- The S&P 500 rose 0.86% to 7,840.66 and the Nasdaq Composite gained 0.83% to 27,705.89, both record closes; the Dow added 0.70% to 51,626.98. All 11 S&P 500 sectors traded higher, with utilities and real estate leading.
- Government bond yields eased across the curve, including a 5.3-basis-point drop in the benchmark 10-year. A soft payrolls report last week cut the odds of an October rate hike, with traders pricing a near 79% chance of a hold, though a December hike remains largely priced in.
- Oil fell about 2% as resilient Middle Eastern crude exports and a G7 emergency stockpile release eased supply concerns. Elevated energy prices remain the main threat to keeping interest rates and global bond yields higher for longer.
- Q3 earnings season kicks off next week, with analysts on average expecting S&P 500 earnings to jump over 30% year over year, driven largely by AI-related stocks, according to LSEG data.
- AI chip supply signals stacked up: AMD CEO Lisa Su said the company plans to substantially increase chip supply in 2027, Marvell Technology raised its 2028 revenue forecast to about $20 billion on data-center demand, and Nvidia rose 1.1%, pushing its market value close to $6 trillion.
- Constellation Energy was the top S&P 500 gainer, up 13.9%, after Alphabet's Google entered a 3,590-megawatt power deal with the company.
- Energy Transfer reports Q3 2026 results on 3 November, with analysts expecting earnings per common unit of $0.38 to $0.40 versus $0.28 a year earlier, after record NGL transportation, export volumes, and crude throughput drove a Q2 beat and two upward revisions to FY26 adjusted EBITDA guidance, now $18.8 billion to $19.1 billion.
- Asian markets are poised to take their cue from Wall Street's record-breaking rally as earnings take center stage, with Japan and Hong Kong futures pointing to modest gains while South Korea and Taiwan edged lower.
Quotes
“The economy continues to be more resilient than many expected, and corporate earnings remain strong, but the big change is rising interest rates”
“I am still bullish on equities, but the hurdle has gone up significantly.”