Major averages retreat despite NVIDIA’s earnings and rising rate-cut expectations

The stock market finished the week lower, with the S&P 500 (-2.0% WTD), Nasdaq Composite (-2.7% WTD), and DJIA (-1.9% WTD) retreating beneath their 50-day moving averages after several days of choppy trading.

Smaller-cap indexes were more resilient, with the Russell 2000 (-0.8% WTD) and S&P Mid Cap 400 (-0.7% WTD) posting relatively modest declines. Mega-cap growth lagged, reflecting continued caution among investors around the largest names.

NVIDIA faced its own selling pressure despite delivering strong earnings beat, which fostered a sharp reversal of early gains on Thursday. The stock finished the week down 2.8%. The broader information technology sector (-4.7% WTD) led losses, while consumer discretionary (-3.3% WTD) also lagged. By contrast, healthcare (+1.8% WTD), communication services (+3.0% WTD), and consumer staples (+0.8% WTD) provided pockets of strength, as investors rotated into sectors viewed as more defensive or insulated from the recent AI and mega-cap volatility.

Friday’s session offered a partial reprieve as comments from New York Fed President John Williams lifted expectations for a December rate cut. The major averages finished near session highs, and mid- and small-cap stocks outperformed, with the Russell 2000 (+2.8% Friday) and S&P Mid Cap 400 (+2.4% Friday) rebounding more sharply. Even so, the week’s results underscore that the market remains in a risk-off posture, with mega-cap and tech leadership still fragile.

Overall, the week reflected a market balancing between optimism for potential Fed easing and caution over stretched valuations and recent momentum unwind. While rate-cut chatter offered intermittent relief, broader weakness in tech and mega-cap stocks weighed on the major averages, leaving the market in a state of ongoing rotation and selective strength.

•S&P Mid Cap 400: -0.7% WTD

• Russell 2000: -0.8% WTD

• DJIA: -1.9% WTD

• S&P 500: -2.0% WTD

• Nasdaq Composite: -2.7% WTD

Market Recap - Mixed market performance amid hawkish fed signals

The stock market finished the week with mixed performance as investors navigated uneven sector leadership, mega-cap rotation, and Fed commentary that tempered December rate cut expectations.

T he DJIA (+0.3% WTD) and S&P 500 (+0.1% WTD) ended slightly higher, while the Nasdaq Composite (-0.5% WTD), Russell 2000 (-1.8% WTD), and S&P MidCap 400 (-1.2% WTD) lagged. The health care (+3.9% WTD) and energy (+2.5% WTD) sectors led gains, while the consumer discretionary (-2.7% WTD), communication services (-0.8% WTD), and utilities (-1.2% WTD) sectors underperformed.

Early-week optimism around an end to the government shutdown supported broad-market participation, with AI-related technology stocks, chipmakers, and healthcare leaders like Eli Lilly, UnitedHealth, Viatris, and Moderna driving early strength. Midweek, tech-heavy sectors struggled, though the DJIA reached a record closing above 48,000, supported by the financials (+0.1% WTD) and industrials (-0.9% WTD) sectors. The S&P 500 Equal Weighted Index highlighted rotation beyond mega-cap growth, reflecting broader participation.

Later in the week, hawkish Fed commentary from officials reduced odds of a December rate cut to coin-flip probabilities, pressuring growth-oriented and high beta names. Thursday’s broad-based weakness pushed the S&P 500 and Nasdaq Composite lower, though Friday saw a partial rebound as chipmakers and other technology stocks stabilized, helping the S&P 500 and Nasdaq reclaim technical support above their 50-day moving averages. The week reflected a market balancing selective sector rotation against caution on policy and stretched valuations.

• DJIA: +0.3% WTD

• S&P 500: +0.1% WTD

• Nasdaq Composite: -0.5% WTD

• S&P MidCap 400: -1.2% WTD

• Russell 2000: -1.8% WTD

Market Recap - A positioning and valuation week with AI/growth leadership tested.

The week was defined by profit-taking in AI-growth, better breadth beneath the surface and a defensive/value tilt.

