Cadence Design Systems, Inc. provides software, hardware, services, and reusable integrated circuit (IC) design blocks worldwide. The company offers functional verification services, including emulation and prototyping hardware. Its functional verification offering consists of JasperGold, a formal verification platform; Xcelium, a parallel logic simulation platform; Palladium, an enterprise emulation platform; and Protium, a prototyping platform for chip verification. The company also provides digital IC design and sign off products, including Genus synthesis and Joules RTL power solutions, as well as Modus DFT software solution to reduce systems-on-chip design-for-test time; physical implementation tools, such as place and route, optimization, and multiple patterning preparation; and Innovus implementation system, a physical implementation system. In addition, it offers custom IC design and simulation products to create schematic and physical representations of circuits down to the transistor level for analog, mixed-signal, custom digital, memory, and radio frequency designs; and system design and analysis products to develop printed circuit boards and IC packages, as well as to analyze electromagnetic, electro-thermal, and other multi-physics effects. Further, the company provides intellectual property (IP) products comprising pre-verified and customizable functional blocks to integrate into customer's ICs; and verification IP with memory models to emulate and model the expected behavior and interaction of standard industry system interface protocols. Additionally, it offers services related to methodology, education, and hosted design solutions, as well as technical support and maintenance services. The company serves consumer, hyperscale computing, 5G communications, mobile, automotive, aerospace and defense, industrial, and life science industries. Cadence Design Systems, Inc. was incorporated in 1987 and is headquartered in San Jose, California.

Cadence Design Systems looks like a high-quality business with very strong profitability, but the market has already priced in a notably high level of expectations. Revenue has grown steadily in recent periods, and gross profit, EBITDA, operating profit, and net profit have all increased along with it, confirming strong product monetization and sustained demand. Margins are at a very high level: gross margin is around 86%, operating margin is above 30%, and net margin is about 24%, which is significantly better than the industry median. Return metrics are also strong: ROE, ROA, ROI, and return on tangible equity are noticeably above industry benchmarks, indicating efficient use of capital. At the same time, leverage is moderate: debt/equity is low, but debt remains material and has hardly declined, so the balance sheet cannot be called risk-free. Liquidity is generally acceptable, although the current ratio is slightly below the industry median and the quick ratio is only around average, which does not provide a large margin of safety. The main limiting factor is valuation: P/E, P/S, P/B, and P/FCF are all substantially above industry medians, meaning the stock already trades at a premium for quality and growth. Such a premium is justified by strong profitability and steady performance, but it limits the potential for further upward re-rating. The absence of dividends means the investor receives returns only through share price appreciation, which makes the stock more sensitive to de-rating. Overall, the company’s fundamentals are solid, but not undervalued enough to warrant an aggressive increase in the target price. For a conservative investor, this is more of a quality-growth story with a high valuation than a clear opportunity for strong upside.

Cadence Design Systems, Inc.

Сильный индекс, без изменений. Быки в растерянности.

Strong index, flat. The bulls are confused.

Сильный индекс, незначительно упал. Медведи в растерянности.

Strong index, slightly down. The bears are confused.

Сильный индекс, значительно вырос. Рынок на стороне быков.

Strong index, significantly up. The market is on the bulls' side.

Сильный индекс, незначительно упал. Рынок не поддерживает медведей.

Strong index, slightly down. The market does not support the bears.

Слабый индекс, незначительно упал

Слабый индекс, значительно вырос. Увеличился приток средств в шорты.

Weak index, significantly up. The inflow of funds into shorts has increased.

CDNS has strong revenue and profit growth with very high margins, but premium valuation multiples and moderate liquidity limit its re-rating potential.

Cadence Design Systems (CDNS) closed the most recent trading day at $334.20, moving -4.08% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.02%. Meanwhile, the Dow experienced a drop of 0.35%, and the technology-dominated Nasdaq saw a decrease of 0.15%.
The maker of hardware and software products for validating chip designs's stock has climbed by 24.85% in the past month, exceeding the Computer and Technology sector's gain of 3.58% and the S&P 500's gain of 2.05%.
Investors will be eagerly watching for the performance of Cadence Design Systems in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 26, 2026. In that report, analysts expect Cadence Design Systems to post earnings of $2.04 per share. This would mark year-over-year growth of 5.7%. Our most recent consensus estimate is calling for quarterly revenue of $1.61 billion, up 20.27% from the year-ago period.
CDNS's full-year Zacks Consensus Estimates are calling for earnings of $8.13 per share and revenue of $6.32 billion. These results would represent year-over-year changes of +13.87% and +19.31%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Cadence Design Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.19% rise in the Zacks Consensus EPS estimate. Cadence Design Systems is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, Cadence Design Systems currently has a Forward P/E ratio of 42.83. This indicates a premium in contrast to its industry's Forward P/E of 16.57.
Meanwhile, CDNS's PEG ratio is currently 2.94. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computer - Software industry currently had an average PEG ratio of 1.49 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 54, which puts it in the top 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Why Cadence Design Systems (CDNS) Dipped More Than Broader Market Today

Cadence Design Systems (CDNS) ended the recent trading session at $348.42, demonstrating a -1.25% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.06%. Elsewhere, the Dow gained 0.38%, while the tech-heavy Nasdaq lost 0.44%.
The stock of maker of hardware and software products for validating chip designs has risen by 21.93% in the past month, leading the Computer and Technology sector's gain of 4.85% and the S&P 500's gain of 2.36%.
Analysts and investors alike will be keeping a close eye on the performance of Cadence Design Systems in its upcoming earnings disclosure. The company's earnings report is set to go public on October 26, 2026. The company is predicted to post an EPS of $2.04, indicating a 5.7% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.61 billion, up 20.27% from the year-ago period.
CDNS's full-year Zacks Consensus Estimates are calling for earnings of $8.13 per share and revenue of $6.32 billion. These results would represent year-over-year changes of +13.87% and +19.29%, respectively.
Investors should also note any recent changes to analyst estimates for Cadence Design Systems. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.17% higher. Cadence Design Systems presently features a Zacks Rank of #2 (Buy).
Digging into valuation, Cadence Design Systems currently has a Forward P/E ratio of 43.38. This indicates a premium in contrast to its industry's Forward P/E of 16.72.
Meanwhile, CDNS's PEG ratio is currently 2.97. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computer - Software industry currently had an average PEG ratio of 1.51 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 52, finds itself in the top 22% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).

