Weekly Market Recap - Friday, 24-Oct

US equities were mostly lower in Thursday trading near their worst levels, although the S&P500 and Nasdaq are both still on pace for weekly gains. Big tech earnings were in focus, highlighting the elevated capex levels that are being seen as crucial for the broader AI trade

US equities finished mostly lower in Wednesday trading, with the Dow Jones closing down 16bps, the S&P500 flat, and the Nasdaq +55bps. The Federal Reserve cut rates by 25 bp at their October meeting, with the economic summary noting activity has been expanding at a moderate pace, the labor market had seen slower job gains, but that the unemployment rate has remained low. September pending-home sales were unchanged m/m vs consensus for a 90bps increase. Nvidia extended a big Tuesday rally on Trump comments that he will discuss Blackwell chips in the upcoming meeting with China's Xi on Thursday.

US equities finished mostly higher in Tuesday trading, though came off best levels into the close. There were more headlines about easing US-China trade tensions as the market gets more comfortable with the escalate to de-escalate narrative. There was more strategic M&A today following more than $80B dollars in announced deals on Monday.

US equities finished higher in fairly uneventful Monday trading, ending near best levels. The big focus today was on US-China trade de-escalation after weekend updates about a "framework" deal to avoid the large threatened tariff hike. The peak week of Q3 earnings season is ahead with about 36% of the S&P 500 scheduled to report.

US equities were higher this week with S&P 500, Nasdaq Composite, and DJIA all setting new record highs. Big tech was mostly higher with AMZN the standout, while TSLA lagged the pack. Other outperformers included semis, energy equipment, casinos, department, stores, hotels, chemicals, machinery, and A&D. Underperformers included consumer staples, utilities, telecoms, entertainment, railways, trucking, and precious metals miners.

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.