MicroStrategy Incorporated provides artificial intelligence-powered enterprise analytics software and services in the United States, Europe, the Middle East, Africa, and internationally. It offers MicroStrategy ONE, which provides non-technical users with the ability to directly access novel and actionable insights for decision-making; and MicroStrategy Cloud for Government service, which offers always-on threat monitoring that meets the rigorous technical and regulatory needs of governments and financial institutions. The company also provides MicroStrategy Support that helps customers achieve their system availability and usage goals through highly responsive troubleshooting and assistance; MicroStrategy Consulting, which provides architecture and implementation services to help customers realize their desired results; and MicroStrategy Education that offers free and paid learning options. In addition, it engages in the development of bitcoin. The company offers its services through direct sales force and channel partners. It serves the U.S. government, state and local governments, and government agencies, as well as a range of industries, including retail, banking, technology, manufacturing, insurance, consulting, healthcare, telecommunications, and the public sector. The company was incorporated in 1989 and is headquartered in Tysons Corner, Virginia.

Strategy Inc’s balance sheet and profitability look better than those of most companies in the sector, but the valuation already reflects a significant portion of these improvements. Liquidity is strong: the current ratio of 5.39 is noticeably above the industry median, and cash on hand has increased to $2.45 billion, which reduces short-term risk. At the same time, the quick ratio remains zero, so the quality of current liquidity is not ideal and calls for caution. The debt burden is moderate: debt/equity of 0.22 is below the median, and long-term debt has declined to $6.67 billion, which is a positive for stability. On the other hand, total liabilities remain significant, and shareholders’ equity has declined compared with previous periods, which limits the margin of safety. Operational efficiency presents a mixed picture: gross margin of 67.67% is high and above the median, but operating margin and net profit margin in TTM are both zero after very strong levels in the past, indicating instability in earnings quality. ROE, ROA, ROI, and return on tangible equity in TTM are also zero, meaning current capital returns do not support the premium valuation. Revenue and gross profit remain positive, but the scale of the business by revenue does not show enough acceleration to justify an aggressive upward re-rating. The price/sales multiple of 59.41 is extremely high and almost 20 times the sector median, indicating a substantial premium to the sector. Price/book of 0.88 looks inexpensive relative to book value, but this signal is partly offset by weak current return on equity. P/E and P/FCF are formally uninformative because of zero values, which usually means the market is pricing in not current earnings but expectations of future monetization. Overall, the fundamentals support only a moderately positive adjustment, because a strong balance sheet and high gross margin are offset by weak current returns and a very expensive sales multiple. For an investor, this is a story with a solid financial cushion but high dependence on future execution and market risk appetite.

Strategy Inc

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Слабый индекс, без изменений

Сильный индекс, незначительно упал. Рынок не поддерживает быков.

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

Средний индекс, значительно упал. Увеличился отток средств из лонгов.

Medium index, significantly down. The outflow of funds from longs has increased.

A strong balance sheet and high gross margin support the valuation, but zero current profitability and an extremely high P/S limit the potential for upward revision.