Cadence Design Systems (CDNS) Declines More Than Market: Some Information for Investors

The S&P 500 Index ($SPX) (SPY) closed down by -0.25% on Wednesday, the Dow Jones Industrial Average ($DOWI) (DIA) closed down by -0.86%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.23%. December E-mini S&P futures (ESZ26) fell -0.25%, and December E-mini Nasdaq futures (NQZ26) rose +0.24%.
Stock indexes settled mixed on Wednesday, with the Dow Jones Industrial falling to a 3.5-month low. Stocks erased early gains as the broader market turned lower, as rising crude oil prices boosted inflation expectations and pushed bond yields higher. WTI crude rose more than +1% on Wednesday, and the 10-year T-note yield climbed to a 19-year high of 5.30%.
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Stocks initially rose on Wednesday as inflation concerns eased after the Q2 core PCE price index was revised lower and the Aug core PCE price index rose less than expected. The better-than-expected inflation news reduced the chance of a Fed rate hike next month to 37% from 52% on Tuesday. Also, signs of growth in the US economy supported stocks after Q2 GDP was revised higher, the Sep ADP employment change rose more than expected, and Aug personal spending rose the most in 5 months. Stocks added to their gains after the Sep MNI Chicago PMI expanded at the strongest pace in 4 months.
Stocks are awaiting Micron Technology's earnings after Wednesday’s close to gauge demand for AI spending.
US MBA mortgage applications fell -6.0% in the week ended September 25, with the purchase mortgage sub-index down -4.3% and the refinancing mortgage sub-index down -8.7%. The average 30-year fixed-rate mortgage rose +18 bp to a 2.75-year high of 7.30% from 7.12% the prior week.
The US Sep ADP employment change rose by +90,000, stronger than expectations of +75,000.
US Aug personal spending rose by +0.9% m/m, right on expectations and the largest increase in five months. Aug personal income rose +0.2% m/m, weaker than expectations of +0.5% m/m.
The US Aug core PCE price index, the Fed's preferred inflation gauge, rose +0.2% m/m and +3.0% y/y, weaker than expectations of +0.3% m/m and +3.3% y/y.
US Q2 GDP was revised upward to +2.2% (q/q annualized), stronger than expectations of no change at +1.5%, as Q2 personal consumption was revised upward to +3.8% from the previously reported +3.4%. The Q2 core PCE price index was revised downward to +3.3% from the previously reported +3.6%.
The US Sep MNI Chicago PMI rose +11.7 to 58.8, stronger than expectations of 51.0 and the fastest pace of expansion in four months.
Positive economic news from China supported global growth prospects and boosted stocks. The China Sep manufacturing PMI rose +0.3 to 50.1, right on expectations. The China Sep non-manufacturing PMI rose +1.2 to 50.2, stronger than expectations of 49.2.
Nov WTI crude oil prices (CLX26) rose more than +1% on Wednesday after Russia announced that it was extending a ban on most diesel exports through October, further tightening theglobal market Russia began its diesel export ban in July after Ukrainian drone and missile attacks damaged Russian refineries. Gains in crude are limited after JPMorgan Chase said Middle East crude exports have rebounded to 17.5 million bpd, or about 98% of pre-war levels, although flows of gasoline, diesel and distillates were at 3 million bpd, or 58% of pre-war levels.
Markets are discounting a 37% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets settled mixed on Wednesday. The Euro Stoxx 50 closed down -0.81%. China's Shanghai Composite closed up +0.31%. Japan's Nikkei-225 Stock Average closed up +1.94%.
Interest Rates
December 10-year T-notes (ZNZ6) closed down -7 ticks on Wednesday. The 10-year T-note yield rose +5.7 bp to 5.293%. Dec T-notes tumbled to a 19-year nearest-futures low on Wednesday, and the 10-year T-note yield rose to a 19-year high of 5.304%. T-notes gave up an early advance on Wednesday and turned lower on stronger-than-expected US economic news, including Q2 GDP, the Sep ADP employment change, and the Sep MNI Chicago PMI. Also, Wednesday’s +1% increase in WTI crude oil raised inflation expectations and weighed on T-notes. The 10-year break-even inflation rate rose to a 2-week high of 2.375% on Wednesday.
T-notes initially moved higher on Wednesday as inflation concerns eased after the Q2 core PCE price index was revised lower and the Aug core PCE price index rose less than expected. The weaker-than-expected inflation readings reduced the chance of a Fed rate hike next month to 37% from 52%. T-notes also have support from some month- and quarter-end buying by bond fund managers on Wednesday as they extend duration in their portfolios.
European government bond yields were mixed on Wednesday. The 10-year German bund yield fell -4.0 bp to 3.586%. The 10-year UK gilt yield matched Monday’s 19-year high of 5.437% on Wednesday and finished up +1.4 bp at 5.424%.
The German Sep unemployment change rose +12,000, showing a weaker labor market than expectations of 500.
German Aug retail sales rose +1.3% m/m, the largest increase in 14 months but slightly weaker than expectations of +1.5% m/m.
German Sep CPI (EU harmonized) rose +0.6% m/m and +3.3% y/y, stronger than expectations of +0.5% m/m and +3.2% y/y, with the +3.3% y/y gain the largest year-on-year increase in 2.75 years.
UK Q2 GDP was revised upward to +0.5% q/q and +1.4% y/y from the previously reported +0.4% q/q and +1.2% y/y.
Markets are discounting a 26% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Software stocks were stronger on Wednesday, a positive factor for the broader market. ServiceNow (NOW) closed up more than +3%, and Adobe Systems (ADBE), Intuit (INTU), and Autodesk (ADSK) closed up more than +2%. Also, Salesforce (CRM) closed up more than +1% to lead gainers in the Dow Jones Industrials, and Datadog (DDOG), Atlassian Corp (TEAM), Microsoft (MSFT), and Cadence Design Systems (CDNS) closed up more than +1%.
Cybersecurity stocks rose on Wednesday. Gen Digital (GEN) closed up more than +5% to lead gainers in the S&P 500, and Okta (OKTA), Palo Alto Networks (PANW), and SentinelOne (S) closed up more than +2%. Also, Fortinet (FTNT) closed up more than +1%, Crowdstrike Holdings (CRWD) closed up +0.81%, and Zscaler (ZS) closed up +0.71%.
Fair Isaac (FICO) closed down -4%, adding to Tuesday’s -26% plunge and leading credit reporting agencies lower on negative carryover from Tuesday when FHA director Pulte announced a move that makes it easier for lenders to adopt VantageScore, a move that will increase competition that could pressure credit companies’ market share and pricing power. TransUnion (TRU) also closed down more than -4% and Equifax (EFX) closed down more than -2%.
Moderna (MRNA) closed down more than -5% after Citigroup downgraded the stock to sell from neutral with a price target of $80.
Northrup Grumman (NOC) closed down more than -4% after losing out to Boeing on the $20 billion contract to build the Navy’s next-generation fighter jet.
Walmart (WMT) closed down more than -2% to lead losers in the Dow Jones Industrials after Target announced additional price cuts, which may lead to lower profits at Walmart if it is forced to follow suit.
Synopsys (SNPS) closed up more than +4% to lead gainers in the Nasdaq 100 after signing a deal with Amazon.com valued at over $1 billion over multiple years.
Hewlett Packard Enterprise (HPE) closed up more than +3% after raising its fiscal 2027 networking segment revenue growth outlook.
FactSet Research Systems (FDS) closed up more than +3% after forecasting 2027 adjusted operating margin of 34.8% to 35.3%, above the consensus of 34.4%.
Huntington Ingalls Industries (HII) closed up more than +2% after the US Navy awarded the company a $5.1 billion contract to complete the USS Harry S. Truman refueling and complex overhaul.
Earnings Reports (10/1/2026)
Accenture PLC (ACN), Acuity Inc (AYI), American Resources Corp (AREC), McCormick & Co Inc/MD (MKC), NIKE Inc (NKE).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions 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.

