Weekly Wrap

The stock market built on last week’s rebound with another broad advance, as investors rotated back into equities following the prior pullback. The S&P 500 (+1.9%), Nasdaq Composite (+2.3%), and Dow Jones Industrial Average (+2.2%) all posted solid weekly gains, while the Russell 2000 (+2.5%) and S&P MidCap 400 (+2.3%) outperformed slightly, reflecting renewed appetite for cyclicals and smaller-cap exposure. Softer September CPI readings (0.3%; Briefing.com consensus: 0.4%) reinforced expectations for additional Fed rate cuts, pushing the major averages to record intraday and closing highs on Friday.

Leadership was broad but tilted toward growth-oriented and economically sensitive groups. The information technology sector (+2.8% WTD) paced the advance, supported by another strong week for semiconductor names, with the PHLX Semiconductor Index climbing 2.9%. The energy sector (+2.4%) also outperformed alongside higher oil prices after Trump sanctioned several of Russia's largest oil companies, while the industrials  sector(+2.1%) joined in on earnings strength across its defense names.

Earnings updates added to the positive sentiment, with several large-cap companies delivering better-than-expected results and guidance that reinforced confidence in corporate profitability heading into year-end. Meanwhile, trade-related headlines contributed to some midweek volatility after mixed signals from U.S. and Chinese officials regarding tariff policy, though markets ultimately looked past the uncertainty by week’s end.

Defensive sectors lagged, with consumer staples (-0.6%) and materials (-0.2%) sectors finishing the week lower, suggesting a modest risk-on tone. The Vanguard Mega Cap Growth ETF (+2.3%) moved in line with the Nasdaq Composite, underscoring the sustained leadership of the largest tech names even as participation broadened across the market.

Overall, the week’s gains reflected a continuation of post-pullback recovery momentum, with improving earnings sentiment and tempered trade concerns helping to sustain the market’s upward bias ahead of next week's mega-cap earnings. 

• Russell 2000: +2.5% WTD
• Nasdaq Composite: +2.3% WTD
• S&P Mid Cap 400: +2.3% WTD
• DJIA: +2.2% WTD
• S&P 500: +1.9% WTD

Monday:

The stock market advanced on widespread gains today, driven by a mix of trade, macroeconomic, and corporate developments that lifted the major averages throughout the session.

The S&P 500 (+1.1%), Nasdaq Composite (+1.4%), and DJIA (+1.1%) closed just off of their all-time closing levels, with today's gains placing the major averages back at levels last seen before the sharp pullback on October 10.  Meanwhile, the small-cap Russell 2000 (+2.0%) and S&P Mid Cap 400 (+1.2%) also advanced on today's broad strength.

Nine S&P 500 sectors finished the day in positive territory, all of which closed with gains of 1.0% or wider. 

The information technology sector (+1.1%) paced the early gains, boosted by strength in its chipmaker names that saw the PHLX Semiconductor Index close 1.6% higher. Advanced Micro Devices (AMD 240.56, +7.48, +3.21%) traded to a new all-time high, and Super Micro Computer (SMCI 55.04, +2.86, +5.48%) captured one of the widest gains across the S&P 500. 

Apple (AAPL 262.24, +9.95, +3.94%) provided the sector with strong leadership, moving higher after reports of solid iPhone 17 sales in the U.S. and China. Loop Capital upgraded the stock to Buy from Hold with a $315 target, while Evercore ISI added the stock to its Tactical Outperform list.

The financials sector (+1.2%) was another top performer today. Robinhood Markets (HOOD 135.80, +5.89, +4.53%) traded higher, with CNBC reporting that a handful of large investors increased their stakes.

Regional banking names performed well, with investors seemingly reassured that recent credit quality issues are isolated and not systematic. Zions Bancorp (ZION 51.98, +2.31, +4.65%) traded higher ahead of its earnings report this afternoon, and the KBW Regional Banking ETF gained 2.5%. 

The communication services sector (+1.5%) finished as the best-performing S&P 500 sector. The Trade Desk (TTD 52.50, +2.52, +5.03%) captured the widest gain, while Netflix (NFLX 1238.56, +39.20, +3.27%) moved higher ahead of its earnings release this week. 

Meta Platforms (META 732.17, +15.26, +2.13%) and Alphabet (GOOG 257.02, +3.23, +1.27%) provided strong leadership and contributed to strength across mega-cap names, sending the Vanguard Mega Cap Growth ETF 1.6% higher. 

Only the consumer staples (-0.1%) and utilities (-0.1%) sectors finished slightly lower. 