The S&P 500 Index ($SPX) (SPY) closed up by +0.33% on Thursday, the Dow Jones Industrial Average ($DOWI) (DIA) closed up by +1.08%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.05%. December E-mini S&P futures (ESZ26) rose +0.28%, and December E-mini Nasdaq futures (NQZ26) fell -0.14%.
Stock indexes settled mixed on Thursday, with the Nasdaq 100 dropping to a 3.5-week low. Stocks recovered from early losses on Thursday to trade mixed as bond yields fell and as investors rotated out of chip stocks into software and pharmaceutical companies.
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The Nasdaq 100 was under pressure on Thursday amid concerns about the sustainability of the artificial intelligence trade. This week’s rout in chipmakers and AI-infrastructure stocks spread globally, with South Korea’s Kospi Index sinking more than 7% and China’s Shanghai Composite falling to a 14-month low. Thursday’s drop in chipmakers followed Anthropic PBC's disclosure of $16.8 billion in Q3 growth to prospective investors, figures that suggest growth has slowed even as it remains robust.
Stocks were also pressured on Thursday on rising US producer price pressures after the Sep PPI final demand rose +6.3% y/y, stronger than expectations of +5.4% y/y and the most in 3.75 years. Also, Sep PPI ex-food and energy rose +5.0% y/y, stronger than expectations of +4.4% y/y and the most in more than 3.5 years.
Other US economic news on Thursday was mixed, with Sep retail sales and the Oct Empire manufacturing survey rising more than expected and weekly jobless claims near expectations. However, the Oct Philadelphia Fed business outlook survey fell more than expected.
On the positive side, Thursday’s slump in global equity markets sparked a rally in government bond markets, knocking yields lower. The 10-year German Bund yield fell to a 5-week low on Thursday of 3.35%, and the 10-year T-note yield fell to a 3-week low of 5.04%.
US weekly initial unemployment claims rose by +1,000 to 199,000, close to expectations of 200,000.
US Sep retail sales rose +0.8% m/m, stronger than expectations of +0.3% m/m, and Sep retail sales ex-autos rose+0.9% m/m, stronger than expectations of +0.5% m/m.
The US Oct Philadelphia Fed business outlook survey fell by -16.9 to 20.9, weaker than expectations of 28.0.
The US Oct Empire manufacturing survey of general business conditions rose +17.9 to a 4.75-year high of 25.5, stronger than expectations of 12.0.
Stocks and bonds got some support Thursday after San Francisco Fed President Mary Daly said she thinks rate hikes are likely needed, just not immediately, and that she would hold interest rates steady at the October 27-28 FOMC meeting.
Stocks have support from the prospect of solid quarterly earnings results that began this week. Goldman Sachs on Monday raised its three-month view on global equity markets to overweight from neutral, saying. “Earnings growth remains supportive for equities and the recent valuation de-rating has improved asymmetry into the third-quarter earnings season.” According to data compiled by Bloomberg Intelligence, Q3 S&P 500 earnings are expected to climb by +25% from a year earlier, up from a July estimate of 22%. As of Thursday’s close, 38 of the S&P 500 companies have reported results, with 82% beating estimates.
Nov WTI crude oil prices (CLX26) rallied more than +3% on Thursday to a 3-week high. Crude prices are supported by risks to global oil supplies as Yemen's Houthi rebels continue drone and missile attacks across Saudi Arabia, including energy infrastructure. Also, Iranian attacks on shipping attempting to transit the Strait of Hormuz have increased in recent weeks, threatening a rebound in energy supplies from the Middle East. Crude prices raced to their high Thursday after weekly EIA crude inventories unexpectedly fell by -8.56 million bbl.
Markets are discounting a 27% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets settled lower on Thursday. The Euro Stoxx 50 closed down -0.36%. China's Shanghai Composite fell to a 14-month low and closed down -1.59%. Japan's Nikkei-225 Stock Average dropped to a 4-week low and closed down sharply by -4.90%.
Interest Rates
December 10-year T-notes (ZNZ6) closed up by +21 ticks on Thursday. The 10-year T-note yield fell -10.0 bp to 5.085%. Dec T-notes rallied to a 3-week high on Thursday, and the 10-year T-note yield fell to a 3-week low of 5.035%. Lower inflation expectations were supportive of T-notes after the 10-year breakeven inflation rate fell to a 1-week low of 2.320% on Thursday. Also, dovish comments from San Francisco Fed President Mary Daly were bullish for T-notes when she suggested she would support holding interest rates steady at the October 27-28 FOMC meeting.
Hawkish US economic news on Thursday was bearish for T-notes after US Sep producer prices and Sep retail sales rose more than expected, and the Oct Empire manufacturing survey's general business conditions rose to a 4.75-year high.
European government bond yields moved lower on Thursday. The 10-year German bund yield fell to a 5-week low of 3.353% and finished down -5.3 bp to 3.413%. The 10-year UK gilt yield fell to a 1.5-week low of 5.301% and finished down -5.0 bp to 5.374%.
Eurozone Aug industrial production fell -0.5% m/m, weaker than expectations of no change and the biggest decline in 7 months.
ECB Governing Council member Martins Kazaks said the ECB can afford to take its time adjusting interest rates, despite persistent energy price rises that are set to keep consumer price growth elevated, as the recent surge in government bond yields may start to weigh on economic activity.
UK Aug manufacturing production rose +1.2% m/m, stronger than expectations of no change and the largest increase in 9 months.
Markets are discounting a 9% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Software stocks rallied on Thursday as investors rotate out of chip stocks into software. Intuit (INTU) and ServiceNow (NOW) closed up more than +6%, and Atlassian (TEAM) and Autodesk (ADSK) closed up more than +5%. Also, Workday (WDAY), Salesforce (CRM), and Adobe Systems (ADBE) closed up more than +4%, Oracle (ORCL) closed up more than +3%, and Thomson Reuters (TRI) closed up more than +2%.
Pharmaceutical stocks moved higher on Thursday amid stock rotation out of AI stocks. Alnylam Pharmaceuticals (ALNY) closed up more than +4%, and Eli Lilly (LLY) and Ionis Pharmaceuticals (IONS) closed up more than +3%. Also, Gilead Sciences (GILD), Vertex Pharmaceuticals (VRTX), Regeneron Pharmaceuticals (REGN), and Jazz Pharma Plc (JAZZ) closed up more than +2%. and Amgen (AMGN) and Biogen (BIIB) closed up more than +1%.
Cryptocurrency-exposed stocks rallied on Thursday after Bitcoin (^BTCUSD) rebounded from a 3.5-week low and moved higher. Circle Internet Group (CRCL) closed up more than +9%, and Coinbase Global (COIN) closed up more than +6%. Also, Strategy (MSTR) closed up more than +5%, and Bullish (BLSH) and BitMine Immersion Technologies (BMNR) closed up more than +4%. In addition, Riot Platforms (RIOT) and Robinhood Markets (HOOD) closed up more than +2%, and MARA Holdings (MARA) and Galaxy Digital Holdings (GLXY) closed up more than +1%.
Chipmakers and AI-infrastructure stocks fell on Thursday on demand concerns after Anthropic disclosed Q3 revenue growth that likely slowed from the previous quarter. Applied Materials (APLD), Lam Research (LRCX), and Seagate Technology Holdings Plc (STX) closed down more than -3%, and Intel (INTC), KLA Corp (KLAC) and Western Digital (WDC) closed down more than -2%. In addition, Nvidia (NVDA), Advanced Micro Devices (AMD), Marvell Technology (MRVL), and SanDisk (SNDK) closed down more than -1%.
Penske Automotive Group (PAG) closed up more than +8% after entering a deal to be taken private for $212 a share in cash by Penske Corporation and Mitsui.
International Paper (IP) closed up more than +6% after the Financial Times reported that private equity firms Lone Star and Atlas Holdings are exploring bids to acquire the company.
Kimberly-Clark (KMB) closed up more than +4% after reporting preliminary Q3 net sales of $4.13 billion, above the consensus of $4.10 billion.
FMC Corp (FMC) closed down more than -30% after cutting its Q3 adjusted Ebitda forecast to a loss of -$510 million to -$565 million, after previously expecting a profit of$120 million to $140 million.
Hewlett Packard Enterprise (HPE) closed down more than -7% to lead losers in the S&P 500, adding to Wednesday’s -7 decline, and Dell Technologies (DELL) closed down more than -6%, adding to Wednesday’s 10% plunge after Barclays downgraded the stocks to equal weight from overweight.
Rocket Lab (RKLB) closed down more than -6% to lead losers in the Nasdaq 100 after announcing that it will delay the launch of its inaugural Neutron medium-lift rocket until sometime in 2027.
Earnings Reports (10/16/2026)
Citizens Financial Group Inc (CFG), M&T Bank Corp (MTB), Regions Financial Corp (RF), Travelers Cos Inc/The (TRV), Truist Financial Corp (TFC).
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 Settle Mixed as Broader Market Recovers from Chip Stock Rout

