Stocks initially rallied after the Federal Reserve held interest rates steady, but optimism quickly faded as disappointing technology earnings and concerns about AI spending triggered another wave of selling.

Friday was particularly brutal, with the Nasdaq (QQQ) falling 2.9% and the S&P 500 (SPY) dropping 1.8%. Investors are increasingly questioning whether the hundreds of billions being invested in AI infrastructure will generate sufficient returns, especially as debt levels and capital expenditures continue to climb.

Nvidia, AMD, and other AI-related stocks faced heavy selling pressure as investors reduced exposure to the crowded trade.

The biggest shock came from Intel, whose disappointing outlook sent shares crashing nearly 29% and raised fresh concerns about the semiconductor industry.

Intel Crashes as Turnaround Hopes Take a Hit

Intel (INTC) plunged nearly 29% on Friday after delivering a disappointing outlook that overshadowed stronger-than-expected third-quarter results.

Revenue increased 21% year over year to $16.5 billion, while its Data Center and AI segment grew nearly 80% to $7.3 billion.

However, management projected fourth-quarter revenue of $15 billion to $16 billion and adjusted earnings of $0.25 per share, both below Wall Street expectations.

Intel also warned that weakness in the PC market could persist into 2027, with elevated memory prices pressuring demand.

The disappointing guidance raised fresh doubts about Intel’s turnaround and erased more than $120 billion in market value.

Big Tech Earnings Expose a Growing Divide in AI

Alphabet (GOOGL), Microsoft (MSFT), and Amazon (AMZN) delivered closely watched earnings that highlighted growing differences in how investors evaluate AI investments.

Alphabet plunged more than 12% after disappointing revenue and continued infrastructure spending raised concerns about profitability.

Microsoft initially rallied more than 5% after hours as Azure revenue surged 48% to $33.2 billion, supported by strong cash flow and an upbeat cloud outlook.

Amazon reported 12% revenue growth and a 39% increase in AWS sales, but shares declined after earnings missed expectations and aggressive capital spending pressured free cash flow.

The reports reinforced a shift in market sentiment as investors increasingly demand measurable returns from AI investments.

Record Binance Hack Sends Crypto Markets Tumbling

Cryptocurrency markets suffered another major setback after Binance disclosed a security breach involving an estimated $6.3 billion in stolen digital assets, potentially the largest crypto hack in history.

The attack, reportedly linked to North Korean hackers, triggered widespread selling as Bitcoin briefly fell toward $76,000, Ethereum declined to multi-month lows, and Binance’s BNB token dropped more than 8%.

The turmoil also triggered approximately $1.6 billion in leveraged liquidations.

Binance said roughly $3 billion of the stolen assets had been frozen and pledged to cover customer losses, but the incident renewed concerns about exchange security, liquidity, and counterparty risk throughout the crypto industry.

Memory Earnings Highlight a Booming but Volatile Sector

Memory stocks remained in focus following major earnings reports from SK Hynix (SKHY) and Sandisk (SNDK), both benefiting from strong AI infrastructure and data center demand.

SK Hynix reported record quarterly revenue of approximately $78.4 billion and operating profit of $62.5 billion, supported by surging demand for high-bandwidth memory.

Sandisk reported quarterly revenue of $11 billion, up 23% sequentially, and announced an eight-for-one stock split alongside stronger revenue guidance.

Despite impressive results, Sandisk shares fell approximately 13% on Friday amid the broader technology selloff.

The reports highlighted continued strength in memory demand, even as investors grow more cautious about valuations and AI spending.

Marvell Nears Massive Lumentum Acquisition

Marvell Technology (MRVL) is reportedly in advanced negotiations to acquire Lumentum Holdings (LITE) in a major deal that could reshape the AI networking and optical infrastructure industry.

According to Bloomberg, the potential all-stock transaction could be announced as early as next week, with Lumentum valued at approximately $85 billion at the time of the report.

Lumentum specializes in optical technologies that enable high-speed data transmission within AI data centers, making it a strategically valuable target.

The acquisition would significantly expand Marvell’s exposure to optical connectivity and strengthen its position in AI infrastructure, although negotiations remain ongoing and no final agreement has been confirmed.

Apple Earnings and Midterm Elections Set Up a Pivotal Week

Investors face another major test next week as Apple (AAPL) prepares to report earnings alongside the November 3 U.S. midterm elections and additional technology earnings.

Apple’s results will provide an important update on iPhone demand, consumer spending, services growth, and its broader AI strategy.

Meanwhile, the midterm elections could reshape expectations for fiscal policy, regulation, taxes, and government spending, with implications across several major sectors.

AMD and Palantir (PLTR) are also scheduled to report, adding further potential volatility to the AI trade.

With sentiment deteriorating and several major catalysts approaching, next week could determine whether the recent selloff stabilizes or develops into a broader correction.

Sector Weekly Performance

Current Themes & Volatile Movers

Headline Reactions

• EWZ down 20% after Brazilian President Lula unexpectedly won reelection against Flávio Bolsonaro, reversing a rally built around expectations of a more market-friendly government and raising concerns about fiscal spending, debt, and interest rates.

• CART up 7% after reports that DoorDash was in advanced talks to acquire the company in a deal potentially valued at $17 billion, with an agreement possibly announced next week.

• TSLA up 3% after Barclays upgraded the stock to Overweight, citing improving business momentum and optimism surrounding a potential SpaceX deal, pushing shares to their highest level in more than three months.

• LITE up 11% following reports that Marvell was in advanced talks to acquire the optical technology company.

• XP down 48% following Lula’s surprise reelection victory, as investors feared prolonged high interest rates, weaker investment flows, and deterioration in Brazil’s economic outlook.

• FICO down 7% after Wells Fargo downgraded the stock following its decision to hold certain mortgage credit-score prices at $10, raising concerns about pricing power, competition, and future earnings growth.

• ARM up 3% as Anthropic’s IPO filing renewed investor interest in AI computing, lifting semiconductor architecture and infrastructure stocks.

• AAPL down 1% after Loop Capital downgraded the stock and cut its price target to $330, citing valuation concerns, rising memory costs, and potential margin pressure ahead of earnings.

• NVDA down 5% as optimism surrounding Anthropic’s IPO filing, SpaceX’s $40 billion GPU financing, and Morgan Stanley naming Nvidia its top semiconductor pick gave way to broader selling pressure amid concerns about the profitability and sustainability of AI infrastructure spending.

• MRVL down 13% following reports that Marvell was in advanced talks to acquire optical technology company Lumentum, raising concerns about acquisition costs and financing requirements, while broader selling pressure in AI semiconductor stocks added to the weakness.

• ORCL up 4% after Oracle’s Investor Day outlined ambitious fiscal 2030 targets of at least $225 billion in revenue and $21 in adjusted EPS, alongside expectations for reduced capital expenditures in fiscal 2029.

• ADT up 42% after announcing an agreement to be acquired and taken private by Thrive Holdings for $10 per share in cash, representing a 45.6% premium to its October 27 closing price.

• QQQ down 3% as disappointing technology earnings intensified concerns about massive AI infrastructure spending, weakening free cash flow, and the sustainability of elevated technology sector valuations.

• DDOG down 14% as cloud software stocks sold off amid concerns that excessive AI spending, weakening free cash flow, and tighter technology budgets could pressure future cloud consumption growth.

• PLTR down 6% as high-valuation AI software stocks faced widespread selling pressure, with investors reassessing growth expectations and valuations following disappointing earnings across the technology sector.

Earnings Reactions

Up on Earnings

• REGN up 14% after Regeneron reported stronger-than-expected third-quarter earnings, with revenue surging 36% to $5.12 billion on record sales of three key medicines.

• LLY up 9% after reporting a 39% increase in third-quarter revenue to $24.4 billion, driven by strong demand for weight-loss and diabetes treatments Zepbound and Mounjaro, while raising its full-year revenue outlook.

• LH up 9% after Labcorp reported better-than-expected third-quarter results, including 14.5% adjusted EPS growth, and raised its full-year revenue and earnings guidance.

• CVNA up 18% after reporting record quarterly revenue of $8.04 billion, up 42%, and record adjusted EBITDA of $800 million, supported by 39% growth in retail vehicle sales.

• SKHY up 6% after SK Hynix reported record earnings and unveiled a $75 billion shareholder return plan, supported by booming demand for high-bandwidth memory used in AI infrastructure.

• VRT up 18% after reporting stronger-than-expected quarterly earnings, fueling optimism about accelerating demand for data center power and cooling infrastructure.

• MSFT was flat after reporting better-than-expected quarterly earnings, with revenue rising 19% to $92.3 billion, adjusted EPS reaching $4.89, and Azure revenue surging 48%, while separately announcing voluntary buyout offers to approximately 60,000 employees to reduce operating costs and support AI investments.

Down on Earnings

• SNDK down 8% despite reporting better-than-expected earnings, raising guidance, and announcing an 8-for-1 stock split, as investors took profits amid concerns about slowing sequential revenue growth, weakening consumer demand, and the sustainability of record profit margins.

• RDDT down 33% after Reddit warned that Google’s AI-generated search answers were reducing referral traffic, raising concerns about user growth and potentially causing daily active visitors to decline by double digits in the fourth quarter.

• CAT down 9% despite beating third-quarter earnings expectations, as investors focused on a tariff refund that boosted profits, slightly disappointing revenue, and concerns about underlying demand and valuation.

• KLAC down 6% despite reporting better-than-expected quarterly earnings and revenue while raising its outlook, supported by strong demand for advanced semiconductor manufacturing, inspection equipment, and AI-related chip production.

• FTNT down 24% after reporting third-quarter results that beat headline expectations but cutting its full-year service revenue forecast, raising concerns about slowing growth in its recurring cybersecurity subscription and support business.

• ENPH down 17% after missing quarterly revenue and earnings expectations and issuing disappointing fourth-quarter guidance, reflecting weakening solar demand and continued margin pressure.

• INTC down 24% after reporting third-quarter earnings and issuing disappointing fourth-quarter guidance, citing prolonged PC market weakness, supply constraints, elevated manufacturing costs, and concerns about profitability and cash burn.

• AMZN down 3% after reporting weaker-than-expected third-quarter revenue and earnings, with negative free cash flow of $4.2 billion overshadowing strong 38% growth in AWS revenue.

• NOW down 33% as investors focused on disappointing guidance, slowing enterprise software spending, longer sales cycles, and potential AI disruption, despite the company’s earlier earnings beat and improved full-year subscription revenue outlook.

• GOOGL down 12% despite reporting 25% revenue growth and a 103% surge in Google Cloud revenue, as disappointing earnings relative to expectations and AI capital expenditures reaching $51.4 billion raised concerns about negative free cash flow and the sustainability of spending.

• MSTR down 5% as Bitcoin declined following reports of a $6.3 billion Binance hack, with additional pressure coming from Strategy’s announcement of its CFO’s departure.

ETF Spotlight

Some of the most notable ETFs in the market are getting increased attention.

• AAPB – GraniteShares 2x Long AAPL Daily ETF: Provides 2x daily leveraged exposure to Apple (AAPL), which is in focus ahead of earnings as traders watch iPhone demand, services growth, AI initiatives, and forward guidance.

• PTIR – GraniteShares 2x Long PLTR Daily ETF: Provides 2x daily leveraged exposure to Palantir (PLTR), with earnings putting the spotlight on AI platform adoption, commercial growth, government contracts, and valuation expectations.

