After Hours Report

The stock market had a productive first session of the week, supported by early tech leadership that remained solid even as participation broadened considerably throughout the session. By the close, the Nasdaq Composite (+1.1%) had established fresh record highs, the S&P 500 (+0.7%) notched a solid gain, and the DJIA (+0.2%) reversed the early weakness that kept it lower for the first half of the session. The Russell 2000 (+0.5%) and S&P Mid Cap 400 (+0.4%) followed a similar trajectory, with the major averages finishing just off session highs following some modest selling in the final minutes.

Despite stocks opening broadly lower, the S&P 500 and Nasdaq Composite moved higher out of the gate amid early strength in mega-cap and select tech stocks. Meta Platforms (META 741.90, +13.82, +1.90%) was among the notable "Magnificent Seven" gainers, extending its recent run of outperformance following the launch of its Muse AI agent and keeping the communication services sector (+1.1%) near the top of today's leaderboard.

The information technology sector (+0.7%) also provided steady support, although performance beneath the surface was mixed. Software stocks were a notable source of strength, with the iShares GS Software ETF rising 1.3%. PTC (PTC 192.26, +48.23, +33.49%) surged after Schneider Electric (SBGSY 61.50, -6.90, -10.09%) agreed to acquire the company for $205 per share in cash, while Microsoft (MSFT 525.18, +7.65, +1.48%) advanced following an upgrade to Buy from Hold at Melius.

Semiconductor stocks were more mixed, leaving the PHLX Semiconductor Index up just 0.3%. NVIDIA (NVDA 238.90, +4.95, +2.12%) was among the notable gainers, while Taiwan Semiconductor Manufacturing (TSM 485.91, +13.13, +2.78%) reached fresh 52-week highs after Elon Musk said there are talks about potentially utilizing the company for Terafab's Texas chip project. The prospect of TSM involvement weighed on Intel (INTC 116.19, -3.14, -2.63%).

Mega-cap strength remained an important source of support throughout the session, reflected in a 1.0% gain for the Vanguard Mega Cap Growth ETF. SpaceX (SPCX 171.09, +12.13, +7.63%) added to the trend and contributed to the outperformance of the Nasdaq Composite. 

Unlike much of the recent action, however, the broader market steadily caught up with those early leaders rather than falling further behind. That shift was especially evident in the S&P 500 Equal Weighted Index, which recovered from an early decline to finish up 0.5%, nearly matching the gain in the market-cap-weighted S&P 500. The Equal-Weight S&P 500 entered today's session riding a seven-week losing streak, making the improvement in participation particularly notable after an extended stretch in which index-level gains have been disproportionately driven by the market's largest stocks.

The broadening was also evident across the sector standings, with ten of the 11 S&P 500 sectors finishing higher. The real estate sector (-0.4%) was the lone decliner, while the industrials sector (+0.1%) was another relative underperformer as C.H. Robinson (CHRW 140.61, -17.11, -10.85%) fell sharply after agreeing to acquire RXO, Inc. (RXO 28.64, +5.26, +22.50%) in a stock-and-cash transaction valued at $5.8 billion.

Crude oil provided a more favorable influence as the session progressed. After some early choppiness, WTI crude moved steadily lower during the afternoon and ultimately settled $1.77 lower (-1.9%) at $89.33 per barrel. Positive headlines surrounding improved export flows from the Middle East continued to offset the lack of diplomatic progress between the U.S. and Iran.

The decline in oil did not translate into meaningful relief from another recent market headwind, however, as Treasury yields remained elevated. The 10-year note yield settled three basis points higher at 5.31%, yet equities largely shrugged off the continued rate pressure and spent much of the afternoon extending their gains. That ability to advance in the face of higher yields was particularly noteworthy given how heavily elevated rates have weighed on the broader market recently.

Monday therefore offered a notable break from the market's recent pattern. Mega-cap growth stocks remained firmly in the lead early and continued to perform well into the close, potentially reflecting confidence in their earnings prospects ahead of the upcoming reporting season, but the broader market increasingly joined the advance as the day progressed. The Equal-Weight S&P 500 matching the cap-weighted index despite another rise in Treasury yields was an encouraging development after weeks of narrow leadership, although one session is not enough to establish a lasting change in that trend.

