Market Summary
U.S. equities staged a broad, decisive rebound on Thursday, September 17, snapping a three-session losing streak that followed Wednesday’s hawkish Fed reaction. The S&P 500 climbed 85.95 points (+1.14%) to close at 7,637.76, reclaiming its 50-day moving average (7,614.9). The Nasdaq Composite led the charge, surging 439.87 points (+1.69%) to 26,439.34, while the Dow Jones Industrial Average added 316.14 points (+0.61%) to finish at 51,778.04.
The rally was powered by a return of risk appetite in AI, semiconductor, and mega-cap growth names, aided by a pullback in both Treasury yields and crude oil prices — two of the key headwinds that drove Wednesday’s post-FOMC selloff. The 10-year note yield fell six basis points to 4.95%, easing off its brief foray above 5.00%, while WTI crude settled at $102.03/bbl. Information Technology (+2.2%) paced sector gains as the PHLX Semiconductor Index jumped 3.1%, with Intel, AMD, and Arm Holdings posting standout advances. Financials (-0.1%) was the lone sector in the red, with bank stocks still digesting the implications of Wednesday’s rate hike and Fed Chair Warsh’s hawkish tone.
Breadth was positive but less emphatic than the headline index moves suggest — advancers led decliners by roughly 2-to-1 on both the NYSE (1,789 to 954) and Nasdaq (3,048 to 1,367), while small- and mid-caps lagged, with the Russell 2000 and S&P Mid Cap 400 each up only 0.6%. Notably, WaveFinder’s proprietary breadth model registered a “Very Bearish” primary sentiment reading (824 bulls vs. 952 bears) despite the strong index-level performance, and just 33% of stocks remain above their 20-day moving average, underscoring a narrow, mega-cap-driven advance beneath the surface.
Market Snapshot
| Index | Level | Change | % Change |
|—|—|—|—|
| S&P 500 | 7,637.76 | +85.95 | +1.14% |
| Nasdaq Composite | 26,439.34 | +439.87 | +1.69% |
| Dow Jones Industrial Average | 51,778.04 | +316.14 | +0.61% |
Breadth (Briefing.com):
- NYSE: Advancers 1,789 / Decliners 954 | Volume: 1.25 bln
- Nasdaq: Advancers 3,048 / Decliners 1,367 | Volume: 9.86 bln
WaveFinder Breadth Metrics:
- Primary Sentiment: Very Bearish (Bulls 824 / Bears 952)
- 4% Sentiment: Bullish (Bulls 279 / Bears 64)
- 40 SMA Sentiment: Neutral
- % Above 20-day SMA: 33%
- % Above 40-day SMA: 27.14%
- 9-Month Bulls/Bears: 45 / 7 (Follow-Through: 64.71%)
YTD Performance:
- Russell 2000: +15.9%
- Nasdaq Composite: +13.7%
- S&P 500: +11.6%
- S&P Mid Cap 400: +10.8%
- DJIA: +7.7%
Sector Performance
1. Information Technology: +2.2% — Led all sectors; PHLX Semiconductor Index +3.1%. ATR -0.48% (flat, P79)
2. Consumer Discretionary: +1.4% — Boosted by mega-cap strength. ATR -1.67% (falling, P21)
3. Materials: Strong (no specific % provided) — ATR -1.10% (falling, P26)
4. Utilities: +0.9% — Rate-sensitive outperformer on falling yields. ATR -2.68% (falling, P16)
5. Energy: +0.6% — Higher despite lower crude settlement. ATR 0.36% (falling, P5)
6. Communication Services: +0.6% — Alphabet and Meta gains offset weakness elsewhere in group. ATR 0.20% (flat, P0)
7. Consumer Staples: Unchanged (0.0%) — Lagged as growth led the tape. ATR -0.98% (falling, P16)
8. Financials: -0.1% — Only sector to close lower; banks pressured post-rate hike. ATR -1.20% (falling, P5)
9. Health Care: Not specified in performance data. ATR 1.67% (flat, P37)
10. Industrials: Not specified in performance data. ATR -2.29% (falling, P0)
11. Real Estate: Not specified in performance data. ATR -2.45% (falling, P26)
Key Earnings & Movers
- Generac (GNRC): $207.20, +$32.09 (+18.33%) — Surged after announcing a long-term supply agreement with Amazon for backup data-center generators (up to $8 bln), plus a warrant for Amazon to acquire up to 1,693,745 shares at $200.9266/share.
