Market Summary
U.S. equities extended last week’s rally into Tuesday’s session, with the S&P 500 (+0.58% to 7,819.03) closing above the 7,800 level for the first time and notching its first record high since August 13. The Nasdaq Composite (+0.45% to 27,620.83) also established fresh record territory, while the Dow Jones Industrial Average (+0.49% to 51,521.19) posted a comparable advance. Gains were broad-based, with ten of eleven S&P 500 sectors finishing higher — a continuation of the healthier participation seen over the past two sessions and a notable departure from the narrow, mega-cap-driven leadership that dominated much of the recent tape.
Utilities (+3.0%) led all sectors by a wide margin, fueled by a surge in Constellation Energy after it signed a 20-year nuclear power purchase agreement with Alphabet. Consumer Discretionary (+1.4%) and Real Estate (+1.1%) also outperformed as lower Treasury yields provided a favorable backdrop for rate-sensitive names. Technology (+0.6%) advanced but faded off session highs as NVIDIA encountered profit-taking after touching a fresh all-time high. Health Care (-0.2%) was the lone sector in the red, dragged down by a sharp selloff in biotechnology, led by Moderna.
The major averages finished well off their intraday best levels after drifting sideways through the afternoon and giving back ground into the close. Small caps diverged sharply from the broader advance, with the Russell 2000 falling 0.6% as the session’s clear laggard, even as the S&P Mid Cap 400 added 0.6%. Lower Treasury yields — the 10-year settling down four basis points to 5.27% — provided support across rate-sensitive sectors even as crude oil staged an intraday recovery from a sharp overnight decline.
Market Snapshot
| Index | Level | Change | % Change |
|—|—|—|—|
| S&P 500 | 7,819.03 | +44.98 | +0.58% |
| Dow Jones Industrial Average | 51,521.19 | +253.38 | +0.49% |
| Nasdaq Composite | 27,620.83 | +122.48 | +0.45% |
Advance/Decline (Exchange-Reported):
- NYSE: 1,643 advancers / 1,071 decliners; Volume 1.16 bln
- Nasdaq: 2,198 advancers / 2,227 decliners; Volume 8.46 bln
WaveFinder Breadth Metrics:
- Primary Sentiment: Very Bearish | 4% Sentiment: Neutral | 40 SMA Sentiment: Bullish
- Primary Bulls 606 / Bears 831
- 4% Bulls 39 / Bears 35
- Stocks Above 20-day SMA: 32%
- Stocks Above 40-day SMA: 25.7%
- 9-Month Bulls 9 / Bears 4 (Bull Follow-Through: 21.62%)
The breadth picture presents a mixed signal — index-level records coexist with a “Very Bearish” primary sentiment reading and only roughly a third of stocks trading above their 20-day moving average, underscoring that the rally remains concentrated in select leadership groups despite the broader sector participation seen on the day.
YTD Performance: Nasdaq Composite +18.8% | Russell 2000 +14.1% | S&P 500 +14.0% | S&P Mid Cap 400 +11.9% | DJIA +7.2%
Sector Performance
Ranked by performance (Briefing.com Industry Watch / session commentary):
1. Utilities +3.0% — Constellation Energy-led surge on nuclear PPA news (ATR -1.90%, rising, P100)
2. Consumer Discretionary +1.4% (ATR -1.64%, flat, P89)
3. Real Estate +1.1% (ATR -3.84%, falling, P16)
4. Consumer Staples +1.0% (ATR -1.30%, falling, P53)
5. Information Technology +0.6% — faded off highs on semiconductor profit-taking (ATR 2.07%, rising, P84)
6. Industrials — Listed among “Strong” sectors, specific % not disclosed (ATR -2.21%, falling, P32)
7. Financials — Listed among “Strong” sectors, specific % not disclosed (ATR -1.64%, flat, P53)
8. Communication Services — Not individually highlighted; part of the 10 of 11 sectors advancing (ATR -1.64%, falling, P11)
9. Energy — Not individually highlighted; part of the 10 of 11 sectors advancing (ATR 0.17%, flat, P58)
10. Materials — Not individually highlighted; part of the 10 of 11 sectors advancing (ATR -1.78%, falling, P37)
11. Health Care -0.2% — Lone declining sector, biotech-led weakness (ATR 1.06%, falling, P21)
Note: Specific percentage moves for Industrials, Financials, Communication Services, Energy, and Materials were not disclosed in source data; their inclusion/exclusion from the “Strong” list and the “10 of 11 sectors higher” framing from Briefing.com indicate they finished positive but were not standouts.