• AMDL – GraniteShares 2x Long AMD Daily ETF: Provides 2x daily leveraged exposure to Advanced Micro Devices (AMD), which is in play ahead of earnings as investors assess AI accelerator demand, data center revenue, competitive positioning against Nvidia, and future growth guidance.

• QCML – GraniteShares 2x Long QCOM Daily ETF: Provides 2x daily leveraged exposure to Qualcomm (QCOM), with earnings expected to focus on smartphone chip demand, automotive growth, AI-enabled devices, and the company’s outlook for the semiconductor market.

Market & Economic News

• Anthropic released its S-1 filing in preparation for its IPO, which could happen as soon as late November.

• Brazilian stocks plunged after President Lula’s surprise reelection defeated market-favored Flávio Bolsonaro, triggering a sharp reversal of investor bets on pro-business reforms.

• The Fed held interest rates steady at today’s FOMC meeting, saying it needs more information before deciding on next steps.

• The Fed held interest rates steady at today’s FOMC meeting, saying it needs more information before deciding on next steps.

• Norway is set to debate a ban on new data centers as AI energy consumption rises.

• Unconfirmed reports of a crypto exchange hack pressured Bitcoin on Thursday.

• The FT reported that Blackstone told investors Anthropic may not secure an investment-grade rating after its IPO.

• Fed’s Barkin signaled further rate hikes ahead, with pace remaining the key question.

Upcoming Earnings

Monday 11/2/26

AAPL, PLTR, AEHR, BMNR, FN, LIFE, ON, ROKU, O, CIFR, EL, MAR

Tuesday 11/3/26

SHOP, AMD, SMCI, PFE, MPC, NVTS, DT, HL, ET, APO, AMGN, ANET

Wednesday 11/4/26

UBER, APP, VSH, QCOM, AMC, FSLY, DDOG, CAVA, ARM, GFS, MCD, RUN, CRCL, CVS, RIOT

Thursday 11/5/26

DIBS, TXG, U, KTOS, LITE, CAH, NET, DOCS, TEAM, MP, TAP, ABNB, IREN, UUUU

Friday 11/6/26

MRNA, OKLO, CHTR, WULF, ELAN, HUM, DTI, BLMN, PAA, UAA

Upcoming Economic Events & Data

Monday 11/2/26

• S&P Global Manufacturing PMI

• ISM Manufacturing PMI

• Construction Spending

• Loan Officer Survey

• Treasury Refinancing Estimates

Tuesday 11/3/26

• Redbook

• JOLTs Job Openings

• Factory Orders

• JOLTs Job Quits

• API Crude Oil Stock Change

Wednesday 11/4/26

• MBA 30-Year Mortgage Rate

• MBA Purchase Index

• ISM Services PMI

• EIA Crude Oil Stocks Change

Thursday 11/5/26

• Challenger Job Cuts

• Initial Jobless Claims

• Continuing Jobless Claims

• Nonfarm Productivity

• Fed Hammack Speech

• 30-Year Mortgage Rate

Friday 11/6/26

• Fed Williams Speech

• Non Farm Payrolls

• Unemployment Rate

• Participation Rate

• Nonfarm Payrolls Private

• Used Car Prices

• Michigan Inflation Expectations

• Consumer Credit Change

The AI infrastructure sector remained under pressure as investors questioned the sustainability of debt-funded expansion and the rising cost of capital.

CoreWeave (CRWV) became a focal point again as growing concerns about its ability to finance future growth on attractive terms impacted the AI sector.

Although demand for AI infrastructure remains strong, concerns about debt levels, profitability, refinancing costs, and the possibility of excess capacity have created a more challenging environment for the sector.

Cybersecurity Threats Drive Interest in Defensive Tech

Cybersecurity stocks attracted renewed buying interest as growing AI adoption raised concerns about increasingly sophisticated cyberattacks and the need for stronger corporate defenses.

CrowdStrike (CRWD) benefited from improving cybersecurity spending expectations, with an Evercore ISI survey identifying CrowdStrike and Palo Alto Networks (PANW) as potential beneficiaries of increased spending on AI governance, identity protection, and cloud security.

Two newly disclosed critical PHP vulnerabilities also highlighted the ongoing threat of attacks against widely used internet infrastructure.

As investors rotated away from more capital-intensive AI infrastructure companies, cybersecurity emerged as an area where AI adoption could translate into more immediate demand for protective software and services.

Meta Earnings and Stock Split Plans Reshape the Outlook

Meta Platforms (META) reported third-quarter revenue of $64.6 billion, up 26% year over year, as its advertising business continued to benefit from AI-driven improvements.

However, operating income declined 37% to $13 billion, largely reflecting a $9.89 billion charge related to a settlement with state attorneys general over teen mental health and social media issues.

Excluding that charge, operating income would have reached approximately $22.9 billion.

Meta also announced plans to establish a new Class C share structure, adding another development for investors to evaluate alongside its substantial AI investments.

Despite strong revenue growth, the results reinforced concerns about rising expenses and how quickly the company’s AI spending will translate into sustainable profitability.

Moderna Plunges Following Cancer Vaccine Data Leak

Moderna (MRNA) experienced a sharp selloff after Phase 3 trial results for its personalized melanoma vaccine, developed with Merck (MRK), were released prematurely ahead of a major oncology conference.

The treatment, combined with Merck’s Keytruda, reduced the risk of cancer recurrence or death by 42% compared with Keytruda alone, but the results failed to satisfy elevated investor expectations following the stock’s massive rally earlier this year.

Shares dropped as much as 26% intraday Thursday before closing down approximately 18%, wiping out billions in market value.

Netflix Earnings Highlight Slowing Growth

Netflix (NFLX) reported third-quarter revenue of $12.87 billion, up 12% year over year, while earnings of $0.87 per share exceeded Wall Street expectations.

Operating margins improved to 34.6%, reflecting continued profitability gains and disciplined spending.

However, shares came under pressure after the company lowered its advertising outlook and projected fourth-quarter revenue of approximately $13.44 billion, slightly below analyst expectations.

Management maintained its full-year revenue outlook of $51.1 billion, but investors remained focused on moderating growth, increasing competition, and the company’s ability to expand its advertising business.

Bonds Rally as Oil Prices Rise Ahead of the Fed

Investors continued moving toward safer assets this week as volatility in technology and AI-related stocks supported demand for U.S. Treasuries, pushing bond yields lower for a third consecutive week.

The 10-year Treasury yield declined approximately 11 basis points over the week to 4.99%, while the two-year yield fell to 4.68%.

At the same time, oil prices climbed sharply, with Brent crude rising above $116 per barrel, adding renewed inflation concerns to an already uncertain market environment.

The combination of falling Treasury yields and rising energy prices creates a complicated backdrop for the Federal Reserve’s meeting next week, with markets assigning roughly a 92% probability that policymakers will leave interest rates unchanged.

Tesla and SpaceX Earnings Put Merger Speculation in Focus

SpaceX (SPCX) reported a strong third quarter, with revenue surging 161% to $14.6 billion and net income reaching $4.4 billion, supported by rapid growth in its AI and Starlink businesses.

Its Super Intelligence division generated approximately $7.6 billion in revenue, while the company continued investing heavily in computing infrastructure and Starship development.

Tesla (TSLA) also reported earnings this week after delivering approximately 486,500 vehicles and deploying 13.7 GWh of energy storage during the quarter.

However, the biggest development was confirmation that both companies established independent committees to evaluate a potential merger.

No agreement has been reached, and significant questions remain regarding valuation, shareholder approval, and how the companies’ operations would be combined.

Sector Weekly Performance

Current Themes & Volatile Movers

Headline Reactions

• AMZN down 3% despite Morgan Stanley naming Amazon a top AI pick and raising its price target to $350, citing accelerating AWS growth, AI opportunities, and improving profitability.

• PLTR up 3% after announcing a partnership with Knox Systems to accelerate deployment of its AI software across secure U.S. government and defense cloud environments, supported by renewed strength in AI stocks.

• DDOG up 2% after Bernstein upgraded Datadog on optimism surrounding AI-driven growth opportunities, helping shares rebound alongside the broader technology sector.

• TWLO up 3% as software stocks rebounded from the previous week’s steep selloff, attracting renewed buying interest after declining more than 15%.

• IRON up 38% after Disc Medicine announced positive Phase 3 trial results for bitopertin, meeting all primary and secondary endpoints and supporting plans to resubmit the treatment for FDA approval.

• MXL down 17% alongside the semiconductor sector, despite positive news regarding its AI optical connectivity and data center infrastructure products.

• ALM down 8% amid concerns about project financing, production execution, and valuation, despite holding an investor day focused on its tungsten mining operations.

• SE down 17% as shares weakened without a clear company-specific catalyst.

• MRNA initially gained 6% ahead of its October 24 melanoma vaccine data presentation with Merck, before plunging 17% after leaked Phase 3 results showed positive but less impressive efficacy than earlier trials, triggering profit-taking following its substantial rally.

• BRZE up 53% after Salesforce announced an agreement to acquire the customer engagement software company for approximately $5.7 billion in cash, offering shareholders $47.50 per share.

• NVDA down 2% amid volatility in AI infrastructure stocks following SpaceX’s earnings call.

• NBIS down 8% amid negative sentiment toward AI infrastructure stocks.

• UNH up 4% as investors rotated into healthcare and defensive stocks while technology shares remained under pressure.

• MSTR up 3% alongside Bitcoin’s rally to a two-week high, supported by its latest Bitcoin purchase, expanded preferred-share repurchase authorization, and bullish analyst commentary.

• CMG down 6% after TD Cowen downgraded the stock from Buy to Hold and lowered its price target from $44 to $32, citing disappointing October sales, weak customer traffic, and a challenging 2027 outlook.

• LEN up 11% as homebuilder stocks rallied on falling Treasury yields, which could ease mortgage rates, while investors rotated away from struggling AI and technology stocks.

• PANW up 8% as shares outperformed the broader technology selloff amid investor interest in its expanding AI-driven cybersecurity offerings, recent customer wins, and collaboration with Nvidia.

• CRWD up 11% as recent AI-powered cyberattacks, newly disclosed security vulnerabilities, and growing concerns about AI-related cybersecurity risks fueled expectations for increased enterprise cybersecurity spending.

• CCI up 4% following reports that SpaceX is negotiating access to approximately 80,000 cell sites to build a nationwide wireless network, potentially creating a major new source of leasing revenue.

• USO up 6% as crude prices climbed toward five-month highs amid escalating Middle East tensions, attacks near Saudi energy infrastructure, and growing concerns about disruptions to global oil supplies.

• CRDO down 16% alongside other AI networking and data center infrastructure stocks as investors questioned elevated valuations and the sustainability of massive AI infrastructure spending.

• HAL up 5% alongside oilfield services stocks as crude prices surged above $100 per barrel on escalating Middle East supply risks, improving expectations for drilling activity and energy investment.

• AMD down 6% amid a broad semiconductor selloff fueled by disappointing industry guidance, reduced capital spending expectations, and growing concerns about the sustainability of AI infrastructure investment.

• LITE down 11% as optical networking and semiconductor stocks faced heavy selling pressure following Lam Research’s disappointing outlook and renewed concerns about the financing and sustainability of AI infrastructure spending.

• MU down 3% as memory and semiconductor stocks sold off following Lam Research’s underwhelming guidance, Tesla’s reduced capital spending plans, and growing concerns about AI investment demand.

Earnings Reactions

Up on Earnings

• CLF up 10% after Cleveland-Cliffs issued stronger-than-expected 2027 financial guidance, with investors also encouraged by favorable tariffs supporting domestic steel producers.