- Intel (INTC): $108.80, +$7.75 (+7.67%) — Extended prior-session gains on reports SK hynix is in talks over potential U.S. chip production.
- Arm Holdings (ARM): $264.90, +$20.92 (+8.57%) — CEO Rene Haas expressed confidence in meeting ~$2 bln in customer demand.
- Super Micro Computer (SMCI): $40.35, +$3.50 (+9.50%) — Gained amid broader AI server/data-center strength.
- Hewlett Packard Enterprise (HPE): $61.06, +$4.38 (+7.73%) — Rallied alongside data-center infrastructure names.
- AMD: $545.09, +$32.59 (+6.36%) — Broad semiconductor strength.
- Workday (WDAY): $199.28, +$11.52 (+6.14%) — Notable software outperformer.
- Oracle (ORCL): $150.58, +$7.42 (+5.18%) — Software sector leadership.
- SK hynix (SKHY): $182.99, +$8.12 (+4.64%) — Rose on Intel production talks.
- NVIDIA (NVDA): $219.34, +$5.44 (+2.54%) — CEO Jensen Huang discussed doubling chip sales at a UK event.
- Amazon (AMZN): $251.19, +$5.23 (+2.13%) — Generac deal counterparty.
- Alphabet (GOOG): $343.68, +$4.32 (+1.27%) — Communication services support.
- Meta Platforms (META): $682.31, +$9.00 (+1.34%) — Communication services support.
- Fluence Energy (FLNC): Under pressure after cutting FY26 guidance — revenue now ~$2.4 bln (down $600 mln) and adjusted EBITDA loss of ~$(200) mln (down $190 mln), citing Houston manufacturing ramp delays. Backlog reached a record $6.4 bln (+14% q/q, +30%+ yr/yr).
- Intuit (INTU): Little changed after reaffirming Q1 and FY27 guidance at Investor Day (Q1 adj. EPS $2.44–$2.48; FY27 adj. EPS $22.88–$23.12).
- Nucor and Steel Dynamics: Headed lower on Q3 guidance (per After Hours headline; details not specified).
Stock Spotlight
Generac Holdings (GNRC) was the standout mover of the session, surging 18.33% to $207.20 after announcing a landmark long-term supply agreement with Amazon (AMZN) to provide backup power generators for its data centers, with total payments to Generac potentially reaching $8 billion. As part of the arrangement, Generac issued Amazon a warrant to acquire up to 1,693,745 shares at an exercise price of $200.9266 per share; 307,954 of those warrant shares vested immediately, with the remainder vesting in tranches tied to cumulative payments received under the generator supply deal.
The transaction underscores the broader AI-infrastructure investment theme that dominated Thursday’s tape, as data-center buildout continues to drive demand for backup power, cooling, and server hardware. Generac’s move came alongside similarly outsized gains in Super Micro Computer (+9.50%) and Hewlett Packard Enterprise (+7.73%), reinforcing that the AI capital-expenditure cycle is broadening beyond chipmakers into power and infrastructure suppliers — a dynamic that also surfaced in Page One reporting on CoreWeave’s higher compute pricing and Nebius’s rate increases for computing services.
Bond Market & Treasuries
Treasuries rallied on Thursday, with the front end recovering a portion of Wednesday’s post-FOMC losses and the long bond extending its modest advance:
- 2-year note: 4.69%, -4 bps
- 3-year note: 4.76%, -5 bps
- 5-year note: 4.80%, -6 bps
- 10-year note: 4.95%, -6 bps
- 30-year bond: 5.30%, -5 bps
The rally drew overnight support from a pullback in oil prices and a morning boost after the Bank of England announced it would halt sales of longer-dated Gilts (alongside its decision to hold its bank rate at 3.75%), which lent strength to long-dated sovereign debt broadly. Yields had spiked sharply Wednesday after Fed Chair Kevin Warsh’s hawkish press conference following the FOMC’s 25-bp hike (unanimous 12-0 vote) to a 3.75–4.00% target range; the 2-year had jumped to 4.73% and the 10-year to 5.02% in the immediate aftermath. Thursday’s data — soft housing starts/permits and continued low jobless claims — did not materially alter the rate outlook. The U.S. Dollar Index was little changed at 100.25 after facing brief intraday pressure.