The S&P 500 Index ($SPX) (SPY) is down by -0.57% today, the Dow Jones Industrial Average ($DOWI) (DIA) is up by +0.30%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -1.71%. December E-mini S&P futures (ESZ26) are down -0.58%, and December E-mini Nasdaq futures (NQZ26) are down -1.54%.
Stock indexes are mostly lower today, with the S&P 500 falling to a 2-week low and the Nasdaq 100 dropping to a 3.5-week low. The broader market is under pressure today as the rout in chipmakers and AI-infrastructure stocks spreads globally, with South Korea’s Kospi Index sinking more than -7% and China’s Shanghai Composite falling to a 14-month low. Today’s drop in chipmakers followed Anthropic PBC's disclosure of $16.8 billion in Q3 growth to prospective investors, figures that suggest growth has slowed even as it remains robust.
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Stocks extended their losses today on rising US producer price pressures after the Sep PPI final demand rose +6.3% y/y, stronger than expectations of +5.4% y/y and the most in 3.75 years. Also, Sep PPI ex-food and energy rose +5.0% y/y, stronger than expectations of +4.4% y/y and the most in more than 3.5 years.
Other US economic news today was mixed, with Sep retail sales and the Oct Empire manufacturing survey rising more than expected and weekly jobless claims near expectations. However, the Oct Philadelphia Fed business outlook survey fell more than expected.
On the positive side, the slump in global equity markets has sparked a rally in government bond markets, knocking yields lower. The 10-year German Bund yield fell to a 5-week low today of 3.35%, and the 10-year T-note yield fell to a 3-week low of 5.04%. Also, investors rotating out of chip stocks into software companies and defensive pharmaceuticals stocks are lifting the Dow Jones Industrials.
US weekly initial unemployment claims rose by +1,000 to 199,000, close to expectations of 200,000.
US Sep retail sales rose +0.8% m/m, stronger than expectations of +0.3% m/m, and Sep retail sales ex-autos rose+0.9% m/m, stronger than expectations of +0.5% m/m.
The US Oct Philadelphia Fed business outlook survey fell by -16.9 to 20.9, weaker than expectations of 28.0.
The US Oct Empire manufacturing survey of general business conditions rose +17.9 to a 4.75-year high of 25.5, stronger than expectations of 12.0.
Stocks and bonds got some support today after San Francisco Fed President Mary Daly said she thinks rate hikes are likely needed, just not immediately, and that she would hold interest rates steady at the October 27-28 FOMC meeting.
Stocks have support from the prospect of solid quarterly earnings results starting this week. Goldman Sachs on Monday raised its three-month view on global equity markets to overweight from neutral, saying. “Earnings growth remains supportive for equities and the recent valuation de-rating has improved asymmetry into the third-quarter earnings season.” According to data compiled by Bloomberg Intelligence, Q3 S&P 500 earnings are expected to climb by +25% from a year earlier, up from a July estimate of 22%. As of today, 32 of the S&P 500 companies have reported results, with 78% beating estimates.
Nov WTI crude oil prices (CLX26) are up +0.20% today. Crude prices are supported by risks to global oil supplies as Yemen's Houthi rebels continue drone and missile attacks across Saudi Arabia, including energy infrastructure. Also, Iranian attacks on shipping attempting to transit the Strait of Hormuz have increased in recent weeks, threatening a rebound in energy supplies from the Middle East. However, today’s selloff in global equity markets is curbing demand for risk assets, including crude.
Markets are discounting a 29% 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 is down -0.62%. China's Shanghai Composite fell to a 14-month low and closed down -1.59%. Japan's Nikkei-225 Stock Average dropped to a 4-week low and closed down sharply by -4.90%.
Interest Rates
December 10-year T-notes (ZNZ6) are up by +23 ticks today. The 10-year T-note yield is down -12.5 bp to 5.060%. Dec T-notes rallied to a 3-week high today, and the 10-year T-note yield fell to a 3-week low of 5.041%. Today’s selloff in global equity markets has boosted safe-haven demand for T-notes. Also, dovish comments from San Francisco Fed President Mary Daly were bullish for T-notes when she suggested she would support holding interest rates steady at the October 27-28 FOMC meeting.
Hawkish US economic news is limiting gains in T-notes after US Sep producer prices and Sep retail sales rose more than expected, and the Oct Empire manufacturing survey's general business conditions rose to a 4.75-year high.
European government bond yields are moving lower today. The 10-year German bund yield fell to a 5-week low of 3.353% and is down -10.7 bp to 3.359%. The 10-year UK gilt yield fell to a 1.5-week low of 5.301% and is down -11.3 bp to 5.312%.
Eurozone Aug industrial production fell -0.5% m/m, weaker than expectations of no change and the biggest decline in 7 months.
ECB Governing Council member Martins Kazaks said the ECB can afford to take its time adjusting interest rates, despite persistent energy price rises that are set to keep consumer price growth elevated, as the recent surge in government bond yields may start to weigh on economic activity.
UK Aug manufacturing production rose +1.2% m/m, stronger than expectations of no change and the largest increase in 9 months.
Markets are discounting an 11% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Chipmakers and AI-infrastructure stocks are falling today on demand concerns after Anthropic disclosed Q3 revenue growth that likely slowed from the previous quarter. The iShares Semiconductor ETF (SOXX) is down more than -3% at a 1-month low. SanDisk (SNDK) and Seagate Technology Holdings Plc (STX) are down more than -7%, and Intel (INTC), Lam Research (LRCX), and Western Digital (WDC) are down more than -6%. Also, Advanced Micro Devices (AMD), Applied Materials (APLD), and Marvell Technology (MRVL) are down more than -5%, and KLA Corp (KLAC) and Micron Technology (MU) are down more than -4%.
Cryptocurrency-exposed stocks are falling today, with Bitcoin (^BTCUSD) down more than -2% at a 3.5-week low. Iren Ltd (IREN) is down more than -10%, and Galaxy Digital Holdings (GLXY) and Riot Platforms (RIOT) are down more than -8%. Also, MARA Holdings (MARA) and BitMine Immersion Technologies (BMNR) are down more than -6%, and Robinhood Markets (HOOD) and Strategy (MSTR) are down more than -5%. In addition, Coinbase Global (COIN) is down more than -3%, and Circle Internet Group (CRCL) and Bullish (BLSH) are down more than -2%.
Cloud infrastructure stocks are under pressure today on debt concerns after credit-default swaps have priced in a more than 50% chance that CoreWeave could default on its debt within the next five years. Nebius Group NV (NBIS) and Lumentum Holdings (LITE) are down more than -8%, and CoreWeave (CRWV) is down more than -6%. Also, Arista Networks (ANET) and Applied Digital (APLD) are down more than -5%.
Software stocks are climbing today as investors rotate out of chip stocks into software. Intuit (INTU) is up more than +5% to lead gainers in the Nasdaq 100, and Autodesk (ADSK) is up more than +4%. Also, Workday (WDAY) and Adobe Systems (ADBE) are up more than +3%, and Salesforce (CRM) and Thomson Reuters (TRI) are up more than +2%. In addition, IBM (IBM) and ServiceNow (NOW) are up more than +1%.
Defensive pharmaceutical stocks are climbing today amid the broader market slump. Amgen (AMGN), Eli Lilly (LLY), Gilead Sciences (GILD), and Vertex Pharmaceuticals (VRTX) are up more than +3%, and Biogen (BIIB), Merck & Co (MRK), Alnylam Pharmaceuticals (ALNY), and Regeneron Pharmaceuticals (REGN) are up more than +2%. Also, Pfizer (PFE) is up more than +1%.
FMC Corp (FMC) is down more than -34% after cutting its Q3 adjusted Ebitda forecast to a loss of -$510 million to -$565 million, after previously expecting a profit of$120 million to $140 million.
Rocket Lab (RKLB) is down more than -13% to lead losers in the Nasdaq 100 after announcing that it will delay the launch of its inaugural Neutron medium-lift rocket until sometime in 2027.
Penske Automotive Group (PAG) is up more than +8% after entering a deal to be taken private for $212 a share in cash by Penske Corporation and Mitsui.
International Paper (IP) is up more than +5% to lead gainers in the S&P 500 after the Financial Times reported private equity firms Lone Star and Atlas Holdings are exploring bids to acquire the company.
Walmart (WMT) is up more than +3% after Deutsche Bank upgraded the stock to buy from hold with a price target of $136.
Kimberly-Clark (KMB) is up more than +3% after reporting preliminary Q3 net sales of $4.13 billion, above the consensus of $4.10 billion.
Commercial Metals (CMC) is up more than +2% after reporting Q4 net sales of $2.66 billion, better than the consensus of $2.54 billion.
Earnings Reports (10/15/2026)
Alcoa Corp (AA), Bank of New York Mellon Corp/The (BNY), Charles Schwab Corp/The (SCHW), First Horizon Corp (FHN), Interactive Brokers Group Inc (IBKR), JB Hunt Transport Services Inc (JBHT), Marsh & McLennan Cos Inc (MRSH), PNC Financial Services Group Inc (PNC), Prologis Inc (PLD), US Bancorp (USB).
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.
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Stocks Pressured as Chipmaker Selloff Deepens