• SMCI was up 3% after raising its preliminary quarterly revenue outlook to $18.5 billion to $19.5 billion and increasing its gross margin forecast, citing accelerating demand for AI servers and infrastructure.

• EFX up 15% after reporting better-than-expected quarterly earnings and highlighting accelerating adoption of VantageScore as a competing alternative to FICO in mortgage lending.

• SPOT up 11% after reporting stronger-than-expected premium subscriber growth and forecasting fourth-quarter operating income above estimates, supported by improving profitability and AI-powered personalization features.

• TSLA up 3% although Q3 revenue missed estimates and net income fell 44% year over year, despite an adjusted earnings beat, with investors also focused on reduced capital spending expectations and discussions of a potential SpaceX merger.

• POOL up 17% after third-quarter earnings showed 4% sales growth and resilient maintenance demand, with stronger operating cash flow helping offset continued weakness in new pool construction.

Down on Earnings

• NFLX down 5% after reporting earnings, as disappointing fourth-quarter profit guidance and a reduced advertising revenue forecast overshadowed better-than-expected quarterly results.

• SPCX initially rallied 7% after reporting 161% year-over-year revenue growth, its first quarterly profit as a public company, and strong Starlink and AI momentum, before reversing 9% amid profit-taking and concerns that a lockup expiration could release up to 1.3 billion shares for trading; investors also focused on discussions of a potential Tesla merger and plans to distribute shares to American children in 2027.

• GM down 9% despite beating quarterly earnings expectations, as its full-year profit outlook disappointed investors amid rising commodity costs and anticipated pressure on truck deliveries.

• META initially gained 3% after reporting Q3 revenue of $64.6 billion, beating expectations, raising its Q4 revenue outlook, and announcing a two-for-one stock split, before falling 7% as investors focused on massive AI spending commitments, negative free cash flow, and plans to issue nonvoting shares to finance expansion.

• T initially fell 6% despite beating earnings expectations and raising guidance, as weaker wireless subscriber additions weighed on shares, before extending losses to 10% following reports of SpaceX’s plans to develop a competing nationwide wireless network.

• LRCX fell 16% despite beating quarterly earnings and revenue estimates, as its next-quarter guidance offered limited upside relative to Wall Street expectations following a strong rally.

• BE initially gained 7% on optimism surrounding AI data center power demand, Elon Musk’s comments about electricity constraints, and a BMO Capital price target increase, before falling 15% despite beating revenue expectations and raising guidance as negative free cash flow, elevated valuations, and broader AI infrastructure spending concerns weighed on shares.

• DECK down 5% after quarterly revenue missed expectations and management lowered its annual sales outlook, citing softer consumer demand and promotional pressure affecting its HOKA and UGG brands.

• FIX down 21% despite beating quarterly earnings and revenue estimates and nearly doubling its backlog, as narrowing profit margins and concerns about the sustainability of AI data center spending overshadowed strong results.

• LKQ down 21% after withdrawing its full-year guidance and warning that third-quarter earnings would significantly miss expectations due to operational disruptions in Germany and declining European sales volumes, while also announcing a CEO replacement.

ETF Spotlight

Some of the most notable ETFs in the market getting increased attention:

• SKUU: GraniteShares 2x Long SK Hynix Daily ETF provides leveraged bullish exposure to SK Hynix, a major supplier of high-bandwidth memory used in AI infrastructure, as demand for advanced memory chips remains a key market theme.

• SKDD: GraniteShares 2x Short SK Hynix Daily ETF provides leveraged bearish exposure to SK Hynix, offering traders a way to position for downside in the volatile AI memory sector.

• HOOC: Corgi HOOD 2x Daily ETF provides leveraged bullish exposure to Robinhood, which remains sensitive to retail trading activity, cryptocurrency markets, and investor risk appetite.

• GOU: GraniteShares 2x Long GOOGL Daily ETF provides leveraged bullish exposure to Alphabet as traders focus on AI competition, cloud growth, and advertising performance.

• MSFL: GraniteShares 2x Long MSFT Daily ETF provides leveraged bullish exposure to Microsoft amid continued attention on Azure growth, AI monetization, and infrastructure spending.

• NOWL: GraniteShares 2x Long NOW Daily ETF provides leveraged bullish exposure to ServiceNow as enterprise software stocks face scrutiny over AI adoption, growth expectations, and valuations.

• AMZZ: GraniteShares 2x Long AMZN Daily ETF provides leveraged bullish exposure to Amazon as investors monitor AWS growth, AI infrastructure investment, and consumer spending.

• AMZO: Tradr 2x Short AMZN Daily ETF provides leveraged bearish exposure to Amazon, allowing traders to position for weakness tied to earnings expectations, cloud spending, or broader technology-sector pressure.

Market & Economic News

• DeepSeek and Huawei are working together on a new AI chip, according to The Information

• Markets broadly rose Monday on a relief rally, but dipped into the close on a large MOC sell imbalance.

• Anthropic revenue hits $16.3B as preliminary S-1 outlined IPO details, according to the WSJ.

• Oil prices were volatile on Tuesday as contradictory reports about U.S.-Iran negotiations surfaced.

• The U.S. ordered the departure of non-emergency personnel from Saudi Arabia.

• Crude oil inventories fell more than expected, indicating strong demand.

• The U.S. 10-Year Treasury yield fell below 5% amid safe-haven demand for bonds.

• Brent oil rose to $113 amid Middle East tensions, as stalled negotiations and reports of incidents in key supply channels continue to disrupt energy markets.

• Brent crude oil rose past $117 amid Middle East supply concerns.

• U.S. business activity growth held near a five-year high in October.

Upcoming Earnings

Monday 10/26/26

VZ, CLS, ARLP, CDNS, RMBS, BOH, WELL, NUE

Tuesday 10/27/26

HOOD, SOFI, SKHY, V, KO, GLW, CAKE, PYPL, UPS, STX, ENPH, FCX

Wednesday 10/28/26

MSFT, GOOGL, NOW, VRT, CVNA, FDX, TMUS, CMG, APH, KLA

Thursday 10/29/26

CAT, INTC, AMZN, CARR, SNDK, LLY, RBLX, STM, COIN, SBUX, RIVN

Friday 10/30/26

CCJ, CNI, BP, REGN, XOM, AN, AZN, CVX, D, GD

Upcoming Economic Events & Data

Monday 10/26/26

• Dallas Fed Manufacturing Index

• 2-Year Note Auction

Tuesday 10/27/26

• Building Permits

• ADP Employment Change Weekly

• Durable Goods Orders

• House Price Index

• CB Consumer Confidence

• Dallas Fed Services

• Richmond Fed Manufacturing Index

• 5-Year Note Auction

• API Crude Oil Stock Change

Wednesday 10/28/26

• MBA 30-Year Mortgage Rate

• MBA Purchase Index

• Goods Trade Balance

• Fed Interest Rate Decision

• Fed Press Conference

Thursday 10/29/26

• PCE Price Index

• Core PCE Price Index

• GDP Growth Rate

• 7-Year Note Auction

Friday 10/30/26

• Employment Cost

• Chicago PMI

• Fed Musalem Speech

• Baker Hughes Rig Count

The AI sector faced significant selling pressure this week as investors grew concerned about the enormous debt required to finance infrastructure expansion.

CoreWeave (CRWV) became the center of attention after its bonds fell into distressed territory, with yields on certain maturities exceeding 16% and credit default swap spreads climbing above 1,000 basis points.

Shares fell roughly 25% for the week as investors questioned whether the company’s aggressive borrowing and capital expenditures were sustainable.

Weakness spread to other neocloud providers, including Nebius (NBIS), IREN, and Applied Digital (APLD), amid concerns over financing costs, competition, and potential excess capacity.

Despite strong AI demand and substantial contracted revenue, the selloff highlighted growing skepticism about the financial models supporting the industry’s rapid expansion.

Hot Inflation Meets a Flight to Safety

Inflation remained a concern this week, with September’s Consumer Price Index rising 3.7% year over year, accelerating from 3.4% in August, while core inflation came in at 2.6%.

The hotter reading initially pushed Treasury yields higher as traders increased expectations for additional Federal Reserve tightening.

The benchmark 10-year Treasury yield briefly climbed above 5.32% before reversing toward 5.19% as selling intensified across equities, particularly in AI and semiconductor stocks.

Investors rotated into longer-dated government bonds for safety, pushing yields lower despite persistent inflation.

The reversal highlighted how quickly concerns shifted from restrictive monetary policy to protecting capital amid growing equity market volatility.

Tesla’s Roadster Reveal Fuels SpaceX Merger Speculation

Tesla (TSLA) and SpaceX (SPCX) attracted attention following the unveiling of Tesla’s long-awaited second-generation Roadster, featuring SpaceX-developed thruster technology and limited flight capabilities.

During the demonstration, the Roadster was shown lifting off the ground and briefly hovering using SpaceX-developed thruster technology, showcasing its ability to achieve limited flight rather than simply accelerate on the road.

The collaboration reignited speculation that Elon Musk could eventually merge Tesla and SpaceX, particularly as their operations increasingly overlap in AI, robotics, and advanced engineering.

SpaceX’s earlier acquisition of xAI has added to expectations that Musk may continue consolidating his businesses.

While no merger has been officially announced, the possibility has become a growing topic of discussion among investors.

Bank Earnings Reveal Cracks Beneath Strong Profits

Major U.S. banks kicked off the third-quarter earnings season with generally resilient profits, but mixed results and cautious commentary weighed on financial stocks.

JPMorgan (JPM) reported $15.3 billion in profit but missed expectations, while Goldman Sachs (GS) delivered an earnings beat as equity trading revenue surged 72%.

Citigroup (C) reported a 40% increase in profit, and Wells Fargo (WFC) benefited from continued lending growth.

However, Bank of America (BAC) fell nearly 5% following an earnings miss and regulatory penalty.

Equity trading remained a bright spot across the industry, but weaker bond trading, elevated borrowing costs, and uncertainty surrounding monetary policy weighed on sentiment.

Chinese Competition Threatens the Memory Boom

Memory stocks came under pressure this week as investors worried that expanding Chinese production could eventually disrupt the supply constraints supporting the industry’s rally.

Chinese manufacturer CXMT announced progress in advanced DRAM technology and plans for new server-memory products, raising concerns about future competition and pricing pressure.

The developments contributed to selling in Micron (MU), SK Hynix (SKHY), Samsung, and other memory-related names following their substantial gains driven by AI demand.

While analysts cautioned that Chinese manufacturers still face technological limitations and commercialization challenges, investors questioned whether the industry’s favorable supply-demand balance can persist.

The weakness also reflected broader profit-taking across semiconductor stocks amid growing uncertainty surrounding AI infrastructure spending.

Big Tech Earnings Set Up a Critical Week

Earnings season accelerates next week, with several major companies set to report results that could determine the market’s next direction.

Netflix (NFLX) reports Tuesday, with attention on advertising growth, engagement, and profitability, while Tesla (TSLA) and Meta (META) headline Wednesday’s reports.

Investors will likely focus on Tesla’s margins, autonomous driving progress, and robotics initiatives, while Meta faces scrutiny over advertising growth, AI monetization, and infrastructure spending.

Bloom Energy (BE) reports Thursday, providing another look at electricity demand tied to AI data centers.

Additional reports from GE Aerospace (GE), General Motors (GM), IBM, Intuitive Surgical (ISRG), and Lam Research (LRCX) will offer broader economic insight.

Following this week’s AI sector selloff, forward guidance and management commentary on spending, financing, and demand could be especially important.

