Market Summary

U.S. equities rallied broadly at midday on Monday, October 26, as the “AI trade” staged a sharp rebound from last week’s weakness. The S&P 500 climbed 55.97 points (+0.73%) to 7679.72, the Nasdaq Composite surged 259.94 points (+1.00%) to 26235.72, and the Dow Jones Industrial Average added a more modest 90.02 points (+0.17%) to 52305.39. Both the S&P 500 and Nasdaq have erased last week’s losses, with the S&P 500 reclaiming its 50-day moving average (7,698) during the session, though the major averages have slipped off their best levels of the morning as oil prices recovered from earlier lows.

The rally was powered by renewed enthusiasm for AI infrastructure names following several capital-raising headlines: Meta Platforms is reportedly seeking to raise $95 billion in equity to fund AI expansion, SpaceX closed a $40 billion debt deal to purchase GPUs, and Anthropic filed its S-1 registration statement for a potential IPO around Thanksgiving under ticker ANT. The PHLX Semiconductor Index jumped as much as 3.0%, lifting Information Technology, Industrials, and Consumer Discretionary to the top of the sector leaderboard, while Tesla (+6.52%) provided additional support to the discretionary space. Communication Services and Consumer Staples lagged as defensive positioning unwound.

Beneath the index-level strength, breadth signals remain mixed-to-cautious: WaveFinder’s Primary Sentiment reading is Bearish (621 bulls vs. 1,274 bears) even as the 40-day SMA sentiment reads Bullish, and only 32% of stocks trade above their 20-day moving average versus 50.47% above the 40-day. NYSE advancers led decliners 1,563 to 996, and Nasdaq advancers led 2,449 to 1,622 — a constructive but unspectacular breadth profile relative to the index-level gains, consistent with Briefing.com’s characterization of a “buy-the-dip” move lacking strong conviction.

Market Snapshot

Index	Level	Change	% Change
Dow Jones Industrial Average	52,305.39	+90.02	+0.17%
Nasdaq Composite	26,235.72	+259.94	+1.00%
S&P 500	7,679.72	+55.97	+0.73%

Advance/Decline (Briefing.com, as of 12:00 ET):

NYSE: 1,563 advancers / 996 decliners, Volume 331.42 mln
Nasdaq: 2,449 advancers / 1,622 decliners, Volume 3.68 bln

WaveFinder Breadth (10/26/2026):

Primary Sentiment: Bearish (Bulls 621 / Bears 1,274)
4% Sentiment: Bearish (Bulls 133 / Bears 176)
40 SMA Sentiment: Bullish
% of stocks above 20-day SMA: 32%
% of stocks above 40-day SMA: 50.47%
9-Month Bulls/Bears: 12 / 5 (Bull Follow-Through: 46.67%)

Sector Performance

Ranked using Briefing.com Industry Watch commentary and specific sector moves cited in the narrative (WaveFinder figures reflect ATR/volatility, not directional performance, and are noted separately):

1. Information Technology — +1.7% (Strong); PHLX Semiconductor Index +3.0% intraday
2. Industrials — +1.5% (Strong); AI-infrastructure/power names among top performers
3. Consumer Discretionary — +1.5% (Strong); led by Tesla’s rebound
4. Energy — +0.3%; choppy session, recovering with oil off session lows
5–9. Financials, Health Care, Materials, Real Estate, Utilities — described as “hovering near their flat lines” (no specific % provided)
10. Consumer Staples — Weak (no specific % provided)
11. Communication Services — -0.2% (Weak); pressured by Verizon and Reddit

WaveFinder Sector ATR (Volatility, 10/26/2026):

Technology: -1.78% (falling, P16)
Consumer Discretionary: 0.20% (rising, P79)
Communication Services: -2.02% (flat, P5)
Financials: -1.54% (rising, P63)
Industrials: 0.07% (rising, P100)
Health Care: 2.44% (flat, P74)
Energy: 2.02% (flat, P89)
Consumer Staples: 2.06% (rising, P84)
Materials: 0.90% (rising, P95)
Utilities: 2.39% (rising, P95)
Real Estate: -0.31% (rising, P100)

Key Earnings & Movers

Tesla (TSLA) $396.48, +24.26 (+6.52%) — Rebounding from post-earnings weakness, leading the Consumer Discretionary sector higher.
Verizon (VZ) $43.78, -0.88 (-1.97%) — Adjusted EPS of $1.31 beat the $1.27 consensus (+8.3% YoY); revenue of $34.3 bln missed the $34.77 bln estimate. Raised FY26 adjusted EPS guidance to $5.04–$5.06 (above the $5.00 consensus) for the third straight quarter. Phone net adds of 406,000 vs. 44,000 a year ago; adjusted EBITDA hit a record $13.8 bln (margin +240 bps to 40.2%). Shares pressured by the revenue miss, declining equipment sales (-9%), and competitive concerns tied to SpaceX’s wireless ambitions.
EQT Corp. (EQT) $53.20, -2.43 (-4.37%) — Selling pressure following its agreement to acquire Range Resources in an all-stock deal valued at ~$12.8 billion in equity consideration.
Range Resources (RRC) $52.09, +6.57 (+14.43%) — Rallying on news of the EQT acquisition, a 20.6% premium.
Marathon Petroleum (MPC) $469.47, +12.25 (+2.68%) — Near record highs on refiner strength.
Phillips 66 (PSX) $289.26, +6.08 (+2.15%) — Near record highs.
Valero Energy (VLO) $425.94, +6.66 (+1.59%) — Near record highs.
Meta Platforms (META) $643.30, +0.68 (+0.11%) — Reportedly seeking to raise $95 billion in equity to fund AI expansion.
SpaceX (SPCX) $149.85, +2.36 (+1.60%) — Closed a $40 billion debt deal to fund GPU purchases.
Reddit (RDDT) $137.09, -7.16 (-4.96%) — Weighing on Communication Services.
Xencor (XNCR) — Surging on updated Phase 1 data for XmAb819 (ENPP3 x CD3 bispecific antibody); selected 400 mcg/kg Phase 3 dose; disease control rate of 82% at that dose.
Comfort Systems (FIX) — Under pressure despite a Q3 earnings beat (details limited in available data).