The S&P 500 Index ($SPX) (SPY) closed down by -1.11% on Wednesday, the Dow Jones Industrial Average ($DOWI) (DIA) closed down by -0.09%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -2.02%. December E-mini S&P futures (ESZ26) fell -1.16%, and December E-mini Nasdaq futures (NQZ26) fell -2.10%.
Stock indexes sold off sharply on Wednesday, with the S&P 500 falling to a 1.5-week low and the Nasdaq 100 dropping to a 3.5-week low. Inflation woes dampened market sentiment and sparked stock liquidation on Wednesday after US September consumer prices rose more than expected, reinforcing speculation that the Fed will keep interest rates higher for longer amid sticky price pressures. The chance of a 25 bp Fed rate hike at this month’s FOMC meeting rose to 37% from 22% before the CPI report. Also, the rout in chipmakers continued Wednesday, weighing on the overall market.
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Wednesday’s broader market slump sparked defensive buying of health care and pharmaceutical stocks, limiting losses in the Dow Jones industrials.
US Sep CPI rose +3.7% y/y, stronger than expectations of +3.6% y/y. Sep core CPI rose +2.6% y/y, stronger than expectations of 2.5% y/y.
The Fed Beige Book was hawkish, noting that a majority of the twelve Fed districts in the six weeks through October 5 reported economic growth, and half saw robust or intensifying price pressures.
Stocks and bonds garnered some support Wednesday on comments from Fed Vice Chair Michelle Bowman, who signaled she favors keeping Fed policy steady at this month's FOMC meeting when she said, "We have some time to wait and see how financial conditions and the economy evolve before we decide that we need to take any more action" on interest rates.
US MBA mortgage applications fell -2.7% in the week ended October 9, with the purchase mortgage sub-index down -4.0% and the refinancing mortgage sub-index down -0.4%. The average 30-year fixed-rate mortgage rose +1 bp to a 2.75-year high of 7.50% from 7.49% the prior week.
China's trade news was better than expected, supporting global growth prospects. China's Sep exports rose +36.3% y/y, stronger than expectations of +25.7% y/y and the most in 7 months. Sep imports rose +31.0% y/y, stronger than expectations of +25.0% y/y.
Stocks have support from the prospect of solid quarterly earnings results starting this week. Goldman Sachs on Monday raised its three-month view on global equity markets to overweight from neutral, saying. “Earnings growth remains supportive for equities and the recent valuation de-rating has improved asymmetry into the third-quarter earnings season.” According to data compiled by Bloomberg Intelligence, Q3 S&P 500 earnings are expected to climb by +25% from a year earlier, up from a July estimate of 22%.
Nov WTI crude oil prices (CLX26) closed up more than +1% on Wednesday as Yemen's Houthi rebels launched multiple drone and missile attacks across Saudi Arabia, including energy infrastructure. Also, Iranian attacks on shipping attempting to transit the Strait of Hormuz have increased in recent weeks, threatening a rebound in energy supplies from the Middle East.
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 up +0.38%. China's Shanghai Composite closed down -0.89%. Japan's Nikkei-225 Stock Average closed down -0.05%.
Interest Rates
December 10-year T-notes (ZNZ6) closed up by +4.5 ticks on Wednesday. The 10-year T-note yield fell -2.5 bp to 5.183%. T-note prices recovered from early losses on Wednesday and settled higher as a slump in equity markets fueled short-covering in T-notes. Also, dovish comments on Wednesday from Fed Vice Chair Bowman were bullish for T-notes when said she sees no urgent need for the Fed to raise interest rates.
T-notes initially retreated on Wednesday on the stronger-than-expected US Sep CPI report, which boosted the chance of a Fed rate hike later this month to 37% from 22% before the report. Also, Wednesday’s +1% increase in WTI crude oil has raised inflation expectations and is bearish for T-notes. In addition, the Fed Beige Book was negative for T-notes, noting intensifying price pressures in more than half of the Fed’s districts.
European government bond yields moved lower on Wednesday. The 10-year German bund yield fell -0.3 bp to 3.466%. The 10-year UK gilt yield fell -2.3 bp to 5.424%.
The German Sep wholesale price index rose +8.7% y/y from +6.8% y/y in Aug, the strongest pace of increase in nearly 3.5 years.
Markets are discounting a 12% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Chipmakers and AI-infrastructure stocks sold off Wednesday, weighing on the overall market. The iShares Semiconductor ETF (SOXX) fell to a 3.5-week low and closed down more than -4%. CoreWeave closed down more than -15% to lead losers in the Nasdaq 100, and Lumentum Holdings (LITE) closed down more than -8%. Also, Marvell Technology (MRVL) closed down more than -7%, and ARM Holdings Plc (ARM) closed down more than -6%. In addition, Advanced Micro Devices (AMD) and SanDisk (SNDK) closed down more than -5%, and Lam Research (LRCX), Seagate Technology Holdings Plc (STX), Microchip Technology (MCHP), Intel (INTC), and Western Digital (WDC) closed down more than -4%.
The Magnificent Seven technology stocks fell on Wednesday, weighing on the broader market. Nvidia (NVDA) and Meta Platforms (META) closed down more than -3%, and Tesla (TSLA) closed down more than -2%. Also, Alphabet (GOOGL), Amazon.com (AMZN), and Microsoft (MSFT) closed down more than -1%. Bucking the trend, Apple (AAPL) closed up +0.50%.
Cybersecurity stocks weakened on Wednesday, weighing on the overall market. Cloudflare (NET) and Okta (OKTA) closed down more than -6%, and Palo Alto Networks (PANW) closed down more than -5%. Also, Crowdstrike Holdings (CRWD) and SentinelOne (S) closed down more than -4%, and Fortinet (FTNT) and Zscaler (ZS) closed down more than -3%.
Cryptocurrency-exposed stocks fell on Wednesday after Bitcoin (^BTCUSD) fell more than -1%. Iren Ltd (IREN) closed down more than -12%, and MARA Holdings (MARA) and Riot Platforms (RIOT) closed down more than -9%. Also, Galaxy Digital Holdings (GLXY) and Robinhood Markets (HOOD) closed down more than -8%, and Circle Internet Group (CRCL), BitMine Immersion Technologies (BMNR), and Strategy (MSTR) closed down more than -5%. On addition, Coinbase Global (COIN) and Bullish (BLSH) closed down more than -4%.
Health insurance stocks moved higher on Wednesday as a defensive play amid the broader market rout. UnitedHealth Group (UNH) closed up more than +4% to lead gainers in the S&P 500 and Dow Jones Industrials. Also, CVS Health Corp (CVS), Cardinal Health (CAH), and United Health Services (UHS) closed up more than +3%, and HCA Healthcare (HCA) and the Cigna Group (CI) closed up more than +2%. In addition, Centene (CNC) and Humana (HUM) closed up more than +1%.
Defensive pharmaceutical stocks rallied on Wednesday amid the broader market slump. Amgen (AMGN), Eli Lilly (LLY), Gilead Sciences (GILD), Merck & Co (MRK), Pfizer (PFE), and Regeneron Pharmaceuticals (REGN) closed up more than +3%, and Vertex Pharmaceuticals (VRTX) closed up more than +2%.
Dell Technologies (DELL) closed down more than -11% to lead losers in the S&P 500 , Hewlett Packard Enterprise (HPE) closed down more than -8%, and NetApp (NTAP) closed down more than -6% after Barclays downgraded the stocks to equal weight from overweight.
Bank of America (BAC) closed down more than -4% after reporting Q3 equities trading revenue ex-DVA of $2.51 billion, weaker than the consensus of $2.63 billion.
State Street (STT) closed down more than -3% after reporting Q3 revenue of $4.00 billion, weaker than the consensus of $4.04 billion.
Progressive (PGR) closed down more than -3% after reporting Q3 net premiums written of $22.30 billion, below the consensus of $22.50 billion.
Liquidia (LQDA) closed up more than +27% after reaching a global settlement resolving all pending litigation with United Therapeutics.
Earnings Reports (10/15/2026)
Alcoa Corp (AA), Bank of New York Mellon Corp/The (BNY), Charles Schwab Corp/The (SCHW), First Horizon Corp (FHN), Interactive Brokers Group Inc (IBKR), JB Hunt Transport Services Inc (JBHT), Marsh & McLennan Cos Inc (MRSH), PNC Financial Services Group Inc (PNC), Prologis Inc (PLD), US Bancorp (USB).
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 Sharply Lower on Inflation Woes and Slumping Chipmakers

