Closing Bell: S&P Closes Higher as Consumer Sentiment Weakens

Key Points

• Markets closed mixed, with the S&P 500 (SPX) up 0.13% and the Nasdaq-100 (NDX) down 0.28%.
• Consumer sentiment fell sharply to 50.3, well below expectations, as all party groups weakened and inflation outlook ticked higher to 4.7%.
• Tesla shareholders approved Elon Musk’s $878 billion pay package with 75% support, despite TSLA shares falling 3.68% on the session.

Markets closed mixed, with the S&P 500 (SPX) up 0.13% and the Nasdaq-100 (NDX) down 0.28%. Small caps outperformed, as the Russell 2000 (RUT) advanced 0.58%. Leading sectors included Energy, Utilities, and Real Estate, while Communication Services and Technology lagged.

The market opened relatively weak, but today’s session saw the “rotation” trade in full force for the second consecutive day, with defensive sectors such as Utilities, Real Estate, and Consumer Staples all gaining more than 1%. Technology finished in the red but well off its intraday lows as optimism grew around potential progress in government shutdown negotiations, suggesting a resolution may be on the horizon.

Consumer Sentiment Disappoints

The University of Michigan Consumer Sentiment continued to trend lower, coming in at 50.3—well below the market consensus of 53.2. The report showed declines across all party affiliations (Democrat, Republican, and Independents), with each group’s benchmark index moving lower. Inflation expectations also rose, with the 1-year outlook for November at 4.7%, up from 4.6% in October.

Tesla Shareholders Approve Elon’s Pay Package

On Thursday evening, Tesla shareholders approved Elon Musk’s proposed $878 billion pay package, with 75% voting in favor. The package includes aggressive 10-year benchmarks such as delivering 20 million vehicles, operating 1 million robotaxis, and generating up to $400 billion in core profit, among other milestones. Tesla (TSLA) closed lower on the session, down 3.68%.

Key Market Events for Monday

Tentative: Cleveland Fed Inflation Expectations

Notable Earnings for Monday

Premarket: CART, TSN

Postmarket: CRWV, OXY, PSKY, RGTI

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