Stock Indexes Sharply Higher as Tech Stocks Rally and Crude Oil Falls
The S&P 500 Index ($SPX) (SPY) is up +2.16% today, the Dow Jones Industrial Average ($DOWI) (DIA) is up +1.79%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +3.28%. December E-mini S&P futures (ESZ26) are up +2.05%, and December E-mini Nasdaq futures (NQZ26) are up +3.14%.
US stock indices are rallying sharply today as dip buyers step in to buy recently beaten-down chipmakers and AI-infrastructure stocks. The Magnificent Seven technology stocks are also climbing today, supporting gains in the broader market. In addition, market sentiment has improved, with WTI crude oil down more than -3% as diplomatic efforts to end the war in Iran continue.
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On the negative side for stocks, Nvidia is down more than -5% after the company’s board launched an investigation into CEO Huang, following his admission of an affair with a woman identified as a suspected Chinese spy. Also, hawkish comments from Chicago Fed President Austan Goolsbee were bearish for stocks and bonds when he said US employment and growth are actually pretty stable, but we’re starting to see inflation kicking up in services, and we’ve got to come to terms with inflation failure.
Today’s US economic news is supportive for stocks after Sep wholesale trade sales rose +2.8% m/m, stronger than expectations of +1.1% m/m and the largest increase in four months.
Dec WTI crude oil prices (CLZ26) are down more than -3% today after President Trump said it’s “highly unlikely” he’ll order more strikes against Iran if peace talks show progress. Crude oil losses accelerated today after news outlet Israel Hayom reported that Iran dropped its demand to control the Strait of Hormuz and collect transit fees from vessels passing through the waterway.
However, Secretary of State Rubio played down the chances of a breakthrough, saying Iran’s demands to date are unacceptable. Also, the US launched overnight attacks on specific targets on the Iranian island of Qeshm in the Strait of Hormuz.
Stocks are supported by the prospect of solid quarterly earnings. According to data compiled by Bloomberg Intelligence, Q3 S&P 500 earnings are expected to climb by +31% from a year earlier, up from a July estimate of 22%. As of today, 440 of the S&P 500 companies have reported results, with 84% beating estimates.
Overseas stock markets are higher today. The Euro Stoxx 50 is up +1.96%. China’s Shanghai Composite closed up +0.32%. Japan’s Nikkei-225 Stock Average closed up +2.33%.
Interest Rates
December 10-year T-notes (ZNZ6) are down -3 ticks today. The 10-year T-note yield is up +1.4 bp to 4.872%. T-notes gave up an early advance today and turned lower as today’s stock rally curbs safe-haven demand for T-notes. Also, hawkish comments today from Chicago Fed President Austan Goolsbee weighed on T-notes when he said US employment and growth are pretty stable, but inflation is starting to kick up in services. In addition, supply pressures are negative for T-notes as the Treasury will auction $125 billion of T-notes and T-bonds this week for the Nov quarterly refunding, beginning with today’s $58 billion auction of 3-year T-notes.
T-notes initially moved higher today amid a -3% fall in WTI crude oil prices, which weakened inflation expectations. The 10-year breakeven inflation rate tumbled to a 3-month low of 2.215% today.
The markets are now pricing in an 84% chance of a +25 bp rate hike at the FOMC’s next meeting on December 8-9.
European government bond yields are mixed today. The 10-year German bund yield is up +0.8 bp to 3.262%. The 10-year UK gilt yield is down -2.8 bp to 5.126%.
The Eurozone Nov Sentix investor confidence index fell -0.3 to 2.4, stronger than expectations of 2.0.
German trade news was better than expected as German Sep exports rose +2.0% m/m, stronger than expectations of +0.5% m/m and the largest increase in 7 months. Also, Oct imports rose +4.2% m/m, stronger than expectations of +0.5% m/m and the largest increase in nearly 1.75 years.
ECB President Christine Lagarde said, “We know that inflation numbers will remain high in the quarters to come and the higher they are, and the longer they remain high, the greater the risk to our medium-term target.”