Though the ongoing government shutdown has had little effect on the path of equities, hints of a potential resolution added to the positive sentiment today, with White House Economic Advisor Kevin Hassett saying the shutdown "is likely to end sometime this week."

The shutdown prevented any data releases today, but rate cut expectations remain firm ahead of Friday's delayed release of the September Consumer Price Index (Briefing.com consensus: 0.4%).

Renewed optimism on U.S.-China trade served as an additional tailwind. President Trump said he expects a fair deal after upcoming talks in South Korea and plans to visit China in early 2026, signaling a more conciliatory approach.

With major averages back near record levels, investors appear confident in continued earnings growth and trade and economic stability heading into the busy reporting week.

U.S. Treasuries had a quiet start to the new week with slight relative strength in the long bond pressuring the 30-year yield past last week's low to a level last seen in early April while the 2-year note underperformed, ending little changed.

The 2-year note yield finished unchanged at 3.46%, the 10-year note yield settled down two basis points to 3.99%, and the 30-year note yield settled down three basis points to 4.58%. 

Tuesday:

The DJIA (+0.5%) captured fresh record highs today, driven by positive reactions to this morning's slate of earnings reports, while the S&P 500 (flat) and Nasdaq Composite (-0.2%) remained near their flatlines as mega-cap and tech names largely underwhelmed. 

Coca-Cola (KO 71.22, +2.78, +4.06%) and 3M (MMM 166.64, +11.86, +7.67%) both beat earnings expectations and contributed to the Dow's outperformance today. 

3M's gain also helped the industrials sector (+0.9%) finish as one of the top-performing S&P 500 sectors. 

RTX (RTX 173.04, +12.33, +7.67%) reached an all-time high after its beat-and-raise earnings report this morning, capturing the widest gain in a sector that saw several leading defense names beat earnings expectations. The sector's largest component, GE Aerospace (GE 306.63, +3.95, +1.31%), was among those names, as were Lockheed Martin (LMT 489.50, -16.40, -3.24%) and Northrop Grumman (NOC 599.35, -2.65, -0.44%), which traded lower despite earnings beats of their own. 

The iShares U.S. Aerospace and Defense ETF closed with a 1.8% gain. 

The consumer discretionary sector (+1.3%) finished as the top gain getter, boosted by General Motors (GM 66.62, +8.62, +14.86%) capturing the widest gain across S&P 500 names today. The company beat top and bottom line expectations and raised its FY25 earnings guidance. Notably, the company expects the impacts of tariffs to be smaller than previously anticipated. 

Ford Motor (F 12.56, +0.57, +4.75%) traded higher in sympathy. 

Elsewhere, the health care sector (+0.2%) got a piece of today's earnings strength through Danaher (DHR 220.77, +12.38, +5.94%), rounding out the three S&P 500 sectors that closed with gains.

Though the information technology sector (-0.2%) could not scratch out a gain, its improvement from an earlier loss helped the S&P 500 move out of negative territory. The sector faced pressure in its chipmaker components, sending the PHLX Semiconductor Index 0.7% lower, though Texas Instruments (TXN 180.84, +1.26, +0.70%) moved higher ahead of its earnings after the close. 

As for today's laggards, the utilities sector (which missed out on yesterday's broad strength) moved 1.0% lower as nearly all of its components closed with losses. 

The communication services sector (-0.9%) faced a similar loss, pressured by Alphabet (GOOG 251.34, -5.68, -2.21%), which moved lower after concerns around an upcoming OpenAI browser announcement.

Mega-cap stocks as a whole never overcame their early sluggishness, with the Vanguard Mega Cap Growth ETF (-0.1%) closing with a slight loss. 

Amazon (AMZN 222.03, +5.55, +2.56%), however, was an exception, as it was the only "magnificent seven" name to finish with a gain wider than 0.2%. 

The S&P 500 Equal Weighted Index (+0.5%) outperformed the market-weighted S&P 500 (flat) as a result. 

The materials sector (-0.7%) also faced pressure as precious metals moved lower today. Gold futures settled $250.30 lower (-5.7%) at $4,109.10 per oz, marking its steepest one-day drop since 2020 as investors took profits after a record-setting rally. The pullback was fueled by stronger U.S. yields, a firmer dollar, and fading safe-haven demand amid improving global risk sentiment.  Newmont Corporation (NEM 86.30, -8.59, -9.05%) retreated the furthest of any S&P 500 name today. 

Outside of the S&P 500, the small-cap Russell 2000 (-0.5%) and S&P Mid Cap 400 (+0.4%) put up mixed performances. 

While investors were kept busy by the large round of earnings reports, other notable developments were slim today. 