U.S. Treasuries began the week with losses that sent yields on the 10-year and 30-year notes to fresh highs for the year while the front end outperformed but could not avoid a lower finish. The 2-year note yield settled up one basis point to 4.83%, and the 10-year note yield settled up three basis points to 5.31%. 

• Nasdaq Composite: +18.2% YTD
• Russell 2000: +14.7% YTD
• S&P 500: +13.6% YTD
• S&P Mid Cap 400: +11.3% YTD
• DJIA: +6.7% YTD

Reviewing today's data: 

• Sep S&P Global U.S. Services PMI - Final 58.8 (Prior 58.7)
• Sep ISM Non-Manufacturing Index 54.9 (Briefing.com consensus 55.7; Prior 55.4)
  • The key takeaway from the report is the understanding that the prices paid by services organizations continue to increase. In turn, that will continue to feed concerns about pass-through effects for consumers.

Overseas:

• Europe: DAX +0.1%, FTSE +0.3%, CAC -0.8%
• Asia: Nikkei +2.4%, Hang Seng +0.3%, Shanghai market closed

Commodities:

• Crude Oil -1.77 @ 89.33
• Nat Gas +0.03 @ 3.07
• Gold -5.20 @ 4157.40
• Silver +0.90 @ 61.32
• Copper +0.09 @ 6.64

After-Hours Spotlight:

• AbbVie (ABBV) expects Q3 EPS to include a $0.11 unfavorable impact from acquired IPR&D and milestones expense...ABBV +0.6%
• Freshworks (FRSH) set to join S&P SmallCap 600...FRSH +5.1%
• Lucid (LCID) Q3 deliveries top production as inventory reduction continues...LCID -0.7%
• NeoGenomics (NEO) names Warren Stone CEO effective Jan. 4; sees Q3 revenue about $209 mln...NEO -4.9%
• Option Care Health (OPCH) sharply higher following report that McKesson and CD&R are nearing a deal, according to FT...OPCH +20.5%
• Pinterest (PINS) names former Amazon CFO James Dibbo as CFO, effective Oct. 26...PINS +0.9%
• Spyre Therapeutics (SYRE) launches common stock offering...SYRE -4.0%
• Standard BioTools (LAB) announces agreement to sell Microfluids business to ARCHIMED...LAB +3.0%
• Zeta Global (ZETA) to acquire Senso to add AI engineering talent and frontier-model connectivity...ZETA +0.4%

For a full rundown of today's market and after hours developments, see Live In Play