Stocks Pressured by Rising Bond Yields

The S&P 500 Index ($SPX) (SPY) is up by +0.63% today, the Dow Jones Industrial Average ($DOWI) (DIA) is up by +0.15%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.75%. December E-mini S&P futures (ESZ26) are up +0.55%, and December E-mini Nasdaq futures (NQZ26) are up +0.72%.
Stock indexes are moving higher today as inflation concerns eased after the Q2 core PCE price index was revised lower and the Aug core PCE price index rose less than expected. The better-than-expected inflation news reduced the chance of a Fed rate hike next month to 35% from 52% on Tuesday. Also, signs of growth in the US economy supported stocks after Q2 GDP was revised higher, the Sep ADP employment change rose more than expected, and Aug personal spending rose the most in 5 months. Stocks added to their gains after the Sep MNI Chicago PMI expanded at the strongest pace in 4 months.
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Stocks are awaiting Micron Technology's earnings after the close today to gauge demand for AI spending.
US MBA mortgage applications fell -6.0% in the week ended September 25, with the purchase mortgage sub-index down -4.3% and the refinancing mortgage sub-index down -8.7%. The average 30-year fixed-rate mortgage rose +18 bp to a 2.75-year high of 7.30% from 7.12% the prior week.
The US Sep ADP employment change rose by +90,000, stronger than expectations of +75,000.
US Aug personal spending rose by +0.9% m/m, right on expectations and the largest increase in five months. Aug personal income rose +0.2% m/m, weaker than expectations of +0.5% m/m.
The US Aug core PCE price index, the Fed's preferred inflation gauge, rose +0.2% m/m and +3.0% y/y, weaker than expectations of +0.3% m/m and +3.3% y/y.
US Q2 GDP was revised upward to +2.2% (q/q annualized), stronger than expectations of no change at +1.5%, as Q2 personal consumption was revised upward to +3.8% from the previously reported +3.4%. The Q2 core PCE price index was revised downward to +3.3% from the previously reported +3.6%.
The US Sep MNI Chicago PMI rose +11.7 to 58.8, stronger than expectations of 51.0 and the fastest pace of expansion in four months.
Positive economic news from China supported global growth prospects and boosted stocks. The China Sep manufacturing PMI rose +0.3 to 50.1, right on expectations. The China Sep non-manufacturing PMI rose +1.2 to 50.2, stronger than expectations of 49.2.
Nov WTI crude oil prices (CLX26) are up more than +2% today after Russia announced that it was extending a ban on most diesel exports through October, further tightening theglobal market Russia began its diesel export ban in July after Ukrainian drone and missile attacks damaged Russian refineries. Gains in crude are limited after JPMorgan Chase said Middle East crude exports have rebounded to 17.5 million bpd, or about 98% of pre-war levels, although flows of gasoline, diesel and distillates were at 3 million bpd, or 58% of pre-war levels.
Markets are discounting a 35% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets are mixed today. The Euro Stoxx 50 is down -0.36%. China's Shanghai Composite closed up +0.318%. Japan's Nikkei-225 Stock Average closed up +1.94%.
Interest Rates
December 10-year T-notes (ZNZ6) are down -3 ticks today. The 10-year T-note yield is up +1.3 bp to 5.268%. Dec T-notes gave up an early advance today and turned lower on stronger-than-expected US economic news, including Q2 GDP, the Sep ADP employment change, and the Sep MNI Chicago PMI. Also, today’s +2% increase in WTI crude oil is raising inflation expectations and is bearish for T-notes. The 10-year breakeven inflation rate rose to a 2-week high of 2.365% today.
T-notes initially moved higher today as inflation concerns eased after the Q2 core PCE price index was revised lower and the Aug core PCE price index rose less than expected. The weaker-than-expected inflation readings reduced the chance of a Fed rate hike next month to 35% from 52%. T-notes also have support from some month- and quarter-end buying by bond fund managers today as they extend duration in their portfolios.
European government bond yields are mixed today. The 10-year German bund yield is down -4.9 bp to 3.577%. The 10-year UK gilt yield is up +0.5 bp to 5.415%.
The German Sep unemployment change rose +12,000, showing a weaker labor market than expectations of 500.
German Aug retail sales rose +1.3% m/m, the largest increase in 14 months but slightly weaker than expectations of +1.5% m/m.
German Sep CPI (EU harmonized) rose +0.6% m/m and +3.3% y/y, stronger than expectations of +0.5% m/m and +3.2% y/y, with the +3.3% y/y gain the largest year-on-year increase in 2.75 years.
UK Q2 GDP was revised upward to +0.5% q/q and +1.4% y/y from the previously reported +0.4% q/q and +1.2% y/y.
Markets are discounting a 28% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Software stocks are stronger today, supporting gains in the broader market. Atlassian Corp (TEAM) is up more than +3%, and Salesforce (CRM) is up more than +3% to lead gainers in the Dow Jones Industrials. Also, Datadog (DDOG), Adobe Systems (ADBE), Autodesk (ADSK), and Intuit (INTU) are up more than +2%. In addition, Microsoft (MSFT), Palantir Technologies (PLTR), ServiceNow (NOW), and Cadence Design Systems (CDNS) are up more than +1%.
Cybersecurity stocks are strengthening today, providing support to the overall market. Gen Digital (GEN) is up more than +6%, and Okta (OKTA) and Palo Alto Networks (PANW) are up more than +3%. Also, Fortinet (FTNT) and SentinelOne (S) are up more than +2%, and Crowdstrike Holdings (CRWD) and Zscaler (ZS) are up more than +1%.
Hewlett Packard Enterprise (HPE) is up more than +7% to lead gainers in the S&P 500 after raising its fiscal 2027 networking segment revenue growth outlook.
Huntington Ingalls Industries (HII) is up more than +2% after the US Navy awarded the company a $5.1 billion contract for the accomplishment of the USS Harry S. Truman refueling and complex overhaul.
Target (TGT) is up more than +1% after HSBC upgraded the stock to buy from hold with a price target of $190.
Moderna (MRNA) is down more than -7% to lead losers in the S&P 500 after Citigroup downgraded the stock to sell from neutral with a price target of $80.
Cal-Maine Foods (CALM) is down more than -3% after reporting Q1 net sales of $539.6 million, below the consensus of $552.2 million.
Northrup Grumman (NOC) is down more than -3% after losing out to Boeing on the $20 billion contract to build the Navy’s next-generation fighter jet.
Earnings Reports (9/30/2026)
Cal-Maine Foods Inc (CALM), Conagra Brands Inc (CAG), FactSet Research Systems Inc (FDS), Jabil Inc (JBL), Micron Technology Inc (MU), Progress Software Corp (PRGS).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions 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.

