Market Summary
Equity markets are trading broadly lower at midday on Friday, September 18, as this week’s Fed-driven volatility continues to play out. The S&P 500 sits at 7,620.10, down 17.66 points (-0.23%), while the Dow Jones Industrial Average has shed 229.38 points (-0.44%) to 51,548.66. The Nasdaq Composite is the relative outperformer at 26,401.81, down a more modest 37.53 points (-0.14%), as lingering strength in semiconductor names continues to cushion the tech-heavy index even as broader weakness deepens into the session.
The session began on a mixed note, with the Nasdaq briefly positive early on the back of a 1.2-1.3% gain in the PHLX Semiconductor Index and strength in Alphabet (GOOG), before rising Treasury yields and firmer oil prices reasserted pressure across most sectors. The 10-year note yield climbed to roughly 5.00% (+5 bps), erasing much of Thursday’s decline and weighing heavily on rate-sensitive utilities, materials, and financials. By midday, decliners outpaced advancers by more than 2-to-1 on both the NYSE and Nasdaq, and only the energy sector remains in positive territory (+0.3%), underscoring the breadth deterioration from Thursday’s broad-based rally.
Company-specific news has also driven notable dispersion. Netflix (NFLX) is sharply lower after a Wells Fargo downgrade, while steelmakers Nucor (NUE) and Steel Dynamics (STLD) are under pressure following disappointing Q3 guidance despite constructive pricing commentary. On the flip side, crypto-related names Coinbase (COIN) and Robinhood (HOOD) are surging as Bitcoin reclaims the $80,000 level, providing a pocket of speculative strength amid an otherwise risk-off tape.
Market Snapshot
| Index | Level | Change | % Change |
|—|—|—|—|
| Dow Jones Industrial Average | 51,548.66 | -229.38 | -0.44% |
| Nasdaq Composite | 26,401.81 | -37.53 | -0.14% |
| S&P 500 | 7,620.10 | -17.66 | -0.23% |
Breadth (NYSE): Advancers 699 | Decliners 1,901 | Volume 440.60 mln
Breadth (Nasdaq): Advancers 1,383 | Decliners 2,650 | Volume 5.01 bln
WaveFinder Market Breadth (Sentiment Overlay):
- Primary Sentiment: Bearish | 40 SMA Sentiment: Bearish | 4% Sentiment: Neutral
- Primary Bulls: 783 | Bears: 987
- 4% Bulls: 90 | Bears: 73
- 9-Month Bulls: 16 | Bears: 12 (Follow-Through: 26.32%)
- % of Stocks Above 20-day SMA: 24.0%
- % of Stocks Above 40-day SMA: 23.3%
Breadth metrics confirm the deteriorating tape, with less than a quarter of stocks holding above key short- and medium-term moving averages, consistent with the bearish primary and 40-SMA sentiment readings.
Sector Performance
Ranked from strongest to weakest based on Briefing.com Industry Watch and intraday commentary:
1. Energy — Strong (+0.3%), best-performing sector on the day
2. Information Technology — Little changed/modestly positive, supported by a 1.2-1.3% gain in the PHLX Semiconductor Index
3. Communication Services — Weak; started the session as a leader (+0.5%) on Alphabet strength but has faded as GOOG gave up most of its gain (now +0.56% vs. +2.21% at the open)
4. Consumer Discretionary — Weak
5. Industrials — Weak
6. Health Care — Weak
7. Consumer Staples — Weak
8. Financials — Weak, pressured by rising yields
9. Real Estate — Weak, rate-sensitive laggard
10. Utilities — Weak (-1.1% as of late morning), pressured by the run-up in the 10-yr yield to 5.00%
11. Materials — Weakest sector (-1.3% as of late morning), dragged down by steel names (NUE, STLD) after disappointing guidance
WaveFinder Sector ATR (Volatility) Context:
- Health Care: ATR 1.65% (flat, P37) — highest volatility percentile
- Energy: ATR 0.60% (falling, P11)
- Communication Services: ATR 0.24% (flat, P5)
- Technology: ATR -0.18% (falling, P84)
- Consumer Staples: ATR -1.04% (flat, P16)
- Financials: ATR -1.25% (falling, P0)
- Materials: ATR -1.53% (falling, P0)
- Consumer Discretionary: ATR -2.17% (falling, P5)
- Industrials: ATR -2.31% (falling, P0)
- Real Estate: ATR -2.77% (flat, P11)
- Utilities: ATR -3.13% (falling, P5) — lowest volatility percentile
Key Earnings & Movers
- Netflix (NFLX) — $71.49, -3.82 (-5.07%): Downgraded to Underweight from Equal Weight by Wells Fargo, with a new price target of $77.