Sector Weekly Performance

Current Themes & Volatile Movers

Headline Reactions

News catalysts of all types caused sharp reactions in many stocks this week.

• META was up 3% early in the week on optimism surrounding its Muse AI models, new product developments, and AI monetization opportunities, before falling 4% as concerns over rising infrastructure spending, borrowing costs, and technology valuations weighed on shares.

• LITE down 20% on profit-taking following its rally to record highs, with investors digesting recent insider sales and positioning around its optical connectivity demonstration at the OCP Global Summit.

• SHOP down 4% despite its potential to benefit from AI-powered shopping agents and the growing adoption of agentic commerce.

• SNDK down 13% alongside other memory stocks amid concerns about increasing Chinese competition, with profit-taking adding pressure following the sector’s substantial rally.

• BE down 17% amid broader selling pressure in high-growth AI infrastructure stocks, although no definitive company-specific catalyst was identified.

• CBRS down 18% amid concerns that OpenAI’s latest high-speed inference offering relies on Nvidia hardware rather than Cerebras chips, compounded by an approaching lockup expiration that could release approximately 19.4 million shares.

• MOH up 5% as buying interest returned to managed-care stocks, although no definitive company-specific catalyst was identified.

• FICO up 15% following its recent collapse, with investors responding positively to plans to cut approximately 15% of its workforce and integrate AI to improve efficiency despite growing competition from VantageScore.

• LQDA up 12% after reaching a $380.7 million settlement with United Therapeutics, resolving six lawsuits and protecting continued access to its YUTREPIA treatment.

• SPCX down 9% as investors grew concerned about its proposed $40 billion debt financing for AI infrastructure and questioned the potential returns from its aggressive expansion into wireless services.

• PSX up 3% alongside other refiners as elevated refining margins, strong fuel demand, and expectations for robust earnings supported energy stocks.

• AMAT down 17% amid a broader semiconductor selloff driven by concerns about China’s advancing chip technology, weakening AI infrastructure sentiment, and pressure on memory-related stocks.

• ORCL down 8% following developments involving its Project Jupiter AI data center and server security collaborations, as rising interest rates intensified concerns about its debt-funded AI infrastructure expansion and borrowing costs.

• KKR down 5% as Rothschild & Co Redburn lowered its price target from $138 to $129, adding pressure amid broader weakness in alternative asset managers.

• MU down 10% across multiple sessions as reports of a production breakthrough by Chinese memory manufacturer CXMT raised competitive concerns, while hotter inflation data, rising Treasury yields, and uncertainty surrounding AI infrastructure spending added to semiconductor selling pressure.

• CRWV down as much as 22% as concerns over its debt-fueled AI infrastructure expansion intensified after yields on its 2032 bonds surged toward 15%, raising fears about borrowing costs and financial sustainability. Shares briefly rebounded 5% following comments suggesting the company no longer required Nvidia’s financial support, before falling another 13% as credit concerns persisted.

• DELL down 21% after Barclays downgraded the stock from Overweight to Equal Weight, citing stretched valuations, slowing AI-related revenue growth, and limited evidence of a meaningful AI-driven earnings inflection.

• NVDA down 6% as AI semiconductor stocks faced broad selling pressure following stronger-than-expected inflation data and growing concerns about the profitability of massive AI infrastructure investments.

• SKYD down 24% as warrants issued in connection with Skydance’s Warner Bros. Discovery acquisition began trading separately, creating a technical adjustment that contributed to the sharp decline.

• TLT up 2% as long-term Treasury bonds rallied amid safe-haven demand during the AI stock selloff, pushing Treasury yields lower despite hotter-than-expected inflation data.

• MSTR down 12% as a MSCI proposal to potentially exclude certain digital-asset treasury companies from major indexes raised concerns about institutional outflows.

• EFX up 9% amid buying interest ahead of its October 20 earnings report, with investors positioning for results from its credit reporting and data services businesses.

• RKLB down 23% after announcing another delay to the inaugural launch of its Neutron rocket into 2027 due to production and testing challenges.

• ANET down 17% alongside AI infrastructure stocks as hotter inflation data and concerns over rising borrowing costs pressured high-valuation technology companies.

• NOW down 3% as investors rotated between established enterprise software companies and bonds.

• LLY up 6% as investors rotated into defensive healthcare stocks, supported by a Deutsche Bank upgrade, strong obesity-drug demand, and encouraging pipeline developments.

• TSLA down 6% as shares reversed an early rally following the unveiling of its redesigned Roadster with SpaceX thrusters, pressured by broader technology weakness and profit-taking ahead of earnings.

• CRWD down 22% amid a sharp selloff across high-valuation software and cybersecurity stocks as investors reduced exposure to expensive technology names.

• IREN down 25% following a Gartner report warning that more than 80% of neocloud GPU providers could lose their independence by 2030, intensifying concerns over aggressive AI infrastructure spending and operational risks.

• NBIS down 21% as concerns over rising borrowing costs and heavy AI infrastructure debt intensified following CoreWeave’s bond market turmoil and Gartner’s warning about the long-term independence of neocloud providers.

• FANG up 4% as Diamondback Energy benefited from a rally in crude oil prices driven by escalating Middle East tensions and renewed concerns about disruptions to global oil supplies.

• NOC up 8% as defense stocks rallied amid geopolitical tensions, while Morgan Stanley highlighted Northrop Grumman as a favored defense name ahead of earnings due to strong underlying demand.

Earnings-Related Movers

Up on Earnings

• UNH up 6% after reporting better-than-expected third-quarter earnings and revenue, improving medical cost trends, and raising its full-year profit outlook.

Down on Earnings

• ASML down 7% despite raising its annual forecast, as mixed third-quarter results and broad weakness across semiconductor stocks overshadowed the company’s improved outlook.

• BAC down 6% after reporting weaker-than-expected third-quarter earnings and receiving a $1.2 billion regulatory penalty related to deficiencies in its financial crime monitoring systems.

• C down 5% despite beating quarterly earnings expectations as investors focused on weaker-than-expected net interest income and mixed results across major banks.

• JNJ down 3% after quarterly results revealed disappointing medical device sales, with weakness in international markets overshadowing stronger pharmaceutical performance and raised guidance.

ETF Spotlight

Some of the most notable ETFs in the market getting increased attention:

• NFX (Corgi 2x Long NFLX Daily ETF): Offers 2x daily bullish exposure to Netflix, putting it in focus ahead of the streaming giant’s earnings report next week.

• FBL (GraniteShares 2x Long META Daily ETF): Provides 2x daily bullish exposure to Meta, making it one to watch as traders anticipate the company’s upcoming earnings.

• METQ (Tradr 2x Short META Daily ETF): Offers 2x daily inverse exposure to Meta, providing a bearish trading vehicle ahead of its earnings announcement.

• TSLR (GraniteShares 2x Long TSLA Daily ETF): Provides 2x daily bullish exposure to Tesla, which could see heightened volatility surrounding next week’s earnings.

• TSDD (GraniteShares 2x Short TSLA Daily ETF): Offers 2x daily inverse exposure to Tesla, giving bearish traders a way to position around the company’s earnings catalyst.

• BEX (Tradr 2x Long BE Daily ETF): Provides 2x daily bullish exposure to Bloom Energy, putting it in play ahead of the company’s earnings report amid continued interest in AI power infrastructure.

• BEZ (Tradr 2x Short BE Daily ETF): Offers 2x daily inverse exposure to Bloom Energy, providing a bearish vehicle for traders anticipating downside volatility surrounding earnings.

Market & Economic News

• Oil prices rose slightly as strikes on ships in the Middle East raised concerns about ongoing supply disruptions in the energy markets.

• U.S. bond markets were closed on Monday.

• U.S. equity markets traded below average volume ahead of CPI data on Wednesday.

• OpenAI found a hidden recording device in the office, and an employee has been arrested.

• CPI data was higher than expected, coming in at 3.7% vs. 3.6% estimates.

• OpenAI’s computing chief to depart the company, according to the WSJ.

• PPI data was higher than expectations on Thursday.

• Bond yields dropped significantly this week amid a flight to safety as AI sector volatility shook markets.

• The Nasdaq had its worst week in nearly 18 months as AI trade came under pressure.

• Bitcoin fell to $81K on Friday amid a broad-based market sell-off.

Upcoming Earnings

Monday 10/19/26

CLF, FITB, SMBK, STLD, KARO, AGNC, CCK, RBB, WASH, BOKF, ZION

Tuesday 10/20/26

NFLX, SPCX, ISRG, PEGA, UAL, COF, GE, GM, RTX, NOC, MSCI, MMM, VICR, HAL, HAS, ALLY

Wednesday 10/21/26

TSLA, META, IBM, LRCX, TXN, TCBI, WDFC, LAD, CME, T, NEE, ABT

Thursday 10/22/26

LMT, BE, NOK, MXL, CMCSA, RNG, WDC, ARGX, HBAN, BX, AAL, NEM, VLO

Friday 10/23/26

AXP, SLB, ALV, BAH, GNTX, FLG, FHB, GRC, EAF, BCPC

Upcoming Economic Events & Data

Monday 10/19/26

• NAHB Housing Market Index

Tuesday 10/20/26

• ADP Employment Change Weekly

• Building Permits

• Housing Starts

• Redbook

• Pending Home Sales

• API Crude Oil Stock Change

Wednesday 10/21/26

• MBA 30-Year Mortgage Rate

• MBA Purchase Index

• 20-Year Bond Auction

Thursday 10/22/26

• Initial Jobless Claims

• Continuing Jobless Claims

• CB Leading Index

• EIA Natural Gas Stocks Change

• 5-Year TIPS Auction

• Fed Balance Sheet

Friday 10/23/26

• S&P Global Composite PMI Flash

• S&P Global Manufacturing PMI

• Michigan Consumer Sentiment

• Michigan Inflation Expectations

Brazilian equities surged this week after right-wing candidate Flávio Bolsonaro, son of former President Jair Bolsonaro, unexpectedly defeated incumbent President Luiz Inácio Lula da Silva in the first round of the country’s presidential election.

Bolsonaro secured approximately 47% of the vote compared with Lula’s 45%, setting up a decisive runoff on October 25.

Investors welcomed the possibility of a more business-friendly government, improved fiscal discipline, and a stronger Brazilian currency.

The iShares MSCI Brazil ETF (EWZ) jumped roughly 13% on Monday, while Brazilian banking giant Nu Holdings (NU) and energy producer Petrobras (PBR) gained more than 13%.

MercadoLibre (MELI) also rallied approximately 9% alongside broader Latin American equities.

JPMorgan upgraded Brazilian stocks to Overweight, citing the potential for faster interest rate cuts as political optimism strengthened the currency.

OpenAI’s Revenue Confusion Rattles the AI Trade

Concerns surrounding the sustainability of the AI boom resurfaced after reports suggested OpenAI’s September annualized revenue was closer to $50 billion, significantly below the nearly $70 billion figure previously communicated to investors.

The discrepancy initially raised questions about whether the company’s explosive growth was slowing, pressuring sentiment toward AI-related technology stocks.

However, subsequent clarification indicated the difference largely reflected accounting methodology rather than an outright collapse in sales.

The lower figure excluded revenue generated through cloud distribution partners, while the earlier estimate used a broader revenue measure.

Bloomberg subsequently reported that OpenAI still expects to reach or exceed a $70 billion annualized revenue run rate by year-end 2026, helping AI and semiconductor stocks recover on Friday.