• Earnings/Guidance (Full Earnings Calendar):
  • Hon Hai Precision (AAPL) reports August -2.6% yr/yr to NT 921.8 bln
  • inTEST Corp (INTT) expects record orders for Q3 2026 and revenue at high end of guidance range for Q3 and full year 2026
  • Niu Technologies (NIU) Q3 sales volume rises 15% yr/yr
• General News
  • OPEC says Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman reaffirm commitment to market stability
  • White House announced that the federal government will be making one-time payments of $90 per person to help more than 20 million enrollees pay for their Medicare Part B premiums
  • President Trump says Super Intelligence Task Force will be led by Jay Clayton
  • Brazil's presidential election will go to a runoff on October 25, with Flavio Bolsonaro leading. Bloomberg
  • Iran increased attacks on ships just when traffic through the Strait of Hormuz reached pre-war levels. WSJ
  • Treasury Secretary Scott Bessent says the rise in yields is in line with global trends, and he would only be concerned if investors were selling Treasuries but buying bonds in other countries. Axios
  • Saudi Arabia and Yemen are planning a large counteroffensive against the Houthis in the coming days, but the U.S. will not get involved. Axios
  • Yemen launched an offensive to take areas that were seized by the Houthis. Reuters
  • Saudi Arabia cuts oil prices to Asia. Bloomberg
  • The Trump administration is monitoring reports of a suspected plague case in Russia. Axios
  • Spanish Prime Minister Pedro Sanchez called for a November 29 snap election. Reuters
  • The Supreme Court will hear a case this week that will determine if large oil companies can face climate change lawsuits. Reuters
  • Senators to investigate how home and auto insurers process claims. WSJ
  • Almonty (ALM) says Pure Tungsten issued corrective disclosure in settlement over Tiger Kim claims
  • Alvotech (ALVO) says FDA approves added U.S. manufacturing capacity for SIMLANDI
  • Apple (AAPL) CEO John Ternus will oversee the company's hardware and software design functions. Bloomberg
  • Apple (AAPL) spokesperson says a small number of iPhone 18 Pro Max users will have to replace their devices due to software issues impacting AT&T service. Bloomberg
  • Arm Holdings plc and Qualcomm (QCOM) will head to trial again, according to Reuters
  • Benitec (BNTC) says FDA requested more data for BB-301 pivotal study design; mid-2027 trial start still on track
  • BridgeBio (BBIO) presents BBP-418 Phase 3 cardiac biomarker data ahead of Nov. 27 PDUFA
  • Crescent Biopharma (CBIO) says FDA clears IND for CR-002 solid tumor ADC
  • D-Wave (QBTS) partners with University of Arkansas on quantum supply-chain initiative
  • DoorDash (DASH)'s Deliveroo brand partners with Coco Robotics for UK robot delivery rollout
  • Entergy (ETR) names David Borde president and CEO of Entergy Texas
  • Establishment Labs (ESTA) gets FDA approval for 28 additional Motiva implant sizes
  • GE HealthCare (GEHC) will soon announce acquisition of Sofie for $945 mln, according to WSJ
  • Genmab (GMAB) posts Phase 2 Rina-S data in platinum-resistant ovarian cancer
  • GEO (GEO) sells three Adelanto ICE facilities to U.S. government for $950 mln; boosts buyback authorization to $1.25 bln
  • Insmed (INSM) CFO Sara Bonstein to step down Oct. 30; reaffirms 2026 guidance
  • iRhythm (IRTC) updates June cyber incident; begins notifying impacted individuals
  • Kratos (KTOS) wins over $100 mln of space and cyber contracts
  • Levi Strauss (LEVI) benefiting from a sales comeback. WSJ
  • Natera (NTRA), Alliance Foundation Trials launch Phase III NAVIGATE breast cancer study with Roche's Genentech
  • Oshkosh (OSK) gets follow-on Morocco order for 50 HET A1 tractors and 50 heavy-duty trailers
  • Paramount (PSKY) and Oracle take on significant debt. Bloomberg
  • Paramount Skydance (PSKY) mulling changes to Bari Weiss' role as CBS News editor-in-chief. NY Post
  • Paramount Skydance (PSKY) CEO David Ellison plans to put Paramount film chiefs Dana Goldberg and Josh Greenstein in charge of film business post-Warner Bros. close, according to Bloomberg
  • Redwire (RDW) wins follow-on Axiom Space contract for second station module solar arrays
  • Revolution Medicines (RVMD) begins dosing in Phase 3 RASolute 309 pancreatic cancer trial
  • Rezolute (RZLT) says FDA recommended pre-BLA meeting for congenital HI program
  • Schneider Electric nearing an agreement (SBGSY) to acquire PTC. FT
  • StepStone (STEP) Group partners with ASB Capital to launch Shari'a-compliant private financing fund
  • Suncor Energy (SU) sells offshore assets for CAD1.2 bln, boosts monthly share repurchases by 50%
  • Syntec Optics (OPTX) lands Artemis III production orders, expands space portfolio to moon missions
  • Tavia Acquisition (TAVI) appoints Andrew Wiederhorn CEO, executive chairman; names Kenneth Kuick CFO – 8-K filing
  • The Boeing (BA) 737 Max held up during a fast decent on the FlyDubai flight last week. WSJ
  • Travel (TNL) + Leisure expands Wyndham partnership to develop Sports Illustrated Resorts hotels
  • U.S. solar (CSIQ) manufacturers could soon have a technological breakthrough, according to NY Times
  • Vaxcyte (PCVX) says Phase 3 OPUS-1 trial of VAX-31 met all prespecified primary endpoints
  • Vaxcyte (PCVX) to host webcast and conference call to present topline data from OPUS-1, the pivotal adult Phase 3 Trial of VAX-31
  • Visa (V) expands pro football team partnership portfolio
  • Zscaler (ZS) teams with IBM (IBM) and Red Hat on private app security offering