The market briefly pulled back just after 1:00 ET after President Trump commented on meeting with Chinese President Xi, saying, "Maybe it won't happen," though there was not much else to report on the trade front. 

There were no economic data releases, and the U.S. government remains in shutdown mode, meaning that earnings will likely remain a key driver of price action throughout the week. 

U.S. Treasuries edged higher on Tuesday, pressuring the 10-year yield past its low from last week to a level not seen since early April. The 2-year note yield settled unchanged at 3.46%, and the 10-

year note yield settled down two basis points to 3.96%. 

Wednesday:

The stock market retreated today as a handful of key earnings misses, geopolitical uncertainty, and weakness across the market's largest names combined to create a risk-off disposition that pushed the major averages lower. 

The S&P 500 (-0.5), Nasdaq Composite (-0.9%), and DJIA (-0.7%) steadily retreated to session lows at around 2:00 ET before improving slightly to the close. The small-cap Russell 2000 (-1.5%) and S&P Mid Cap 400 (-1.2%) underperformed as the investors rotated into more defensive pockets. 

Growth-oriented and high-beta sectors paced the losses throughout the day. 

The communication services sector (-0.9%) finished with one of the widest losses today after Netflix (NFLX 1116.37, -124.98, -10.07%) reported a rare earnings miss. The company topped revenue estimates but missed on earnings, citing a Brazilian gross tax on outbound payments. Management noted that excluding this one-time charge, operating income and margins would have surpassed Q3 guidance. However, the stock traded sharply lower throughout the session and never received any buy-the-dip interest.

The top-weighted information technology sector (-0.8%) also faced some earnings-induced pressure. Texas Instruments (TXN 170.71, -10.13, -5.60%) missed EPS estimates for the first time in two years and issued Q4 guidance below consensus. Management noted that the semiconductor recovery is progressing, though at a slower pace than in previous cycles, as customers remain cautious amid macro and tariff uncertainty.

The PHLX Semiconductor Index retreated 2.4% as chipmaker names moved lower. 

Elsewhere in the sector, Apple (AAPL 258.45, -4.32, -1.64%) finished lower after a solid gain yesterday and reports of weaker-than-expected demand for the new iPhone Air. 

The mega-cap group largely underperformed today, which weighed on the consumer discretionary sector (-1.0%). Amazon (AMZN 217.99, -4.04, -1.82%) traded lower after a nice gain yesterday, as did Tesla (TSLA 438.72, -3.88, -0.88%), which is set to report earnings after the close, one of the most anticipated happenings of the week. 

The Vanguard Mega Cap Growth ETF closed 0.7% lower. The Invesco S&P 500 High Beta ETF (-1.4%) also faced a retreat as investors rotated out of more volatile stocks.

Meanwhile, the industrial sector (-1.3%) closed with the widest loss today. The sector retreated after GE Vernova (GEV 576.23, -9.10, -1.55%) missed earnings estimates, while aerospace and defense stocks saw some profit-taking after yesterday's rally. 

Only four S&P 500 sectors closed with gains today. 

The energy sector (+1.3%) was the only sector to move more than 1.0% higher, supported by crude oil futures settling today's session $1.27 higher (+2.2%) at $58.51 per barrel.

The market's risk-off sentiment saw the consumer staples (+0.6%) and health care (+0.6%) sectors capture gains, with the health care sector boosted by a strong gain in Intuitive Surgical (ISRG 527.03, +64.29, +13.89%) following its earnings beat.

Meanwhile, the real estate sector (+0.4%) captured a more modest gain. 

Lingering concerns around the trade relationship between the U.S. and China weighed on sentiment today. The market hit a pocket of volatility after Reuters reported that the Trump administration is weighing sweeping software export curbs on China in retaliation for rare earth restrictions. Treasury Secretary Scott Bessent confirmed the report to CNBC later in the afternoon. 

Additionally, Mr. Bessent told Fox Business that large sanctions on Russia will be announced tonight or tomorrow.

Ultimately, the market faced pressure on multiple fronts today. Earnings misses from prominent names prompted concerns of stretched valuations, while geopolitical and trade worries added to the air of uncertainty, making it all the more important for Tesla (TSLA 438.72, -3.88, -0.88%) and the other mega-caps to hold their ground and provide leadership, as investor sentiment remains highly sensitive to any signs of weakness.

U.S. Treasuries recorded modest gains on Wednesday with most tenors finishing essentially where they started. The 2-year note yield settled down two basis points to 3.44% and teh 10-year note yield settled down one basis point to 3.95%. 

