Stock Market Update

[BRIEFING.COM] The stock market was in rally-mode today, leading the S&P 500 (+0.7%) and Dow Jones Industrial Average (+1.0%) to new record highs. The market benefitted from ongoing momentum following yesterday's bounce, along with strength in some mega caps and semiconductor-related names. 

Alphabet (GOOG 163.06, -2.64, -1.6%) was left out of the rally today following news that the Department of Justice is considering a breakup of Google. Just about everything else participated in upside moves, though. 28 of the 30 Dow components closed higher and nine of the 11 S&P 500 sectors closed above prior closing levels. 

The heavily-weighted health care (+1.0%) and information technology (+1.0%) sectors were the top performers today, which comprise 43% of the index. The rate-sensitive real estate sector (-0.9%) logged the largest decline as yields rose. 

The 10-yr yield settled three basis points higher at 4.06% and the 2-yr yield settled three basis points higher at 4.01% after today's 10-yr note auction saw the high yield slightly tail the when-issued yield amid solid demand from indirect bidders.

The market didn't react much to the minutes for the September 17–18 FOMC meeting, which didn't contain any surprises. The minutes showed that almost all participants saw upside risks to the inflation outlook as having diminished, while downside risks to employment were seen as having increased. 

However, Dallas Fed President Logan (non-FOMC voter) noted today that she sees a meaningful risk that inflation could get stuck above the Fed's 2% goal and that she believes the FOMC should not rush to get the funds funds target to a "normal" or "neutral" level.

There's also lingering worries about the situation in the Middle East in play, along with concerns about Hurricane Milton, but the market didn't seem bothered today. 

• Nasdaq Composite: +21.9% YTD
• S&P 500: +21.4% YTD
• Dow Jones Industrial Average: +12.8% YTD
• S&P Midcap 400: +12.1% YTD
• Russell 2000: +8.6% YTD

Reviewing today's economic data:

• Weekly MBA Mortgage Applications Index -5.1%; Prior -1.3%
• August Wholesale Inventories 0.1% (Briefing.com consensus 0.2%); Prior 0.2%
• Weekly EIA crude oil inventories had a build of 5.81 million barrels after last week's build of 3.89 million barrels

Market participants receive some market-moving data tomorrow in the form of the weekly jobless claims report and the September CPI report at 8:30 ET.