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Strategy Inc (Symbol: MSTR), where a total volume of 240,478 contracts has been traded thus far today, a contract volume which is representative of approximately 24.0 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 101.6% of MSTR's average daily trading volume over the past month, of 23.7 million shares. Particularly high volume was seen for the $170 strike call option expiring October 02, 2026, with 18,328 contracts trading so far today, representing approximately 1.8 million underlying shares of MSTR. Below is a chart showing MSTR's trailing twelve month trading history, with the $170 strike highlighted in orange:
Shoe Station Group Inc (Symbol: SHOE) saw options trading volume of 14,514 contracts, representing approximately 1.5 million underlying shares or approximately 96.6% of SHOE's average daily trading volume over the past month, of 1.5 million shares. Especially high volume was seen for the $10 strike call option expiring October 16, 2026, with 7,528 contracts trading so far today, representing approximately 752,800 underlying shares of SHOE. Below is a chart showing SHOE's trailing twelve month trading history, with the $10 strike highlighted in orange:
And Serve Robotics Inc. (Symbol: SERV) saw options trading volume of 25,631 contracts, representing approximately 2.6 million underlying shares or approximately 89.6% of SERV's average daily trading volume over the past month, of 2.9 million shares. Especially high volume was seen for the $4.50 strike call option expiring October 02, 2026, with 3,494 contracts trading so far today, representing approximately 349,400 underlying shares of SERV. Below is a chart showing SERV's trailing twelve month trading history, with the $4.50 strike highlighted in orange:
For the various different available expirations for MSTR options, SHOE options, or SERV options, visit StockOptionsChannel.com.
Further MSTR Research:

Notable Wednesday Option Activity: MSTR, SHOE, SERV

Key Points
Opendoor’s stock could recover once the housing market stabilizes.
NIO’s scale, moat, and improving profitability justify a higher valuation.
Strategy’s all-in bet on Bitcoin could pay off.
Many investors probably aren't in the mood to buy stocks right now. September is typically the worst month for stocks, and rising interest rates are driving more investors toward the safety of CDs, T-bills, and other fixed-income investments.
But as the bulls look the other way, investors who can stomach the near-term volatility should still consider nibbling on some stocks with tremendous long-term growth potential. I believe these four stocks -- Opendoor (NASDAQ: OPEN), NIO (NYSE: NIO), Bloom Energy (NYSE: BE), and Strategy (NASDAQ: MSTR) -- could quadruple within the next four years.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Opendoor
Opendoor, the largest instant homebuyer (iBuyer) in the U.S., uses AI algorithms to make cash offers on homes. It then fixes up those properties and relists them on its own marketplace. That business model thrives when interest rates are low and the housing market is hot, but it faces formidable challenges when interest rates rise and the housing market cools off.
That's why Opendoor's stock now trades at just 0.3 times next year's sales and 93% below its all-time high. But at these bargain-bin valuations, much of the bad news is already priced into the stock. The Fed's recent interest rate hike suggests it will remain under pressure. However, if interest rates drop and the housing market recovers over the next decade, Opendoor's stock could easily quadruple and still be considered a bargain.
NIO
Nio, a major producer of electric vehicles (EVs) in China and Europe, trades at just 0.4 times next year's sales and 94% below its all-time high. But NIO isn't a small and speculative EV maker. It produces a wide range of electric sedans and SUVs, and it delivered 326,028 vehicles in 2025. Its vehicles are equipped with removable batteries that can be swapped out at its battery-swapping stations as a faster alternative to conventional chargers.
Nio's stock tumbled amid concerns regarding the costly expansion of its battery-swapping network and the production of its own first-party automotive chips. Intense competition also limited its pricing power and compressed its margins. However, NIO finally turned profitable on an adjusted basis in the first half of 2026, and its stock could soar if more investors value it like Tesla (NASDAQ: TSLA) -- which trades at 12 times next year's sales.
Bloom Energy
Bloom Energy develops solid oxide fuel cells (SOFCs), which can convert natural gas, biogas, hydrogen, propane, and hydrogen into electricity without any combustion. Its SOFC systems can also be deployed in less than two months, while conventional grid-based connections can take years to set up. Those advantages make them a popular choice for data center operators, who use these SOFC systems to satisfy the AI market's surging electricity demand.
Bloom's backlog swelled to $20 billion at the end of 2025. That's roughly ten times the $2.0 billion in revenue it generated in 2025. Bloom's stock has already soared 2,700% over the past two years as the AI market expanded, but it still doesn't seem overvalued at 12 times this year's sales. It could soar much higher as it converts more of its backlog into actual revenue.
Strategy
Strategy, the world's largest corporate holder of Bitcoin (CRYPTO: BTC), holds 846,000 Bitcoins. Those holdings are worth $70.6 billion today, compared to its market cap of $66.3 billion. Strategy trades at a discount to the net asset value (NAV) of its Bitcoin holdings because investors are concerned about its reliance on stock and debt offerings to fund those purchases. Strategy also occasionally sells some of its Bitcoin to fund its preferred stock dividends.
However, Bitcoin's price has risen nearly 40% to about $83,000 over the past three months. Strategy's executive chairman, Michael Saylor, believes its price could hit $21 million by 2046. If that happens, Strategy's stock could deliver big multibagger gains over the next decade.
Should you buy stock in Opendoor Technologies right now?
Before you buy stock in Opendoor Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Opendoor Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $386,781!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,379,943!*
Now, it’s worth noting Stock Advisor’s total average return is 936% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 25, 2026.
Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Bloom Energy, and Tesla. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Prediction: These 4 Stocks Will 4x in the Next 10 Years

