Strength in Tech and Weakness in Crude Oil Boost Stocks

The S&P 500 Index ($SPX) (SPY) is up +1.56% today, the Dow Jones Industrial Average ($DOWI) (DIA) is up +1.39%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +2.17%.  December E-mini S&P futures (ESZ26) are up +1.53%, and December E-mini Nasdaq futures (NQZ26) are up +2.29%.

US stock indices are climbing sharply today as dip buyers step in to buy recently beaten-down chipmakers and AI-infrastructure stocks.  The Magnificent Seven technology stocks are also rallying 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. 

On the negative side, 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.

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 +1.58%.  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 up +4 ticks today.  The 10-year T-note yield is down -1.8 bp to 4.839%.  T-notes are moving higher today, supported by a -3% fall in WTI crude oil prices, which have weakened inflation expectations.  The 10-year breakeven inflation rate tumbled to a 3-month low of 2.217% today.

T-note gains are limited as today’s stock rally curbs safe-haven demand for T-notes.  Also, 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.

The markets are now pricing in an 81% chance of a +25 bp rate hike at the FOMC’s next meeting on December 8-9. 

European government bond yields are moving lower today.  The 10-year German bund yield is down -2.5 bp to 3.229%.  The 10-year UK gilt yield is down -5.6 bp to 5.098%.

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 82% 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.  Amazon.com (AMZN) is up more than +5% to lead gainers in the Dow Jones Industrials, and Meta Platforms (META) and Tesla (TSLA) are up more than +4%.  Also, Alphabet (GOOGL) is 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), Western Digital (WDC), and Applied Materials (AMAT) are up more than +7%, and Broadcom (AVGO), Seagate Technology Holdings Plc (STX), and Marvell Technology (MRVL) are up more than +6%.  Also, ASML Holding NV (ASML), Lam Research (LRCX), and KLA Corp (KLAC) are up more than +5%, and ARM Holdings Plc (ARM), Analog Devices (ADI), and Micron Technology (MU) are up more than +4%.

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), and Carnival (CCL) are up more than +4%.  Also, Royal Caribbean Cruises (RCL) and Norwegian Cruise Line Holdings (NCLH) are up more than +3%.

Immunovant (IMVT) is up more than +12% after reporting Q2 cash and cash equivalents of $722.3 million, well above the consensus of $641.7 million.

QXO Inc. (QXO) is up more than +11% after reporting preliminary Q3 net sales of about $4.9 billion.

Ferguson Enterprises (FERG) is up more than +10% to lead gainers in the S&P 500 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 +5% after selling 4.9 GW of natural gas assets to LS Power for $4 billion in cash.

Roivant Sciences (ROIV) is up more than +4% after reporting Q2 R&D expenses of $145.7 million, below the consensus of $196.1 million.

Ionis Pharmaceuticals (IONS) is down more than -22% 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 S&P 500, 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 -7% 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. For more information please view the Barchart Disclosure Policy here.