Market Summary
Equities traded in a mixed, low-conviction fashion into the midday session on Monday, September 22, with the Nasdaq Composite pushing to a fresh all-time high while the Dow Jones Industrial Average lagged noticeably. As of 12:05 ET, the Nasdaq stood at 27,209.46, up 66.32 points (+0.24%), the S&P 500 was essentially flat at 7,760.44, down 4.26 points (-0.05%), and the DJIA was the laggard at 51,764.45, down 284.38 points (-0.55%). Continued strength in semiconductor names — the PHLX Semiconductor Index was up roughly 0.9% — kept the information technology sector and Nasdaq afloat, while broad-based weakness in financials pressured the Dow given its heavier weighting toward large bank and insurance names.
The dominant story of the session was the divergence between a resilient AI/semiconductor trade and a sharp selloff in financial stocks. Banks, regional banks, insurers, and asset managers were all under pressure amid concerns about a flattening yield curve and softer trading/investment-banking activity, with the sector down roughly 2.0% and several key financial groups breaking below their 50-day moving averages. Meanwhile, market participants remained largely in a wait-and-see posture as President Trump addressed the UN General Assembly, reiterating support for continued AI development and expressing optimism that a deal with Iran could be reached after the midterm elections. Oil prices continued sliding on reports that Iran would reopen the Strait of Hormuz if U.S. military pressure eases and that Saudi Arabia has restarted its East-West pipeline, providing a supportive tailwind for risk assets outside of financials.
Breadth was mixed-to-narrow at the index level: NYSE advancers led decliners 1,337 to 1,265 on volume of 245.75 mln shares, while Nasdaq advancers outpaced decliners 2,190 to 1,888 on heavier volume of 4.90 bln shares. Notably, WaveFinder’s proprietary breadth model flagged a “Very Bearish” primary sentiment reading despite the constructive index-level tape, a divergence reminiscent of Monday’s session in which the S&P 500 rallied 1.5% even as more index members hit new 52-week lows (30) than new highs (7) — the first such occurrence since December 1999.
Market Snapshot
| Index | Level | Change | % Change |
|—|—|—|—|
| Dow Jones | 51,764.45 | -284.38 | -0.55% |
| Nasdaq Composite | 27,209.46 | +66.32 | +0.24% (fresh record high) |
| S&P 500 | 7,760.44 | -4.26 | -0.05% |
Breadth (as of midday):
- NYSE: Adv 1,337 / Dec 1,265, Volume 245.75 mln
- Nasdaq: Adv 2,190 / Dec 1,888, Volume 4.90 bln
WaveFinder Market Breadth:
- Primary Sentiment: Very Bearish (Bulls 833 / Bears 877)
- 4% Sentiment: Bullish (Bulls 142 / Bears 90)
- 40 SMA Sentiment: Neutral
- % of stocks above 20-day SMA: 85%
- % of stocks above 40-day SMA: 25.05%
- 9-Month Bulls: 15 / Bears: 16 (Follow-Through: 25.71%)
Sector Performance
Strong (per Briefing.com Industry Watch):
1. Materials
2. Communication Services
3. Consumer Staples
4. Information Technology
Weak (per Briefing.com Industry Watch):
1. Financials (-2.0%, clear session laggard)
2. Industrials
3. Real Estate
4. Consumer Discretionary
WaveFinder Sector ATR (volatility readings):
- Health Care: 2.58% (rising, P79) — most volatile/expansionary
- Technology: 0.98% (flat, P100)
- Communication Services: 0.13% (falling, P0)
- Energy: -0.33% (falling, P0)
- Consumer Staples: -0.89% (flat, P42)
- Materials: -1.51% (flat, P11)
- Consumer Discretionary: -1.57% (flat, P37)
- Financials: -1.67% (falling, P0)
- Industrials: -1.82% (flat, P47)
- Real Estate: -2.52% (flat, P37)
- Utilities: -3.40% (falling, P5) — most contracted
Financials remain the standout underperformer across both data sets, with technical damage (breaks below 50-day moving averages) compounding fundamental concerns about yield-curve flattening and capital-markets activity.
Key Earnings & Movers
- AutoZone (AZO): 2,938.34, +135.09 (+4.82%) — Fiscal Q4 EPS beat driven by margin expansion (gross margin +182 bps to 53.3%), despite another revenue shortfall. Domestic commercial sales rose 8.6%; management noted business improved in the final eight weeks of the quarter.
- Charles Schwab (SCHW): 100.33, -6.55 (-6.13%) — Leading financials-sector decliner.
- Allstate (ALL): 227.98, -14.88 (-6.13%) — Among the session’s worst performers.
- Wells Fargo (WFC): 83.38, -3.16 (-3.65%) — Pressured alongside broader bank weakness.