Stocks Push Higher as Fed Rate Hike Chances Fall

The S&P 500 Index ($SPX) (SPY) is up by +0.03% today, the Dow Jones Industrial Average ($DOWI) (DIA) is up by +0.01%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.10%. December E-mini S&P futures (ESZ26) are up +0.05%, and December E-mini Nasdaq futures (NQZ26) are up +0.09%.
Stock indexes are moving higher today. Stocks are supported today as lower crude prices have stabilized bond yields. Crude prices are under pressure today on signs that a steady flow of crude oil is coming out of the Persian Gulf through the Strait of Hormuz, easing supply concerns and inflation risks. The 10-year T-note yield is little changed today at 5.23% after soaring to a 19-year high of 5.27% on Monday.
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Today’s US economic news showed the July S&P composite-20 home price index rose +0.3% m/m and +2.47% y/y, stronger than expectations of +0.2% m/m and +2.20% y/y, with the +2.47% y/y gain the largest year-on-year increase in 14 months.
Nov WTI crude oil prices (CLX26) are down more than -1% today as signs of larger oil exports from Saudi Arabia are bearish for prices. Tracking data compiled by Bloomberg show Saudi Arabia's crude exports stood at 5.28 million bpd in September, the highest in seven months. Saudi Arabia also said it restored about 3.5 million bpd of the East-West Pipeline's 7 million bpd capacity on Monday after repairs restored the link damaged by drone strikes earlier this month. Crude losses are limited as hopes remain dim for an imminent breakthrough to end the war in Iran.
Markets are discounting a 70% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets are mixed today. The Euro Stoxx 50 rose to a 2.5-week high and is up +0.78%. China's Shanghai Composite closed up +0.18%. Japan's Nikkei-225 Stock Average closed down -0.60%.
Interest Rates
December 10-year T-notes (ZNZ6) are up +2 ticks today. The 10-year T-note yield is down -0.7 bp to 5.229%. T-note prices are moving higher today as a -1% decline in WTI crude oil prices is easing inflation expectations. T-notes also have support as some month-end buying occurs, as bond fund managers purchase T-notes ahead of month-end portfolio rebalancing on Wednesday. T-notes fell back from their best level after the July S&P composite-20 home price index rose more than expected.
European government bond yields are moving lower today. The 10-year German bund yield is down -4.8 bp to 3.595%. The 10-year UK gilt yield is down -5.5 bp to 5.367%.
The Eurozone Sep economic confidence indicator unexpectedly fell -0.5 to 97.9, weaker than expectations of an increase to 99.0.
Spain Sep CPI (EU harmonized) rose +5.0% y/y, stronger than expectations of +4.9% y/y and the largest increase in 3.5 years. Sep core CPI rose +3.1% y/y, stronger than expectations of +3.0% y/y.
Markets are discounting a 27% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Chipmakers and AI stocks are moving higher today, supporting gains in the broader market. The iShares Semiconductor ETF (SOXX) is up more than +1%. Applied Materials (AMAT) is up more than +4% to lead gainers in the Nasdaq 100, and KLA Corp (KLAC), Lam Research (LRCX), and Marvell Technology (MRVL) are up more than +3%. Also, ARM Holdings Plc (ARM), Broadcom (AVGO), and Microchip Technology (MCHP) are up more than +2%, and ASML Holding NV (ASML), Analog Devices (ADI), and Texas Instruments (TXN) are up more than +1%.
Cruise stocks are climbing today, led by a +11% jump in Carnival (CCL) to lead gainers in the S&P 500 after boosting its full-year adjusted EPS estimate to $2.24 from a previous estimate of $2.22. Also, Royal Caribbean Cruises (RCL) is up more than +5%, and Norwegian Cruise Line Holdings (NCLH) is up more than +4%.
Software stocks are under pressure for a second day today, limiting gains in the overall market. Datadog (DDOG) and Cadence Design Systems (CDNS) are down more than -3%. Also, Atlassian Corp (TEAM) is down more than -2%, and ServiceNow (NOW), Autodesk (ADSK), Microsoft (MSFT), and Workday (WDAY) are down more than -1%.
Fair Isaac (FICO) is down more than -20% to lead credit reporting agencies lower after FHA director Pulte announced a move that makes it easier for lenders to adopt VantageScore, a move that will increase competition that could pressure credit companies’ market share and pricing power. Equifax (EFX) and TransUnion (TRU) are also down more than -4%.
Summit Therapeutics (SMMT) is up more than +9% after AstraZeneca said it would make a $2 billion strategic equity investment in the company to jointly develop drugs.
CarMax (KMX) is up more than +7% after reporting Q2 net sales and operating revenue of $7.88 billion, well above the consensus of $7.05 billion.
FuelCell Energy (FCEL) is up more than +7% after Oppenheimer & Co initiated coverage on the stock with a recommendation of outperform and a price target of $24.
UniQure NV (QURE) is down more than -36% after saying the benefits of its Huntington’s disease gene therapy drug AMT-130 were not as good after four years as they were after three years in a small trial, a result that could complicate its bid to get the treatment approved by regulators.
Earnings Reports (9/29/2026)
AAR Corp (AIR), CarMax Inc (KMX), Carnival Corp Ltd (CCL), Concentrix Corp (CNXC), Critical Metals Corp (CRML), Uranium Energy Corp (UEC).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions 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.

Stocks Rebound as Crude Prices Fall and Bond Yields Stabilize

In early trading on Tuesday, shares of Honeywell International topped the list of the day's best performing components of the Nasdaq 100 index, trading up 7.5%. Year to date, Honeywell International registers a 42.2% gain.
And the worst performing Nasdaq 100 component thus far on the day is Cadence Design Systems, trading down 3.0%. Cadence Design Systems is showing a gain of 1.3% looking at the year to date performance.
Two other components making moves today are Walmart, trading down 2.7%, and Applied Materials, trading up 4.6% on the day.