- Nucor (NUE) — $249.80, -15.34 (-5.79%): Guided Q3 EPS to $5.55-5.65, below analyst expectations; company cited higher selling prices and stable volumes in steel mills, offset by higher costs and corporate expenses.
- Steel Dynamics (STLD) — $234.00, -11.35 (-4.63%): Guided Q3 EPS to $5.34-5.38, below expectations; cited higher realized selling prices and lower scrap costs, with strong customer order activity.
- Coinbase Global (COIN) — $192.44, +18.47 (+10.62%): Rallying alongside a 5.9% surge in Bitcoin back above $80,000, aided by SEC’s new “Innovation Exemption” allowing tokenized equities on crypto exchanges.
- Robinhood Markets (HOOD) — $118.03, +8.22 (+7.49%): Also benefiting from the Bitcoin rally and crypto-related tailwinds.
- Alphabet (GOOG) — $345.59, +1.91 (+0.56%): Gave back the bulk of an early gain (was +7.61/+2.21% at the open) as communication services faded.
- Xenon Pharmaceuticals (XENE) — Under heavy pressure after voluntarily pausing new patient enrollment in MDD and bipolar depression studies due to neuropsychiatric adverse events, overshadowing a positive NDA submission for azetukalner in focal seizures.
Stock Spotlight
Steel Sector: Nucor and Steel Dynamics Slide on Q3 Guidance Miss
Nucor (NUE, -5.79%) and Steel Dynamics (STLD, -4.63%) are today’s most notable sector-specific movers after both companies guided Q3 EPS below analyst expectations — NUE to $5.55-5.65 and STLD to $5.34-5.38. The miss is particularly notable given that Q3 is seasonally the strongest quarter for steelmakers, as warmer weather typically drives higher shipments and stronger nonresidential construction and infrastructure demand. Nucor expects earnings growth in its steel mills and steel products segments to be offset by declines in raw materials and higher corporate/eliminations expense, while Steel Dynamics pointed to higher realized selling prices and lower scrap costs as partial offsets.
Despite the near-term earnings disappointment, the underlying commentary from both companies was more constructive than the headline miss suggests. Both are seeing higher steel selling prices, supported by tight domestic supply, a 50% U.S. tariff on steel imports that has curbed import competition, and persistently low customer inventories. STLD specifically noted that customer order activity remains strong. The takeaway for investors is that while costs and corporate expenses are tempering near-term earnings acceleration, the broader pricing and demand backdrop for domestic steel producers remains supportive heading into year-end.
Bond Market & Treasuries
Treasuries are on session lows at midday, extending losses as crude oil recovered from its overnight lows to trade back above $103/bbl. Yield levels as of the 10:00 ET bond update:
- 2-year: 4.74% (+5 bps)
- 3-year: 4.82% (+6 bps)
- 5-year: 4.86% (+6 bps)
- 10-year: 5.00% (-11/32 price, +5 bps), touching its highest level of the year on the short end
- 30-year: 5.33% (+3 bps)
The move higher in yields is erasing much of Thursday’s post-rally retreat and reflects lingering concern following the Bank of Japan’s 25-bp rate hike to 1.25% (a 7-2 vote), which failed to convincingly shore up the yen. USD/JPY trades at 157.87, with the weaker yen raising the theoretical risk that Japan could sell Treasuries to fund currency intervention. The U.S. Dollar Index is up roughly 0.3% to 100.56. EUR/USD trades at 1.1460.
