A hotter-than-expected September CPI report and a deepening selloff in AI names sent the S&P 500 down more than 1% for the first time in 54 sessions, with the Nasdaq and small caps falling nearly 2%.
The market might hit a high note to end the year but 2027 won’t be as rosy.
Memory makers fell again and the big banks missed Street expectations but Mag-7 strength kept the S&P 500 flat.
Eight of 11 sectors rose and the Dow Jones Industrial Average gained for a third straight day, but another selloff in chipmakers kept the S&P 500 little changed and the Nasdaq in the red on the lightest volume of the year.
Nine of 11 sectors rose, powering the S&P higher despite semiconductor weakness. Small-caps, though, posted a fifth straight weekly loss for the first time since 2022.
An FT report that OpenAI’s revenue is running notably below earlier estimates sent AI shares sharply lower, but beneath the surface most stocks held up as Treasury yields eased and President Trump said the U.S. won’t attack Iran before the midterms.
Long-end yields again hit multi-decade highs before a historically strong 10-year auction pulled them back, letting large-caps pare losses.
The S&P notched its first record close since August on a continued broadening as Treasury yields remained subdued. The Nasdaq added a second straight record, but small-caps gave up an early gain.
The Nasdaq closed at a record, and the S&P 500 came within a whisker, as the rally broadened for a second straight session, even as 10 and 30-year yields climbed to their highest close since 2002.
Payrolls missed every estimate, raising bets for an October FOMC hold, and the Nasdaq-100 powered to a record high. But Treasury yields reversed an early drop.
