Market Wrap
Published
The S&P 500 added 0.6%, with the advance unfolding against a tightening Treasury market that pushed the 30-year yield to a fresh 24-year high above 5.69% and the 10-year to roughly 5.31%, even as September's final composite PMI confirmed a pickup to 58.4 from 56.0 in August and the ISM services index eased slightly to 54.9 from 55.4.
Oil-market strain remained the backdrop. Saudi Aramco's chief executive called global supply "dangerously low," and US Strategic Petroleum Reserve stocks fell to 283 million barrels, their lowest level since 1982. Reports of an attack on the Saudi east-west pipeline briefly pared Brent's losses, while Kuwait said it is pumping at about 75% of its prewar rate and Qatar's LNG force majeure kept global gas prices elevated. Meanwhile Brazil's real jumped more than 4% and Brazil-linked assets rallied hard as Jair Bolsonaro led early vote counts in the presidential election, driving the Brazil ETF and the Latin America ETF each up double digits and lifting Mercado Libre.
Materials led all sectors, up 1.5%, with FMC Corp up 7.0% and Nucor up 5.0%. Energy rose 0.9% even as crude-linked ETFs such as USO and BNO fell, with oilfield services names like Transocean and Helmerich & Payne among the strongest gainers. Health Care gained 0.7%, led by Moderna's 6.7% jump and broad strength in medical-device names including Intuitive Surgical and Stryker. Financials rose 0.7% on strength in exchanges and payments names, Cboe Global Markets up 3.3% and Visa up 2.5%. Technology added 0.5%, with Western Digital up 6.2% and Nvidia up 2.4%, while Intel and Corning lagged. Real Estate was the lone sector in the red, down 0.4%, and Industrials were roughly flat as C.H. Robinson tumbled 10.8%.
Company News
- PTC surged after agreeing to be acquired by Schneider Electric for $205 per share in an all-cash deal valuing its equity at about $22.6 billion.
- C.H. Robinson Worldwide agreed to acquire RXO in a stock-and-cash deal valued at $5.8 billion, creating a combined company with an enterprise value above $25 billion.
- Skyworks Solutions completed its merger with Qorvo, with Qorvo holders receiving $32.50 in cash plus 0.960 of a Skyworks share per share.
- Matador Resources completed its $1.255 billion acquisition of Paloma Permian from EnCap Investments.
- Chevron announced that Eimear Bonner will step down as CFO to lead its oil, products and gas business, succeeded by Jeff Gustavson effective January 1, 2027.
- Strategy estimated a $20.91 billion gain on its digital-asset holdings for the third quarter, with bitcoin holdings reaching 848,000 coins.
- Synopsys entered a $1 billion accelerated share repurchase agreement with JPMorgan.
- Texas opened a probe into UnitedHealth Group over alleged unlawful practices.