Mega-cap weakness weighed on the cap-weighted indices, while equal-weight and value held up far better (MGK -3.1% w/w; Russell 3000 Growth -2.9% vs. Russell 3000 Value -0.1%). Semis were volatile; energy and defensives finished strong. The S&P 500, despite the struggles of the growth stocks, managed yet again to hold key support at its 50-DMA.

Macro & policy
• Manufacturing stayed in contraction: ISM Manufacturing 48.7 (8th straight <50) even as S&P Global Mfg PMI ticked up to 52.5.
• Services re-accelerated: ISM Services 52.4 with the prices-paid index at a 3-yr high—an incremental hurdle for a December rate cut.
• Labor mixed: ADP +42k after a negative prior revision; Challenger job cuts for October were the highest for any October since 2003. Week Ending 11/07/2025
• Consumers wobbled: prelim Univ. of Michigan sentiment slid to 50.3; non-revolving credit drove a $13.1B September credit gain.
• Rates were range-bound: 2-yr ~3.57–3.63%, 10 yr ~4.09–4.16%, with safe-haven bids on weak data and growth jitters.
• Trade/politics: the U.S.–China tariff framework eased the average rate by 10% with a 100% hike postponed a year; shutdown headlines ping-ponged but didn’t derail the late-week rally.

Sector & factor moves
• Leadership rotation: energy, utilities, materials, staples, and real estate outperformed late week as investors sought defensives and yield.
• Growth under pressure: info tech and consumer discretionary lagged; breadth improved mid week but leadership remained thin among mega-caps.
• Equal-weight beat cap-weight again as narrow leadership continued to unwind.

Story stocks
• Amazon: rallied on a $38B, 7-year AWS compute deal with OpenAI, reinforcing cloud/AI demand optionality and sustaining post-earnings momentum.
• NVIDIA: early strength faded; week -7.1% amid AI rotation and reports of rival chip availability; semis swung with HBM pricing chatter and export headlines.
• Palantir: sold off post-beat/raise on valuation concerns (still >200x forward P/E), catalyzing profit-taking across AI/growth.
• AMD: beat-and-raise helped stabilize semi sentiment; group still choppy.
• Micron/Seagate: bid on reports of SK Hynix aiming for 50% HBM price hikes, spotlighting tight high-bandwidth memory supply.
• Tesla: volatile; weakness weighed on discretionary; later rebound couldn’t restore weekly leadership as shareholders approved a supersized CEO pay package.
• Alphabet: bucked tech softness on reports its Ironwood AI chip will be widely available soon.
• Kimberly-Clark/Kenvue: $48.7B cash-and-stock deal drove a sharp Kimberly-Clark slide on price/leverage; Kenvue jumped on a cleaner exit path.
• Health-weight loss: headlines pointed to “most-favored nation” pricing commitments, aiding sector defensiveness.
• e.l.f., Duolingo, DoorDash, Paycom: examples of how outsized post-print drawdowns amplified valuation discipline outside megacaps.

Bottom line
This was a positioning-and-valuation week: AI/growth leadership was tested, defensives rotated in, and indices held crucial support with better (if still fragile) breadth.

• S&P Midcap 400: -0.1% for the week / +3.9% YTD
• DJIA: -1.2% for the week / +10.4% YTD
• S&P 500: -1.6% for the week / +14.4% YTD • Russell 2000: -1.9% for the week / +9.1% YTD
• Nasdaq: -3.0% for the week / +19.1% YTD

Market Recap - Mega-cap earnings and trade optimism lift markets; Powell comments temper December rate-cut bets

Stocks saw strong early-week gains on optimism around U.S.-China trade developments and mega-cap earnings, sending the major averages to record-highs for the first three days of the week, though the major averages ended the week on a mixed note.

The Nasdaq Composite (+2.2% WTD), S&P 500 (+0.7% WTD), and DJIA (+0.8% WTD) captured weekly gains, while smaller-cap indices lagged, with the Russell 2000 (-1.4% WTD) and S&P MidCap 400 (-1.6% WTD) finishing lower. Early-week momentum was fueled by a U.S.-China trade deal framework and strong tech leadership.

Earnings were a major driver of sentiment. Amazon and Alphabet posted strong results, while NVIDIA’s conference announcements, including over $500 billion in chip orders through 2026 - supported tech gains. Meta’s report midweek weighed on sentiment due to higher AI spending plans.