• Upgrades:
  • Cboe Global Markets (CBOE) upgraded to Buy from Hold at TD Cowen, tgt $334
  • DraftKings (DKNG) upgraded to Buy from Neutral at BofA, tgt $27
  • Estee Lauder (EL) upgraded to Overweight from Equal Weight at Barclays, tgt $108
  • Grupo Aeroportuario del Pacifico (PAC) upgraded to Buy from Hold at HSBC, tgt $277
  • Harley-Davidson (HOG) upgraded to Buy from Neutral at Citi, tgt $33
  • Microsoft (MSFT) upgraded to Buy from Hold at Melius Research, tgt $665
  • Rentokil Initial (RTO) upgraded to Buy from Hold at Stifel
  • Ryder (R) upgraded to Overweight from Neutral at JPMorgan, tgt $298
  • Texas Roadhouse (TXRH) upgraded to Outperform from In Line at Evercore ISI, tgt $200
  • Virtu Financial (VIRT) upgraded to Overweight from Neutral at JPMorgan, tgt $84
  • Wells Fargo (WFC) upgraded to Overweight from Equal Weight at Morgan Stanley, tgt $102
• Downgrades:
  • Align Technology (ALGN) downgraded to In Line from Outperform at Evercore ISI, tgt $155
  • AutoNation (AN) downgraded to Equal Weight from Overweight at Morgan Stanley, tgt $175
  • Group 1 Automotive (GPI) downgraded to Underweight from Equal Weight at Morgan Stanley, tgt $232
  • Hermes (HESAY) downgraded to Sell from Neutral at UBS
  • HubSpot (HUBS) downgraded to Market Perform from Outperform at Raymond James
  • Intercontinental Exchange (ICE) downgraded to Hold from Buy at TD Cowen, tgt $166
  • Millrose Properties (MRP) downgraded to Market Perform from Outperform at Citizens
  • Mosaic (MOS) downgraded to Sector Perform from Outperform at RBC Capital, tgt $25
  • O-I Glass (OI) downgraded to Neutral from Buy at UBS, tgt $6
  • Sphere Entertainment (SPHR) downgraded to Hold from Buy at Craig-Hallum, tgt $132
• Others:
  • Avidia Bancorp (AVBC) initiated with an Outperform at Hovde Group, tgt $26
  • AvePoint (AVPT) initiated with an Accumulate at Phillip Securities
  • Bitzero (AIBZ) initiated with a Buy at Clear Street, tgt $11
  • Hermes (HESAY) initiated with a Sell at Goldman Sachs
  • Korsana Biosciences (KRSA) initiated with an Outperform at Wedbush, tgt $44
  • Lumexa Imaging (LMRI) initiated with a Buy at Truist, tgt $18
  • Maravai LifeSciences (MRVI) initiated with a Buy at TD Cowen, tgt $9
  • nVent Electric (NVT) initiated with an Outperform at BMO Capital, tgt $212
  • Ondas (ONDS) initiated with an Outperform at Citizens, tgt $14
  • ORIC Pharmaceuticals (ORIC) initiated with an Outperform at Leerink, tgt $26
  • Regenxbio (RGNX) initiated with an Outperform at Mizuho, tgt $22
  • Sable Offshore (SOC) initiated with an Outperform at William Blair
  • Samsara (IOT) initiated with a Buy at Jefferies, tgt $50
  • Southern Missouri Bancorp (SMBC) initiated with a Market Perform at Hovde Group, tgt $76
  • Stagwell (STGW) assumed with Buy from Neutral at Goldman Sachs, tgt $13
  • Swatch Group (SWGAY) initiated with a Sell at Goldman Sachs
  • Vertiv (VRT) initiated with an Outperform at BMO Capital, tgt $329
  • Vylor (VYLR) initiated with a Buy at BofA, tgt $78
  • Vylor (VYLR) initiated with an Outperform at Mizuho, tgt $84
  • Zentalis Pharmaceuticals (ZNTL) assumed at Outperform from Market Perform at Leerink, tgt $8

• Econ Data (Tuesday):
  • 8:30 ET: August Trade Balance (Briefing.com consensus -$93.7 bln; prior -$88.6 bln)

• Earnings:
  • Monday (October 5)
    • Pre-Market: None
    • After-Hours: None
  • Tuesday (October 6)
    • Pre-Market: APOG, LW, NEOG, RPM
    • After-Hours: PENG, STZ, WS
  • Wednesday (October 7)
    • Pre-Market: None
    • After-Hours: APLD, LEVI
  • Thursday (October 8)
    • Pre-Market: HELE, PEP
    • After-Hours: None
  • Friday (October 9)
    • Pre-market: DAL
    • Afternoon: None