Nasdaq 100 Movers: CDNS, HONIV

For Immediate Release
Chicago, IL – September 28, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: ExxonMobil Holdings Corp. XOM, Automatic Data Processing, Inc. ADP and Cadence Design Systems, Inc. CDNS, as well a micro-cap stock BranchOut Food Inc. BOF.
Here are highlights from Friday’s Analyst Blog:
Top Analyst Reports for ExxonMobil, Automatic Data Processing and Cadence
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including ExxonMobil Holdings Corp., Automatic Data Processing, Inc. and Cadence Design Systems, Inc., as well a micro-cap stock BranchOut Food Inc. The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Today's Featured Research Reports
ExxonMobil’s shares have outperformed the Zacks Oil and Gas - Integrated - International industry over the year-to-date period (+37.4% vs. +14.9%). The company’s investment case remains balanced between advantaged upstream growth and persistent market risk.
Record Permian output, continued Guyana development and LNG expansion support long-duration production and cash flow, while structural cost savings and low leverage strengthen financial flexibility and shareholder returns. However, earnings remain exposed to volatile oil, gas, refining and chemical markets, with Middle East disruptions adding operating uncertainty.
The pause of the Baytown blue hydrogen project due to insufficient demand also highlights weaker commercial visibility for emerging businesses and greater policy sensitivity. Product Solutions results can swing sharply with market conditions, while returns from newer investments depend on execution, customer adoption and durable demand over time.
(You can read the full research report on ExxonMobil here >>>)
Shares of Automatic Data Processing have gained +4.6% over the year-to-date period against the Zacks Internet - Software industry’s gain of +11.7%. The company’s global scale, broad HCM suite and AI-enabled service model support steady revenue growth and operating efficiency.
Automatic Data Processingss expanding enterprise offerings and targeted acquisitions deepen workforce management and compensation capabilities, while recurring cash generation supports dividends and share repurchases. However, the PEO business faces margin compression from zero-margin benefit pass-throughs, workers’ compensation and selling costs.
Competition for clients and skilled associates remains a risk and Employer Services retention is expected to ease modestly. Regulatory complexity also raises execution demands across ADP’s footprint, even as it supports demand for compliance expertise. The Zacks analyst maintain a Neutral recommendation on it in anticipation of a cheaper entry for investors.
(You can read the full research report on Automatic Data Processing here >>>)
Cadence’s shares have outperformed the Zacks Computer - Software industry over the year-to-date period (+3% vs. -5%). The company is benefiting from higher design complexity and rising customer spend on AI-driven automation. Amid rapid AI expansion, the Cadence.ai portfolio has been gaining strength and the new product launches (like ChipStack, ViraStack and InnoStack AI Super Agents) are expected to aid in sustaining the momentum.
The hardware systems continue to gain traction from AI, high-performance computing ("HPC"), robotics and automotive companies. Record backlog and a higher 2026 revenue outlook support visibility, while recurring revenues remain a stabilizing feature of the model.
Management now expects 2026 revenues in the band of $6.26-$6.34 billion compared with $5.3 billion in 2025. Stiff competition in the EDA space, along with heavy reliance on international markets and high goodwill and intangible assets on the balance sheet, remain concerns.
(You can read the full research report on Cadence here >>>)
Shares of BranchOut Food have outperformed the Zacks Food - Miscellaneous industry over the year-to-date period (+22.3% vs. -0.7%). This microcap company with a market capitalization of $63.25 million has its investment case increasingly supported by better revenue visibility, expanding recurring retail programs, a growing ingredient business and broader product applications.
Rising factory utilization and improved sourcing could strengthen unit economics as production scales, while European private-label opportunities add another potential growth channel. However, the outlook remains balanced by meaningful execution and financial risks. Liquidity remains tight, growth requires substantial working capital, and continued financing could lead to dilution.
Manufacturing is concentrated at a single facility, while customer concentration remains high. Sustained operating leverage will depend on converting higher volumes into improved profitability while keeping manufacturing and corporate costs under control.
(You can read the full research report on BranchOut Food here >>>)
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>
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This article originally published on Zacks Investment Research (zacks.com).

The Zacks Analyst Blog Highlights ExxonMobil, Automatic Data Processing and Cadence Design, BranchOut Food