Sector performance reflected the mega-cap leadership as the information technology (+3.0% WTD) and consumer discretionary (+2.8%) sectors led, while the consumer staples (-3.7%), real estate (-3.9%), and utilities (-2.6%) sectors lagged.

T he FOMC went through with a widely expected 25-basis point rate cut, though Fed Chair Powell’s post-FOMC comments dampened December rate-cut expectations, pushing the probability down to roughly 65%. Nonetheless, strong earnings, a booming AI investment cycle, and trade optimism helped maintain a broadly positive tone for the week.

• Nasdaq Composite +2.2% WTD

• DJIA +0.8% WTD

• S&P 500 +0.7% WTD

• Russell 2000 -1.4% WTD

• S&P MidCap 400 -1.6% WTD

Market Recap - CPI, earnings, and trade optimism drive markets to record highs

The stock market built on last week’s rebound with another broad advance, as investors rotated back into equities following the prior pullback.

he S&P 500 (+1.9%), Nasdaq Composite (+2.3%), and Dow Jones Industrial Average (+2.2%) all posted solid weekly gains, while the Russell 2000 (+2.5%) and S&P MidCap 400 (+2.3%) outperformed slightly, reflecting renewed appetite for cyclicals and smaller-cap exposure. Softer September CPI readings (0.3%; Briefing.com consensus: 0.4%) reinforced expectations for additional Fed rate cuts, pushing the major averages to record intraday and closing highs on Friday.

Leadership was broad but tilted toward growth-oriented and economically sensitive groups. The information technology sector (+2.8% WTD) paced the advance, supported by another strong week for semiconductor names. The energy sector (+2.4%) also outperformed alongside higher oil prices after Trump sanctioned several of Russia’s largest oil companies, while the industrials sector (+2.1%) joined in on earnings strength across its defense names.

Earnings updates added to the positive sentiment, with several large-cap companies delivering better-than expected results and guidance that reinforced confidence in corporate profitability heading into year-end. Meanwhile, trade-related headlines contributed to some midweek volatility after mixed signals from U.S. and Chinese officials regarding tariff policy, though markets ultimately looked past the uncertainty by week’s end.

Defensive sectors lagged, with consumer staples (-0.6%) and materials (-0.2%) sectors finishing the week lower, suggesting a modest risk-on tone.

Overall, the week’s gains reflected a continuation of post-pullback recovery momentum, with improving earnings sentiment and tempered trade concerns helping to sustain the market’s upward bias ahead of next week’s mega-cap earnings.

• Russell 2000: +2.5% WTD

• Nasdaq Composite: +2.3% WTD

• S&P Mid Cap 400: +2.3% WTD

• DJIA: +2.2% WTD

• S&P 500: +1.9% WTD

Market Recap- Market pulls back from record highs amid tensions with China

The stock market ended the week with its first meaningful pullback in months, as early week gains and record highs gave way to a broad‐based selloff on Friday.

The S&P 500 (‐2.4%), Nasdaq Composite (‐2.5%), and Dow Jones Industrial Average (‐2.7%) all finished lower for the week, while smaller‐cap indices also retreated, with the Russell 2000 (‐3.3%) and S&P MidCap 400 (3.9%) underperforming. The recent cycle of “buy‐the‐dip to fresh record highs” was disrupted as investors reacted to renewed trade tensions between the U.S. and China.

Mega‐cap technology and AI‐related names led the market higher earlier in the week. Advanced Micro Devices soared after announcing a multigigawatt partnership with OpenAI, while NVIDIA, Dell, and Microsoft also posted strong gains midweek, helping the S&P 500 and Nasdaq Composite achieve record intraday and closing highs.

Tesla contributed to early‐week momentum with product teasers, though enthusiasm faded following a more modest‐than‐expected Model Y announcement on Tuesday.

The week’s later selloff was triggered by President Trump’s comments on China and Beijing’s tightening of export controls for rare earths, which reignited trade concerns and prompted broad risk‐off sentiment. The information technology (‐2.5%), consumer discretionary (‐3.3%), communication services, and materials (‐3.1%) sectors were among the hardest hit. The energy sector (‐4.0%) also suffered as crude oil prices fell on Friday, while defensive sectors were the lone bright spots: the utilities (+1.4%) and consumer staples (+0.6%) sectors finished the week with gains.

