgt $720
  • Celestica (CLS) initiated with an Outperform at Bernstein, tgt $520
  • Champion Homes (SKY) initiated with a Perform at Oppenheimer
  • Charles River Labs (CRL) resumed with a Buy at UBS, tgt $357
  • Ciena (CIEN) initiated with an Outperform at Bernstein, tgt $440
  • Cisco (CSCO) initiated with a Market Perform at Bernstein, tgt $110
  • Coherent (COHR) initiated with an Outperform at Bernstein, tgt $350
  • Corning (GLW) initiated with a Market Perform at Bernstein, tgt $140
  • CoreWeave (CRWV) initiated with an Outperform at William Blair
  • ERock (EROC) initiated with a Buy at Clear Street, tgt $24
  • Expeditors (EXPD) initiated with a Neutral at BNP Paribas Exane, tgt $180
  • First Tracks Biotherapeutics (TRAX) initiated with a Buy at Canaccord, tgt $50
  • FormFactor (FORM) initiated with a Buy at Deutsche Bank, tgt $200
  • Fortrea (FTRE) initiated with a Neutral at UBS, tgt $22
  • ICON (ICLR) resumed with a Neutral at UBS, tgt $195
  • Ionic Digital (IOND) initiated with a Buy at Texas Capital, tgt $98
  • IQVIA Holdings (IQV) resumed with a Buy at UBS, tgt $345
  • Lumentum (LITE) initiated with an Outperform at Bernstein, tgt $1,220
  • Medpace (MEDP) resumed with a Neutral at UBS, tgt $673
  • Mobileye (MBLY) initiated with an Equal Weight at Barclays, tgt $9
  • Nebius Group (NBIS) initiated with an Outperform at William Blair
  • Pasqal (PSQL) initiated with a Buy at Needham, tgt $16
  • Rum Group (RUM) initiated with a Buy at Texas Capital, tgt $15
  • Smithfield Foods (SFD) initiated with an Equal Weight at Stephens, tgt $22
  • Suncrete (RMIX) initiated with a Buy at Texas Capital, tgt $15
  • UFP Industries (UFPI) initiated with a Perform at Oppenheimer

• Econ Data (Thursday):
  • 08:30 ET: Initial Jobless Claims (Briefing.com consensus: 200K; prior 197K) and Continuing Jobless Claims (prior 1719K)
  • 09:05 ET: Richmond Fed President Barkin (non-FOMC voter), Boston Fed President Collins (non-FOMC voter), and Kansas City Fed President Schmid (non-FOMC voter)
  • 09:30 ET: ECB President Lagarde
  • 09:45 ET: September S&P Global U.S. Manufacturing PMI - Final (Briefing.com consensus: 55.3; prior 57.0)
  • 10:00 ET: August Construction Spending (Briefing.com consensus: 0.3%; prior -0.1%)
  • 10:00 ET: September ISM Manufacturing Index (Briefing.com consensus: 55.2%; prior 54.6%)
  • 10:00 ET: Fed Governor Waller (FOMC voter)
  • 10:30 ET: EIA Natural Gas Inventories (prior +53 bcf)
  • 13:30 ET: Fed Governor Jefferson (FOMC voter)
  • 15:00 ET: Fed Governor Bowman (FOMC voter)
  • 15:30 ET: New York Fed President Williams (FOMC voter), Fed Governor Cook (FOMC voter)
  • 18:45 ET: Dallas Fed President Logan (FOMC voter)

• Earnings:
  • Monday (September 28)
    • Pre-Market: None
    • After-Hours: MTN, JEF
  • Tuesday (September 29)
    • Pre-Market: CCL, KMX
    • After-Hours:AIR, CNXC, FDXF
  • Wednesday (September 30)
    • Pre-Market: CAG, CALM, FDS, JBL
    • After-Hours: MU, PRGS
  • Thursday (October 1)
    • Pre-Market: ACN, AYI, MKC
    • After-Hours: NKE
  • Friday (October 2)
    • Pre-market: None
    • Afternoon: None