Market Summary
U.S. equities are modestly higher at midday on Friday, September 25, with the Dow Jones Industrial Average up 318.18 points (+0.62%) to 51,668.07, the Nasdaq Composite up 127.45 points (+0.47%) to 27,087.87, and the S&P 500 up 30.54 points (+0.40%) to 7,734.77. Gains remain concentrated in mega-cap technology and semiconductor names, with the broader market showing far less conviction — advancers and decliners are roughly split on both the NYSE (1,253 advancing/1,346 declining) and Nasdaq (1,962/2,044).
The session’s dominant storyline is Akamai Technologies (AKAM), which surged as much as 6% after unveiling an $11.6 billion, seven-year infrastructure agreement with Anthropic that could expand to $20 billion. Microsoft (+3.26%) and a rebound in the PHLX Semiconductor Index are also lifting the tape, while Costco climbed 2.20% on a strong fiscal Q4 report. Oil prices are modestly lower, easing one of the month’s key inflationary pressures, though not enough to meaningfully calm the bond market — the 10-year Treasury yield pushed above 5.20% intraday after a firmer-than-expected University of Michigan sentiment revision and robust business-spending data.
Beneath the index-level calm, however, market internals remain fragile. WaveFinder breadth data show a “Very Bearish” primary sentiment reading, with only 35% of stocks above their 20-day moving average and just 21.22% above their 40-day average — consistent with Briefing.com’s broader narrative that this month’s headline resilience masks a much weaker equal-weighted market, pressured by a 44-basis-point rise in the 10-year yield since early September.
Market Snapshot
| Index | Level | Change | % Change |
|—|—|—|—|
| Dow Jones Industrial Average | 51,668.07 | +318.18 | +0.62% |
| Nasdaq Composite | 27,087.87 | +127.45 | +0.47% |
| S&P 500 | 7,734.77 | +30.54 | +0.40% |
Breadth:
- NYSE: 1,253 advancers / 1,346 decliners; volume 186.48 mln
- Nasdaq: 1,962 advancers / 2,044 decliners; volume 3.29 bln
WaveFinder Market Breadth:
- Primary Sentiment: Very Bearish (Bulls 753 / Bears 958)
- 4% Sentiment: Bullish (Bulls 97 / Bears 61)
- 40 SMA Sentiment: Neutral
- % of stocks above 20-day SMA: 35%
- % of stocks above 40-day SMA: 21.22%
- 9-Month Bulls: 14 / Bears: 5; Bull Follow-Through: 30%
Sector Performance
Ranked from strongest to weakest (per Briefing.com Industry Watch and intraday commentary):
1. Information Technology — +0.8% (semiconductors and mega-cap software leading)
2. Industrials — +0.5% (electrical/power names tracking semis higher)
3. Materials — Strong (no specific % provided)
4. Financials — Strong (no specific % provided)
5. Health Care, Consumer Discretionary, Consumer Staples, Real Estate — no midday directional data provided
6. Energy — -0.5% (tracking lower crude prices)
7. Communication Services — -0.5% (Meta pulling back after its Muse-driven rally)
8. Utilities — Weak (no specific % provided)
Note: Nine of 11 S&P 500 sectors were trading at or below their baselines as of the 11:35 ET update, underscoring narrow leadership.
Volatility (WaveFinder ATR): Health Care (2.15%, rising) and Technology (1.71%, rising) show the highest and increasing volatility; Utilities (-5.00%, falling) and Real Estate (-3.15%, flat) show the sharpest volatility contraction.
Key Earnings & Movers
- Akamai Technologies (AKAM) — $117.07, +$6.66 (+6.03%) — $11.6B, 7-year Anthropic infrastructure commitment, expandable to $20B
- Costco (COST) — $916.19, +$19.71 (+2.20%) — Q4 EPS beat; adjusted comps +6.7%, digital comps +19.8%
- Microsoft (MSFT) — $514.18, +$16.25 (+3.26%) — mega-cap/Dow standout amid semiconductor strength
- Datadog (DDOG) — $278.46, +$21.54 (+8.38%) — top S&P 500 performer on software-sector surge
- Meta Platforms (META) — $749.36, -$28.23 (-3.63%) — profit-taking after post-Muse rally (shares had gained ~36% since Sept. 1)
- Generac (GNRC) — $205.83, +$7.78 (+3.93%) — power/electrical names tracking semis
- Vertiv (VRT) — $252.48, +$7.18 (+2.93%) — power/electrical names tracking semis
- Scholastic (SCHL) — trading sharply lower after Q1 FY27 results showed a widening adjusted operating loss and Education segment revenue down 24% to $30.4 mln; company reaffirmed FY27 guidance (revenue growth 2–4%, adjusted EBITDA $135–145 mln, FCF $35–40 mln)
Stock Spotlight
Akamai Technologies (AKAM) is the standout story of the session, rallying as much as 6.03% to $117.07 after announcing a major expansion of its relationship with Anthropic. The agreement represents an $11.6 billion contractual commitment over seven years, with up to $9 billion in additional potential commitments that could bring the total relationship value to as much as $20 billion. The deal leverages Akamai Cloud’s distributed AI infrastructure to support Anthropic’s accelerating CPU workload demands and is entirely CPU-based — notable given the industry’s growing recognition that large AI deployments require substantial CPU capacity alongside GPUs, with CPUs offering greater power efficiency and more revenue per megawatt.
