Market Summary
U.S. equities closed out the week with a mixed but ultimately constructive Friday session, as the S&P 500 (7650.50, +12.74, +0.17%) and Nasdaq Composite (26543.59, +104.25, +0.39%) staged an afternoon recovery from broad morning weakness, while the DJIA (51682.64, -95.40, -0.18%) finished modestly lower. The rebound was narrow in scope, driven primarily by renewed semiconductor leadership and mega-cap strength rather than broad participation — only three of eleven S&P 500 sectors (Information Technology, Industrials, Financials) closed in positive territory, while small- and mid-cap stocks continued to lag, with the Russell 2000 down 0.5% and the S&P Mid Cap 400 off 0.3% on the day.
The session unfolded against a backdrop of rising Treasury yields, with the 10-year note climbing to 5.00% (+5 bps) even as crude oil fell 1.8% to $100.24/bbl. The PHLX Semiconductor Index surged 2.8% intraday, powered by outsized gains in storage names (Sandisk, Seagate) and optical/interconnect plays (Coherent) tied to continued AI infrastructure demand. Crypto-adjacent financials (Coinbase, Robinhood) also stood out following the SEC’s new “Innovation Exemption” for tokenized equities and Bitcoin’s push above $81,000. On the downside, rate-sensitive utilities and materials sectors were pressured, with steelmakers Nucor and Steel Dynamics sliding after issuing below-consensus Q3 guidance despite constructive pricing commentary.
For the week, the Nasdaq Composite was the lone major index to finish higher (+0.7%), while the S&P 500 slipped 0.1% and the DJIA fell 1.7%. The Fed’s 25-bp rate hike (to 3.75-4.00%) and hawkish commentary from Chair Warsh mid-week drove a spike in yields that weighed heavily on smaller-cap and rate-sensitive names, even as Thursday’s reversal and Friday’s chip-led bounce kept large-cap growth indices near their flat lines. WaveFinder breadth data reflects this underlying fragility, with Primary Sentiment reading Bearish (490 bulls vs. 658 bears) and only 36% of stocks trading above their 20-day moving average.
Market Snapshot
| Index | Level | Change | % Change |
|—|—|—|—|
| DJIA | 51,682.64 | -95.40 | -0.18% |
| Nasdaq Composite | 26,543.59 | +104.25 | +0.39% |
| S&P 500 | 7,650.50 | +12.74 | +0.17% |
Breadth (NYSE): Advancers 912, Decliners 1,817, Volume 4.35 bln
Breadth (Nasdaq): Advancers 2,040, Decliners 2,886, Volume 13.69 bln
WaveFinder Market Breadth (9/18):
- Primary Sentiment: Bearish (Bulls 490 / Bears 658)
- 4% Sentiment: Bullish (Bulls 241 / Bears 213)
- 40 SMA Sentiment: Neutral
- Above 20-day SMA: 36%
- Above 40-day SMA: 29.33%
- 9-Month Bulls/Bears: 34 / 35 (Follow-Through: 36.21%)
YTD Performance: Nasdaq Composite +14.1%, Russell 2000 +15.3%, S&P 500 +11.8%, S&P Mid Cap 400 +10.5%, DJIA +7.5%
Sector Performance
Ranked from strongest to weakest (daily, per Briefing.com):
1. Information Technology +0.8% — led by semiconductor and storage strength (PHLX Semiconductor Index +2.8% intraday)
2. Industrials +0.5%
3. Financials +0.1% — supported by crypto-linked gains (COIN, HOOD)
4. Consumer Discretionary 0.0% (unchanged) — Amazon strength offset broader weakness
5. Communication Services -0.7% — Netflix downgrade weighed
6. Materials -1.1% — steel earnings guidance disappointed
7. Utilities -1.3% — worst-performing sector, pressured by rising yields
8. Consumer Staples, Real Estate, Energy — named among weak sectors in Briefing.com’s Industry Watch; specific point changes not disclosed
Health Care not specifically classified in today’s Industry Watch commentary (week-to-date: +1.8%).
