Market Summary

U.S. equities closed Tuesday’s holiday-shortened week with modest losses, as a late-session rebound in semiconductor stocks helped the major averages pare steeper intraday declines. The DJIA fell 180.45 points (-0.35%) to 51,670.31, the Nasdaq Composite slipped 41.52 points (-0.15%) to 27,224.82, and the S&P 500 was essentially flat, down just 1.79 points (-0.02%) to 7,805.52.

The session’s dominant narrative was renewed pressure on semiconductor names amid concerns over rising competition from Chinese memory chipmakers — the PHLX Semiconductor Index fell as much as 3.1% intraday before recovering to close down just 0.2%, a move that also drove a 5.5% overnight plunge in South Korea’s Kospi. Memory bellwether Micron (MU) remained a laggard, closing down 3.62%. A second major storyline was the Q3 bank earnings parade, which produced a mixed market reaction: Goldman Sachs and Citigroup topped estimates but still finished lower, while JPMorgan’s rare EPS/revenue miss was offset by improved NII guidance.

Sector rotation favored energy and communication services, with refiners Marathon Petroleum and Valero both notching record highs on continued strength, while Meta Platforms extended its recent run. Health care was the session’s weakest sector, dragged down by a sharp decline in Johnson & Johnson following disappointing MedTech commentary. Treasury yields and crude oil were little changed on the day, leaving the broader tape without clear directional conviction heading into tomorrow’s CPI report.

Market Snapshot

Index	Level	Change	% Change
DJIA	51,670.31	-180.45	-0.35%
Nasdaq Composite	27,224.82	-41.52	-0.15%
S&P 500	7,805.52	-1.79	-0.02%

NYSE: Advancers 1,475 / Decliners 1,209 | Volume: 1.18 bln
Nasdaq: Advancers 1,885 / Decliners 3,002 | Volume: 7.02 bln

WaveFinder Breadth (as of 10/13/2026):

Primary Sentiment: Bearish (Bulls 825 / Bears 1,452)
4% Sentiment: Very Bearish (Bulls 124 / Bears 420)
40 SMA Sentiment: Bullish
9-Month Trend: Bulls 10 / Bears 17 (60% bull follow-through)
% of Stocks Above 20-day SMA: 16%
% of Stocks Above 40-day SMA: 30.26%

Breadth metrics continue to reflect a market cap-weighted advance masking narrower underlying participation, consistent with the bearish primary/4% sentiment readings against a still-bullish 40-SMA trend signal.

Sector Performance

Ranked by available performance data (Briefing.com Industry Watch + WaveFinder ATR context):

1. Energy +1.8% — Strong; ATR 1.85% (rising, P100); refiners MPC/VLO hit record highs
2. Communication Services +0.9% — Strong; ATR -1.87% (flat, P5); led by META
3. Materials — Strong (no daily % given); ATR -1.44% (flat, P84)
4. Utilities — Strong (no daily % given); ATR -0.18% (rising, P100)
5. Information Technology +0.1% — Strong; ATR -0.13% (falling, P16); late semiconductor recovery
6. Industrials -0.3% — Weak; ATR -1.67% (rising, P95); recovered off midday lows
7. Financials -0.4% — Weak; ATR -1.82% (rising, P53); mixed bank earnings reactions
8. Consumer Staples — Weak (no daily % given); ATR -0.03% (rising, P100)
9. Real Estate — Weak (no daily % given); ATR -2.60% (rising, P84)
10. Health Care -1.3% — Weak (largest decliner); ATR 1.66% (flat, P74); JNJ-driven
11. Consumer Discretionary — Not listed in today’s Strong/Weak watch; ATR -1.14% (rising, P95)

Five of eleven S&P 500 sectors finished higher, with Energy and Communication Services providing the clearest leadership, while Health Care suffered the steepest decline.

Key Earnings & Movers

Johnson & Johnson (JNJ) 248.61, -15.12 (-5.73%) — Weakest DJIA component after disappointing MedTech growth and only a modest raise to full-year guidance overshadowed stronger pharma sales.
Citigroup (C) 124.53, -7.39 (-5.60%) — EPS $2.85 beat $2.65 consensus; revenue $23.85 bln (+8% yr/yr), strongest Q3 revenue in a decade; stock fell despite the beat.
Goldman Sachs (GS) 891.91, -2.04 (-0.23%) — EPS $17.01 crushed $12.86 consensus; revenue $18.68 bln (+23% yr/yr), second-highest quarterly total ever; shares still finished slightly lower.
JPMorgan Chase (JPM) 331.43, -2.87 (-0.86%) — Rare EPS/revenue miss, but improved net interest income guidance provided a silver lining.
Micron (MU) 953.19, -35.85 (-3.62%) — Continued pressure tied to Chinese memory-chip competition concerns (CXMT).
Caterpillar (CAT) 772.78, -26.59 (-3.33%) — Significant drag on the price-weighted DJIA amid ongoing retreat.
Marathon Petroleum (MPC) 476.98, +18.17 (+3.96%) — Fresh record high.
Valero Energy (VLO) 456.46, +20.46 (+4.69%) — Fresh record high.
Meta Platforms (META) 762.50, +19.54 (+2.63%) — Standout gainer lifting Communication Services.
Bank of America (BAC) 53.96, -0.62 (-1.14%) and Morgan Stanley (MS) 186.66, -3.36 (-1.77%) — Both set to report earnings before tomorrow’s open.

