Market Summary
U.S. equities closed out the week on a strong note Friday, with all three major averages advancing as a sharp reversal in crude oil and encouraging signals from U.S.-Iran diplomatic talks broadened market participation. The Dow Jones Industrial Average led with a 478.64-point (+0.93%) gain to 51,828.53, while the S&P 500 added 39.28 points (+0.51%) to close at 7,743.51 and the Nasdaq Composite rose 129.34 points (+0.48%) to 27,089.76. The session built on early technology strength, with reports that U.S.-Iran discussions had entered a “technical phase” regarding a potential Strait of Hormuz agreement helping crude oil tumble and easing inflation-related anxiety that has weighed on the broader tape this month.
Technology and semiconductors remained the standout leadership group, with the Information Technology sector gaining 1.0% and the PHLX Semiconductor Index advancing 1.4%. Microsoft (+3.66%) was a standout mega-cap and Dow contributor, while Industrials (+0.9%) and Financials (+0.5%) also participated as the advance broadened beyond the AI trade. Eight of eleven S&P 500 sectors finished higher, though overall breadth was only modestly positive (NYSE advancers barely outpaced decliners), underscoring a narrative that has defined September: strong headline index performance masking uneven participation beneath the surface.
The gains capped a positive week for the major averages, with the DJIA snapping a three-week losing streak. Treasury yields, which surged earlier in the week on hawkish Fed commentary and strong PMI data, eased Friday as investors treated the recent back-up in rates as short-term oversold. Attention now turns to next week’s PCE inflation data and the October FOMC meeting, where the CME FedWatch Tool assigns a 64.2% probability to another 25-basis-point rate hike.
Market Snapshot
| Index | Level | Change | % Change |
|—|—|—|—|
| Dow Jones Industrial Average | 51,828.53 | +478.64 | +0.93% |
| S&P 500 | 7,743.51 | +39.28 | +0.51% |
| Nasdaq Composite | 27,089.76 | +129.34 | +0.48% |
Breadth (NYSE): Advancers 1,513 | Decliners 1,203 | Volume 1.06 bln shares
Breadth (Nasdaq): Advancers 2,588 | Decliners 2,291 | Volume 7.32 bln shares
WaveFinder Market Breadth (Proprietary):
- Primary Sentiment: Very Bearish
- 4% Sentiment: Neutral
- 40-Day SMA Sentiment: Oversold
- Primary Bulls/Bears: 728 / 992
- 4% Bulls/Bears: 105 / 105
- Stocks Above 20-Day SMA: 35%
- Stocks Above 40-Day SMA: 20.89%
- 9-Month Bulls/Bears: 13 / 6
- 9-Month Bull Follow-Through: 30%
The disconnect between the day’s positive index-level performance and the deeply negative WaveFinder sentiment readings reinforces the narrow, mega-cap/semiconductor-driven nature of the advance — only 35% of stocks trade above their 20-day moving average despite the headline gains.
Sector Performance
Ranked by available performance data (Briefing.com Industry Watch + session commentary):
1. Information Technology — Strong; +1.0% (PHLX Semiconductor Index +1.4%)
2. Industrials — Strong; +0.9% (led by Bloom Energy +8.27%)
3. Materials — Strong (magnitude not specified)
4. Financials — Strong; +0.5%
5. Consumer Staples — Finished higher (among the eight advancing sectors; magnitude not specified)
6. Health Care — Finished higher (among the eight advancing sectors; magnitude not specified)
7. Consumer Discretionary — Finished higher (among the eight advancing sectors; magnitude not specified)
8. Utilities — Finished higher (among the eight advancing sectors; magnitude not specified)
9. Real Estate — Weak; -0.4%
10. Communication Services — Weak; -0.7% (pressured by Meta Platforms -3.33%)
11. Energy — Weak; -0.9% (tracking WTI crude’s -2.7% decline)
Note: Eight of eleven S&P 500 sectors finished higher on the session; Energy, Communication Services, and Real Estate were the three decliners.
Volatility Context (WaveFinder Sector ATR): Health Care shows the highest volatility reading (ATR 2.23%, rising, P74), followed by Technology (ATR 1.61%, rising, P100 — at the top of its historical percentile range). Utilities (-4.64%, falling, P5) and Real Estate (-3.27%, flat, P5) show the most compressed/falling volatility profiles.
Key Earnings & Movers
- Microsoft (MSFT) — $516.17, +$18.24 (+3.66%): Top Dow and mega-cap outperformer, driving blue-chip leadership.
- Costco (COST) — $922.76, +$26.28 (+2.93%): Advanced on Q4 results featuring better-than-expected earnings, resilient comparable-sales growth, and improving membership renewal rates.
- Akamai Technologies (AKAM) — $113.94, +$3.53 (+3.20%): Rallied after expanding its relationship with Anthropic via an $11.6 billion, seven-year contractual commitment (potentially up to $20 billion with additional commitments).
- Bloom Energy (BE) — $288.70, +$22.05 (+8.27%): Among the strongest industrials/semiconductor-adjacent names driving sector strength.
- Meta Platforms (META) — $751.66, -$25.93 (-3.33%): Pulled back following its substantial Muse-AI-driven rally in recent weeks, pressuring the Communication Services sector.