The conflicting figures nevertheless highlighted growing investor scrutiny of AI valuations, revenue transparency, and the enormous infrastructure spending supporting the industry.

SpaceX’s Wireless Ambitions Send Telecom Stocks Tumbling

SpaceX (SPCX) intensified its push into the mobile communications industry this week after agreeing to acquire a nationwide portfolio of 800 MHz wireless spectrum from Grain Management in a transaction reportedly valued around $8 billion.

The acquisition would strengthen Starlink’s ability to deliver satellite-to-phone connectivity, potentially positioning SpaceX as a more direct competitor to traditional wireless carriers.

Investors reacted sharply, sending T-Mobile (TMUS), Verizon (VZ), and AT&T (T) lower, while European telecommunications stocks also experienced widespread selling. T-Mobile suffered an especially steep decline as concerns mounted over the longer-term competitive threat to established cellular networks.

Interestingly, tower operators including American Tower (AMT) and Crown Castle (CCI) rallied as analysts suggested SpaceX could eventually require additional ground infrastructure.

Although meaningful competition could take years to develop and the transaction remains subject to regulatory approval, the announcement signaled that SpaceX’s ambitions extend well beyond satellite internet.

Webull Plunges as Congress Raises China Security Concerns

Webull (BULL) came under heavy selling pressure after a bipartisan House Select Committee released an investigation raising serious national security concerns about the brokerage’s connections to China.

The report alleged that Webull had not been sufficiently transparent about its China-linked ownership and management, while its reliance on Chinese technology operations could expose sensitive American investor information to surveillance risks.

Investigators also highlighted government subsidies received by Webull’s China-based subsidiary and questioned whether the company’s corporate structure adequately protects U.S. customer data.

The findings triggered a sharp selloff, with BULL shares plunging approximately 19% on Wednesday, October 7, despite the company recently reporting record quarterly revenue of $198.8 million.

The controversy also prompted securities law firms to announce investigations into potential shareholder claims, adding further uncertainty surrounding the brokerage’s regulatory outlook and future operations.

The committee’s findings remain allegations and concerns, rather than a judicial determination of wrongdoing.

Google’s Nuclear Deal Powers Constellation Higher

Constellation Energy (CEG) surged approximately 12% on Tuesday after announcing a major long-term nuclear energy agreement with Alphabet’s Google (GOOGL), reinforcing the growing connection between artificial intelligence and electricity demand.

The partnership will support the addition of 890 megawatts of nuclear generating capacity to the PJM electricity grid through upgrades to existing nuclear facilities, delivering the equivalent output of a new nuclear reactor without constructing an entirely new plant.

The agreement also includes collaboration on using Google Cloud and Gemini Enterprise AI technology to improve grid operations, efficiency, and reliability.

The deal highlights how major technology companies are increasingly turning to nuclear power to secure reliable, around-the-clock electricity for expanding AI infrastructure and data centers.

For Constellation, the agreement strengthens its position as a leading supplier of carbon-free power while demonstrating how existing nuclear assets can become increasingly valuable as electricity demand accelerates.

Starbucks Eyes Chipotle in Potential Restaurant Megadeal

Chipotle Mexican Grill (CMG) jumped approximately 6% on Thursday after reports emerged that Starbucks (SBUX) had explored a potential takeover of the fast-casual restaurant chain, a transaction that could become the largest acquisition in restaurant industry history.

According to the Financial Times, Starbucks worked with advisers in recent months to evaluate a possible acquisition of Chipotle, which carries a market valuation of approximately $41 billion.

The potential combination would reunite Starbucks CEO Brian Niccol with the company he previously led for six years before departing in 2024.

While Chipotle shares rallied on the prospect of a takeover premium, Starbucks initially declined as investors questioned the financial burden of such a massive transaction, particularly while the coffee chain remained focused on its own turnaround efforts.

Analysts also raised concerns about limited operational synergies between the two brands and the possibility that an acquisition would require significant borrowing or share issuance.

Starbucks declined to comment on the speculation, emphasizing its existing turnaround strategy, and no formal acquisition offer has been confirmed.

Sector Weekly Performance

Current Themes & Volatile Movers

Headline Reactions

• MELI up 9% alongside Brazilian assets after Flávio Bolsonaro unexpectedly led the first round of Brazil’s presidential election, fueling optimism about a potentially more business-friendly and fiscally conservative government.

• MRNA experienced significant volatility, initially rising 6% ahead of its Nasdaq-100 inclusion and anticipated Phase 3 melanoma vaccine data, then falling 7% amid profit-taking and valuation concerns before rallying 11% following its official addition to the index and continued optimism surrounding its cancer treatment pipeline.

• CHRW down 10% after announcing a $5.8 billion cash-and-stock acquisition of RXO, with investors concerned about financing costs, shareholder dilution and the price of the transaction despite projected synergies.

• CMG declined 4% as food-safety concerns resurfaced surrounding a multistate Salmonella outbreak linked to jalapeño peppers, before rebounding 6% on reports that Starbucks had explored a potential acquisition of the restaurant chain.

• NBIS experienced a volatile week, initially declining 4% amid valuation and customer concentration concerns, then rallying 7% on optimism surrounding its Inferize acquisition and AI inference capabilities, before falling 5% as investors took profits and rising Treasury yields pressured AI infrastructure stocks.

• PTC up 33% after Schneider Electric agreed to acquire the industrial software company for $205 per share in cash, valuing its equity at approximately $22.6 billion.

• NU up 13% as Flávio Bolsonaro’s stronger-than-expected election performance fueled hopes for tighter fiscal policy, tax cuts and a more business-friendly economic environment in Brazil.

• PBR up 11% as Brazilian equities rallied sharply following Bolsonaro’s election surprise, with optimism surrounding a potentially more market-friendly government lifting state-linked companies.

• NVDA down 3% despite Foxconn reporting a stronger-than-expected 47% increase in third-quarter revenue driven by AI demand.

• CEG up 15% after Google signed a major long-term power agreement covering 3,590 MW, including a 20-year deal for 890 MW of new nuclear capacity, reinforcing expectations for growing AI-driven electricity demand.

• WDC down 11% following reports that Toshiba and Seagate were competing to acquire TDK’s magnetic-head business, while Toshiba’s plans to double data-center HDD capacity raised concerns about future competition and supply.

• CIEN up 15% as bullish commentary from Marvell’s Investor Day strengthened expectations for AI networking and optical interconnect demand, with projections pointing to substantial industry growth through 2030.

• ALAB initially rallied 7% amid optimism surrounding its Scorpio fabric-switch revenue ramp, memory-connectivity expansion and upcoming OCP demonstrations, before declining 9% as investors reduced exposure to high-valuation AI infrastructure companies amid financing and spending concerns.

• CSCO up 6% as Marvell’s aggressive long-term AI growth projections fueled a broader rally in networking and data-center infrastructure stocks.

• OPCH up 32% after McKesson and Clayton, Dubilier & Rice agreed to acquire the company for $32.05 per share in a roughly $5.8 billion transaction, representing approximately a 37% premium to its previous closing price.

• AAOI down 6% after completing its $600 million at-the-market equity offering.

• ZIM up 3% after raising its full-year 2026 guidance, with the midpoint of its updated outlook representing approximately 30% higher adjusted EBITDA and 72% higher adjusted EBIT than previously forecast.

• BULL down 13% after a congressional committee raised national security concerns surrounding the brokerage’s ties to China, including its technology infrastructure and potential access to U.S. customer data, allegations the company disputes.

• MSTR down 6% alongside Bitcoin as weakness in cryptocurrency prices pressured digital asset-related equities, with the company’s leveraged exposure to Bitcoin amplifying selling pressure.

• CAT down 5% following reports of an FTC investigation affecting heavy equipment manufacturers, including Caterpillar and Deere, creating additional regulatory uncertainty.

• SKYD down 3% following its $110 billion merger with Warner Bros. Discovery as investors weighed the combined company’s roughly $80 billion debt burden, while Barclays lowered its price target from $8 to $7.

• MU experienced a volatile week, initially rising 4% on bullish analyst commentary supporting its memory-chip outlook, before declining 4% alongside the semiconductor sector as rising yields, AI financing concerns and profit-taking pressured shares.

• IREN down 15% as Bitcoin weakness and rising Treasury yields pressured cryptocurrency mining and AI infrastructure stocks amid broader market risk aversion.

• NRG up 12% alongside independent power producers as investors favored companies positioned to benefit from rapidly expanding electricity demand from AI data centers.

• QXO down 9% after RBC Capital Markets lowered its price target from $27 to $18, citing weak residential roofing demand, elevated distributor inventories and continued housing market softness.

• CRCL experienced a volatile week, initially falling 4% as Bitcoin weakness and rising Treasury yields pressured cryptocurrency-related stocks, before rebounding 7% as digital asset prices stabilized and improving sentiment supported stablecoin-related businesses.

• ORCL down 2% following reports that OpenAI’s annualized revenue was approximately $20 billion below previously reported estimates, while concerns about AI infrastructure financing and natural gas pipeline delays at its Project Jupiter data center added selling pressure.

• CRWV down 7% after announcing plans to raise $3 billion through convertible debt and sell up to 35 million shares, intensifying investor concerns surrounding dilution, leverage and financing risks.

• GDDY up 7% following reports of a potential takeover approach from Gen Digital, with positive analyst commentary providing additional support.

• CSGP up 8% following positive commentary from Baillie Gifford highlighting its long-term recovery potential after a nearly 60% year-to-date decline, although no definitive catalyst for the full move was confirmed.

• PLTR up 9% after Goldman Sachs upgraded the stock from Neutral to Buy, reinforcing optimism surrounding its AI-driven growth prospects.

• TLT up 1% as Treasury yields reversed sharply lower following a strong 30-year Treasury auction, supporting a rebound in longer-duration bond prices.

• TMUS down 12% after SpaceX announced an approximately $8 billion acquisition of wireless spectrum from Grain Management, raising concerns that Starlink Mobile could become a major competitor to traditional cellular carriers.

• AAPL down 1% following reports that the company asked suppliers to reduce iPhone 18 Pro and Pro Max component production amid weaker-than-expected demand and higher device prices.

• TSLA up 4% after fresh data from China’s Passenger Car Association showed improving September sales of China-made electric vehicles, supporting optimism about demand.

• HUM up 12% after improved Medicare Advantage star ratings showed approximately 95% of its members enrolled in plans rated four stars or higher for 2027, positioning the company for increased government bonus payments.

• LITE up 6% after its CEO revealed that optical components used in AI data centers were effectively sold out through early 2029, highlighting enormous demand and significant supply shortages.

• ASTS down 12% as SpaceX’s expanding satellite-to-phone capabilities and spectrum acquisitions intensified competitive concerns, while regulatory uncertainty and satellite deployment challenges added pressure.

• SNOW up 7% as technology shares recovered from the previous session’s selloff amid renewed optimism surrounding AI spending, although no distinct company-specific catalyst was confirmed.

• BABA up 3% amid a broader rebound in technology and AI-related stocks, although no specific company announcement was confirmed as the primary catalyst.

ETF Spotlight

• EWZ (iShares MSCI Brazil ETF) - Tracks large and mid-cap Brazilian equities and surged more than 12% on Monday after Flávio Bolsonaro’s surprise first-round election victory sparked a massive rally in Brazilian stocks.

• BRZU (Direxion Daily MSCI Brazil Bull 2X Shares) - Provides 2x daily leveraged exposure to Brazilian equities and jumped approximately 27% on Monday as investors aggressively positioned for a more market-friendly Brazilian government.

