Evening Market Recap - Thursday, 23-Oct

US equities were higher in Thursday trading. Stocks were firmer with the path of least resistance still higher on Fed easing, solid macro backdrop, double-digit earnings growth and elevated retail impulse. The White House confirmed there is a scheduled Trump-Xi meeting in South Korea next Thursday, though the New York Times also came out with a report that the US may launch a Section 301 investigation into China's noncompliance with the 2020 trade deal.

US equities were lower in Wednesday trading, though ended off worst levels, with the Dow Jones, S&P500, and Nasdaq closing down 71bps, 53bps, and 93bps respectively. Easiest excuse for today's downside largely tagged to potential escalation in US-China trade tensions. Earnings saw high-profile disappointments from Netflix and Texas Instruments, with high bar for some of the AI power theme names, and additional reprieve from recent credit concerns from some financial reporters. Treasury's auction of $13B in 20Y notes was well received, stopping through by 1.2bp, though foreign demand was below recent averages.

US equities were mixed in somewhat choppy Tuesday trading, though indices are a bit off of their best levels. Outperformers included life sciences, A&D, electricals/multis, apparel, homebuilders, beverages, credit cards, machinery, auto suppliers, cruise lines, hotels, GSEs, and media. Overall earnings takeaways remain fairly positive and beat rates are still very elevated.

US equities were sharply higher in Monday trading as stocks ended just a bit off best levels. A risk-on session to start the week was tabbed to a few developments. And a much busier earnings calendar this week with 90 S&P 500 companies set to report.

Major US indices posted solid gains this week, rebounding from last Friday's session that saw the worst S&P daily performance since April amid flaring US-China trade tensions. Signs of US-China de-escalation boosted markets Monday, and by Friday Trump said his proposal for 100% tariffs on China was not sustainable. A large volume of Fedspeak had little impact on market expectations for two 25 bp cuts through year-end.

US equities close lower in Thursday trading, ending off worst levels, but major indices are still on track for solid weekly gains. There was some focus on the weakness in regional banks, and AI momentum was mixed on the day.

US equities were mostly higher in Wednesday trading as stocks posted modest gains in an up-and-down session, with the Dow Jones closing down 4bps, while the S&P500, and Nasdaq finished up 40bps and 97bps respectively. A few moving pieces today, including the continued ratcheting up of US-China trade angst, buy-the-dip optimism, earnings tailwinds, pickup in M&A, and focus on dovish Powell commentary yesterday. October Empire State manufacturing survey beat, posting third positive read in past four months.

US equities mostly higher in Tuesday afternoon trading, near best levels after shaking off some early-session weakness. Equities largely in positive territory after a more risk-off stance at the open amid still-volatile trade headlines and following Monday's big bounce. September NFIB small business optimism index dropped to 98.8 from prior 100.8

US equities were higher in Monday trading, though stocks ended a bit off best levels. Upside today has been tabbed to de-escalation of US and China trade tensions after Trump's Friday threat of a 100% tariff on Chinese goods. AI is another piece of today's upside after the latest OpenAI deal, this time with Broadcom.

Stocks were lower after a Friday selloff pushed the major averages into the red for the week, with the major averages all off for the second week in the past three. The Friday pullback was tabbed to rising trade and tariff tensions between the US and China. AI was the other area of focus this week, as the AI secular growth narrative was helped by the announcement that OpenAI will buy $300B dollars of computing power from AMD in the next five years, while having the option to purchase up to a 10% stake in the chipmaker over time.