WaveFinder Sector ATR (volatility, falling/rising trend, percentile rank):
- Technology: -0.20% (falling, P84)
- Health Care: 1.54% (flat, P37)
- Energy: 0.23% (falling, P0)
- Communication Services: 0.15% (flat, P0)
- Financials: -1.17% (falling, P11)
- Consumer Staples: -1.37% (flat, P0)
- Materials: -1.56% (falling, P0)
- Consumer Discretionary: -1.92% (falling, P11)
- Industrials: -2.16% (falling, P11)
- Real Estate: -2.91% (flat, P5)
- Utilities: -3.26% (falling, P5)
Key Earnings & Movers
- Sandisk (SNDK) $1,791.82, +177.43 (+10.99%) — AI data-center demand, tight storage supply
- Seagate Tech (STX) $858.79, +55.66 (+6.93%) — storage/AI demand tailwind
- Coherent (COHR) $317.36, +21.38 (+7.22%) — expanded Pluggable Optical Line System for cloud/AI interconnect
- Coinbase Global (COIN) $194.25, +20.28 (+11.66%) — SEC “Innovation Exemption” for tokenized equities; Bitcoin above $81,000
- Robinhood Markets (HOOD) $119.82, +10.01 (+9.12%) — same crypto catalyst
- Amazon (AMZN) $253.71, +2.52 (+1.00%) — mega-cap strength
- Netflix (NFLX) $71.77, -3.54 (-4.70%) — Wells Fargo downgrade to Underweight from Equal Weight
- Nucor (NUE) $248.38, -16.76 (-6.32%) — below-consensus Q3 EPS guidance ($5.55-5.65)
- Steel Dynamics (STLD) $235.26, -10.09 (-4.11%) — below-consensus Q3 EPS guidance ($5.34-5.38)
- T-Mobile (TMUS) — hit new 52-week low, down more than 30% from 52-week high of $242.37, amid competitive pressure from VZ/T and SpaceX mobile ambitions
- Xenon Pharmaceuticals (XENE) — under pressure after pausing enrollment in MDD/bipolar depression trials, despite filing NDA for azetukalner in focal seizures
- Berkshire Hathaway (BRK.B) — Warren Buffett named Chairman Emeritus; son Howard Buffett elected Chairman of the Board
- Apple (AAPL) — iPhone 18 launch day drove in-store consumer activity
Stock Spotlight
Steel Sector (Nucor NUE, Steel Dynamics STLD): Guidance Miss Amid Constructive Pricing Backdrop
Nucor (-6.32% to $248.38) and Steel Dynamics (-4.11% to $235.26) both issued Q3 EPS guidance below Wall Street expectations — NUE at $5.55-5.65 and STLD at $5.34-5.38 — a notable disappointment given that Q3 is seasonally the strongest quarter for steelmakers, with warmer weather typically boosting shipments and nonresidential construction demand. Nucor cited expected earnings growth in its steel mills and steel products segments, offset by weaker raw materials results and higher corporate/eliminations expense. Steel Dynamics pointed to higher average realized selling prices and lower scrap costs as tailwinds, while noting that customer order activity remains strong and inventories remain low.
Despite the headline miss, the underlying commentary was more encouraging than the guidance cuts suggest: both companies are seeing higher steel selling prices, supported by tight domestic supply, the 50% U.S. tariff on steel imports curbing import competition, and continued strength in demand from nonresidential construction, energy, automotive, and industrial end markets. Briefing.com’s analysis suggests investors should not assume elevated steel prices will translate immediately into outsized earnings growth, as cost pressures and corporate expenses remain offsets — but the broader industry backdrop remains structurally supportive.
Bond Market & Treasuries
Treasuries closed the week on a weak note, pushing yields on the 10-year and shorter tenors back near their 2026 highs, while the long bond continued to outperform.