Key Earnings & Movers
Gainers:
- Constellation Energy (CEG) $300.40, +$32.78 (+12.25%) — 20-year nuclear PPA with Alphabet for 890 MW of new capacity
- Ciena (CIEN) $443.66, +$53.97 (+13.85%) — Lifted by Marvell’s bullish optical demand guidance
- Vistra Corp (VST) $160.48, +$15.59 (+10.76%) — Power sector tailwind
- NRG Energy (NRG) $103.62, +$6.82 (+7.05%) — Power sector tailwind
- Corning (GLW) $168.98, +$9.61 (+6.03%) — Optical connectivity demand read-through
- Marvell (MRVL) $287.01, +$15.76 (+5.81%) — Raised FY28 revenue outlook to $20 bln from $18 bln on optics/switching demand
- AMD $649.42, +$17.67 (+2.80%) — Plans to boost 2027 supply on AI demand; Citi raised price target to $800 from $575
- Hewlett Packard Enterprise (HPE) $70.56, +$2.20 (+3.22%) — Fresh all-time high on AI infrastructure demand
- Apogee Enterprises (APOG) — Q2 adj. EPS $1.17 beat, revenue $391.1 mln (+9.2% yr/yr); raised FY27 EPS guidance to $3.00-3.40 from $2.70-3.25
- Lamb Weston (LW) — Q1 adj. EPS $0.75 beat, revenue $1.67 bln (+1%); raised FY27 EPS guidance to $3.05-3.35 from $2.95-3.25
Decliners:
- Seagate Technology (STX) $805.63, -$81.46 (-9.18%) — HDD competition concerns on TDK magnetic-head bidding reports
- Western Digital (WDC) $411.04, -$30.60 (-6.93%) — Same HDD industry pressure
- Moderna (MRNA) $187.46, -$15.75 (-7.75%) — Reversed opening gain amid broad biotech weakness
Other Notables:
- NVIDIA (NVDA) $239.27, +$0.37 (+0.15%) — Touched a fresh record high before profit-taking
- Alphabet (GOOG) $344.59, +$0.76 (+0.22%) — Counterparty on Constellation nuclear deal
Stock Spotlight
Constellation Energy (CEG) was the standout mover of the session, surging $32.78 (+12.25%) to $300.40 after announcing a 20-year power purchase agreement with Alphabet (GOOG) supporting 890 MW of new nuclear capacity. The deal involves uprates at 11 existing units across six sites within the PJM grid, and a separate 15-year agreement covers an additional 2,700 MW from existing operating assets — together strengthening long-term revenue visibility while clearly distinguishing newly contracted incremental generation from already-contracted existing supply.
The announcement had outsized market impact, propelling the entire utilities sector to a session-leading +3.0% gain and lifting peers Vistra Corp (+10.76% to $160.48) and NRG Energy (+7.05% to $103.62) as investors re-rated electric utility names tied to AI-driven power demand. The deal underscores a broader theme gaining traction in markets: hyperscalers like Alphabet are increasingly locking in long-duration, large-scale power agreements to secure capacity for AI infrastructure buildout, positioning nuclear-exposed utilities as direct beneficiaries of the AI capex cycle.
Bond Market & Treasuries
Treasuries rallied Tuesday, reclaiming the bulk of Monday’s losses, with the 10-year note and shorter tenors turning positive for the week.
Yield Levels (Change):
- 2-year: 4.79% (-4 bps)
- 3-year: 4.92% (-4 bps)
- 5-year: 5.03% (-4 bps)
- 10-year: 5.27% (-4 bps)
- 30-year: 5.64% (-2 bps)
Key Drivers:
- Overnight strength in sovereign debt, including a rebound in French OATs after presidential candidate Marine Le Pen proposed EUR140 bln in spending cuts over five years (up from a prior EUR125 bln plan)
- An overnight retreat in crude oil provided initial support, though much of that move was reversed intraday
- The $58 bln 3-year note auction was absorbed well, with a high yield of 4.932% stopping through the when-issued yield by 0.2 bps, though internals were softer — bid-to-cover of 2.62x (vs. 2.67x average) and indirect bid of 57.6% (vs. 64.8% average)
- Treasury accepted just $1.33 bln of $14.76 bln offered in today’s 2-3 year note buyback operation
- U.S. Dollar Index fell 0.4% to 101.81, pulling back from a seven-month high
Looking Ahead: A $39 bln 10-year note reopening is scheduled for tomorrow.