Friday, September 25, 2026
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including ExxonMobil Holdings Corp. (XOM), Automatic Data Processing, Inc. (ADP) and Cadence Design Systems, Inc. (CDNS), as well a micro-cap stock BranchOut Food Inc. (BOF). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Ahead of Wall Street
The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> Pre-Markets Higher Despite Increasing Bond Yields
Today's Featured Research Reports
ExxonMobil’s shares have outperformed the Zacks Oil and Gas - Integrated - International industry over the year-to-date period (+37.4% vs. +14.9%). The company’s investment case remains balanced between advantaged upstream growth and persistent market risk.
Record Permian output, continued Guyana development and LNG expansion support long-duration production and cash flow, while structural cost savings and low leverage strengthen financial flexibility and shareholder returns. However, earnings remain exposed to volatile oil, gas, refining and chemical markets, with Middle East disruptions adding operating uncertainty.
The pause of the Baytown blue hydrogen project due to insufficient demand also highlights weaker commercial visibility for emerging businesses and greater policy sensitivity. Product Solutions results can swing sharply with market conditions, while returns from newer investments depend on execution, customer adoption and durable demand over time.
(You can read the full research report on ExxonMobil here >>>)
Shares of Automatic Data Processing have gained +4.6% over the year-to-date period against the Zacks Internet - Software industry’s gain of +11.7%. The company’s global scale, broad HCM suite and AI-enabled service model support steady revenue growth and operating efficiency.
Automatic Data Processingss expanding enterprise offerings and targeted acquisitions deepen workforce management and compensation capabilities, while recurring cash generation supports dividends and share repurchases. However, the PEO business faces margin compression from zero-margin benefit pass-throughs, workers’ compensation and selling costs.
Competition for clients and skilled associates remains a risk and Employer Services retention is expected to ease modestly. Regulatory complexity also raises execution demands across ADP’s footprint, even as it supports demand for compliance expertise. The Zacks analyst maintain a Neutral recommendation on it in anticipation of a cheaper entry for investors.
(You can read the full research report on Automatic Data Processing here >>>)
Cadence’s shares have outperformed the Zacks Computer - Software industry over the year-to-date period (+3% vs. -5%). The company is benefiting from higher design complexity and rising customer spend on AI-driven automation. Amid rapid AI expansion, the Cadence.ai portfolio has been gaining strength and the new product launches (like ChipStack, ViraStack and InnoStack AI Super Agents) are expected to aid in sustaining the momentum.
The hardware systems continue to gain traction from AI, high-performance computing ("HPC"), robotics and automotive companies. Record backlog and a higher 2026 revenue outlook support visibility, while recurring revenues remain a stabilizing feature of the model.
Management now expects 2026 revenues in the band of $6.26-$6.34 billion compared with $5.3 billion in 2025. Stiff competition in the EDA space, along with heavy reliance on international markets and high goodwill and intangible assets on the balance sheet, remain concerns.
(You can read the full research report on Cadence here >>>)
Shares of BranchOut Food have outperformed the Zacks Food - Miscellaneous industry over the year-to-date period (+22.3% vs. -0.7%). This microcap company with a market capitalization of $63.25 million has its investment case increasingly supported by better revenue visibility, expanding recurring retail programs, a growing ingredient business and broader product applications.
Rising factory utilization and improved sourcing could strengthen unit economics as production scales, while European private-label opportunities add another potential growth channel. However, the outlook remains balanced by meaningful execution and financial risks. Liquidity remains tight, growth requires substantial working capital, and continued financing could lead to dilution.
Manufacturing is concentrated at a single facility, while customer concentration remains high. Sustained operating leverage will depend on converting higher volumes into improved profitability while keeping manufacturing and corporate costs under control.
(You can read the full research report on BranchOut Food here >>>)
Other noteworthy reports we are featuring today include FirstEnergy Corp. (FE), Gen Digital Inc. (GEN) and BridgeBio Pharma, Inc. (BBIO).
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Advantaged Upstream Growth & LNG Expansion to Aid ExxonMobil (XOM)
Featured Reports
Data Center Demand and Grid Investment Aid FirstEnergy Corp.(FE)
Per the Zacks analyst, FirstEnergy Corp. benefits from rising contracted and pipeline data-center demand. Its grid investments strengthen reliability and support long-term earnings growth.
Gen Digital (GEN) Rides on Product and Customer Strength
Per the Zacks analyst, Gen Digital is gaining from solid demand for ID theft protection solutions such as dark web monitoring and ID advisor. Continued stabilization of customer count is a positive.
BridgeBio's (BBIO) New Potential Launches to Cut Dependency on Attruby
The Zacks analyst is encouraged by BridgeBio's potential product launches over the next 12 months. Three candidates are under FDA review, with the earliest approval decision expected before 2026-end.
Kirby (KEX) Benefits From Share Buyback Amid Rising Expenses
Per the Zacks analyst, rewarding shareholders through share buybacks boosts investor confidence and positively impacts Kirby's bottom line. Rising expenses continue to act as a concern.
Uranium Energy (UEC) Bets on Growth Projects, Execution Risks Remain
As per the Zacks analyst, Uranium Energy is poised to gain from its two operating in-situ recovery platforms and project pipeline. However elevated costs and regulatory delays remain risks.
Fastly's (FSLY) Platform Expansion Supports Growth Amid Rising Risks
Fastly benefits from deeper platform adoption, improving margins and cross-sell opportunities, but traffic volatility, pricing pressure and customer concentration temper the outlook.
Retail Growth & Cost Discipline Aid Cracker Barrel (CBRL)
Per the Zacks analyst, Cracker Barrel benefits from retail sales growth, lower costs and disciplined expense management. Also, improving guest metrics and loyalty engagement bode well.
New Upgrades
Teleflex (TFX) Streamlines Portfolio as Vascular Arm Gains Ground
The Zacks analyst is positive on Teleflex's focused portfolio, supported by Vascular growth, innovation, debt reduction and share repurchases that strengthen its long-term outlook.
Aerospace & Transportation Unit Benefits Constellium (CSTM)
Per the Zacks analyst, Constellium's Aerospace & Transportation segment is driven by higher revenue per ton, including higher metal prices. Its shareholder-friendly measures are encouraging.
Transaction Growth & AI Workflows Aid BILL Holdings (BILL) Prospects
Per the Zacks analyst, BILL Holdings gains from rising transaction activity, wider product adoption and AI workflows. Partnerships expand distribution, while spend tools deepen customer engagement.
New Downgrades
On Holding AG (ONON) Faces Tariff, Cost Pressures Outlook
Per the Zacks analyst, ONON faces tariff uncertainty and rising SG&A costs as reinvestment in brand, retail and capacity expansion weighs on profitability.
Elevated Costs, Regulatory Risks Weigh on Interactive Brokers (IBKR)
Per the Zacks analyst, steadily mounting operating costs are expected to hurt Interactive Brokers. International complexity and capital efficiency risks could restrain future returns for shareholders.
Virtu Financial (VIRT) Gains from Market Making unit, Expenses High
Per the Zacks Analyst, Virtu Financial's Market Making segment is well-poised for growth due to growing retail engagement. However, elevated expenses are putting pressure on its margins.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This innovative software-as-a-service firm upped its user base +22% year over year. That rate is increasing and margins are expanding as AI efficiencies take effect. Of course, all our elite picks aren't winners, but this one could far surpass earlier Zacks' Stocks Set to Double like D-Wave Quantum, which shot up +680.1%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Top Analyst Reports for ExxonMobil, Automatic Data Processing & Cadence