• SPAL (GraniteShares 2x Long SpaceX Daily ETF) - Provides 2x daily leveraged exposure to SpaceX and was in focus as the company’s expansion into wireless communications sparked volatility in SpaceX and traditional telecom stocks.

• MN (Corgi MANGOS ETF) - A newly launched actively managed ETF offering exposure to Meta, Anthropic, Nvidia, Google, OpenAI, and SpaceX, attracting attention this week amid OpenAI revenue headlines and SpaceX’s expanding wireless ambitions.

Market & Economic News

• Shares of Brazilian companies rallied after the first round of election results.

• OPEC held output targets steady as the Middle East conflict continued to cause tight supply.

• Trump is reportedly considering a national gas tax suspension.

• Fed’s Schmid stated more rate hikes are needed despite higher yields.

• Fed minutes showed most policymakers see another rate hike by year-end.

• The U.S. Treasury is said to buy back up to $6B in longer-dated debt on Thursday.

• OpenAI’s annualized revenue figure was reported to be $50B, far below previous estimates of $70B, according to the Financial Times.

• Oil pared gains after Trump stated the US will not attack Iran before the U.S. midterm elections.

• U.S. consumer sentiment data was lower in October.

Upcoming Earnings

Monday 10/12/26

N/A

Tuesday 10/13/26

UNH, JPM, GS, WFC, DPZ, JNNJ, C, ACI, AZZ

Wednesday 10/14/26

ASML, BAC, MS, BLK, PGR, STT, FAST, SOTK, EQBK, HOMB

Thursday 10/15/26

TSM, AA, CMC, IBKR, ERIC, INDB, SCHW, MAN, WSE, PNC, MRSH, BNY, CNS

Friday 10/16/26

MTB, TRV, TFC, RF, CFG

Upcoming Economic Events & Data

Monday 10/12/26

• IMF Meetings

Tuesday 10/13/26

• NFIB Business Optimist Index

• ADP Employment Change Weekly

• Existing Home Sales

Wednesday 10/14/26

• MBA 30-Year Mortgage Rate

• Core Inflation Rate

• Inflation Rate

• CPI

• Redbook

• Fed Beige Book

• API Crude Stock Change

Thursday 10/15/26

• PPI

• Core PPI

• Initial Jobless Claims

• Continuing Jobless Claims

• Philly Fed Business Conditions

• NY Empire State Manufacturing Index

• Retail Sales

• EIA Crude Oil Stocks Change

Friday 10/16/26

• Export Prices

• Import Prices

• NY Fed Services Activity Index

• Capacity Utilization

• Net Long-term TIC Flows

• Overall Net Capital Flows

Micron (MU) gave the memory trade another major vote of confidence this week, reporting record fiscal Q4 revenue of $54.23 billion and non-GAAP EPS of $33.42 as AI-driven demand continued to fuel DRAM, HBM and data center storage.

Micron said data center SSD revenue approached $10 billion, more than 10 times the year-ago level, while most of its 2027 HBM supply is already under agreement, with significant year-over-year price increases.

The strong report reinforced the idea that AI infrastructure spending remains a powerful tailwind for memory, but the storage trade was hit with a curveball Friday.

Western Digital (WDC) and Seagate (STX) sold off sharply after reports that Toshiba plans to invest roughly $380 million to double HDD production capacity by fiscal 2027.

The announcement raised fears of greater supply and competition, although some analysts argued Toshiba’s expansion may not be large enough to materially loosen the industry’s tight supply-demand balance.

Cooler Data Takes Some Heat Off the Fed

The macro picture shifted in a more dovish direction this week as both inflation and employment data came in softer than feared.

August PCE inflation rose 0.3% month over month and 3.4% year over year, while core PCE increased 0.2% monthly and 3.0% annually.

Friday’s jobs report delivered an even bigger surprise, with the economy adding just 29,000 jobs in September versus expectations near 90,000, while unemployment edged up to 4.2% and July and August payrolls were revised down by a combined 60,000.

Markets responded by sharply reducing expectations for another Fed hike in October.

Oil remained an important inflation wildcard, with Brent finishing near $102 and WTI near $91 as geopolitical risks remained elevated, although an agreement to release European diesel reserves helped ease some immediate energy-price pressure.

FICO’s Mortgage Moat Comes Under Attack

Fair Isaac Corporation (FICO) suffered a massive selloff this week as investors confronted a potentially significant threat to one of the company’s most valuable competitive advantages.

The pressure followed moves by the Federal Housing Finance Agency to expand the use of VantageScore 4.0 in mortgages and establish a unified pricing framework that puts FICO and VantageScore on more equal footing.

TransUnion added to the competitive pressure by extending its 99-cent pricing for VantageScore 4.0 mortgage scores through the end of 2028, dramatically undercutting traditional FICO pricing.

FICO shares dropped roughly 20% in Tuesday’s premarket session and remained under pressure as investors reassessed how increased competition could affect the company’s pricing power, market share, and economics in mortgage credit scoring.

Kodiak Explodes on Phase 3 Breakthrough

Kodiak Sciences (KOD) became one of the week’s biggest individual stock stories after KOD exploded nearly 180% following positive Phase 3 DAYBREAK results for its wet age-related macular degeneration treatments.

Both Zenkuda and tabirafusp-ted met the study’s primary endpoint by demonstrating non-inferior vision gains compared with aflibercept at one year.

The standout result was Zenkuda’s durability, with 54% of patients reaching six-month dosing intervals while maintaining favorable safety results.

Kodiak now plans to submit a biologics license application for Zenkuda in the fourth quarter of 2026 that will incorporate five positive Phase 3 studies across multiple retinal diseases.

The data dramatically changed investor expectations around the company’s commercial opportunity and sent KOD from roughly $32 to nearly $90 in a single session.

Nike’s Turnaround Still Has Miles to Go

Nike’s (NKE) earnings showed some signs of operational progress, but investors focused on a much weaker outlook that suggested its turnaround will take longer than hoped.

Fiscal first-quarter revenue fell 4% to $11.2 billion, with Nike Direct revenue down 8% and digital sales falling 13%, while weakness in Greater China, EMEA, Sportswear and Jordan remained key trouble spots.

Gross margin improved 60 basis points to 42.8%, and EPS came in at $0.48, but management now expects fiscal 2027 revenue to decline by a high-single-digit percentage and adjusted EPS of just $1.15 to $1.35.

Nike also introduced its new “Pace” restructuring program, targeting roughly $2.5 billion in cumulative savings through fiscal 2031.

The combination of falling sales, continued China weakness, and a disappointing full-year outlook sent NKE lower as investors questioned how quickly the brand can return to sustainable growth.

Rising Yields Put the Squeeze on Banks

Financial stocks (XLF) remained under heavy pressure as the relentless rise in bond yields created another difficult week for banks.

An industry bank Index fell as much as 2.4% on Thursday and has now dropped more than 13% from its mid-August peak, while Bank of America (BAC) and Citigroup (C) were among the large banks caught in the selling.

Higher rates can boost lending spreads under normal conditions, but the current move has raised concerns around funding costs, bond portfolio losses, credit conditions and the broader economic impact of keeping borrowing costs elevated.

The 10-year Treasury yield briefly reached roughly 5.30% this week, a multidecade high.

Softer jobs data reduced expectations for an October Fed hike by Friday, but yields remained historically high, leaving BAC and the broader financial sector highly sensitive to every shift in rates and inflation expectations.

Sector Weekly Performance

Current Themes & Volatile Movers

Headline Reactions

• MDB down 18% after CEO Chirantan “CJ” Desai abruptly stepped down to join Meta and lead its new enterprise AI platform, creating leadership uncertainty less than a year into his tenure.

• PANW up 7% as cybersecurity names attracted buying following Palo Alto’s launch of its new AI-powered Unit 42 Continuous Frontier AI Defense service and positive analyst commentary.

• ARM volatile throughout the week, initially falling 9% on profit-taking and semiconductor weakness before rebounding 5% as investors bought AI semiconductor names and focused on Arm-based processors playing a role in Nvidia’s new Open Agent Safety Platform and BlueField 4 infrastructure.

• BA down 3% after reports that an FAA review of a 737 MAX 10 software issue could delay certification of the aircraft.

• DASH down 7% as investors continued to digest DoorDash’s $131.5 million New York City settlement over delivery-worker compensation.

• BE volatile throughout the week, initially falling on concerns surrounding Oracle’s Project Jupiter before rebounding after Oracle reaffirmed its commitment to its multi-gigawatt fuel-cell deployment and analysts highlighted AI data-center power demand.

• META volatile as investors weighed enthusiasm around the rapid adoption and expanding capabilities of its Muse AI agent against competitive concerns surrounding OpenAI.

• NU was initially down 10% after reports that Nubank is considering an acquisition of U.K. digital bank Monzo for as much as roughly £10 billion, but later recovered most of the dip.

• AAPL down 3% after Bank of America warned that Meta’s fast-growing Muse AI shopping agent could bypass Apple’s ecosystem and threaten lucrative App Store and services transaction economics.

• CCL up 16% after reporting better-than-expected Q3 earnings and revenue, record revenue and net income, and strong bookings supporting its 2027 outlook.

• FICO experienced extreme volatility, initially plunging roughly 26% after the FHFA moved to put VantageScore on equal pricing footing with FICO for mortgages purchased by Fannie Mae and Freddie Mac, before rebounding 11% as traders bought the heavily sold shares.

• AMAT up 11% alongside semiconductor-equipment names as AI infrastructure spending continued driving demand for advanced packaging, HBM, memory and leading-edge chipmaking equipment.

• USO down 4% alongside crude as Saudi Arabia’s restart of exports through its Hormuz-bypassing East-West pipeline eased fears of constrained regional supply.

• GLD up 1% as gold bounced from a seven-week low following a sharp prior-session selloff.

• LITE rallied 15% throughout the week as AI-optics stocks strengthened on bullish analyst commentary, strong optical-transceiver demand tied to AI data centers and potential U.S. restrictions on Chinese optical transceivers.

• ORCL up 5% as reports of OpenAI’s rapidly growing revenue eased concerns about Oracle’s huge AI infrastructure commitments and strengthened confidence in its OpenAI-linked backlog.

• CBRS down 17% amid a roughly 20 million-share unlock and reports that OpenAI has been favoring Nvidia hardware rather than Cerebras chips for key workloads.

• KMX down 5% as traders took profits following its post-earnings rally despite strong sales growth, an earnings beat and plans to resume share repurchases.

• JBL down 4% despite beating quarterly estimates and issuing strong fiscal 2027 guidance as investors focused on management’s indication that margins and earnings will be more back-end loaded.

• MRNA down 3% after Citi downgraded Moderna to Sell, arguing its valuation had become difficult to justify even after accounting for enthusiasm surrounding its cancer-vaccine pipeline.

• LLY down 4% amid pressure in obesity-drug names as investors digested increasingly competitive GLP-1 data.

• SNPS rallied 15% after Synopsys announced major AI-related partnerships with OpenAI and AWS while unveiling stronger-than-expected fiscal 2027 growth targets.

• APP down 15% after Wells Fargo questioned the quality of the recent acceleration in e-commerce pixel installations, raising doubts about e-commerce growth momentum.

• NKE fell 5% following earnings after quarterly revenue disappointed and management issued a weak fiscal 2027 outlook, with significant weakness in Greater China.

• ACN surged 15% after reporting better-than-expected quarterly revenue and stronger FY2027 growth guidance, before giving back part of the move the following session as investors digested the outlook and mixed analyst reactions.