Friday’s selloff was widespread, with decliners outpacing advancers roughly 5‐to‐1, and marks the most significant macro‐driven pullback since sweeping tariff announcements in April. Treasuries rallied as equities sold off, with the 2‐year yield falling to 3.52% and the 10‐year settling at 4.05%, approaching September lows.

Market attention now shifts to corporate earnings and the potential implications of ongoing geopolitical uncertainty, leaving investors to weigh risk appetite against defensive positioning as the market navigates this post‐record higher volatility environment.

• S&P 500: 2.4% WTD

• Nasdaq Composite: 2.5% WTD

• DJIA: 2.7% WTD

• Russell 2000: 3.3% WTD

• S&P Mid Cap 400: 3.9% WTD

Market Recap- Market marches to record highs amid shutdown and dovish Fed expectations

The major averages advanced further into record territory this week, shrugging off the ongoing government shutdown and positioning themselves for additional gains.

The S&P 500 (+1.1%), Nasdaq Composite (+1.3%), and Dow Jones Industrial Average (+1.1%) all notched new record highs, while smaller-cap indices like the Russell 2000 (+1.7%) outperformed.

Economic data provided a mixed backdrop but reinforced the market’s dovish Fed expectations. The September ADP Employment Change reported a decline of 32K private sector jobs (Briefing.com consensus: 40K). Job openings increased to 7.227 million in August, and housing data remained soft. Notably, some economic data, including Friday’s September Employment Situation Report, was not released due to the government shutdown. Overall, the data, combined with Fed commentary, bolstered expectations for further rate cuts this year. The CME FedWatch tool shows a 94.6% chance of a 25-basis-point cut at the October FOMC meeting and an 85.1% chance of an additional cut in December.

Sector performance this week highlighted notable outperformance in health care (+6.8% WTD), fueled by continued gains in Pfizer after the TrumpRx initiative, Humana following positive Medicare Advantage guidance, and other large-cap peers. The information technology sector (+2.3%) also contributed to market leadership, aided by strength in chipmakers and NVIDIA’s record-setting week. Tesla helped support the consumer discretionary sector (-0.8%), though it lagged late in the week after reporting Q3 deliveries. The utilities sector (+2.4%) also outperformed, while energy (-3.4%) faced headwinds from OPEC+ production expectations and lower crude oil prices.

T he market’s resilience, record highs, and dovish Fed expectations dominated the week’s narrative, reinforcing confidence that additional easing could provide further tailwinds for equities heading into earnings season.

Market Recap- Stocks dance in record territory

U.S. equities had a choppy week marked by alternating record highs and pullbacks, as enthusiasm over tech and AI headlines early on gave way to valuation concerns, Fed commentary, and stronger-than-expected economic data.

T he S&P 500 and Nasdaq hit fresh records Monday, led by NVIDIA, Apple, and Oracle on AI- and TikTok related news, but mega-cap weakness drove three straight midweek declines.

Investor doubts over NVIDIA’s OpenAI partnership and resilient labor/economic data briefly dampened expectations for further Fed cuts, weighing on sentiment. Materials and consumer-related names saw notable pressure midweek, while energy was a standout gainer on rising crude prices. Friday brought a rebound as strong income and spending data supported growth hopes, helping most sectors finish higher and ending the week with only modest losses for the S&P 500 and Nasdaq.

Overall, markets remain near record highs but are grappling with stretched valuations, shifting Fed expectations, and policy risks including tariffs and a possible government shutdown.

• Nasdaq Composite -0.7% WTD

• Russell 2000 -0.6% WTD

• S&P Midcap 400 -0.5% WTD

• S&P 500 -0.3% WTD

• Dow Jones Industrial Average -0.2% WTD

Market Recap-Fed easing optimism prompts record-setting week

The stock market ended the week on a strong note, driven by renewed clarity on monetary policy following Wednesday’s FOMC decision.