Key Points
Strategy acquired 950 Bitcoins this week, and it bought 4,603 at the end of August.
The company remains far and away the top corporate holder of Bitcoins.
The stock's performance is correlated to Bitcoin's, but its gains and losses are often more extreme.
Bitcoin (CRYPTO:BTC) has been rising recently, hitting levels it hasn't been at in months. On Tuesday, it was up around $86,000. Amid this excitement, one stock that's been going on for the ride is Strategy (NASDAQ:MSTR), whose business has centered around loading up on Bitcoins. While it was famous for claiming it would never sell, only to do so multiple times this year, it's back to buying again.
Strategy's stock has surged more than 40% in just the past month, as the excitement around crypto has investors bullish on it yet again. Could this be the start of a much larger rally for Strategy, or is it likely to give back some gains?
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Image source: Getty Images.
Strategy's returns have typically been more extreme than Bitcoin's
Strategy and Bitcoin are highly correlated. When Bitcoin does well, so too does Strategy, but the tech stock's gains and losses are often more extreme. That can make it a tempting option for investors who are bullish on crypto, but it also means that it can be a far riskier investment.
Accumulating Bitcoins has been a key part of Strategy's plans for years. While it did sell some of its digital holdings over the course of the summer, this week, it acquired 950 Bitcoins and 4,603 at the end of August. It's been back to buying, and its tally right now sits at 846,000 Bitcoins, easily making it the top corporate holder of the leading cryptocurrency. Thus, it's unsurprising that it will move sharply, depending on Bitcoin's valuation.
Strategy's hot right now, but that doesn't mean things will stay that way
The challenge with investing in Strategy is that it's a highly speculative and volatile stock. It can rally suddenly, but it can also crash just as quickly. So much is based on investor sentiment and how well Bitcoin is doing, making it a gamble for investors to put this stock into their portfolios. Valuation metrics are of little use as Strategy's earnings hinge heavily on its digital assets and whether they go up or down in value. In its most recent quarter, which ended on June 30, the company's unrealized loss on digital assets totaled more than $8.3 billion, while its revenue was just $122 million.
Bitcoin is already volatile and unpredictable. Strategy is even more extreme. It's a risky stock that I think investors are better off avoiding. While it can be tempting to buy into its current rally, it may very well end up crashing in the near future.
Should you buy stock in Strategy right now?
Before you buy stock in Strategy, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Strategy wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $387,158!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,365,749!*
Now, it’s worth noting Stock Advisor’s total average return is 932% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 22, 2026.
David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.

Strategy's Stock Has Soared 40% in the Past Month as It's Buying Bitcoins Again

Key Points
Strategy is adding to its already massive crypto holdings.
Regulatory action could fuel further gains.
Shares of Strategy (NASDAQ: MSTR) popped on Monday as the price of Bitcoin (CRYPTO: BTC) climbed above $86,000.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Bitcoin's rally is driving up the value of Strategy's holdings
Strategy announced today that between Sept. 14 and Sept. 20, it purchased 950 Bitcoin for $75.7 million. That brought the leading cryptocurrency treasury company's holdings to 846,000 Bitcoin, which it bought for a total of $63.8 billion, or $75,416 per coin.
With its cryptocurrency holdings accounting for most of its business value, Strategy's stock price tends to track Bitcoin's price fluctuations, albeit to a greater extent due to the leverage inherent in its business model.
Multiple factors are driving Bitcoin's recent gains
The Clarity Act, which sought to establish a clearer regulatory framework for the crypto industry, failed to pass. You wouldn't think that would be a positive for the crypto market.
Yet the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are working to create rules for digital assets in its place. It appears that these financial watchdogs are attempting to reduce regulatory uncertainty for the crypto industry and investors in the wake of the Clarity Act's failure.
In addition to hopes for regulatory clarity, calls for a Bitcoin bull market are reemerging. Bitwise chief investment officer Matt Hougan, for one, believes "crypto winter" is over.
In its place, Hougan sees a "crypto spring" ushering in the "strongest and longest-running bull market in crypto's history," driven by rising digital transactions and institutional adoption.
Now, as the CIO of a leading digital asset manager, it's fair to say Hougan is talking his book. But Hougan is correct in that greater regulatory certainty could make it easier for professional investors to allocate more capital to the crypto sector. That could help drive Bitcoin's price higher -- and Strategy's stock price along with it.
Should you buy stock in Strategy right now?
Before you buy stock in Strategy, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Strategy wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $387,158!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,365,749!*
Now, it’s worth noting Stock Advisor’s total average return is 932% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 21, 2026.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Why Strategy Stock Surged Today