• MPC up 7% as refiners rallied after China suspended fuel exports outside Hong Kong and Macau, tightening global gasoline, diesel and jet-fuel supplies.

• PSKY down 4% as investors focused on the massive debt load needed to finance Paramount Skydance’s Warner Bros. Discovery acquisition despite the deal clearing a major antitrust hurdle.

• MKC down 7% despite an earnings beat as weak organic volumes and warnings about Q4 margin pressure overshadowed the quarter.

• MSTR up 2% as Strategy tracked a rebound in Bitcoin and broader crypto sentiment.

• WDC down 7% after a Nikkei report said Toshiba plans to double HDD manufacturing capacity for AI applications, raising fears of increased supply and weaker pricing power.

• SPCX up 6% following another successful Falcon 9 rideshare launch, while attention around expanding AI-compute relationships added to enthusiasm.

• TSLA up 1% after reporting 486,532 Q3 vehicle deliveries, comfortably beating Wall Street expectations.

• HPE up 10% as momentum from its networking investor day continued after it raised its FY2027 networking growth outlook and disclosed a $1.2 billion AI infrastructure order from Vultr.

• TER up 14% as investors reacted positively to its expanding memory-test portfolio and rising HBM, DRAM and NAND testing demand driven by AI.

• NTAP up 12% as investors focused on strong AI and data-storage demand following a sizable earnings and revenue beat.

• CRCL down 5% amid continued volatility in crypto-linked equities as recent Bitcoin ETF flows turned negative.

ETF Spotlight

Some of the most notable ETFs in the market getting increased attention:

• SMH – VanEck Semiconductor ETF: Tracks major semiconductor companies and was in play as renewed strength across chip and AI names drove a strong move higher this week.

• CBRZ – Tradr 2X Short CBRS Daily ETF: Provides 2x inverse daily exposure to CBRS and surged as the underlying stock experienced a sharp selloff this week.

• ACLZ – Corgi ACLS 2x Daily ETF: Provides 2x daily exposure to ACLS and was in play as the underlying semiconductor stock made a major move higher this week.

• MN – Corgi MANGOS ETF: A newly launched ETF offering exposure to Meta, Anthropic, Nvidia, Google, OpenAI, and SpaceX, putting it in focus as it officially began trading this week.

Market & Economic News

• The U.S. 10-year Treasury yields rose to 5.27% on Monday.

• Gold fell below $4,200 on a firmer Dollar and Fed hike bets.

• OpenAI launched Dots AI agents powered by GPT-6 Astra.

• Trump met with top AI executives on Tuesday to discuss safety and data center locations.

• Cooler-than-expected PCE data curbed October rate hike odds.

• A large end-of-quarter rebalance pressured many large tech stocks into the close on Wednesday.

• The U.S. Dollar hit its highest level since April 2025.

• The U.S. is reportedly sending a third aircraft carrier and troops into the Middle East as negotiations with Iran stall.

• Intelligence chief Jay Clayton is to be named AI czar by White House.

• U.S. jobs data came in soft on Friday as the unemployment rate ticks higher.

Upcoming Earnings

Monday 10/5/26

N/A

Tuesday 10/6/26

APOG, RPM, LW, PENG, STZ, WS, NEOG, SAR

Wednesday 10/7/26

APLD, LEVI, RELL, RGP

Thursday 10/8/26

PEP, TLRY, BYRN, NG, HELE, ANGO

Friday 10/9/26

DAL, HOVR

Upcoming Economic Events & Data

Monday 10/5/26

• S&P Global Composite PMI Final

• ISM Services PMI

• ISM Services Employment

Tuesday 10/6/26

• ADP Employment Change Weekly

• Balance of Trade

• Redbook

• RCT/TIPP Economic Optimism Index

• 3-Year Note Auction

• API Crude Oil Stock Change

Wednesday 10/7/26

• MBA 30-Year Mortgage Rate

• MBA Purchase Index

• Used Car Prices

• EIA Crude Oil Stocks Change

• Consumer Inflation Expectations

• 10-Year Note Auction

Thursday 10/8/26

• Initial Jobless Claims

• Continuing Jobless Claims

• EIA Natural Gas Stocks Change

• 30-Year Bond Auction

Friday 10/9/26

• Michigan Consumer Sentiment

• Michigan 5-Year Inflation Expectations

• WASDE Report

• Baker Hughes Oil Rig Count

• Fed Collins Speech

Meta’s (META) new AI agent Muse became one of the biggest market stories of the week as investors started thinking beyond chatbots and toward AI that can actually complete tasks for consumers.

Muse can handle activities such as shopping, travel booking, and filling out forms, and it quickly overtook ChatGPT as the top free app in the U.S. and Canada on both Apple’s App Store and Google Play, recording 2.8 million downloads within two weeks.

The market reaction spread far beyond Meta, with investors questioning whether AI agents could disrupt businesses that rely on customer loyalty or serve as middlemen, pressuring financial, travel, fitness, and other consumer-facing stocks.

Meta shares surged nearly 13% through Wednesday as investors priced in another potential revenue stream, while semiconductor stocks also benefited from expectations that widespread AI-agent adoption could drive even more compute demand.

Trump and Xi Keep the Truce Alive

President Donald Trump and Chinese President Xi Jinping wrapped up a high-profile three-day summit in Washington this week, but the meetings produced more stability than major breakthroughs.

The clearest result was an agreement to extend the existing U.S.-China trade truce by two months, while officials also outlined exemptions for certain agricultural products, medical devices and non-sensitive consumer goods.

Major disagreements over trade, AI, technology restrictions and Taiwan remain unresolved, with additional details on the limited trade agreements expected Monday.

Iran was also part of the talks as Trump pressed Xi over Chinese support for Tehran, while Xi called for Washington and Tehran to return to negotiations.

Separate U.S.-Iran discussions through mediators at the UN this week raised hopes of progress early on, but no immediate breakthrough emerged, helping Brent crude rebound as high as $107 after briefly falling below $100.

Microsoft Takes Copilot to the Next Level

Microsoft (MSFT) made another major push into agentic AI on Friday by unveiling a broad overhaul of Copilot designed to turn the platform into an all-in-one workplace for AI.

The revamped product includes Home, Code and Autopilot, with Word, Excel and PowerPoint now embedded directly inside Copilot so users can work across Office without leaving the AI interface.

Code lets users build apps, dashboards, automations, and other software through natural-language prompts using technology derived from GitHub Copilot, while Autopilot is an always-on digital coworker that can keep working independently within permissions set by the user or company.

The expansion represents Microsoft’s attempt to move Copilot beyond a traditional chatbot and deeper into the everyday workflow of enterprise customers. Investors liked the direction, sending MSFT shares roughly 3% higher in early Friday trading and helping lead a broader rally in AI-related stocks.

Oracle Hits a Power Problem

Oracle (ORCL) shares came under pressure after the company issued a force majeure notice related to Project Jupiter, the massive New Mexico data center campus being developed by a Blue Owl (OWL) unit as part of the broader Stargate AI infrastructure buildout.

The notice cited potential delays in securing sufficient power for the project and could allow Oracle to delay certain payments if the facility fails to come online as scheduled in 2028.

Importantly, Oracle is not walking away from the project, and the company maintains that Jupiter remains on schedule, while Blue Owl said the notice does not alter the financial commitments behind the development.

Still, the news highlighted one of the biggest constraints facing the AI boom, which is building enough power and physical infrastructure to support enormous data center commitments.

Project Jupiter reportedly carries roughly $18 billion in loans, and Oracle shares fell more than 3% as investors weighed the potential financing and execution risks surrounding the AI buildout.

Bond Yields Take Center Stage

Treasury yields became one of the market’s biggest pressure points this week as investors continued adjusting to a more hawkish Federal Reserve and persistent inflation concerns.

The 10-year Treasury yield climbed above 5.2% at its weekly peak, reaching its highest level since 2007, while longer-dated yields also pushed sharply higher.

The move followed the Fed’s first rate increase in more than three years last week, with policymakers signaling that inflation remains a concern and another increase could still come before year-end.

Elevated oil prices added another layer of inflation risk, while Chair Kevin Warsh’s reluctance to provide traditional forward guidance has left investors with less certainty about the future path of monetary policy.

Higher yields raise borrowing costs across the economy and increase the discount rate applied to future corporate earnings, making the bond market an increasingly important variable for equity traders heading into next week’s employment and inflation data.

McDonald’s Turnaround Gets Expensive

McDonald’s (MCD) shares suffered a sharp selloff this week after its investor update raised concerns that the company’s turnaround could require more time and money than investors expected.

Management warned that restaurant-industry traffic in its major company-operated markets could remain flat as long as inflation stays elevated, while also acknowledging that McDonald’s has fallen short on consistent execution.

The company unveiled roughly $8.5 billion of support for franchisees over the next decade as part of its NEXT strategy, which includes restaurant modernization, better operations, employee training, and increased use of its AI-powered ArchIQ operating system.

McDonald’s is targeting operating margins in the low-to-mid 50% range by 2030, but investors focused on the large financial commitment and difficult consumer environment.

MCD fell as much as 6.5% following the update and touched a nearly four-year low, extending what has already been a difficult year for the stock.

Sector Weekly Performance

Current Themes & Volatile Movers

Headline Reactions

• CRML up 12% after President Trump announced a U.S.-Denmark security agreement involving Greenland, putting Critical Metals’ Tanbreez rare-earth project back in focus.

• WBD up 6% after Paramount Skydance settled with states that had sued to block its Warner Bros. Discovery acquisition, removing a major obstacle to the deal.

• USO down 2% as crude oil fell on growing hopes for diplomatic progress in the U.S.-Iran conflict and signs of recovering Saudi exports, despite a brief rebound on renewed geopolitical tensions.

• AMD up 7% as Meta’s rapidly growing Muse AI agent fueled expectations for increased CPU demand from agentic AI workloads.

• ARM up 4% as enthusiasm around agentic AI sparked a CPU rally, although shares later pulled back on valuation concerns, an insider stock sale and uncertainty around AI infrastructure spending.

• MRNA up 23% as momentum built around Moderna’s personalized cancer vaccine and its upcoming presentation of Phase 3 melanoma data at ESMO.

• UPS down 4% after Bank of America cut its price target and earnings estimates, citing weaker domestic package volumes and declining Amazon shipments.

• MSTR down 6% as Bitcoin rallied and then retraced as Strategy disclosed another 950 BTC purchase.

• SHOP up 10% after its partnership with Meta integrated Shop Pay into the Muse AI assistant, before profit-taking hit shares following the sharp two-day rally.

• IONQ up 12% after announcing an end-to-end real-time quantum error decoder and plans to deploy its Superion 256 system at NVIDIA’s Accelerated Quantum Research Center.

• BAC down 2% as banks came under pressure from the higher-rate outlook and expectations for weaker Q3 investment-banking fees.

• ALAB up 16% as the AI-infrastructure semiconductor rally continued, supported by enthusiasm around Astera Labs’ high-speed connectivity products.

• RCL down 2% on reports that Royal Caribbean was nearing a roughly $6 billion deal for a majority stake in Sandals Resorts, raising concerns about price and financing.

• SCHW down 6% as higher rates raised concerns about client cash sorting and pressure on Schwab’s deposit and net-interest economics.

• CSCO down 2% after Piper Sandler cut its price target, adding to concerns about Cisco’s growth outlook.

• ALL down 9% amid broader financial-sector weakness as investors weighed catastrophe-loss risk and the impact of higher rates.