- Scholastic Corp (SCHL) — Trading sharply lower after Q1 results showed weaker sales, a wider adjusted operating loss, and heavier cash usage; management reaffirmed FY27 guidance but shares stayed under pressure on Education segment weakness (revenue -24% to $30.4 mln).
- Rocket Lab USA (RKLB) — Advanced its end-to-end space strategy after Iridium stockholders approved the previously announced merger agreement, a largely procedural but strategically important step toward mid-2027 close.
Stock Spotlight
Akamai Technologies (AKAM) — $11.6 Billion Anthropic Deal Validates AI Infrastructure Push
Akamai shares surged 3.20% to $113.94 after the company announced a significant expansion of its relationship with Anthropic through an $11.6 billion contractual commitment spanning seven years, with the potential for additional commitments that could bring the total relationship value to as much as $20 billion. The deal underscores growing demand for AI infrastructure and cloud/edge computing capacity as large language model developers scale compute needs, positioning Akamai as a key infrastructure partner in the broader AI buildout.
The move fits into a broader session and weekly theme in which AI-infrastructure-linked names outperformed sharply — the PHLX Semiconductor Index gained 1.4% Friday and 6.3% for the week — while providing validation that the AI capital-spending cycle continues to generate outsized commercial commitments for infrastructure providers beyond the traditional chipmakers and hyperscalers.
Bond Market & Treasuries
U.S. Treasuries whipsawed intraday but finished Friday’s cash session higher (yields lower), aided by oversold conditions and the sharp reversal in crude oil prices.
Yield Changes (Friday / Week-to-Date):
- 2-Year: -6 bps to 4.85% (+10 bps for the week)
- 3-Year: -6 bps to 4.93% (+9 bps for the week)
- 5-Year: -5 bps to 4.99% (+12 bps for the week)
- 10-Year: -2 bps to 5.16% (+16 bps for the week)
- 30-Year: +2 bps to 5.49% (+16 bps for the week)
Intraday, the 2-yr and 10-yr yields touched highs of 4.91% and 5.22%, respectively, before retreating. Shorter-dated securities outperformed longer-dated paper in a curve-steepening trade. The U.S. Dollar Index fell 0.3%, driven largely by yen strength (USD/JPY -1.1% to 157.14). The 10-year yield remains near its highest level since 2007, having surged 44 basis points in September alone amid stubborn inflation, robust economic data (Atlanta Fed GDPNow Q3 estimate at 5.0%), and elevated debt issuance concerns.
Commodities
- WTI Crude Oil: $92.17/bbl, -$2.51 (-2.7%) — driven by reports of progress in U.S.-Iran talks over Strait of Hormuz access
- Gold: $4,320.50/ozt, +0.5%
- Copper: $6.77/lb, -0.1%
Overseas Markets
Specific overnight Asian and European index levels were not included in the available source data for this session. Notable overseas-linked developments included President Trump’s summit with Chinese President Xi Jinping, which the WSJ characterized as yielding “few outcomes,” and continued diplomatic engagement between the U.S. and Iran regarding Strait of Hormuz access — both factors that influenced overnight oil pricing and U.S. futures positioning heading into Friday’s session.
Economic Data
- August Durable Goods Orders: Flat m/m (Briefing.com consensus: -0.4%) vs. prior 0.9% (revised down from 1.1%)
- August Durable Goods ex-Transportation: +0.3% m/m (consensus: +0.5%) vs. prior +0.7% (revised up from +0.4%)
- Nondefense Capital Goods ex-Aircraft (business spending proxy): +1.6% m/m, following +0.6% in July — a notably robust reading signaling continued economic strength
- University of Michigan Consumer Sentiment (Final, September): 48.1 (consensus: 47.8), up from preliminary 47.8 but down from August’s final reading of 51.7 and well below year-ago level of 55.1
Takeaway: The durable goods report’s strength in business capital spending reinforced the economic-growth narrative driving Treasury yields higher this month, while consumer sentiment remains depressed as elevated prices continue to weigh on household outlooks.
Looking Ahead
Monday, Sept 28: No U.S. economic data of note
Tuesday, Sept 29: July FHFA Housing Price Index; S&P Case-Shiller Home Price Index; September Consumer Confidence; September JOLTS – Job Openings
Wednesday, Sept 30: MBA Mortgage Applications; September ADP Employment Change; August Personal Income and Spending (including PCE Price Index); Q2 GDP – Third Estimate; August Advance International Trade in Goods, Retail Inventories, and Wholesale Inventories; September Chicago PMI; EIA Crude Oil Inventories
Thursday, Oct 1: Initial and Continuing Jobless Claims; September S&P Global U.S. Manufacturing PMI – Final; August Construction Spending; September ISM Manufacturing Index; EIA Natural Gas Inventories
Friday, Oct 2: September Employment Situation Report; August Factory Orders
Key Focus: The August PCE Price Index (Wednesday) will be closely watched as the Fed’s preferred inflation gauge ahead of the October FOMC meeting, where markets currently price a 64.2% probability of a 25-basis-point rate hike. The September Employment Situation Report (Friday) will provide critical labor-market data to close out the week.