Stock Market Update

Equity futures point to a subdued start to the week as investors prepare for the unofficial start of the Q3 earnings season, with several major banks scheduled to report results in the coming days.

Stocks are coming off a winning week in which broader market participation helped offset weakness in technology stocks, a reversal of the recent trend of narrow market leadership. The Equal-Weight S&P 500 snapped a seven-week losing streak, highlighting the improvement in participation beyond the largest stocks.

The AI infrastructure buildout remains in focus this morning, with several notable M&A headlines drawing attention to the space.

Meanwhile, crude oil prices are moving higher despite comments from President Trump that Russia and Ukraine have agreed to an "energy ceasefire." According to Axios, Ukrainian President Volodymyr Zelensky said the agreement was "news to me," although he indicated that Ukraine would also agree to an energy ceasefire if Russia committed to one.

There are no U.S. economic releases remaining today, though this week will feature some key inflation data with the release of the September Consumer Price Index on Wednesday and Producer Price Index on Thursday. 

In corporate news:

• Bristol Myers Squibb (BMY 61.67, +2.55, +4.31%) is indicated higher after the interim analysis of its Phase 3 ACTION-1 study met the primary endpoint, showing a statistically significant and clinically meaningful improvement in progression-free survival.
• Salesforce (CRM 238.31, +9.18, +4.0%) was double upgraded to Buy from Underperform at Bank of America. 
• Super Micro Computer (SMCI) will plead guilty to diverting NVIDIA (NVDA 228.82, -0.46, -0.2%) chips to China, according to Reuters.

Reviewing overnight developments:

Asian trading was mixed as lower oil prices provided some relief, while elevated U.S. Treasury yields and concerns about AI investment costs remained limiting factors, according to Nikkei.

In news:

• Mainland China remained pressured by concerns about exports and weak domestic consumption despite a regulatory proposal to lower entry requirements for equity mutual funds.
• Beijing's market-stabilization efforts supported sentiment in Hong Kong. Japan was closed for the Sports Day holiday.

There is no economic data of note.

Equity Markets:

• Japan's Nikkei: closed for holiday
• Hong Kong's Hang Seng: +0.3%
• China's Shanghai Composite: -0.4%
• India's Sensex: -0.8%
• South Korea's Kospi: -3.7%
• Australia's All Ordinaries: +0.7%

Softer oil prices and bond yields have supported sentiment as investors look ahead to the U.S. earnings season and upcoming inflation data.

In news:

• Volkswagen is in focus ahead of an investor update and third-quarter sales figures, while German investors are also monitoring domestic political developments.
• Lower crude prices have weighed on the energy sector, while continued tensions in the Middle East have limited the improvement in sentiment.

Ther is no economic data of note.

Equity Markets:

• STOXX Europe 600 : +0.6%
• Germany's DAX : +0.7%
• U.K.'s FTSE 100 : +0.7%
• France's CAC 40 : +0.2%
• Italy's FTSE MIB : +0.7%
• Spain's IBEX 35 : +0.9%