The S&P 500 Index ($SPX) (SPY) closed up by +1.49% on Monday, the Dow Jones Industrial Average ($DOWI) (DIA) closed up by +0.71%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +2.83%. December E-mini S&P futures (ESZ26) rose +1.50%, and December E-mini Nasdaq futures (NQZ26) rose +2.84%.
Stock indexes rallied sharply on Monday, with the S&P 500 posting a 5-week high and the Nasdaq 100 posting a 3-month high. Stocks surged Monday after crude oil prices plunged, pushing bond yields lower and improving market sentiment. WTI crude sank more than -4% to a 1.5-week low, and the 10-year T-note yield fell -3 bp to 4.96%. Also, positive anticipation ahead of a summit later this week between Presidents Trump and Xi Jinping is lifting equity markets. In addition, stock indexes rose on support from a rally in chipmakers and AI-infrastructure stocks, along with a rally in cryptocurrency-exposed stocks, as Bitcoin's price surged to a 7.5-month high.
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Stocks garnered support on Monday on optimism about talks between the US and China after US and Chinese officials offered upbeat assessments of their talks on artificial intelligence, trade, and investment ahead of this week's summit between Presidents Trump and Xi Jinping. US Trade Representative Jamieson Greer said, “The focus is on stability between the US and China,” and we are working on a trade truce extension.
Monday's US economic news showed the Aug Chicago Fed national activity index fell -0.12 to -0.04, right on expectations.
Hawkish Fed comments on Monday were negative for stocks and bonds. Chicago Fed President Austan Goolsbee said that to restore price stability, the Fed may need to raise interest rates further and narrow the gap between supply and demand, which could lead to drops in employment, wages, and growth. Also, St. Louis Fed President Alberto Musalem said core inflation may be running 1 percentage point above the Fed's 2% target and that the Fed likely needs to hike interest rates further.
Bitcoin (^BTCUSD) surged by more than +7% on Monday to a 7.5-month high, adding to last Friday’s +5% surge, after the SEC moved forward with a plan to allow digital versions of securities to start trading in the US.
Oct WTI crude oil prices (CLV26) sank more than -4% on Monday to a 1.5-week low on diplomatic efforts to end the US-Iran war and signs that crude flows are still getting through the Strait of Hormuz. President Trump said he would "probably" be open to meeting Iranian President Masoud Pezeshkian on the sidelines of the UN General Assembly in New York this week. Also, Admiral Brad Cooper, head of US Central Command, said crude and LNG flows in the past two weeks through the Strait of Hormuz are running at a six-month high.
Markets are discounting a 55% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets settled higher on Monday. The Euro Stoxx 50 closed up +1.31%. China's Shanghai Composite climbed to a 1.5-week high and closed up +0.97%. Japan's Nikkei-225 Stock Average did not trade today with Japanese markets closed for the Respect-for-the-Aged Day holiday.
Interest Rates
December 10-year T-notes (ZNZ6) closed up by +7 ticks on Monday. The 10-year T-note yield fell -3.7 bp to 4.959%. T-notes rose on Monday after WTI crude oil fell more than -4% to a 1.5-week low, easing inflation expectations. T-notes fell back from their best level on hawkish comments from Chicago Fed President Austan Goolsbee and St. Louis Fed President Alberto Musalem, who said that to restore price stability, the Fed may need to raise interest rates further. Supply pressures are also bearish for T-notes as the Treasury will auction $211 billion of T-notes and floating-rate notes this week, beginning with Tuesday’s auction of $69 billion of 2-year T-notes.
European government bond yields moved lower on Monday. The 10-year German bund yield fell to a 1-week low of 3.442% and finished down -6.1 bp to 3.458%. The 10-year UK gilt yield dropped to a 1-week low of 5.200% and finished down -8.3 bp to 5.212%.
In its monthly report released on Monday, the German Bundesbank said Q3 GDP will expand only "modestly" in Q3 because of short-term drivers like low water levels in the Rhine River, but the economy is expected to grow at a "stronger" pace again in Q4 and will "remain on its current path to recovery." The Bundesbank added that "persistently high prices, not only for crude oil but also for natural gas and electricity, could amplify both direct and indirect effects and delay the return of the inflation rate to 2%."
Markets are discounting a 46% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Chipmakers and AI stocks rallied on Monday, supporting gains in the broader market. The iShares Semiconductor ETF (SOXX) closed up more than +4% at a 5-week high. ARM Holdings Plc (ARM) closed up more than +16% to lead gainers in the Nasdaq 100, and Intel (INTC) closed up more than +12% to lead gainers in the S&P 500. Also, Advanced Micro Devices (AMD) and Qualcomm (QCOM) closed up more than +9%, and Marvell Technology (MRVL) closed up more than +6%. In addition, Applied Materials (AMAT) and Lam Research (LRCX) closed up more than +5%, and KLA Corp (KLAC) closed up more than +4%.
The Magnificent Seven technology stocks moved higher on Monday, providing support to the overall market. Meta Platforms (META) closed up more than +11% after the company’s new Muse artificial intelligence app rose to the top of mobile app charts. Also, Tesla (TSLA) closed up +3%, and Nvidia (NVDA) closed up more than +2%. In addition, Alphabet (GOOGL), Amazon.com (AMZN), and Microsoft (MSFT) closed up more than +1%, and Apple (AAPL) closed up +0.85%.
Cryptocurrency-exposed stocks surged on Monday after Bitcoin (^BTCUSD) rallied more than +7% to a 7.5-month high on positive carryover from last Friday when the SEC moved forward with a plan to allow digital versions of securities to start trading in the US. Strategy (MSTR) closed up more than +9%, and BitMine Immersion Technologies (BMNR) closed up more than +7%. Also, Bullish (BLSH) and Galaxy Digital Holdings (GLXY) closed up more than +5%, and Coinbase Global (COIN) closed up more than +3%. In addition, Circle Internet Group (CRCL) and Robinhood Markets (HOOD) closed up more than +2%, and Riot Platforms (RIOT) and Iren Ltd (IREN) closed up more than +1%.
Cybersecurity stocks moved higher on Monday, supporting gains in the overall market. Cloudflare (NET) closed up more than +8%, and SentinelOne (S) closed up more than +5%. Also, Zscaler (ZS), Crowdstrike Holdings (CRWD), and Okta (OKTA) closed up more than +4%. In addition, Fortinet (FTNT) closed up more than +3%, and Palo Alto Networks (PANW) closed up mor than +2%.
Airlines and cruise line operators rallied on Monday due to the -4% plunge in WTI crude oil to a 1-week low, which lowers fuel costs and boosts profitability prospects for the companies. United Airlines Holdings (UAL) closed up more than +5%, and American Airlines Group (AAL) closed up more than +4%. Also, Delta Air Lines (DAL) and Alaska Air Group (ALK) closed up more than +3%, and Carnival (CCL) closed up more than +2%. In addition, Southwest Airlines (LUV), Royal Caribbean Cruises (RCL), and Norwegian Cruise Line Holdings (NCLH) closed up more than +1%.
Energy stocks and service providers retreated on Monday after WTI crude oil plunged more than -4% to a 1-week low. Marathon Petroleum (MPC) closed down more than -5% to lead losers in the S&P 500, and Phillips 66 (PSX) and Valero Energy (VLO) closed down more than -4%. Also, ConocoPhillips (COP) and ExxonMobil Holdings (XOM) closed down more than -3%, and Diamondback Energy (FANG), Occidental Petroleum (OXY), APA Corp (APA), and Devon Energy (DVN) closed down more than -2%. In addition, Chevron (CVX) closed down more than -2% to lead losers in the Dow Jones Industrials.
Warner Bros. Discovery (WBD) closed up more than +10% after Paramount Skydance settled lawsuits brought by 12 state attorneys general and the Writers Guild trade union, a move that will allow Paramount to acquire Warner Bros. Discovery.
Ciena (CIEN) closed up more than +5% after Evercore ISI upgraded the stock to outperform from in line with a price target of $550.
Candel Therapeutics (CADL) closed up more than +3% after Bank of America Global Research upgraded the stock to buy from neutral with a price target of $18.
HP Inc. (HPQ) closed down more than -4% after projecting that industry-wide personal computer unit volumes will decline mid-single-digits in 2027.
Earnings Reports (9/22/2026)
AutoZone Inc (AZO), KB Home (KBH), MillerKnoll Inc (MLKN), Thor Industries Inc (THO), Worthington Enterprises Inc (WOR).
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 Settle Sharply Higher as Crude Prices Plunge and Chipmakers Soar