As widely expected, the Fed cut the target range for the federal funds rate by 25 basis points to 4.00–4.25%, leaving markets focused on updated guidance for further easing. Officials remain split on the pace of additional cuts this year: nine project one more, ten forecast two, and one anticipates none. Following the announcement, CME FedWatch probabilities for a 25-basis point cut in October rose to 91.9%, with a December cut now at 80.6%.

Mega-cap leadership continued to drive broad market gains, with the S&P 500 (+1.2%), Nasdaq Composite (+2.2%), and DJIA (+1.1%) capturing fresh record intraday and closing highs. The Russell 2000 (+2.2%) was a standout, eclipsing its prior intraday record from November 2024 and its record closing high from November 2021, reflecting strong small-cap appetite amid supportive policy expectations. The S&P MidCap 400 (+0.1%) advanced more modestly.

Sector performance was led by communication services (+3.4%) and information technology (+2.1%) sectors, fueled by gains in Alphabet (+4.0% WTD) and Apple (+3.6% WTD). The consumer discretionary sector (+1.5%) also captured a nice gain. In contrast, consumer staples (-1.3%), real estate (-1.4%), and materials (-0.9%) sectors lagged.

Economic data released this week offered a mixed backdrop. Retail Sales for August (+0.6%; Briefing. com consensus: +0.3%) and Industrial Production for August (+0.1%; Briefing.com consensus: 0.0%) pointed to continued consumer and manufacturing activity, while Housing Starts for August (-8.5%; Briefing.com consensus: 1.375M) and Building Permits for August (-3.7%; Briefing.com consensus: 1.312M) reflected affordability pressures. Initial Jobless Claims for the week ending September 13 declined to 231,000 (Briefing.com consensus: 245,000), and the Philadelphia Fed Index for September surged to 23.2 (Briefing.com consensus: 3.0), signaling stronger regional manufacturing growth.

Overall, the week was defined by record highs for large and small caps, broad outperformance in mega-cap tech, and market optimism for further Fed easing. The Russell 2000’s strong performance highlighted continued risk appetite, while macro data provided context for the Fed’s guidance and the pace of future rate adjustments.

• Nasdaq Composite: +2.2% WTD

• Russell 2000 +2.2% WTD

• S&P 500: +1.2% WTD

• DJIA: +1.1% WTD

• S&P Mid Cap 400: +0.1% WTD

Market Recap - Mega-Cap Leadership and Rate Cut Optimism Fuel Record Highs

The stock market posted a broadly positive week, led by gains in the tech-heavy Nasdaq Composite (+2.0%) and the S&P 500 (+1.6%), while the Dow Jones Industrial Average (+1.0%) and smaller-cap indices finished with more modest results.

The Russell 2000 (+0.3%) and S&P MidCap 400 (-0.4%) underperformed, highlighting the market’s reliance on mega-cap strength. The S&P 500 Equal Weight Index (+0.3%) lagged the market-weighted index, further underscoring the influence of the largest components.

The information technology sector (+3.1%) was the standout sector this week, fueled by strong moves in the mega-cap cohort and broad optimism in semiconductor names.

Oracle’s (+25.5%) remarkable mid-week surge following its RPO update propelled the technology sector and created volatility across the “magnificent seven,” emphasizing the outsized influence of single company moves. Tesla (+12.9%) and Broadcom (+7.5%) were among other notable mega-cap moves. In other corporate news, Paramount Skydance’s (+25.3%) potential acquisition of Warner Bros. Discovery (+55.8%) propelled both stocks higher despite regulatory concerns.

Economic data reinforced expectations of a continued easing cycle. While the August PPI print came in slightly hotter than expected (0.4%; Briefing.com consensus: 0.3%), and Core CPI met expectations at 0.3%, a 27,000 spike in initial jobless claims to 263,000 (Briefing.com consensus: 240,000), their highest level since October 2021, bolstered the market’s current rate cut expectations through the end of the year.

Overall, the combination of strong technology leadership, encouraging rate cut expectations, and select corporate news allowed the S&P 500, Nasdaq Composite, and DJIA to all set record highs this week, even as pockets of weakness persisted.

• Nasdaq Composite: +2.0% WTD

• S&P 500: +1.9% WTD

• DJIA: +1.0% WTD

• Russell 2000: +0.3% WTD

• S&P Mid Cap 400: -0.4% WT