• MCD down 5% after McDonald’s warned customer traffic in key markets could remain flat while inflation stays elevated, overshadowing its long-term growth plan.

• CRWD up 6% following bullish analyst target increases and new platform partnerships as AI-driven cybersecurity demand continued to support the growth story.

• GOOGL down 3% as Meta’s Muse AI assistant fueled concerns that agentic AI could disrupt Google’s search and digital-ad ecosystem.

• ABNB down 5% as Meta’s Muse AI agent raised concerns that consumers could increasingly book travel directly through AI assistants, potentially bypassing traditional platforms.

• AKAM up 7% after announcing a seven-year, $11.6 billion cloud infrastructure agreement with Anthropic that could potentially expand to roughly $20 billion.

• NBIS up 6% after BNP Paribas upgraded Nebius to Outperform and raised its price target to $399 from $260 on strengthening AI-compute demand.

• ORCL down 6% after reports of a force majeure notice tied to Project Jupiter raised concerns about delays and execution risk at the massive AI data-center project.

• RKLB up 7% after Rocket Lab was selected for the U.S. Space Force’s $981 million NITE-STAR contract vehicle.

• GEN down 25% following reports Gen Digital made an early-stage takeover approach for GoDaddy valued around $12 billion, raising financing and balance-sheet concerns.

• FSLR down 8% as rising borrowing costs pressured solar stocks while a Baird price-target cut and patent-related developments added pressure.

• TLT down 3% as Treasury yields climbed following strong economic data that revived inflation concerns and expectations for additional Fed rate hikes.

• MSFT up 4% after Microsoft unveiled a major Copilot expansion with new code-generation and agentic AI capabilities while Oppenheimer raised its price target.

• HUM up 4% after Barclays upgraded Humana to Overweight and raised its price target to $515 on expectations for improving Medicare Advantage Star Ratings and earnings.

• DELL down 3% despite enthusiasm around Dell’s new Gemini-powered XPS Chromebook.

• BE up 5% after Oracle reaffirmed that its 2.4 GW fuel-cell agreement with Bloom Energy remains intact despite concerns surrounding Project Jupiter.

• CRDO up 16% as AI-networking momentum continued following Credo’s launch of new 224G ZeroFlap optical transceivers for high-speed AI data centers.

• COST up 4% following strong fiscal Q4 results, with net sales rising 11.2% to $93.9 billion, adjusted comparable sales up 6.7% and digitally enabled sales jumping nearly 20%.

ETF Spotlight

Some of the most notable EFTs in the market getting increased attention:

• AMDL – GraniteShares 2x Long AMD Daily ETF targets 2x AMD’s daily performance and was active as AMD ripped on the Muse-driven CPU/AI trade, briefly pushing the company above a $1 trillion valuation.

• MULL – GraniteShares 2x Long MU Daily ETF: Provides 2x daily leveraged exposure to Micron and is in play ahead of MU earnings on September 30.

• BBUL – GraniteShares 2x Long BB Daily ETF: Provides 2x daily leveraged exposure to BlackBerry and is in play following BB earnings on September 24.

• TLT – iShares 20+ Year Treasury Bond ETF tracks long-duration U.S. Treasuries and was heavily in play as sharp swings in yields, inflation expectations and the Fed outlook.

Market & Economic News

• The U.S. reportedly seeks to phase out Russian uranium ahead of a full import ban.

• The U.S. proposed extending the China trade truce by six months.

• Scott Bessent is not in the running for the “AI Czar” role, according to a report.

• A U.S. official met with an Iranian delegation for several hours, pressuring oil prices as the possibility of an agreement came back into focus.

• The 5-Year Treasury yield topped 5% for the first time since 2007 on Wednesday.

• Trump and Xi met on Wednesday afternoon to discuss a variety of topics.

• Oil prices continued to rise as hopes for a diplomatic breakthrough between the U.S. and Iran dampened.

• The U.S. 10-Year Treasury yield hit 5.2% on Thursday.

• Fed’s Hammack stated that the public’s inflation expectations could worsen.

• Xi concluded his U.S. visit, and the U.S. stated that the two countries will be in continued communication.

Upcoming Earnings

Monday 9/28/26

GNS, MTN, IVA, JEF, SANG, ATCH

Tuesday 9/29/26

CCL, KMX, UEC, CNXC, AIR

Wednesday 9/30/26

CAG, JBL, FDS, MU, PRGS, BSET

Thursday 10/1/26

ACN, AYI, NKE, MCK

Friday 10/2/26

N/A

Upcoming Economic Events & Data

Monday 9/28/26

• Dallas Fed Manufacturing

• 6-Month Auction

Tuesday 9/29/26

• Redbook

• S&P/Case-Shiller Home Prices

• House Price Index

• JOLTs Job Openings

• CB Consumer Confidence

• Dallas Fed Services Index

• API Crude Oil Stock Change

Wednesday 9/30/26

• MBA Mortgage Applications

• ADP Employment Change

• Core PCE Price Index

• GDP Growth Rate

• Personal Income

• Personal Spending

• Chicago PMI

Thursday 10/1/26

• Challenger Job Cuts

• Initial Jobless Claims

• ISM Manufacturing PMI

• Construction Spending

• Fed Williams Speech

Friday 10/2/26

• Nonfarm Payrolls

• Unemployment Rate

• Participation Rate

• Government Payrolls

• Manufacturing Payrolls

• Factory Orders

The Federal Reserve delivered its first rate hike since 2023 on Wednesday, unanimously raising the federal funds target range by 25 basis points to 3.75% to 4.00% as stubborn inflation outweighed signs of resilience elsewhere in the economy.

The Fed said economic activity remains solid and unemployment has changed little, but inflation is still too elevated, with officials now projecting headline PCE inflation of 3.7% for 2026.

Updated projections also showed a higher expected path for interest rates, reinforcing the idea that policy could remain restrictive for longer.

Stocks initially sold off as Treasury yields jumped, with the Dow falling more than 600 points Wednesday, before sentiment reversed Thursday as yields and oil prices retreated. Equities staged their strongest rally in roughly six weeks.

The whipsaw showed just how sensitive markets remain to inflation, energy prices and expectations for the Fed’s next move.

Crypto Shakes Off Washington

Crypto absorbed a major political setback this week before roaring back into Friday.

The Senate failed to advance the CLARITY Act in a 49-50 procedural vote, short of the 60 votes needed, after disagreements over ethics restrictions surrounding President Trump’s family’s crypto interests.

Bitcoin initially dropped below $75,000, but sentiment improved as the SEC granted a five-year conditional exemption aimed at making it easier for platforms to trade tokenized stocks, while the CFTC continued advancing its own crypto rules.

Spot Bitcoin ETFs also returned to net inflows Thursday after two days of outflows.

By Friday, Bitcoin had surged more than 5% and reclaimed $80,000, lifting crypto-linked equities and showing that traders remained optimistic about regulatory progress despite the setback in Congress.

Trump and Xi Take Center Stage

Markets are turning their attention toward a high-stakes meeting between President Donald Trump and Chinese President Xi Jinping, with Xi expected to visit Washington on September 24 as the world’s two largest economies try to make progress on trade and strategic disputes.

Energy has emerged as one potential area for compromise, with officials discussing reductions to China’s tariffs on American LNG as part of a broader package that could include reciprocal tariff relief on energy and agricultural goods.

Artificial intelligence, semiconductors, technology restrictions and Taiwan are also expected to feature prominently.

Any progress on tariffs, energy purchases or technology policy could have implications across semiconductors, agriculture, energy, Chinese ADRs and the broader global market.

Buffett Hands Over the Chair

Warren Buffett stepped down as chairman of Berkshire Hathaway (BRK.A) at age 96 on Friday, marking another major step in a succession process that accelerated when Greg Abel became CEO earlier this year.

Buffett transformed Berkshire from a struggling textile company into a roughly $1.1 trillion conglomerate spanning insurance, railroads, energy, manufacturing and major equity investments.

He will remain a director and become chairman emeritus, while his son Howard Buffett becomes non-executive chairman and Abel continues running day-to-day operations and capital allocation.

The structure reflects Buffett’s long-planned succession strategy, with Abel managing the business and Howard helping preserve Berkshire’s unique corporate culture.

Diesel Becomes the New Oil Story

Energy markets remained a major macro driver this week as global diesel supplies tightened amid disruptions to refining capacity and shipping routes.

Brent crude remained near $100 a barrel, while U.S. diesel prices climbed toward $6 per gallon as conflict involving Iran disrupted Middle Eastern refining and shipping through the Strait of Hormuz, while Ukrainian attacks on Russian refineries added further pressure to global supplies.

Russia has also restricted diesel exports, adding another constraint to an already tight market.

The impact extends well beyond energy stocks because diesel powers trucking, agriculture, construction and global commerce, meaning sustained price increases can feed directly into transportation costs, inflation and ultimately monetary policy.

Small Caps Go Full Casino

The speculative end of the market delivered extraordinary volatility this week as low-priced stocks produced massive squeezes followed by equally violent liquidations.

RETO became one of the clearest examples, surging 676% on September 15 and briefly reaching $4.46 before going even more parabolic the following session, touching $20.85 and then collapsing to $1.84.

It plunged another 89% on September 17 to roughly $0.21. RETO was not alone, with names including VEEA, RFAI and NWGL producing extreme intraday moves and repeated volatility halts as speculative capital flooded small caps.

The action reminded investors that limited floats and concentrated liquidity can create enormous upside, but once momentum disappears, those same conditions can produce devastating liquidations.

Sector Weekly Performance

Current Themes & Volatile Movers

Headline Reactions

News catalysts of all types caused sharp reactions in many stocks this week.

• CRWD rallied as much as 7% amid a broad rotation into cybersecurity stocks as AI safety concerns increased the perceived need for security and oversight, with the stock extending its strength as investors bet AI-driven cyber threats could accelerate demand for CrowdStrike’s Falcon platform.

• SOXL rose 23% as semiconductor stocks rebounded after Anthropic’s Dario Amodei, OpenAI’s Sam Altman, and Elon Musk backed slowing the pace of frontier AI development.

• PLTR rose 5% as money rotated from AI hardware into software, with Palantir additionally supported by bullish analyst sentiment and continued enthusiasm around adoption of its AIP platform.

• COIN saw major volatility around the CLARITY Act, initially rallying 9% on optimism after Senate Republicans released a revised draft, then falling after the Senate failed to advance the legislation, but finishing the week up 3%.

• ALAB up 13% as Astera Labs was initially caught in the broad AI-hardware selloff after major AI leaders called for slower frontier-model development, raising concerns about the future pace of data-center infrastructure spending before rebounding later in the week.

• SLV swung with rates and the dollar, initially falling 2% as rising Treasury yields, a firm dollar, and expectations for a Fed rate hike pressured precious metals before rebounding 2% as longer-term yields pulled back and silver moved back above $67 an ounce.

• CRCL saw sharp two-way volatility around the CLARITY Act, rallying 7% on optimism surrounding revised legislation before falling 6% after the Senate failed to advance the bill in a 49-50 cloture vote, outweighing excitement around Circle’s Arc blockchain mainnet launch.

• SWKS rose 4% after CEO Phil Brace expressed confidence that its $22 billion Qorvo merger is nearing final regulatory approval, while enthusiasm around Apple’s newly unveiled foldable iPhone added another potential demand catalyst for the RF supplier.

• AXON fell 7% after the company announced plans for a $1 billion convertible senior-notes offering, raising dilution and financing concerns while surging Treasury yields added pressure to its premium valuation.