Stock Spotlight

Goldman Sachs (GS) delivered one of the most significant earnings beats of the day’s bank reports, with EPS of $17.01 obliterating the $12.86 FactSet consensus and revenue climbing 23% yr/yr to $18.68 billion — the second-highest quarterly total in the firm’s history. The results were driven by a 72% yr/yr surge in Equities revenue to $6.44 billion on record financing activity (now accounting for over 40% of combined FICC/Equities revenue year-to-date), alongside a 21% increase in investment banking fees to $3.22 billion fueled by record advisory revenue. Asset & Wealth Management revenue rose 14% yr/yr to $5.05 billion, supported by record assets under supervision of $4.10 trillion and $97 billion in long-term net inflows — marking the 35th consecutive quarter of positive flows.

Despite the scale of the beat, GS shares finished the session down modestly at $891.91 (-0.23%), reflecting a broader mixed reaction across bank stocks following the morning’s earnings deluge. CEO David Solomon flagged a “challenging macroeconomic backdrop,” citing renewed geopolitical tensions, rising oil prices, and higher bond yields reviving inflation concerns — even as he characterized the U.S. economy as resilient and pointed to growing AI-infrastructure-related financing demand as a continued tailwind. The results underscore Goldman’s push toward a more diversified, durable earnings base even as softer sequential FICC activity and a shrinking investment banking backlog (down from a five-year high) introduce some caution for coming quarters.

Bond Market & Treasuries

Treasuries opened higher across the curve — briefly pushing the 30-yr yield to a two-week low — before backtracking through the session. The front end ultimately finished unchanged while longer tenors held onto a portion of their gains.

Yield Check (10/13/2026):

2-yr: unchanged at 4.79%
3-yr: -1 bp to 4.92%
5-yr: -1 bp to 5.01%
10-yr: -2 bps to 5.22% (intraday: +6/32, 5.217%)
30-yr: -4 bps to 5.56%

Key drivers included NY Fed President Williams’ comments that he expects one more rate hike this year but no additional hikes in 2027, alongside a softer-than-expected NFIB Small Business Optimism reading and in-line-to-better Existing Home Sales data that had little net market impact. The U.S. Dollar Index fell 0.4% to 102.19, reversing from its highest level since April 2025. Attention now turns to tomorrow’s September CPI release. Currencies: EUR/USD +0.4% to 1.1201; GBP/USD +0.4% to 1.3255; USD/JPY -0.2% to 158.31; USD/CNH unchanged at 6.6929.

Commodities

WTI Crude Oil: $94.06/bbl, +$0.29 (+0.3%)
Gold: $4,176.60/ozt, -0.3%
Copper: $6.73/lb, -0.3%
Silver: Last reported at $60.50/ozt (-$0.55) as of Oct. 12 close; no updated figure available for today’s session

Overseas Markets

Overnight action was dominated by semiconductor-related concerns, with South Korea’s Kospi plunging 5.5% on the same Chinese memory-chip competition fears (CXMT) that pressured U.S. chip stocks.

Additional overseas data points from the overnight session:

Japan: September PPI -0.3% m/m (expected +0.5%; prior -0.3%) and +6.8% yr/yr (expected +7.6%; prior +7.6%); Bank Lending +5.3% yr/yr
Australia: September NAB Business Confidence -13 (prior -9); NAB Business Survey -1 (prior -1); RBA minutes expressed concern that pausing hikes amid rising global rates would pressure the Australian dollar
Germany: September CPI +0.6% m/m (expected +0.6%; prior +0.2%) and +3.3% yr/yr (expected +3.3%; prior +2.9%); HICP matched at +0.6% m/m / +3.3% yr/yr
U.K.: September BRC Retail Sales Monitor +1.0% yr/yr (expected +0.8%; prior +0.5%)

The IMF, in its ongoing semi-annual meetings, raised its 2026 global growth forecast to 3.1% from 3.0% while holding the 2027 forecast at 3.4%.

(Most recent available European/Asian index closes are from Oct. 12: DAX +0.7%, FTSE +1.0%, CAC +0.4%; Hang Seng +0.3%, Shanghai -0.4%, Nikkei closed for holiday.)

Economic Data

NFIB Small Business Optimism Index (September): 97.9, below the 98.0 consensus and down from 98.7 in August — signaling softening small-business sentiment.
Existing Home Sales (September): Rose 1.5% m/m to a seasonally adjusted annual rate of 3.99 million, topping the 3.96 million consensus, versus a downwardly revised 3.93 million in August. However, sales were down 2.2% yr/yr, with declines across all four U.S. regions. August and September now stand as the two slowest months for home sales in 2026, reflecting persistent high-mortgage-rate headwinds. The report had little discernible impact on the bond market.

Looking Ahead

Wednesday, October 14, 2026:

7:00 ET: Weekly MBA Mortgage Index (prior -4.2%)
8:30 ET: September CPI (Briefing.com consensus +0.6%; prior +0.4%) and Core CPI (consensus +0.2%; prior +0.3%)
14:00 ET: October Beige Book release
Earnings: Bank of America (BAC) and Morgan Stanley (MS) report before the open, continuing the Q3 bank earnings cycle

Markets will look to tomorrow’s CPI print as a key catalyst given recent Fed commentary (Williams) pointing to another possible rate hike this year, with inflation data likely to shape near-term Treasury and equity positioning ahead of next week’s broader acceleration in Q3 earnings season.