Expert Insights
Commentary and clips about what's moving the markets - stocks, options, economic data, futures, cryptocurrencies, and more
Markets shifted this week following the Federal Reserve’s interest rate hike and high-level U.S. meetings with Chinese and Iranian officials.
The Dow Jones Industrial Average ($DJI) rose 0.28%, while the S&P 500 Index (SPX) gained 1.21%. The small-cap Russell 2000 Index (RUT) fell 0.8%, while the tech-heavy Nasdaq-100 Index (NDX) jumped 3.25%, and the PHLX Semiconductor Index (/SOX) rallied 6.27%.
Treasury yields moved higher after fresh data pointed to economic strength amid persistent inflation. The 10-year yield continued to climb, settling at 5.184% Friday.
Oil prices fell roughly 2% for the week to about $92.60 a barrel as U.S. and Iran representatives met on the sidelines of the U.N. General Assembly in New York. Energy shipments remain stalled or threatened in Saudi Arabia, Iran, the Strait of Hormuz, and other chokepoints. Analysts focused on the cost to refill declining reserves of refined products globally, from diesel fuel to liquefied natural gas (LNG). See:
- Takeaways in Crude, Trump-Xi Summit & AKAM, Anthropic's $11.6B Deal
- Rachel Ziemba: Markets Pricing In U.S.-Iran Cooldown 'Too Optimistic'
- Jake Hanley Calls U.S. Diesel Export Ban 'Really Bad Idea' Amid Record Pricing
Information Technology led S&P 500 sectors for the week, rising roughly 3%, followed by Communication Services and Health Care. Utilities were the weakest performer of the week, down roughly 4%. Energy, Financials, and Real Estate also moved lower.
Power demand from AI and obstacles to data center construction were front and center Thursday. Oracle (ORCL) issued a force majeure notice to a developer, citing potential delays in securing power for a large AI data center project in New Mexico, Reuters reported. See:
- Surging Yields and Stronger Dollar Test Narrowing Market
- Higher Rates Ding Utilities as Power Investments Gain Traction
- Force Majeure No Issue for ORCL? Cory Johnson's Bullish Contrarian Take
Some small-cap stocks could face pressure from higher interest rates. Roughly 30% of small companies carry variable-rate debt, which means they pay more interest when rates go up, versus 6% of large companies exposed to variable rates, says SlateStone Wealth Chief Equity Strategist Erin Gibbs. See Gibbs: Small Caps Pay Big Price in Rate Hike, 'Don't Underestimate' META Muse
Among technology developments, Qualcomm CFO and COO Akash Palkhiwala, in a Schwab Network interview, discussed Qualcomm’s diversification plan, including efforts to offset declining Apple (APPL) revenue. Qualcomm executives have pointed to data centers as a potential source of growth. See Featured Clips:
U.S. stocks traded higher Friday as retreating crude oil prices and renewed hopes for progress toward reopening the Strait of Hormuz helped offset pressure from elevated Treasury yields.
Strength in Microsoft (MSFT) and semiconductor shares supported the major averages.
The S&P 500 (SPX) gained 0.51%, and the Dow Jones Industrial Average ($DJI) advanced 0.93%. The Russell 2000 (RUT) rose fractionally Friday but slipped nearly 0.8% on the week. Technology showed strength: the tech-heavy Nasdaq-100 (/NDX) rose 0.42%, and the PHLX Semiconductor Sector Index (SOX) was up 1.41% Friday, and up more than 6% for the week.
Crude oil pulled back by roughly 2% to near $92.60 per barrel on hope of a truce between the U.S. and Iran, despite the threat posed by Houthi fighters, who could disrupt Saudi Arabia and Middle East oil supplies, according to a Reuters report.
Friday’s economic data sent mixed signals. The University of Michigan’s final September consumer-sentiment reading fell to 48.1, a four-month low, as households remained concerned about inflation and purchasing power. At the same time, core capital-goods orders rose more than expected in August.
Three things to watch from today’s market:
Akamai Surges on $11.6 Billion Anthropic Deal
Akamai Technologies (AKAM) rallied 3.2% after announcing a seven-year, $11.6 billion cloud-services agreement with Anthropic to support CPU-based AI workloads. The commitment can expand by another $9 billion, potentially taking the total to roughly $20 billion, while the agreement includes warrants that could give Anthropic up to a 5% stake in Akamai. See AKAM & Anthropic Ink $11.6B, 7-Year AI Deal: What it Signals to Tech Trade
Microsoft Leads Megacap Tech Higher
Microsoft (MSFT) shares rose 3.7% after the company introduced a redesigned Copilot platform that combines AI chat, coding, and agentic capabilities within a more unified experience. The new structure includes Home, Code, and Autopilot as Microsoft continues expanding its AI offerings for individuals and businesses. See MSFT Upgrade Points to Margin Strength, Bullish AI Profit Path
Nike Falls After BofA Downgrade
Nike (NKE) traded down 0.67% after Bank of America downgraded the stock to Underperform from Neutral and cut its price target to $30 from $47. The firm cited a slower-than-expected turnaround, continued pressure in China and weaker sales trends. Nike reports earnings next week, on Oct 1. See Example Trades: AMD, ONON, NKE | Fast Market
For the Week in Review article Saturday and the Week Ahead article Sunday, with the coming week’s economic and earnings calendars, return to the Schwab Network articles page.