- 2-yr: 4.74% (+5 bps day, +10 bps week)
- 3-yr: 4.83% (+7 bps day, +10 bps week)
- 5-yr: 4.86% (+6 bps day, +7 bps week)
- 10-yr: 5.00% (+5 bps day, +2 bps week); price -12/32
- 30-yr: 5.33% (+4 bps day, -3 bps week)
- 2s10s spread: tightened 8 bps to 26 bps
Key drivers: The Bank of Japan raised its policy rate 25 bps to 1.25% (7-2 vote), but Governor Ueda’s lack of hawkish tone weighed on the yen (USD/JPY 156.68, +0.5%), stoking concern that a weaker yen could prompt Japan to sell Treasuries to defend its currency. Fed Governor Bowman commented on regulatory shortcomings tied to the 2023 Silicon Valley Bank failure and potential stress-test revisions. The U.S. Dollar Index touched a seven-week high before settling little changed at 100.25 (+1.1% for the week). EUR/USD closed at 1.1485 (+0.1%), GBP/USD at 1.3394 (+0.3%).
Commodities
- WTI Crude: $100.24/bbl, -1.8% (roughly flat for the week)
- Gold: $4,425.30/ozt, +0.6%
- Copper: $6.69/lb, +0.5%
- Silver: not reported in available data
Overseas Markets
Asia: The Bank of Japan raised its key policy rate 25 bps to 1.25% as expected, though the 7-2 vote and Governor Ueda’s non-hawkish tone weighed on the yen. Japan’s August National CPI rose 0.1% m/m (1.9% yr/yr), with Core CPI up 1.7% (below the 1.8% expected). China’s August FDI fell 5.3% YTD (improved from -6.2% prior); China is also targeting CNY 3.5 trillion in pharmaceutical revenue by 2030. South Korea’s August PPI rose 0.2% m/m (+7.9% yr/yr). New Zealand’s August trade deficit came in at NZD 1.35 bln, narrower than the expected NZD 1.775 bln deficit.
Europe: UK August Retail Sales surprised to the upside, up 0.5% m/m (vs. -0.2% expected) and 2.4% yr/yr; Core Retail Sales rose 0.6% m/m and 2.7% yr/yr. Germany’s August PPI rose 1.1% m/m (vs. 0.6% expected), up 4.6% yr/yr. Eurozone’s July Current Account surplus was EUR 27.6 bln (below the EUR 30.7 bln expected). ECB officials, including President Lagarde, reiterated a meeting-by-meeting approach while emphasizing avoidance of second-round inflation effects. UK Chancellor Healey is lobbying the EU to include Britain in its “Made in Europe” policy, and French PM Lecornu is targeting EUR 54 bln in 2027 budget savings to keep the deficit below 5.5% of GDP.
Separately, the U.S. reportedly will delay tariffs on excess manufacturing capacity until after China President Xi’s visit.
Economic Data
- Industrial Production (August): Unchanged m/m (consensus: +0.3%) following an unrevised +0.2% in July. Total industrial production up 1.4% yr/yr. Softness attributed to a manufacturing output decline, potentially a pause following seven consecutive months of gains.
- Capacity Utilization (August): 76.3% (consensus: 76.4%), unchanged from July; 3.1 percentage points below its long-run average.
- Conference Board Leading Economic Index (August): -0.1% (consensus: +0.2%) after a +0.2% July reading — a mild negative surprise reinforcing signs of moderating momentum.
Looking Ahead
- Monday: Nothing of note scheduled.
- Tuesday: $69 billion 2-year Treasury note auction results at 13:00 ET.
- Wednesday: Weekly MBA Mortgage Index (prior: -4.1%) at 7:00 ET; flash September S&P Global U.S. Manufacturing PMI (prior: 53.9) and Services PMI (prior: 56.5) at 9:45 ET; weekly crude oil inventories (time/details not fully available in source data).