As part of the agreement, Akamai issued Anthropic warrants at a $111.33 exercise price covering up to 5% of shares outstanding (2% tied to the current commitment, 3% vesting with additional revenue growth). The deal significantly scales Akamai’s Cloud Infrastructure Services (CIS) business, which generated just $99 million in Q2 revenue (up 39% yr/yr), bringing total signed CIS commitments to roughly $14.4 billion in total contract value, expected to generate approximately $2.2 billion in annual recurring revenue once fully ramped. However, the buildout is capital-intensive — no revenue is expected in 2026, with roughly $5.5 billion in total capex required (including $1.7 billion in Q4 alone), and revenue not beginning until 2H27 at an initial $150–300 million run rate. Briefing.com analysts view the agreement as a major validation point for Akamai’s AI infrastructure strategy and a credibility booster with other large AI customers, even as the capital intensity of the buildout raises execution and funding considerations.
Bond Market & Treasuries
Treasury yields pushed higher at midday, with the 10-year note breaching the 5.20% threshold following stronger-than-expected economic data:
- 2-year note: 4.90% (-1 bp)
- 3-year note: 4.98% (-1 bp)
- 5-year note: 5.04% (unchanged)
- 10-year note: 5.21% (+3 bps)
- 30-year bond: 5.51% (+4 bps)
The move followed August durable goods orders that came in flat month-over-month (vs. -0.4% consensus), with nondefense capital goods orders excluding aircraft — a proxy for business spending — jumping a robust 1.6%. The final University of Michigan Consumer Sentiment reading for September rose to 48.1 (vs. 47.8 consensus and preliminary), though still down sharply from August’s 51.7 and year-ago’s 55.1. Year-ahead inflation expectations held at 4.6%, up from 4.0% in August and the highest since June, while long-run inflation expectations were unchanged at 3.4%. The 10-year yield has now risen 44 basis points this month, a key overhang on the broader (non-mega-cap) market.
Commodities
- WTI Crude Oil: $94.04/bbl, -$0.57 (-0.6%) — pressured earlier by an Iranian offer to reopen the Strait of Hormuz within seven days, though the offer was viewed skeptically given unchanged conditions from Iran
- Gold: $4,345.20/ozt, +1.1%
- Copper: $6.78/lb, flat
Overseas Markets
Specific overseas index levels were not disclosed in today’s data. Currency markets showed USD/JPY at 157.21 and EUR/USD at 1.1402 as of the 10:16 ET update. Key overseas drivers included: Japan Prime Minister Sanae Takaichi calling the yen’s valuation “problematic”; Gulf allies reportedly urging President Trump to maintain pressure on Iran; and the Trump-Xi summit, which produced few concrete economic breakthroughs. Iran’s proposal to reopen the Strait of Hormuz within seven days (contingent on U.S. acceptance of unchanged conditions) was the primary overnight catalyst affecting oil and, by extension, global risk sentiment.
Economic Data
- Durable Goods Orders (August): Flat m/m (consensus: -0.4%); July revised down to +0.9% (from +1.1%)
- Durable Goods ex-Transportation (August): +0.3% m/m (consensus: +0.5%); July revised up to +0.7% (from +0.4%)
- Nondefense Capital Goods ex-Aircraft (business spending proxy): +1.6% m/m, following +0.6% in July — a notable upside surprise
- University of Michigan Consumer Sentiment – Final (September): 48.1 (consensus: 47.8; preliminary: 47.8; August final: 51.7; year-ago: 55.1)
- Year-ahead inflation expectations: 4.6% (steady vs. preliminary; up from 4.0% in August; highest since June)
- Long-run inflation expectations: 3.4% (unchanged)
Market impact: The stronger business-spending signal, combined with sticky inflation expectations, contributed to renewed upward pressure on Treasury yields, pushing the 10-year above 5.20% intraday.
Looking Ahead
- Fed oversight: The Federal Reserve is reportedly making plans to increase bank oversight thresholds (per Reuters)
- Legislative: Senate Republicans are planning a vote next week on the House-passed Data Center Ratepayer Protection Act (per Politico)
- Geopolitical watch: Continued developments on the Iran/Strait of Hormuz negotiations will remain a key driver for oil prices and, by extension, inflation expectations and Treasury yields
- Rate path: Following the FOMC’s September 16 hawkish 25-bp hike (to 3.75–4.00%, a unanimous 12-0 vote), markets continue to monitor Fed commentary for signals on additional tightening; the dot plot showed 16 of 18 officials expecting at least one more hike this year
- Mortgage rates: The 30-year fixed mortgage rate has climbed to 7.45%, a factor to watch for housing-sensitive sectors