Software and cybersecurity sectors rally; Moderna surges 14.21% to hit a 52-week high.
Semiconductors dip; telecom shares plummet; investors eye upcoming inflation data and bank earnings.
U.S. stock indices ended the session higher on the 9th (local time). Gains in large-cap stocks, particularly Microsoft and Amazon, provided a floor for the market, alongside strength in the software and cybersecurity sectors. Conversely, semiconductor stocks struggled, and telecom shares plummeted amid concerns over increased competition following SpaceX's expansion into the mobile communications business.
The Dow Jones Industrial Average rose 423.31 points (0.83%) to close at 51,654.95. The S&P 500 index climbed 46.18 points (0.59%) to 7,811.54, while the Nasdaq Composite index finished up 172.83 points (0.64%) at 27,366.17. All three major indices recorded gains for the week.
Among mega-cap tech stocks, Microsoft added 2.38% and Amazon rose 3.29%. Tesla gained 2.05%, while Alphabet climbed 0.97%. However, performance was mixed, with Apple falling 1.11% and Meta losing 0.31%.
Apple was pressured by reports of production adjustments. News emerged that the company had requested certain suppliers to reduce parts production for the iPhone 18 Pro and Pro Max models. These reports also highlighted the potential impact of rising memory prices and product price hikes on consumer demand.
Software and cybersecurity stocks saw notable gains. Palantir rose 5.17%, Oracle added 4.21%, while Palo Alto Networks and CrowdStrike advanced 5.09% and 4.57%, respectively. Fortinet also joined the rally, finishing 2.99% higher.
Semiconductor stocks, however, bucked the trend. Nvidia fell 0.52%, AMD dropped 2.03%, and Intel slid 2.22%. Micron retreated 0.66%. While Broadcom managed a 0.39% gain, the Philadelphia Semiconductor Index closed down 51.30 points (0.41%) at 12,572.42.
In the telecom sector, news of SpaceX’s frequency acquisition triggered a sell-off. With SpaceX set to acquire Grain Management’s 800 MHz spectrum portfolio across the U.S., concerns grew that Starlink Mobile could intensify competition for existing carriers. The deal remains subject to regulatory approval. T-Mobile plummeted 13.27%, while Verizon and AT&T also saw significant losses.
In healthcare, Moderna’s surge stood out. The stock closed at $225, up 14.21%, after hitting a 52-week high during intraday trading. Sentiment was boosted by reports of a public-private partnership involving the National Institutes of Health (NIH) to develop cancer vaccines, coinciding with Moderna's re-inclusion in the Nasdaq 100 index. UnitedHealth rose 2.25%, Johnson & Johnson added 1.93%, and Merck gained 2.26%.
Major bank stocks also rose ahead of upcoming earnings reports. Wells Fargo climbed 1.85%, Goldman Sachs added 1.44%, and Bank of America rose 1.32%.
Despite the rally in equity prices, consumer sentiment showed little sign of improvement. The University of Michigan’s preliminary October Consumer Sentiment Index fell to 46.3 from September’s 48.1. One-year inflation expectations ticked up from 4.6% to 4.7%, while long-term expectations rose from 3.4% to 3.5%. The university noted that high prices and borrowing costs have soured assessments of conditions for purchasing durable goods.
Next week will see a flurry of third-quarter earnings from major banks and key U.S. inflation data. JP Morgan Chase and Goldman Sachs are scheduled to report on the 13th, followed by the release of the September Consumer Price Index (CPI) on the 14th. Investors are closely watching whether corporate profits can justify current valuations and how inflation trends will influence the Federal Reserve's stance on further interest rate hikes.
