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— Ronald Reagan

DAILY RECAP

Tuesday, October 6th

The Nasdaq and S&P 500 Hit Records

Stocks said “Not Today” to the Bond Sell-Off

S&P 500 – 7,818.93 (+0.58%)

Dow Jones – 51,521.28 (+0.49%)

NASDAQ – 27,599.79 (+0.45%)

TOP HEADLINES OF THE DAY

Wall Street Shrugs Off Bond Market Turmoil: Stocks pushed higher Tuesday despite weeks of pressure in global bond markets, with the S&P 500 and Nasdaq both closing at fresh records. Easing Treasury yields and softer oil prices gave investors some breathing room, while optimism around corporate earnings and the AI boom kept risk appetite firmly intact.

AI Trade Keeps Running the Show: AI remained the market’s biggest engine, with investors piling into semiconductors, data-center infrastructure and the power companies positioned to feed the technology boom. Nvidia edged closer to a $6 trillion valuation while strong moves in Marvell, AMD and other chip names showed investors are still willing to chase the AI growth story.

Earnings Season Moves into Focus: With third-quarter earnings about to ramp up, investors are looking for corporate profits to justify increasingly lofty valuations. Goldman Sachs estimates S&P 500 earnings could grow 27%, with AI-related companies expected to account for more than half of that growth.

STOCKS MAKING MOVES

Marvell Technology: Marvell surged roughly 8% after laying out an ambitious $20 billion revenue target for fiscal 2028, giving investors another reason to believe its AI infrastructure opportunity has plenty of runway.

Constellation Energy: Constellation Energy jumped about 13% after Google announced a $4.3 billion, 20-year agreement tied to 890 megawatts of nuclear power, highlighting the enormous electricity demand being created by AI data centers.

AMD: Advanced Micro Devices climbed to another record after Citi raised its price target to $800 from $575 and boosted its long-term view of the CPU market, pointing to potentially massive demand from agentic AI.

Constellation Brands: Constellation Brands delivered a mixed quarter, with earnings of $3.32 per share falling short of the $3.61 consensus estimate while revenue came in ahead of expectations at $2.63 billion versus $2.54 billion. The company also provided fiscal 2027 EPS guidance of $11.20 to $11.90.

Novavax And Moderna: The biotech names reversed sharply after the World Health Organization said the risk of a potential plague epidemic remains low. Novavax fell roughly 9% and Moderna dropped about 5%, giving back much of Monday’s surge.

Option Care Health: Shares jumped on reports that the company could be involved in potential joint buyout discussions with McKesson and private-equity firm Clayton, Dubilier & Rice.

Memory Stocks: Sandisk, Seagate Technology and Western Digital came under pressure amid concerns that Toshiba could expand its hard-drive capacity, potentially adding more competition to an already closely watched storage market.

MARKET NOTABLES

The Record Rally Continues: The S&P 500 gained 0.58% to 7,818.93, the Dow rose 0.49% to 51,521.28 and the Nasdaq climbed 0.45% to 27,599.79. The S&P and Nasdaq both finished at record levels, extending a rally that has increasingly been powered by technology and AI optimism.

Treasury Yields Finally Cool Off: The 10-year Treasury yield slipped to roughly 5.27%-5.28% after reaching its highest level since 2002, offering some relief to stocks that had been under pressure from the recent bond sell-off.

Oil Gives Markets a Break: Brent crude hovered around $100 while WTI settled near $89, with resilient Middle Eastern exports and a G7 emergency stockpile release helping ease some supply concerns. Lower energy prices also helped calm fears that another oil shock could fuel inflation.

France Remains a Bond-Market Wild Card: French 10-year yields remained elevated after recently climbing above 5% for the first time since 2002. Political and fiscal concerns continue to put pressure on European debt markets, although French yields eased Tuesday.

Small Caps Lag Behind: While the major indexes hit records, the Russell 2000 slipped 0.6% to 2,830.30, underscoring how much of the market’s strength continues to be concentrated in larger companies and technology.

The Market Is Looking Ahead: With the major indexes back at records, the next test is whether earnings can keep the rally moving. PepsiCo reports Thursday, Delta Air Lines reports Friday, and a heavy slate of major financial and healthcare earnings arrives next Tuesday.

EARNINGS SPOTLIGHT

Wells Fargo (WFC) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. Earnings are expected to be released on October 13. According to the Zacks Consensus Estimate, the bank is expected to post quarterly earnings of $1.85 per share in its upcoming report, which represents a year-over-year change of +6.9%. Revenues are expected to be $22.13 billion, up 3.2% from the year-ago quarter.

WHAT TO WATCH

October 8: Expected earnings from PepsiCo (PEP).
October 9: Expected earnings from Delta Air Lines (DAL) and preliminary University of Michigan October consumer sentiment.
October 12: No major earnings or data expected.
October 13: Expected earnings from JPMorgan Chase (JPM), Goldman Sachs (GS), Wells Fargo (WFC), Citigroup (C), UnitedHealth Group (UNH), Johnson & Johnson (JNJ), Domino's Pizza (DPZ). and existing home sales for September.