Commodities
- WTI Crude Oil: Choppy session — down 0.6% to $101.30/bbl in early overnight trade, then up 0.2% to $102.14/bbl in pre-market, before recovering back above $103/bbl by mid-morning as concerns eased over potential supply disruption tied to Trump’s expected meeting with Gulf leaders next week regarding Iran.
- Gold: +0.4% (specific dollar level not available in source data).
- Silver and Copper: No data provided in source materials.
Overseas Markets
- Bank of Japan: Raised its key policy rate by 25 basis points to 1.25%, as expected, though the 7-2 vote and Governor Ueda’s vague remarks were seen as lacking hawkish conviction, pressuring the yen (USD/JPY 157.87-157.89).
- Japan: August National CPI +0.1% m/m, +1.9% yr/yr; National Core CPI +1.7% (expected 1.8%, prior 1.8%).
- United Kingdom: August Retail Sales beat expectations, +0.5% m/m (expected -0.2%) and +2.4% yr/yr; Core Retail Sales +0.6% m/m, +2.7% yr/yr.
- Germany: August PPI +1.1% m/m (expected 0.6%), +4.6% yr/yr (expected 4.1%).
- China: August FDI down 5.3% year-to-date (prior -6.2%); reports indicate the U.S. will delay tariffs on excess manufacturing capacity until after President Xi’s visit.
- South Korea: August PPI +0.2% m/m, +7.9% yr/yr.
- New Zealand: August FPI +0.3% m/m; trade deficit of NZD 1.35 bln (narrower than expected NZD 1.775 bln deficit).
- Eurozone: July Current Account surplus of EUR 27.6 bln (expected EUR 30.7 bln); July Construction Output unchanged m/m.
Economic Data
- Leading Economic Index (August): -0.1% (Briefing.com consensus: +0.2%) vs. prior +0.2% — a negative surprise.
- Industrial Production (August): Unchanged m/m (consensus: +0.3%) following an unrevised +0.2% in July; softness attributed to a pullback in manufacturing output after seven consecutive monthly increases. Total industrial production remains up 1.4% year-over-year.
- Capacity Utilization (August): 76.3% (consensus: 76.4%), unchanged from July and 3.1 percentage points below its long-run average.
- Housing Starts (August, released Thursday): -2.6% m/m to a seasonally adjusted annual rate of 1.275 million (consensus: 1.325 million), though single-unit starts rose 7.6%. Building permits fell 2.7% m/m.
The weaker-than-expected Leading Index and flat Industrial Production reading added to the day’s cautious tone, reinforcing concerns about softening momentum even as inflation and rate-hike risk remain the dominant market narrative.
Looking Ahead
- Geopolitics/Oil: President Trump is expected to meet with Gulf leaders next week to discuss next steps regarding the Iran conflict — a key catalyst for crude oil direction.
- Trade Policy: The U.S. is reportedly set to delay implementation of tariffs on excess manufacturing capacity until after Chinese President Xi’s visit.
- Pharma: Xenon Pharmaceuticals’ X-NOVA2 study topline data (efficacy/tolerability in major depressive disorder) is expected in Q1 2027 and will be a key read on the azetukalner psychiatric program following today’s enrollment pause.
- Fed Watch: Markets continue to digest this week’s hawkish 25-bp rate hike (fed funds target now 3.75-4.00%) and Fed Chair Warsh’s inflation-focused commentary, with the dot plot showing 16 of 18 officials expecting at least one more hike this year — a continued focal point for yield and equity direction into next week.
- Earnings/Guidance Watch: Continued market digestion of Nucor and Steel Dynamics’ Q3 guidance, along with any follow-through commentary from other industrial and materials names on pricing and demand trends.