The S&P 500 Index ($SPX) (SPY) closed down by -0.75% on Wednesday, the Dow Jones Industrial Average ($DOWI) (DIA) closed down by -0.68%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.85%. December E-mini S&P futures (ESZ26) fell -0.76%, and December E-mini Nasdaq futures (NQZ26) fell -0.87%.
Stock indexes settled lower on Wednesday, pressured by soaring bond yields. Crude prices rose by more than +1% on Wednesday, boosting inflation expectations, lifting bond yields and undercutting market sentiment. The 10-year T-note yield jumped to a 19-year high of 5.13% on Wednesday and raised the odds of a Fed rate hike at next month’s FOMC meeting to 69% from 53% on Tuesday. Chipmakers and AI-infrastructure stocks also slid on Wednesday, weighing on the broader market and giving back some of Tuesday’s gains that pushed the Nasdaq 100 to a new record high.
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Hawkish comments from Fed Governor Michael Barr also boosted bond yields and pressured stocks as he signaled that he favors additional Fed tightening, saying, "further policy adjustments by the Fed are likely to be needed to ensure inflation comes down to target in a timely fashion."
Wednesday’s US economic news was better than expected, supporting stocks but pushing bond yields higher after the Sep S&P manufacturing PMI unexpectedly rose +3.1 to 57.0, stronger than expectations of a decline to 53.7 and the fastest pace of expansion in 4.25 years.
Stocks have support on positive anticipation ahead of a summit on Thursday between Presidents Trump and Xi Jinping.
Stocks found some support on Wednesday after the Organization for Economic Co-operation and Development (OECD) raised its US GDP forecast and cut its inflation forecast for this year. The OECD raised its 2026 US GDP forecast by +0.2 to 2.2% from a June forecast of 2.0%. The OECD cut its 2026 US inflation forecast -0.1 to 3.6% from a June forecast of 3.7%.
US MBA mortgage applications fell -1.5% in the week ended September 18, with the purchase mortgage sub-index down -0.8% and the refinancing mortgage sub-index down -2.6%. The average 30-year fixed-rate mortgage rose +15 bp to a 2.25-year high of 7.12% from 6.97% in the prior week.
Nov WTI crude oil prices (CLX26) recovered from overnight losses and climbed more than +1% as the US and Iran remain at odds over key issues, including control over the Strait of Hormuz. Also, US Secretary of State Rubio said that Iran fired at commercial ships on Wednesday in the Strait of Hormuz and that peace talks with Iran are being impeded by Iran's Revolutionary Guard leaders. Iranian President Pezeshkian said on Wednesday that Iran won’t allow freedom of navigation through the Strait of Hormuz while sanctions and a US blockade remain in place.
Markets are discounting a 69% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets settled lower on Wednesday. The Euro Stoxx 50 fell from a 2-week high and closed down -0.39%. China's Shanghai Composite closed down -0.39%. Japan's Nikkei-225 Stock Average did not trade on Wednesday, with Japanese markets closed for the Autumnal Equinox Day holiday.
Interest Rates
December 10-year T-notes (ZNZ6) closed down by -31 ticks on Wednesday. The 10-year T-note yield rose +14.3 bp to 5.104%. Dec T-notes retreated today and plummeted to a 19-year nearest-futures low, and the 10-year T-note yield surged to a 19-year high of 5.133%. T-notes sank on Wednesday after WTI crude oil prices erased an overnight decline and turned higher, raising inflation expectations.
Losses in T-notes accelerated on Wednesday after the US Sep S&P manufacturing PMI unexpectedly rose to a 4.25-year high, which boosted the odds of a Fed rate hike at next month’s FOMC meeting to 69% from 53% on Tuesday. T-notes fell to their lows Wednesday afternoon on weak demand for the Treasury’s $70 billion auction of 5-year T-notes that had a bid-to-cover ratio of 2.21, well below the 10-auction average of 2.34 and the lowest in 7.75-years.
European government bond yields moved higher on Wednesday. The 10-year German bund yield rose +9.2 bp to 3.555%. The 10-year UK gilt yield rose +10.8 bp to 5.347%.
The Eurozone Sep S&P manufacturing PMI was unchanged at 52.7, stronger than expectations of a decline to 52.6.
The Eurozone Sep S&P composite PMI unexpectedly rose +1.1 to 53.1, stronger than expectations of a decline to 51.7 and the fastest pace of expansion in 3.25 years.
ECB Governing Council member and Bundesbank President Joachim Nagel said Eurozone inflation is above 3% and is projected to stay above the ECB's 2% goal for another year. Therefore, the ECB may have to raise interest rates to a level at which they hold back economic growth.
The OECD raised its 2026 Eurozone GDP forecast by +0.2 to 1.0% from a June forecast of 0.8%. The OECD also raised its 2026 Eurozone inflation forecast by +0.2 to 3.0% from a June forecast of 2.8%.
Markets are discounting a 60% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Chipmakers and AI stocks were under pressure on Wednesday and weighed on the overall market. The iShares Semiconductor ETF (SOXX) closed down more than -1%. SanDisk (SNDK) closed down more than -4%, and Broadcom (AVGO) and Micron Technology (MU) closed down more than -2%. Also, Intel (INTC), Lam Research (LRCX), ARM Holdings Plc (ARM), Advanced Micro Devices (AMD), Nvidia (NVDA), Analog Devices (ADI), and NXP Semiconductors NV (NXPI) closed down more than -1%.
Airlines and cruise line operators retreated on Wednesday after WTI crude oil rose more than +1%, raising fuel costs and dampening the profitability prospects of the companies. Alaska Air Group (ALK) closed down more than -5%, and United Airlines Holdings (UAL) closed down more than -3%. Also, Delta Air Lines (DAL), Southwest Airlines (LUV), Royal Caribbean Cruises (RCL), and Carnival (CCL) closed down more than -2%, and American Airlines Group (AAL) closed down more than -1%.
Home builders and building suppliers fell on Wednesday after the 10-year T-note yield rose to a 19-year high, which will boost mortgage rates and weigh on housing demand. DR Horton (DHI), Pulte Group (PHM), KB Home (KBH), Builders Firstsource (BLDR), and Home Depot (HD) closed down more than -2%, and Lennar (LEN) and Toll Brothers (TOL) closed down more than -1%.
Most cybersecurity stocks rallied on Wednesday. Palo Alto Networks (PANW) closed up +5% to lead gainers in the S&P 500 and Nasdaq 100, and Crowdstrike Holdings (CRWD) and Okta (OKTA) closed up more than +4%. Also, Zscaler (ZS) and Fortinet (FTNT) closed up more than 2%, and SentinelOne (S) closed up more than +1%.
Software stocks rose on Wednesday, a supportive factor for the broader market. Palantir Technologies (PLTR) and Atlassian Corp (TEAM) closed up more than +3%, and Cadence Design Systems (CDNS), ServiceNow (NOW), Thomson Reuters (TRI), and Workday (WDAY) closed up more than +2%. In addition, Datadog (DDOG) and Adobe Systems (ADBE) closed up more than +1%, and Salesforce (CRM) closed up more than +1% to lead gainers in the Dow Jones industrials.
Energy stocks and service providers moved higher on Wednesday as WTI crude oil rose more than +1%. APA Corp (APA) closed up more than +3%, and ConocoPhillips (COP) and Devon Energy (DVN) closed up more than +2%. Also, Occidental Petroleum (OXY), Chevron (CVX), ExxonMobil Holdings (XOM), and Baker Hughes (BKR) closed up more than +1%.
Voyager Technologies (VOYG) closed down more than -14% after announcing its intention to offer $350 million of convertible senior notes in a private offering.
Paychex (PAYX) closed down more than -8% to lead losers in the S&P 500 and Nasdaq 100 after reporting Q1 management solutions revenue of $1.21 billion, weaker than the consensus of $1.23 billion.
McDonald’s (MCD) closed down more than -4% to lead losers in the Dow Jones Industrials after announcing it will spend up to $8.5 billion to help franchises serve better food and improve service.
IonQ (IONQ) closed up more than +4% after announcing that it developed the industry’s first end-to-end real-time quantum error correction decoder that runs on a single standard central processing unit.
Earnings Reports (9/24/2026)
Costco Wholesale Corp (COST), Darden Restaurants Inc (DRI), NexPoint Diversified Real Estate Trust (NXDT), Scholastic Corp (SCHL), TD SYNNEX Corp (SNX).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions 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.

