Stock Market Update

Equity futures point to a higher opening this morning amid renewed enthusiasm surrounding the AI trade, supported by Alphabet's new Gemini 4 Argon model and another impressive earnings report from Micron (MU).

Stocks are coming off a mostly lower session in which strength among mega-cap growth stocks helped soften broader losses, extending a trend that was evident throughout September as market leadership narrowed and breadth weakened. Micron's results have provided another boost to the AI trade this morning after semiconductor stocks were one of the market's strongest groups last month.

Still, some familiar headwinds remain in place. U.S. Treasury yields remain elevated, while crude oil is moving higher again this morning amid a lack of diplomatic progress, providing a counterweight to the positive tone surrounding AI and technology stocks.

Today's remaining economic calendar:

• 8:30 AM ET: 09/26 Initial Claims; Briefing.com consensus 200K; prior 197K
• 8:30 AM ET: 09/19 Continuing Claims; prior 1719K
• 9:45 AM ET: September S&P Global U.S. Manufacturing PMI - Final; Briefing.com consensus 55.3; prior 57.0
• 10:00 AM ET: August Construction Spending; Briefing.com consensus 0.3%; prior -0.1%
• 10:00 AM ET: September ISM Manufacturing Index; Briefing.com consensus 55.2%; prior 54.6%
• 10:30 AM ET: 09/26 EIA Natural Gas Inventories; prior +53 bcf

In corporate news:

• Accenture (ACN 214.00, +30.63, +16.70%) topped Q4 revenue estimates, guided Q1 revenue in line with expectations, and projected FY27 revenue growth of 3-6%.
• Alphabet (GOOG 347.49, +6.75, +2.0) is higher in the premarket after CEO Sundar Pichai introduced its newest AI model, Gemini 4 Argon.
• McCormick (MKC 48.65, +2.25, +4.85%) beat Q3 earnings and revenue estimates and reaffirmed its FY26 earnings and revenue guidance. Planning for the Unilever integration remains on track.
• Micron (MU 1056.01, -9.10, -0.85%) beat EPS expectations by $1.70, beat revenue expectations, and reported a Non-GAAP gross margin of 87.0%. The company guided Q1 EPS and revenues above consensus.
• Synopsys (SNPS 450.71, +15.77, +3.63%) issued above-consensus FY27 earnings and revenue guidance at its investor day and outlined a long-term target for mid-teens revenue growth through FY30.

Reviewing overnight developments:

Japan led regional trading, while mainland China and Hong Kong were closed for the National Day holiday.

In news:

• Nikkei reported that Japanese AI and semiconductor shares advanced after Micron's (MU 1056.01, -9.10, -0.85%) upbeat outlook.

In economic data:

• Japan's Q3 Tankan Large Manufacturer Index 24 (expected 25; prior 22) and Large Non-Manufacturers Index 35 (expected 36; prior 37); September S&P Global Manufacturing PMI 54.1 (expected 54.1; prior 54.9)
• Australia's September S&P Global Manufacturing PMI 49.6 (expected 49.3; prior 52.0); August Imports 5.8% (prior -2.4%) and Exports 3.7% (prior -3.6%)
• South Korea's September Imports 26.0% (expected 21.5%; prior 22.4%) and Exports 83.5% (expected 61.7%; prior 68.7%); September S&P Global South Korea Manufacturing PMI 53.9 (prior 52.3)
• India's September HSBC Manufacturing PMI 55.1 (expected 55.7; prior 52.8) --- Equity Markets ---
• Japan's Nikkei: +3.4%
• Hong Kong's Hang Seng: closed for holiday
• China's Shanghai Composite: closed for holiday
• India's Sensex: -0.1%
• South Korea's Kospi: +1.9%
• Australia's All Ordinaries: -1.9% --- FX --- USD/JPY: +0.5% to 158.23 USD/INR: +0.3% to 96.395 USD/CNH: +0.2% to 6.7194

European markets trade lower as elevated bond yields, rising oil prices, and inflation concerns weigh on equities.

In news:

• French financial shares are under pressure amid concerns about public finances ahead of the government's 2027 budget proposal.
• Stalled U.S.-Iran negotiations remain in focus as oil prices keep inflation concerns elevated.

In economic data:

• Eurozone's September HCOB Manufacturing PMI 52.9 (expected 52.7; prior 52.7); August Unemployment Rate 6.4% (expected 6.4%; prior 6.4%)
• Germany's September HCOB Manufacturing PMI 53.9 (expected 53.8; prior 54.3)
• Spain's September HCOB Manufacturing PMI 51.0 (expected 50.2; prior 49.5)
• Italy's September HCOB Manufacturing PMI 50.4 (expected 50.1; prior 49.6); August Unemployment Rate 6.2% (expected 5.8%; prior 6.0%)
• France's September HCOB Manufacturing PMI 50.6 (expected 50.3; prior 51.1)
• U.K.'s Nationwide HPI -0.2% m/m (expected 0.0%; prior 0.2%) and 0.8% yr/yr (expected 1.3%; prior 1.6%); September S&P Global Manufacturing PMI 51.9 (expected 52.0; prior 51.7)
• Switzerland's September CPI 0.0% m/m (expected 0.0%; prior 0.4%) and 0.8% yr/yr (expected 1.3%; prior 1.6%); August Retail Sales 3.2% yr/yr (expected 2.1%; prior 2.6%) --- Equity Markets --- STOXX Europe 600 : -0.6%
• Germany's DAX : -0.2%
• U.K.'s FTSE 100 : -1.2%
• France's CAC 40 : -0.7%
• Italy's FTSE MIB : -0.9%
• Spain's IBEX 35 : -0.8% --- FX --- EUR/USD: -0.3% to 1.1292 GBP/USD: -0.3% to 1.3225 USD/CHF: +0.1% to 0.8360