Commodities
- WTI Crude Oil: $102.03/bbl, -$0.38 (-0.4%) — Recovered most of an overnight/intraday decline that had been driven by reports President Trump is expected to meet Gulf leaders next week regarding Iran.
- Gold: $4,400.30/ozt, +0.3%
- Copper: $6.66/lb, +2.3%
- Silver: Not reported in available data.
Overseas Markets
Specific index-level performance for Asian and European markets was not provided in today’s data set. Key overseas developments included:
- Bank of England: Voted 6-3 to hold its bank rate at 3.75%; Governor Bailey warned a rate hike is possible if the Iran conflict is prolonged. The BoE also confirmed plans to halt sales of longer-dated Gilts, supporting long-end European sovereign debt.
- Bank of Japan: Expected to follow through with a rate hike (flagged in Page One as a scheduled overnight event).
- Hong Kong Monetary Authority: Raised rates 25 bps to 4.25%, following the Fed’s move; Hong Kong’s August unemployment rate rose to 3.8% from 3.7%.
- Eurozone: August CPI +0.4% m/m (vs. +2.9% expected) and +3.2% yr/yr; Core CPI +0.2% m/m and +2.4% yr/yr, both in line with expectations. ECB’s Makhlouf reiterated that second-round inflation effects are not being observed.
- Switzerland: Raised its 2026 growth forecast to 1.7% from 0.9%; 2027 outlook held at 1.6%. August trade surplus of CHF3.786 bln.
- Singapore: August trade surplus of SGD13.78 bln; non-oil exports +10.9% m/m and +46.2% yr/yr (vs. 35.0% expected).
- New Zealand: Q2 GDP +0.2% q/q (vs. +0.1% expected), +2.6% yr/yr; Q2 GDP Expenditure +0.4% q/q.
- China: Foreign minister called for the U.S. and Iran to exercise rationality following a meeting with Iran’s foreign minister.
Currencies: EUR/USD +0.1% to 1.1477; GBP/USD -0.2% to 1.3354; USD/CNH -0.1% to 6.7037; USD/JPY -0.2% to 156.02.
Economic Data
- Initial Jobless Claims (week ending Sept. 12): 196,000, down 10,000 (consensus: 209,000). Continuing claims (week ending Sept. 5): 1.730 million, down 39,000. Takeaway: a remarkably low level of initial claims points to a low-firing environment.
- Housing Starts (August): -2.6% m/m to a seasonally adjusted annual rate of 1.275 million (consensus: 1.325 million); single-unit starts rose 7.6%.
- Building Permits (August): -2.7% m/m to 1.394 million (consensus: 1.410 million). Takeaway: permits — a leading indicator — were flat to down across all regions for single-unit dwellings.
- Philadelphia Fed Index (September): Fell to 37.8 (consensus: 35.0) from 47.4 in August. Prices paid index jumped eight points to 48.6; prices received index hit 31.3, its highest since April.
- Pending Home Sales (August): +0.3% m/m (consensus: +0.5%); July decrease revised to -2.6% from -2.5%.
- Natural Gas Inventories: Increased by 44 bcf, versus a 40 bcf increase the prior week.
- Atlanta Fed GDPNow: Q3 GDP forecast held steady at 5.1%.
Overall, today’s data reflected a resilient labor market, softer housing activity, and persistent producer-level inflation pressure — consistent with the market’s post-FOMC narrative of a Fed still focused on inflation control.
Looking Ahead
- 9:15 AM ET (Friday): August Industrial Production (Briefing.com consensus +0.3%; prior +1.1%) and Capacity Utilization (consensus 76.4%; prior 76.3%)
- 10:00 AM ET (Friday): August Leading Index (consensus +0.2%; prior +0.2%)
- Markets will continue to monitor Treasury yield direction as a key swing factor for the rebound’s durability, along with any follow-through in AI infrastructure and semiconductor names.
- Geopolitical watch: President Trump expected to meet with Gulf leaders next week to discuss next steps regarding Iran, a potential catalyst for oil price volatility.
- Earnings and corporate developments to watch include continued fallout from Fluence Energy’s guidance cut and Nucor/Steel Dynamics Q3 guidance commentary.