Stocks Fall as the 10-Year T-note Yield Soars to a 19-Year High

The S&P 500 Index ($SPX) (SPY) is down by -0.48% today, the Dow Jones Industrial Average ($DOWI) (DIA) is down by -0.33%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.73%. December E-mini S&P futures (ESZ26) are down -0.48%, and December E-mini Nasdaq futures (NQZ26) are down -0.73%.
Stock indexes are under pressure today after crude prices erased an overnight decline and rose more than +1%, lifting bond yields and undercutting market sentiment. The 10-year T-note yield jumped to a 19-year high of 5.06% today and raised the odds of a Fed rate hike at next month’s FOMC meeting to 75% from 53% yesterday. Chipmakers and AI-infrastructure stocks are also sliding today, weighing on the broader market and giving back some of Tuesday’s gains that pushed the Nasdaq 100 to a new record high.
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Stocks are also pressured, and bond yields rose today on hawkish comments from Fed Governor Michael Barr that suggest he favors additional Fed tightening when he said: "further policy adjustments by the Fed are likely to be needed to ensure inflation comes down to target in a timely fashion."
Today’s US economic news was better than expected, supporting stocks but pushing bond yields higher after the Sep S&P manufacturing PMI unexpectedly rose +3.1 to 57.0, stronger than expectations of a decline to 53.7 and the fastest pace of expansion in 4.25 years.
Stocks have support on positive anticipation ahead of a summit later this week between Presidents Trump and Xi Jinping.
Stocks found some support today after the Organization for Economic Co-operation and Development (OECD) raised its US GDP forecast and cut its inflation forecast for this year. The OECD raised its 2026 US GDP forecast by +0.2 to 2.2% from a June forecast of 2.0%. The OECD cut its 2026 US inflation forecast -0.1 to 3.6% from a June forecast of 3.7%.
US MBA mortgage applications fell -1.5% in the week ended September 18, with the purchase mortgage sub-index down -0.8% and the refinancing mortgage sub-index down -2.6%. The average 30-year fixed-rate mortgage rose +15 bp to a 2.25-year high of 7.12% from 6.97% in the prior week.
Nov WTI crude oil prices (CLX26) recovered from overnight losses and are up more than +1% as the US and Iran remain at odds over key issues, including control over the Strait of Hormuz. Crude prices initially fell in overnight trading on signs of more crude supplies leaving the Middle East. Data compiled by Bloomberg from the European Union's Copernicus satellite shows oil supertankers with the capacity to ship 12 million barrels of crude were at Saudi Arabia's Persian Gulf export installations on Tuesday. Saudi Arabia also said it plans for a meaningful resumption of its East-West pipeline to the Red Sea by Saturday.
Markets are discounting a 75% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets are lower today. The Euro Stoxx 50 fell from a 2-week high and is down -0.27%. China's Shanghai Composite closed down -0.39%. Japan's Nikkei-225 Stock Average did not trade today, with Japanese markets closed for the Autumnal Equinox Day holiday.
Interest Rates
December 10-year T-notes (ZNZ6) are down by -20 ticks today. The 10-year T-note yield is up +10.3 bp to 5.066%. Dec T-notes retreated today and dropped to a 2.75-year low, and the 10-year T-note yield surged to a 19-year high of 5.067%. T-notes are under pressure after WTI crude oil erased an overnight decline and turned higher, raising inflation expectations. Supply pressures are also weighing on T-notes as the Treasury will auction $28 billion of 2-year floating-rate notes and $70 billion of 5-year T-notes later today. Losses in T-notes accelerated today after the US Sep S&P manufacturing PMI unexpectedly rose to a 4.25-year high, which boosted the odds of a Fed rate hike at next month’s FOMC meeting to 75% from 53% yesterday.
European government bond yields are moving higher today. The 10-year German bund yield is up +7.6 bp to 3.538%. The 10-year UK gilt yield is up +8.0 bp to 5.318%.
The Eurozone Sep S&P manufacturing PMI was unchanged at 52.7, stronger than expectations of a decline to 52.6.
The Eurozone Sep S&P composite PMI unexpectedly rose +1.1 to 53.1, stronger than expectations of a decline to 51.7 and the fastest pace of expansion in 3.25 years.
ECB Governing Council member and Bundesbank President Joachim Nagel said Eurozone inflation is above 3% and is projected to stay above the ECB's 2% goal for another year. Therefore, the ECB may have to raise interest rates to a level at which they hold back economic growth.
The OECD raised its 2026 Eurozone GDP forecast by +0.2 to 1.0% from a June forecast of 0.8%. The OECD also raised its 2026 Eurozone inflation forecast by +0.2 to 3.0% from a June forecast of 2.8%.
Markets are discounting a 58% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Chipmakers and AI stocks are under pressure today, weighing on the overall market. The iShares Semiconductor ETF (SOXX) is down more than -1%. Intel (INTC), Broadcom (AVGO), Lam Research (LRCX), and SanDisk (SNDK) are down more than -2%. Also, ARM Holdings Plc (ARM), Advanced Micro Devices (AMD), Nvidia (NVDA), Micron Technology (MU), NXP Semiconductors NV (NXPI), KLA Corp (KLAC), ASML Holding NV (ASML), Analog Devices (ADI), and Microchip Technology (MCHP), and Qualcomm (QCOM) are down more than -1%.
Airlines and cruise line operators are falling today with WTI crude oil up more than +1%, raising fuel costs and dampening profitability prospects of the companies. Royal Caribbean Cruises (RCL) is down more than -3%, and Alaska Air Group (ALK) is down more than -2%. Also, American Airlines Group (AAL), United Airlines Holdings (UAL), Delta Air Lines (DAL), Southwest Airlines (LUV), Carnival (CCL), and Norwegian Cruise Line Holdings (NCLH) are down more than -1%.
Software stocks are climbing today, a supportive factor for the broader market. Palantir Technologies (PLTR) is up more than +4% to lead gainers in the S&P 500 and Nasdaq 100. Also, Atlassian Corp (TEAM) and Datadog (DDOG) are up more than +3%, and Cadence Design Systems (CDNS), IBM (IBM), ServiceNow (NOW), Salesforce (CRM), Thomson Reuters (TRI), and Workday (WDAY) are up more than +2%. Finally, Adobe Systems (ADBE) is up more than +1%.
Energy stocks and service providers are moving higher today with the strength in crude oil prices. APA Corp (APA) is up more than +3%, and ConocoPhillips (COP), Devon Energy (DVN), and Occidental Petroleum (OXY) are up more than +2%. Also, Chevron (CVX), ExxonMobil Holdings (XOM), and Halliburton (HAL) are up more than +1%.
Voyager Technologies (VOYG) is down more than -13% after announcing its intention to offer $350 million of convertible senior notes in a private offering.
Paychex (PAYX) is down more than -7% to lead losers in the Nasdaq 100 after reporting Q1 management solutions revenue of $1.21 billion, weaker than the consensus of $1.23 billion.
McDonald’s (MCD) is down more than 4% to lead losers in the Dow Jones Industrials after announcing it will spend up to $8.5 billion to help franchises serve better food and improve service.
IonQ (IONQ) is up more than +7% after announcing that it developed the industry’s first end-to-end real-time quantum error correction decoder that runs on a single standard central processing unit.
Earnings Reports (9/23/2026)
Cintas Corp (CTAS), Cracker Barrel Old Country Store (CBRL), General Mills Inc (GIS), HB Fuller Co (FUL), NioCorp Developments Ltd (NB), Paychex Inc (PAYX), Stitch Fix Inc (SFIX), ZenaTech Inc (ZENA).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions 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.

Cadence Design Systems, Inc.

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