Reviewing today's data:

• The weekly MBA Mortgage Index fell 0.3% to follow last week's 1.8% decrease. The Purchase Index was down 5.2% while the Refinance Index rose 4.0%.

Thursday:

The stock market opened to a solid rebound in its mega-cap and tech names, which steadily broadened throughout the day, sending the major averages higher and widening their week-to-date gains past 1.0%. 

The tech-heavy Nasdaq Composite (+0.9%) led the way, with the S&P 500 (+0.6%) and DJIA (+0.3%) also capturing gains. Meanwhile, the small-cap Russell 2000 (+1.3%) and S&P Mid Cap 400 (+1.4%) outperformed as investors rotated back out of more defensive holdings today. 

After a retreat yesterday (and an underwhelming week for that matter), it was unclear how the market's largest names would perform today, especially given Tesla's (TSLA 449.09, +10.12, +2.31%) earnings miss. While Tesla held a loss of nearly 4.0% early on, it remained contained, as other mega-caps showed early strength. Even more encouragingly, Tesla would go on to reverse its early loss as sentiment improved throughout the session, helping the consumer discretionary sector (+0.7%) rise above its flatline. 

Elsewhere in the sector, Las Vegas Sands (LVS 56.89, +6.27, +12.39%) captured one of the widest gains across S&P 500 names after topping estimates and increasing its quarterly dividend. 

The information technology sector (+1.0%) was a driver of the index-level gains, supported by a combination of semiconductor and mega-cap strength. 

A beat-and-raise earnings report from Lam Research (LRCX 147.54, +6.29, +4.45%) saw the PHLX Semiconductor Index rise 2.5%, with NVIDIA (NVDA 182.16, +1.88, +1.04%) among the names that also contributed to a 0.8% advance in the Vanguard Mega Cap Growth ETF. 

The industrials sector (+1.3%) was another top performer today as Honeywell (HON 220.67, +14.06, +6.81%) moved higher after a beat-and-raise report of its own, while earnings strength from Dow (DOW 24.52, +2.82, +13.00%) boosted the materials sector (+1.0%). 

The energy sector (+1.3%) finished similarly, widening this week's gains as crude oil futures settled today's session $3.27 higher (+5.6%) at $61.78 per barrel after the Treasury Department announced sanctions on Russian oil giants Rosneft and Lukoil.

Meanwhile, the defensive consumer staples (-0.4%), utilities (flat), and health care (flat) sectors lagged as investors focused on growth-oriented plays today. The Invesco S&P 500 High Beta ETF closed 1.7% higher after retreating yesterday. 

The real estate sector (-0.1%) also closed slightly lower.

Market sentiment was further lifted by growing optimism over a potential trade deal between the U.S. and China. CNBC reported that President Trump will travel to Asia next week, where he is expected to sign trade agreements with 12 countries. He will meet with Chinese President Xi on October 30 to discuss a potential deal covering soybeans, rare earth metals, nuclear weapons, and TikTok. Trump noted that he does not want China to face the threatened 157% tariffs, calling them unsustainable.

The market ultimately benefitted from a number of tailwinds, with today's advance setting the major averages up for solid week-to-date gains. Tomorrow brings the delayed release of the September Consumer Price Index (Briefing.com consensus: +0.4%), which will be an important gauge for the market's rate cut expectations given the recent data vacuum. 

Additionally, while Tesla (TSLA 449.09, +10.12, +2.31%), Lam Research (LRCX 147.54, +6.29, +4.45%), and IBM (IBM 285.00, -2.51, -0.87%) all reversed course from significant early losses, Netflix (NFLX 1113.59, -2.78, -0.25%) has yet to prompt any buy-the-dip interest, putting further pressure on earnings reports to dazzle heading into next week's mega-cap earnings reports. 

U.S. Treasuries ended Thursday with losses across the curve, as longer tenors dipped from their best levels of the month while the 2-year note deepened last week's reversal from its October high. The 2-year note yield settled up four basis points to 3.48%, and the 10-year note yield settled up four basis points to 3.99%. 

Reviewing today's data:

• Existing home sales increased 1.5% month-over-month in September to a seasonally adjusted annual rate of 4.06 million (Briefing.com consensus 4.05 million) from an unrevised 4.00 million in August. Sales were up 4.1% on a year-over-year basis.
  • The key takeaway from the report is that home sales in September were aided by falling mortgage rates, which eased (but did not negate) affordability constraints for some home buyers.

