Stock Market Update

[BRIEFING.COM] The stock market kicked off the week with index-level gains that saw the S&P 500 (+0.5%) and Nasdaq Composite (+0.9%) secure new all-time intraday and closing highs, while the DJIA (+0.1%) lagged. Gains were largely concentrated in a select group of mega-cap leaders, which continued to flex their influence over index performance.

Shares of Tesla (TSLA 410.04, +14.10, +3.56%) surged early after it was reported that CEO Elon Musk purchased around 2.6 million shares of stock worth nearly $1 billion on Friday, his first open market purchase of the stock since February 2020. Though the stock finished well off its session highs, it still added substantial gains to its impressive September run and helped the consumer discretionary sector (+1.1%) finish among the best-performing S&P 500 sectors.

The communication services sector (+2.3%) comfortably outpaced all other sectors today as Alphabet (GOOG 251.76, +10.38, +4.30%) hit fresh records, becoming just the fourth U.S. company to surpass $3 trillion in market value.

With additional solid showings from Amazon (AMZN 231.43, +3.28, +1.44%), Meta Platforms (META 764.70, +9.11, +1.21%), and Microsoft (MSFT 515.36, +5.46, +1.07%), the Vanguard Mega Cap Growth ETF advanced 0.9% today. 

The information technology sector (+0.8%) traded flattish out of the gate, nursing a loss in NVIDIA (NVDA 177.75, -0.07, -0.04%), which traded lower following reports that China found the company to be in violation of its anti-monopoly law. The company issued a statement in response reaffirming their compliance with the law "in all respects," and the stock finished near its flatline. 

Elsewhere in the sector, Seagate Tech (STX 211.12, +15.13, +7.72%) and Western Digital (WDC 102.39, +4.73, +4.84%) furthered their strong recent runs as HDD prices continue to increase due to tight supply and strong demand for large-capacity drives fueled by AI-driven storage requirements.

The industrials (+0.5%) and utilities (+0.2%) round out the five S&P 500 sectors that advanced today. 

Of the six sectors that finished lower, only the consumer staples (-1.2%), health care (-1.0%), and materials (-0.8%) finished with losses wider than 0.5%.

While today's action resulted in decent index level gains, the advance was dependent on the strong performances of several mega-cap names. The S&P 500 Equal Weighted Index (-0.2%) finished with a loss today, markedly underperforming the market-weighted S&P 500 (+0.5%). 

Today’s gains came on lighter-than-average volume, reflecting a cautious tone as investors await this week's FOMC meeting for clarity on the policy path ahead.

With a 25-basis point rate cut already fully priced in, homebuilder stocks retreated in what looked like an early “sell-the-news” move, leaving the iShares U.S. Home Construction ETF down 1.3%.

Meanwhile, smaller-cap names delivered a mixed showing after their recent strength on firming rate cut expectations, with the Russell 2000 closing with a 0.3% gain while the S&P MidCap 400 slipped 0.1%.

On the trade front, the U.S. and China reached a framework agreement to transition TikTok to U.S. ownership, with a scheduled call between President Trump and President Xi Jinping on Friday to finalize discussions.

U.S. Treasuries began the week with gains across the curve. The 2-year note yield settled down three basis points to 3.53%, and the 10-year note yield settled down three basis points to 4.03%. 

• Nasdaq Composite: +15.7% YTD
• S&P 500: +12.5% YTD
• DJIA: +7.9% YTD
• Russell 2000: +7.9% YTD
• S&P Mid Cap 400: +5.1% YTD

Reviewing today's data:

• The Empire State Manufacturing survey fell to -8.7 in September (Briefing.com consensus 3.0) from 11.9 in August.

[BRIEFING.COM] The S&P 500 (+0.4%) and Nasdaq Composite (+0.8%) look to capture record closing highs to go along with their fresh all-time highs, as a quiet afternoon has kept the major averages with the bulk of their early gains.

A lack of corporate headlines has kept the market trading in a stable manner, as investors largely await the outcome of Wednesday's FOMC meeting. 

Additionally, the market has yet to receive an update on Stephen Miran's Fed Governor confirmation vote in the Sentate, which is set to take place today. 

[BRIEFING.COM] Despite a steady decline in breadth figures and sector strength, the S&P 500 (+0.4%), Nasdaq Composite (+0.8%), and DJIA (+0.1%) have not changed much since their initial moves this morning. 

Advancers outpaced decliners by a nearly 2-to-1 ratio this morning but now hold a slim 5-to-4 advantage on the NYSE and an even thinner 6-to-5 edge on the Nasdaq.

The consumer discretionary sector (+0.8%) has seen a nearly 2.0% early gain halved, as Tesla (TSLA 406.26, +10.32, +2.61%) now trades well off its morning highs. 

Additionally, homebuilder stocks are exhibiting notable weakness ahead of Wednesday's FOMC meeting, possibly experiencing an early "sell-the-news" reaction as a rate cut is fully anticipated.

Since the beginning of July, shares of D.R. Horton (DHI 171.45, -6.42, -3.61%) have rallied by 27%, while Lennar (LEN 133.07, -4.20, -3.06%) has gained 19%, Toll Brothers (TOL 141.04, -2.43, -1.69%) has jumped by 24%, and KB Home (KBH 64.84, -1.04, -1.59%) has rallied by 22%.

With today's losses, the iShares U.S. Home Construction ETF is down 1.6%. 

[BRIEFING.COM] The S&P 500 (+0.38%) is in second place on Monday afternoon, up about 25 points.

Briefly, S&P 500 constituents Seagate Tech (STX 211.81, +15.82, +8.07%), Albemarle (ALB 81.01, +5.03, +6.62%), and Estee Lauder (EL 86.76, +3.11, +3.72%) dot the top of the standings. STX follows general HDD strength with BofA Securities upping their target on STX this morning on their view that the HDD cycle remains strong, while EL also caught a target raise out of Evercore ISI.

Meanwhile, Corteva (CTVA 70.06, -4.23, -5.69%) is lagging as the market questioned the strategic and financial merits of a potential Seed/Crop Protection split, with analysts warning it could dilute synergies, create two weaker entities, and offer unclear value creation.

[BRIEFING.COM] The Nasdaq Composite (+0.83%) is in first place among the major averages with about two hours to go on Monday.

Gold futures settled $32.40 higher (+0.9%) at $3,719.00/oz, as traders bet heavily on Fed rate cuts in the weeks ahead. The move to fresh highs came amid mounting expectations that soft U.S. labor data and easing inflation pressures will prompt policymakers to pivot toward looser monetary policy. A weaker dollar and declining Treasury yields further underpinned bullion, while lingering geopolitical and policy uncertainty added to safe-haven flows.

Meanwhile, the U.S. Dollar Index is down about -0.3% to $97.30.