Stock Spotlight

The session’s most consequential single-stock development is the EQT Corp. (EQT) / Range Resources (RRC) merger agreement. EQT announced an all-stock acquisition of Range Resources valued at approximately $12.8 billion in equity consideration, representing a 20.6% premium to Range’s prior price. Range Resources shares rallied sharply, up $6.57 (+14.43%) to $52.09, while EQT shares fell $2.43 (-4.37%) to $53.20 as the market weighed acquisition-premium concerns, integration costs, and a soft natural gas price backdrop.

The combined entity would carry an enterprise value exceeding $50 billion, with management targeting $325 million in annual run-rate synergies within two years and potential for additional savings longer-term. The deal underscores ongoing consolidation in the natural gas patch even as EQT’s near-5% share decline signals investor skepticism about near-term dilution and deal costs outweighing the strategic scale benefits in the current commodity environment.

Bond Market & Treasuries

As of 11:30 ET, the 10-year note was +1/32 with a yield of 4.986%, down modestly from Friday’s close of 4.988%. Overnight (08:04 ET), yields had ticked higher across most of the curve: 2-yr +3 bps to 4.71%, 3-yr +3 bps to 4.78%, 5-yr +2 bps to 4.83%, 10-yr +1 bp to 5.00%, and 30-yr unchanged at 5.32%.

Context from Friday’s close (10/23): Treasuries retreated after a big Thursday rally, though the complex still logged a third consecutive weekly gain — 2-yr -6 bps, 3-yr -8 bps, 5-yr -9 bps, 10-yr -11 bps, and 30-yr -12 bps for the week, with the 10-yr falling below 5.00% for the first time since September 22 before settling at 4.988-4.99% Friday.

Key driver today: the Treasury kicks off this week’s auction slate with a $69 billion 2-year note auction, results due at 13:00 ET. (Prior auction: high yield 4.787%, bid-to-cover 2.63, indirect bid 57.8%, direct bid 29.0%.) France’s OATs outperformed in overseas trading after Moody’s affirmed the country’s Aa3 rating Friday with a Negative outlook, citing political uncertainty.

Commodities

WTI Crude Oil: $102.68/bbl, -$0.59 (-0.6%) — recovering after falling more than 2% earlier in the session (session low near $100.91–$101.19/bbl overnight).
Gold: $4,033.50/ozt, +0.6% (overnight reading).
Copper: $6.521/lb, +0.2% (overnight reading).
Silver: not reported in available data.

Overseas Markets

Specific index-level data for Asian and European bourses was not detailed in today’s briefings; however, commentary notes that global equity markets had a positive start to the week, with some persistent weakness in tech stocks in Asia. In currencies, USD/JPY traded at 157.59 and EUR/USD at 1.1178 as of 11:30 ET (overnight levels: USD/JPY 157.46, EUR/USD 1.1193; U.S. Dollar Index +0.1% to 101.88).

Notably, Brazilian equities were under severe pressure, with the iShares MSCI Brazil ETF (EWZ) down 28% in pre-market trading in reaction to President Luiz Inácio Lula da Silva’s surprise runoff election victory. Separately, Marine Le Pen launched her French presidential campaign, currently leading opinion polls by roughly 16 points.

Economic Data

No major U.S. economic data was scheduled for release today. Overnight international data included:

Japan August Coincident Indicator: -1.8% m/m (expected -1.9%; prior +1.7%)
Japan Leading Index: +0.4% m/m (expected +0.4%; prior +1.5%); Leading Index level 118.0 (expected 118.0; prior 117.7)
Singapore September Industrial Production: +3.4% yr/yr (prior +15.4%); -3.9% m/m (prior -1.0%)
Germany October Ifo Business Climate Index: 90.2 (expected 90.0; prior 89.9); Business Expectations: 91.6 (expected 90.0; prior 90.4); Current Assessment: 88.8 (expected 89.9; prior 89.5)
Spain September PPI: +18.3% yr/yr (prior +13.2%)
U.K. October CBI Distributive Trades Survey: -10 (expected -47; prior -55)

Also of note: China’s Communist Party launched its fifth plenum, focused on “full and rigorous party self-governance.”

Looking Ahead

13:00 ET today: Results of the $69 billion 2-year Treasury note auction.
This week’s earnings: Microsoft (MSFT), Alphabet (GOOG/GOOGL), and Amazon (AMZN) — key tests for AI capex and profitability narratives.
Central bank decisions this week: Federal Reserve, European Central Bank, and Bank of Japan policy announcements.
Economic data: September Personal Income and Spending report; Thursday’s advance Q3 GDP reading (Briefing.com consensus 3.0%; prior 2.2%).
Treasury supply: Additional note auctions are scheduled throughout the week following today’s 2-year sale.
U.K. Autumn Budget: To be presented Wednesday.
Politics: U.S. midterm election campaigning intensifies ahead of the November 3 vote.
Anthropic IPO: Company has filed its S-1, targeting a potential listing on the Nasdaq (ticker ANT) around Thanksgiving; offering size, pricing, and timing remain undetermined.