Stock Market Update

Equity futures are pointing to a modestly lower start this morning as investors return from a week in which elevated Treasury yields and narrow market leadership remained key influences on the broader market.

Treasury yields remain near multi-decade highs after their rise drove much of last week's action, continuing to present a significant headwind for equities.

The Nasdaq Composite was the only major average to finish last week slightly higher, as strength in mega-cap and technology stocks continued to prop up the major indices despite weaker participation beneath the surface. That divergence was particularly evident in the S&P 500 Equal Weighted Index, which recorded its seventh consecutive losing week, according to FactSet.

Corporate news is relatively quiet to begin the week, leaving the broader macro backdrop as the primary focus in early trading.

On the energy front, Bloomberg reported that Iran increased attacks on ships just as traffic through the Strait of Hormuz returned to pre-war levels, though crude oil is moving modestly lower this morning. Separately, OPEC members reaffirmed their commitment to market stability.

The September ISM Non-Manufacturing Index at 10:00 ET is the main item on today's U.S. economic calendar, preceded by the final S&P Global U.S. Services PMI at 9:45 ET.

Today's economic calendar:

• 9:45 AM ET: September S&P Global U.S. Services PMI - Final; prior 58.7
• 10:00 AM ET: September ISM Non-Manufacturing Index; Briefing.com consensus 55.7; prior 55.4

In corporate news:

• Cerebras Systems (CBRS 174.15, +7.72, +4.64%) moves higher after OpenAI CEO Sam Altman said via X "There is some speculation about our partnership with Cerebras. Cerebras is a close partner, and we have a deep engagement pushing on the frontiers of speed"
• Vaxcyte (PCVX 85.51, +29.03, +51.40%) said its Phase 3 OPUS-1 trial of VAX-31 met all prespecified primary endpoints and showed a similar safety profile to the comparator vaccine.
• PTC (PTC 196.13, +52.10, +36.17%) agreed to be acquired by Schneider Electric for $205 per share in cash, implying a roughly €21 billion enterprise value.

Reviewing overnight developments:

Technology shares drew renewed buying interest in Japan and Hong Kong, according to Nikkei, while markets in China and South Korea were closed for holidays.

In news:

• SoftBank's chief executive highlighted growing artificial-intelligence safety risks and called for international cooperation.
• China's market was closed for the National Day holiday, and South Korea's market was closed for National Foundation Day.

In economic data:

• Japan's September Household Confidence 35.4 (expected 35.3; prior 35.5); September S&P Global Services PMI 51.3 (expected 51.6; prior 52.5) and Composite PMI 52.3 (expected 52.5; prior 53.5)
• Australia's September S&P Global Services PMI 51.9 (expected 51.4; prior 53.2) and Composite PMI 51.3 (expected 50.8; prior 52.7); September MI Inflation Gauge 0.3% m/m (prior 0.5%) ---

Equity Markets:

• Japan's Nikkei: +2.4%
• Hong Kong's Hang Seng: +0.3%
• China's Shanghai Composite: closed for holiday
• India's Sensex: +0.7%
• South Korea's Kospi: closed for holiday
• Australia's All Ordinaries: +0.1%

Elevated bond yields and political uncertainty are weighing on sentiment, while lower oil prices are providing some relief.

In news:

• France's fiscal and political concerns intensified, while Spain's prime minister called a snap election for November 29 after Congress rejected two housing decrees.

In economic data:

• Eurozone's September HCOB Services PMI 53.0 (expected 53.0; prior 51.6) and Composite PMI 53.1 (expected 53.1; prior 52.0); August PPI 1.9% m/m (expected 1.9%; prior 1.6%) and 8.2% yr/yr (expected 8.1%; prior 5.8%); October Sentix Investor Confidence 2.7 (expected 4.5; prior 5.1)
• Germany's September HCOB Services PMI 52.9 (expected 52.9; prior 49.7) and Composite PMI 53.8 (expected 53.8; prior 51.8)
• France's September HCOB Services PMI 51.2 (expected 51.4; prior 48.0) and Composite PMI 51.1 (expected 51.2; prior 48.5)
• Italy's September HCOB Services PMI 51.7 (expected 54.6; prior 55.2) and Composite PMI 51.0 (prior 53.6)
• Spain's September HCOB Services PMI 58.3 (expected 57.1; prior 57.8)
• U.K.'s September S&P Global Services PMI 52.1 (expected 51.7; prior 52.5) and Composite PMI 52.0 (expected 51.7; prior 52.5)

Equity Markets:

• STOXX Europe 600 : +0.3%
• Germany's DAX : flat
• U.K.'s FTSE 100 : +0.3%
• France's CAC 40 : -0.9%
• Italy's FTSE MIB : flat
• Spain's IBEX 35 : +0.5%