Friday:

The stock market rallied throughout the session, lifting the S&P 500 (+0.8%), Nasdaq Composite (+1.2%), and DJIA (+1.0%) to record intraday and closing highs after the long-awaited September Consumer Price Index (0.3%; Briefing.com consensus: 0.4%) reinforced expectations for two additional Fed rate cuts this year.

The advance was broad-based, with mega-caps exhibiting strong leadership, sending the Vanguard Mega Cap Growth ETF 1.1% higher. 

All of the information technology sector's (+1.6%) mega-cap components traded higher today, helping the sector finish with the widest gain for both the day and the week. 

Intel (INTC 38.28, +0.12, +0.31%) boosted sentiment across chipmaker names after a surprise Q3 earnings beat. 

Additionally, Reuters published a report highlighting IBM's (IBM 307.46, +22.46, +7.88%) belief that Advanced Micro Devices (AMD 252.92, +17.93, +7.63%) processors can effectively run a critical quantum computing error correction algorithm, sending both names sharply higher. The PHLX Semiconductor Index finished with a 1.9% gain. 

Alphabet (GOOG 260.51, +6.78, +2.67%) was a standout in the mega-cap space, moving higher after the company announced a cloud deal with Anthropic yesterday reportedly worth billions of dollars. The communication services sector (+1.3%) finished near the top of the leaderboard. 

The financials sector (+1.1%) was another point of strength, supported by gains across major banking names, while Coinbase Global (COIN 354.46, +31.70, +9.82%) led the sector after JPMorgan upgraded the stock to Overweight from Neutral.

The utilities sector (+1.2%) rounded out the four S&P 500 sectors with gains greater than 1.0% as most of its components finished higher.

As for today's four declining sectors, the energy sector (-1.0%) faced the widest loss, seeing some profit-taking after a strong week that saw it finish with the second-best week-to-date gain. Additionally, crude oil futures settled today's session $0.31 lower (-0.5%) at $61.47 per barrel, though the price of oil still increased over 7% this week.

The materials sector (-0.6%) closed lower, with Newmont Corporation (NEM 83.33, -5.58, -6.28%) lagging despite beating top-and-bottom line expectations. 

Post-earnings price action saw the consumer discretionary sector (-0.1%) finish flattish, as Ford Motor (F 13.83, +1.49, +12.07%) moved higher after beating expectations, while Deckers Outdoor (DECK 86.94, -15.60, -15.21%) lagged. 

The consumer staples sector (-0.4%) also closed with a loss, while the health care sector finished flat. 

Smaller-cap stocks were a point of strength today as the two additional rate cuts before the end of the year remain the most likely policy path. The Russell 2000 gained 1.3%, while the S&P Mid Cap 400 (+0.6%) finished with a more modest gain. 

In addition to today's rate cut optimism and continued mega-cap strength, the market now enters the weekend with the U.S. and China seemingly on better, more conciliatory terms. President Trump will meet with Chinese President Xi next Thursday, hoping to strike a trade deal. 

Today's broad strength highlighted the market's momentum, carrying the major averages to record highs ahead of next week's slate of mega-cap earnings. Alphabet (GOOG 260.51, +6.78, +2.67%), Amazon (AMZN 224.21, +3.12, +1.41%), Apple (AAPL 262.82, +3.24, +1.25%), Meta Platforms (META 738.36, +4.36, +0.59%), and Microsoft (MSFT 523.61, +3.05, +0.59%) all ended the week on a strong note ahead of earnings. 

Investors enter the new week with optimism fueled by softer inflation, expectations for further Fed rate cuts, and signs of progress in U.S.-China trade talks.

U.S. Treasuries finished the week on a generally flat note after overcoming some early post-CPI volatility. The 2-year note yield finished unchanged at 3.48% (+2 basis points this week), and the 10-year note yield settled up one basis point to 4.00% (-1 basis point this week). 

Reviewing today's data:

• September CPI 0.3% (Briefing.com consensus 0.4%); Prior 0.4%, September Core CPI 0.2% (Briefing.com consensus 0.3%); Prior 0.3%
  • The key takeaway from the report is that CPI and Core CPI were both cooler than expected, which will keep the market thinking that the FOMC will announce a 25-basis point rate cut at the conclusion of next week's policy meeting and should not upset expectations for another cut in December.
• October S&P Global U.S. Manufacturing PMI - Prelim 52.2; Prior 52.0
• October S&P Global U.S. Services PMI - Prelim 55.2; Prior 54.2
• October Univ. of Michigan Consumer Sentiment - Final 53.6 (Briefing.com consensus 55.0); Prior 55.0
  • The key takeaway from the report is that the overall sentiment has remained pressured for the third month in a row amid persistently high inflation expectations.