- Alibaba (BABA): 116.99, +1.24 (+1.07%) — Gained on unveiling of a full-stack AI roadmap, including the new Zhenwu V900 accelerator (~3x predecessor performance) and expanded cloud data-center capacity.
- Paramount Skydance (PSKY): 10.60, +0.69 (+6.96%) — Led communication services higher in early trade.
- On Holding (ONON): Sharply higher after Investor Day unveiled 2029 targets (CHF5.6 bln+ net sales, high-teens CAGR, 65%+ gross margin, 22%+ adjusted EBITDA margin) and a new $1 bln share-repurchase authorization.
- Thor Industries (THO): Higher despite mixed FY26 close — Q4 EPS of $0.78 missed, revenue beat at $2.31 bln (still -8.4% yr/yr); company withheld FY27 guidance.
Stock Spotlight
On Holding (ONON) was the standout mover of the session following its Investor Day, which paired ambitious long-term financial targets with the company’s first-ever share-repurchase authorization — up to $1 bln of Class A shares through year-end 2029, representing nearly 10% of ONON’s recent market capitalization. Management guided to at least CHF5.6 bln in 2029 net sales, a high-teens constant-currency sales CAGR, gross-profit margin of at least 65%, and adjusted EBITDA margin of at least 22%, while reaffirming FY26 guidance even as Q3 growth is expected to moderate to approximately 17%.
Growth is expected to be led by the Run, Sneaker, and Apparel categories, supported by owned-retail/DTC expansion and entry into new categories including Football and Golf — highlighted by the signing of Kylian Mbappé and plans for football boots in 2027. Q2 apparel sales grew 56.2% in constant currency with a 65.4% gross margin, lending credibility to the long-term framework. The buyback signals management confidence in future cash generation following the stock’s sharp 2026 decline, though it remains an upper limit through 2029 rather than an immediate commitment. Investors will be watching Q4 wholesale ordering and holiday demand closely, as reaffirmed low-20% FY26 growth guidance implies a meaningful acceleration in the back half.
Bond Market & Treasuries
Treasury yields were largely unchanged to modestly lower heading into midday, tracking the directional move in crude oil. As of the 10:45 ET update:
- 2-yr: 4.75% (unch)
- 3-yr: 4.82% (unch)
- 5-yr: 4.83% (unch)
- 10-yr: 4.96% (unch), -1/32 in price
- 30-yr: 5.30% (unch)
Earlier in the session (8:01 ET), yields had dipped further on the oil-driven bid: 2-yr -2 bps to 4.73%, 3-yr -4 bps to 4.78%, 10-yr -3 bps to 4.93%, 30-yr -4 bps to 5.26%, before drifting back toward flat.
A $69 billion 2-year note auction is scheduled for 13:00 ET. The prior 2-yr auction produced a high yield of 4.204%, bid-to-cover of 2.60, indirect bid of 66.0%, and direct bid of 23.1% (versus 12-auction averages of 3.835% high yield, 2.61 bid-to-cover, 58.3% indirect, 29.3% direct). Treasuries remain sensitive to geopolitical headlines out of the UN General Assembly, with no U.S. economic data on the calendar today.
Commodities
- WTI Crude Oil: $93.60/bbl, -2.3% — pressured by reports Saudi Arabia restarted its East-West pipeline (albeit at a slow rate) and Iran’s pledge to reopen the Strait of Hormuz within seven days if U.S. military pressure eases.
- Gold: $4,353.80/ozt, -0.7%
- Copper: $6.85/lb, +1.3%
- Silver: Data not available in source feed.
Overseas Markets
(Most recent close, September 21 session)
Europe: DAX +1.1%, FTSE +0.8%, CAC +0.9% — broad gains alongside the global rally in tech/semiconductor names and easing oil prices.
Asia: Hang Seng +1.2%, Shanghai +1.0%; Nikkei was closed for holiday.
No updated overseas figures were available for the current session as of this report’s compilation.
Economic Data
There was no U.S. economic data of note released today. The primary macro focus remained geopolitical, centered on President Trump’s UN General Assembly address and ongoing U.S.-Iran and U.S.-China diplomatic developments.
Looking Ahead
- 13:00 ET Today: Results of the $69 billion 2-year Treasury note auction.
- This Afternoon: President Trump to meet with several Gulf state representatives to discuss Iran.
- This Week: Continued U.S.-China trade talks, with a formal dialogue on AI established; Reuters reports the two sides are expected to meet again in roughly two months for further AI-safety discussions.
- September 24: Scheduled meeting between President Trump and Chinese President Xi Jinping.
- Ongoing: Market attention on potential U.S.-Iran diplomatic progress at the UN gathering, with no meeting currently confirmed between President Trump and Iranian officials.
- Corporate: Continued focus on upcoming RV industry events (Hershey show, Elkhart Open House) for further read-through on Thor Industries’ (THO) demand outlook and FY27 guidance.