The markets are now pricing in an 85% chance of a +25 bp rate hike at the ECB’s next policy meeting on December 17.
US Stock Movers
The Magnificent Seven technology stocks, sans Nvidia, are climbing today to provide support to the overall market. Tesla (TSLA) is up more than +5%, and Meta Platforms (META) is up more than +4%. Also, Amazon.com (AMZN) and Alphabet (GOOGL) are up more than +3%, and Apple (AAPL) and Microsoft (MSFT) are up more than +2%.
Chipmakers and AI-infrastructure stocks are climbing today, a bullish factor for the broader market. The iShares Semiconductor ETF (SOXX) is up more than +3%. Advanced Micro Devices (AMD), Applied Materials (AMAT), and Marvell Technology (MRVL) are up more than +10%, and Broadcom (AVGO), Seagate Technology Holdings Plc (STX), ARM Holdings Plc (ARM), and Western Digital (WDC) are up more than +8%. Also, KLA Corp (KLAC), Analog Devices (ADI), and Micron Technology (MU) are up more than +7%, and ASML Holding NV (ASML), Sandisk (SNDK), Lam Research (LRCX), Microchip Technology (MCHP), and Qualcomm (QCOM) are up more than +6%. In addition, Intel (INTC) and Texas Instruments (TXN) are up more than +5%.
Airlines and cruise line operators are moving higher today, with WTI crude oil down by more than -3%, lowering fuel costs and boosting the profitability of the companies. American Airlines Group (AAL), United Airlines Holdings (UAL), and Alaska Air Group (ALK) are up more than +6%, and Delta Air Lines (DAL), Southwest Airlines (LUV) are up more than +4%. Also, Carnival (CCL) is up more than +3%, and Royal Caribbean Cruises (RCL) and Norwegian Cruise Line Holdings (NCLH) are up more than +2%.
Trucking and freight stocks are rallying today as the -3% decline in WTI crude oil lowers fuel costs and improves companies’ profitability. Saia Inc (SAIA) is up more than +5%, and Knight-Swift Transportation Holdings (KNX) and XPO Inc (XPO) are up more than +4%. Also, FedEx Freight Holding (FDXF), ArcBest (ARCB), and JB Hunt Transport Services (JBHT) are up more than +3%, and Old Dominion Freight Line (ODFL), Marten Transport Ltd (MRTN), CH Robinson Worldwide (CHRW), and United Parcel Service (UPS) are up more than +2%.
QXO Inc. (QXO) is up more than +16% after reporting preliminary Q3 net sales of about $4.9 billion.
Immunovant (IMVT) is up more than +13% after reporting Q2 cash and cash equivalents of $722.3 million, well above the consensus of $641.7 million.
Ferguson Enterprises (FERG) is up more than +11% after raising guidance on full-year net sales to up +7% from a previous view of mid-single digits.
NRG Energy (NRG) is up more than +9% after selling 4.9 GW of natural gas assets to LS Power for $4 billion in cash.
Roivant Sciences (ROIV) is up more than +5% after reporting Q2 R&D expenses of $145.7 million, below the consensus of $196.1 million.
Ionis Pharmaceuticals (IONS) is down more than -27% after forecasting full-year revenue of $875 million to $900 million, below the consensus of $925.4 million.
Nvidia (NVDA) is down more than -5% to lead losers in the Dow Jones Industrials and the Nasdaq 100 after the company’s board launched an investigation into CEO Huang, following his admission of an affair with a woman identified as a suspected Chinese spy.
Monday.com (MNDY) is down more than -6% after forecasting Q4 revenue of $380 million to $382 million, weaker than the consensus of $385.7 million.
Earnings Reports (11/9/2026)
Constellation Energy Corp (CEG), Ferguson Enterprises Inc (FERG), KKR & Co Inc (KKR), NRG Energy Inc (NRG), Occidental Petroleum Corp (OXY), Skydance Corp (SKYD), Take-Two Interactive Software (TTWO).
On the date of publication, Rich Asplund did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com