Stock Market Update

[BRIEFING.COM] The stock market recovered from some early instability as broad strength pushed the S&P 500 (+0.5%), Nasdaq Composite (+0.5%), and DJIA (+0.5%) higher, cementing solid week-to-date gains. 

While many sectors spent the morning flipping between positive and negative territory, nine S&P 500 sectors ultimately finished with gains. 

The consumer staples sector (+1.2%) led the way, supported by nearly all of its components trading higher and Kenvue (KVUE 15.29, +1.18, +8.36%) capturing the widest gains across S&P 500 names today, recovering over half of yesterday's losses that came after reports the company will face litigation in the U.K. for alleged links between its talc-based products and ovarian cancer. 

The financials sector (+0.8%) also outperformed as it shook off some of yesterday's weakness. Regional banking names faced significant losses after Zions Bancorp (ZION 49.67, +2.74, +5.84%) disclosed $50 million in charge-offs linked to fraudulent loans, adding to recent lending and liquidity concerns throughout the industry. Many of those names rebounded at least slightly today, with the KBW Regional Bank ETF (KRE 59.08, +0.94, +1.61%) recovering a chunk of yesterday's retreat. 

Support came from a slate of banking names that beat earnings expectations, including Truist (TFC 42.60, +1.51, +3.67%), Comerica (CMA 74.92, +1.07, +1.45%), and Fifth Third (FITB 40.89, +0.53, +1.31%).

Creditor names also traded higher as industry leader American Express (AXP 346.62, +23.50, +7.27%) reported another earnings beat and raised the low end of its FY25 EPS and revenue guidance. 

While the information technology sector (+0.4%) finished near the bottom of the standings, its move into positive territory was pivotal to the stabilization of the major averages. Weakness among semiconductor names saw the PHLX Semiconductor Index close 0.3% lower (which was well above its session lows).

Oracle (ORCL 291.45, -21.55, -6.88%) also faced a steep loss after the company's AI World Conference, with investors seemingly focused on commentary that the company is willing to accelerate investments in the near term, potentially pressuring margins and near-term earnings. 

Despite the various pressures the sector faced, its three largest components, NVIDIA (NVDA 183.22, +1.41, +0.78%), Microsoft (MSFT 513.58, +1.97, +0.39%), and Apple (AAPL 252.29, +4.84, +1.96%), all closed with gains.

Only the materials (-0.4%) and utilities (-0.4%) sectors finished lower. 

Macro developments were quieter today. Treasury Secretary Scott Bessent will discuss trade with the Chinese Vice Premier He Lifeng this evening, and President Trump is still reportedly set to meet with Chinese President Xi over the coming weeks. 

The government remains shut down, which prevented the release of any economic data today. Rate cut expectations remain high ahead of next week's delayed release of the September Consumer Price Index. 

U.S. Treasuries finished the week on a lower note, lifting yields on longer tenors off their lowest levels since April while the 2-year yield climbed off its lowest level in over three years. The 2-year note yield settled up three basis points to 3.46%, and the 10-year note yield settled up three basis points to 4.01%. 

• Nasdaq Composite: +17.5% YTD
• S&P 500: + 13.3% YTD
• Russell 2000: +10.0% YTD
• DJIA: +8.6% YTD
• S&P Mid Cap 400: +3.3% YTD