Commodities
| Commodity | Price | Change |
|—|—|—|
| WTI Crude Oil | $89.44/bbl | +0.1% |
| Gold | $4,188.30/ozt | +0.7% |
| Copper | $6.65/lb | +0.2% |
Crude oil dipped below its 50-day moving average ($88.76) overnight before recovering above that level during the session, ultimately settling $0.11 higher. Bloomberg reported during the afternoon that Iran is increasing attacks on ships transiting the Strait of Hormuz, with oil shipments through the waterway approaching pre-war levels — a factor that failed to meaningfully move broader market sentiment despite the intraday volatility in crude.
Overseas Markets
Specific overnight index levels for Asian and European markets were not disclosed in today’s data; however, key regional economic releases and developments included:
Europe:
- France: Presidential candidate Marine Le Pen proposed EUR140 bln in spending cuts over five years (up from EUR125 bln), helping lift French OATs overnight
- Eurozone: August Retail Sales +0.1% m/m (expected +0.2%; prior -0.6%), +0.8% yr/yr (expected +1.0%; prior +0.4%)
- Germany: August Factory Orders -10.6% m/m (expected -0.9%; prior +3.2%) — notable miss
- France: August Industrial Production -0.3% m/m (expected +0.2%; prior -0.6%); Government Budget Balance -EUR159.6 bln (prior -EUR145.9 bln)
- UK: September Construction PMI 46.1 (expected 45.0; prior 44.3) — beat
- Several ECB policymakers reiterated that strong second-round inflation effects have not materialized
- UK PM Burnham reportedly delaying a decision on defense spending changes; Fitch noted British growth remains restrained by low investment
Asia-Pacific:
- India: September HSBC Services PMI 55.2 (expected 55.8; prior 54.1); Composite PMI 55.9 (expected 56.5; prior 54.3)
- Hong Kong: September S&P Global Manufacturing PMI 49.2 (prior 49.5)
- Australia: October Westpac Consumer Sentiment -4.7% (prior -5.2%); September ANZ Job Advertisements +2.2% m/m (prior +2.6%); Treasurer Chalmers flagged that high rates will restrain the federal budget
Economic Data
U.S. Trade Balance (August): Deficit widened sharply to $105.6 billion (Briefing.com consensus: -$93.7 billion) from a downwardly revised $92.8 billion in July (previously -$88.6 billion). Exports rose $4.5 billion versus July, but imports rose $17.2 billion — the key takeaway being that rising demand for crude oil and semiconductors drove both sides of the trade ledger higher, a signal that can be viewed constructively for global economic activity.
$58 billion 3-Year Treasury Note Auction: High yield of 4.932% (vs. 12-auction average of 3.831%); bid-to-cover 2.62x (avg. 2.67x); indirect bid 57.6% (avg. 64.8%); direct bid 31.7% (avg. 23.4%). The auction was absorbed well overall despite below-average foreign (indirect) demand.
Looking Ahead
Tomorrow’s Economic Calendar:
- 7:00 ET: Weekly MBA Mortgage Index (prior -6.0%)
- 10:30 ET: Weekly EIA Crude Oil Inventories (prior +0.92 mln bbl)
- 13:00 ET: $39 billion 10-year Treasury note reopening results
- 14:00 ET: September FOMC Minutes
- 15:00 ET: August Consumer Credit (Briefing.com consensus: $15.2 bln; prior: $18.1 bln)
Broader Context: Markets head into Wednesday’s session with the S&P 500 and Nasdaq riding fresh record closes and improved breadth participation, though investors will be watching the FOMC Minutes release closely for additional clarity on the Fed’s rate path following the sharp “bear flattener” move in yields seen in recent weeks. The market also continues to look ahead to the onset of Q3 earnings season as a key catalyst for sustaining or broadening the current advance.