After consolidating for roughly four and a half months, the Nasdaq and broader technology sector are finally breaking out of their trading ranges.
That breakout is especially notable given just how much bad news the market has absorbed since the summer. Investors have navigated the blowup of a major AI-focused hedge fund, a sharp correction across the semiconductor industry, growing concerns around the pace and potential disruption of AI development, renewed tensions in the Middle East, and a surge in interest rates toward multi-decade highs alongside a shift toward tighter monetary policy.
And yet, the market has taken it largely in stride.
Certain areas have come under significant pressure at different points, most notably semiconductors, which fell as much as 30% from their highs. But the major indexes have continued to digest each setback without suffering a broader breakdown. Instead, stocks spent the last several months trading in a choppy range just below all-time highs.
Now, that consolidation appears to be resolving to the upside.
Among the strongest technology names leading the market higher today are Arm Holdings (ARM), Intel (INTC), Astera Labs (ALAB) and Meta Platforms (META).
Another notable mover is Strategy (MSTR), formerly MicroStrategy, which is following Bitcoin sharply higher off its recent lows. Strength in both speculative technology stocks and crypto-linked assets is another indication that investors' appetite for risk is beginning to increase again.
After several months of consolidation and repeated tests of investor confidence, the technology sector may finally be entering the next leg of the bull market.
Image Source: TradingView
Why the Breakout in Technology Stocks Matters
The significance of today's move isn't simply that technology stocks are rising. It is what has happened underneath the surface over the last several months.
The semiconductor industry went through a legitimate correction, some of the most crowded AI trades were aggressively unwound, and interest rates moved sharply higher. Just last week, the Federal Reserve raised rates for the first time since 2023, while the 10-year Treasury yield briefly pushed above 5%.
Normally, that combination would be expected to put substantial pressure on long-duration growth stocks, but instead, technology stocks largely consolidated.
That distinction is important. Corrections through time can be just as effective as corrections through price. Rather than collapsing, many of the market's strongest stocks spent the last several months digesting their earlier gains while earnings continued to grow and valuations became less stretched.
Now momentum appears to be returning.
Monday's rally has been particularly strong across AI-related stocks. Intel and Arm Holdings are both surging by double digits, while Advanced Micro Devices, Micron and Meta Platforms are also participating. The Nasdaq is up more than 2.5%, while technology indexes are again pressing toward or through their prior highs.
That is exactly the kind of action investors want to see following an extended consolidation.
The AI Trade Persists Despite Concerns
There has also been an important shift in the AI narrative.
One of the biggest shocks to the trade recently came from the AI industry itself. Anthropic CEO Dario Amodei called for the industry to slow the pace of frontier AI development, with OpenAI CEO Sam Altman and several other prominent industry leaders subsequently expressing support for greater restraint and oversight. Those comments contributed to a sharp selloff in semiconductor and AI infrastructure stocks as investors worried that a slowdown in model development could eventually mean less demand for chips and data centers.
But I think the market may have taken those comments too literally.
The concerns around AI safety may very well be genuine. However, there is an obvious tension between what industry leaders are saying publicly and what their companies are actually doing.
These businesses remain locked in an intense technological and commercial race. Capital continues to pour into models, compute and data centers, and there has been little indication that the major players are voluntarily stepping away from that competition. There is little if any evidence that there will be any kind of slowdown in the rate of investment and development of the technology.
So while the rhetoric became considerably more cautious, the underlying economics of the AI buildout have not materially changed, which is critically important for investors.
Throughout the summer, the market increasingly questioned the enormous amount of money being poured into AI infrastructure, whether the industry was overbuilding and whether today's leaders could generate adequate returns on that investment. Those remain legitimate questions, but the fundamental evidence still points toward enormous demand for computing power.
Today's strength in Arm and Intel, for example, also highlights how the opportunity is expanding beyond GPUs alone. AI inference increasingly requires CPUs, memory, networking equipment and an enormous amount of supporting infrastructure.
Bitcoin Rally Points to a Return in Risk Appetite
The rebound in Bitcoin offers another useful signal.
Bitcoin has surged sharply off its recent lows, while Strategy and other crypto-linked stocks are moving higher alongside it.
I don't view Bitcoin as a direct indicator of where the stock market goes next. But it is a useful barometer of liquidity and speculative appetite.
Investors spent much of the summer reducing risk. Today, they appear increasingly willing to put it back on.
What Could Go Wrong?
That doesn't mean the market is suddenly without risks.
Interest rates remain historically high, the Fed has shifted toward tighter monetary policy, Middle East tensions remain elevated and valuations across parts of the technology sector are still demanding.
Breadth is also something to watch. Despite Monday's strong index gains, the number of stocks making new lows has recently remained elevated, suggesting that participation beneath the headline indexes is not yet uniformly strong.
So I wouldn't interpret today's breakout as an invitation to blindly chase everything higher.
Instead, I think it reinforces the broader trend that has defined this bull market: investors continue to reward companies producing strong earnings growth and benefiting directly from the enormous capital spending associated with AI.
After more than four months of consolidation, technology stocks now appear ready to test the highs again. If that breakout can hold and participation continues to broaden, it could mark the beginning of the next leg higher in the bull market.
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).

Tech Stocks Break Out: The Next Leg of the Bull Market

The S&P 500 Index ($SPX) (SPY) is up by +0.93% today, the Dow Jones Industrial Average ($DOWI) (DIA) is up by +0.39%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +1.97%. December E-mini S&P futures (ESZ26) are up +1.00%, and December E-mini Nasdaq futures (NQZ26) are up +2.14%.
Stock indexes are rising today, with the S&P 500 posting a 1.5-week high and the Nasdaq 100 posting a 5-week high. Stocks are finding support today on weakness in crude oil prices, which has pushed bond yields lower and improved market sentiment. WTI crude is down more than -4% at a 1-week low, and the 10-year T-note yield is down -3 bp to 4.96%. Also, positive anticipation ahead of a summit later this week between Presidents Trump and Xi Jinping is lifting equity markets. In addition, stock indexes are climbing on support from a rally in chipmakers and AI-infrastructure stocks, along with a rally in cryptocurrency-exposed stocks, as Bitcoin's price surges to a 7.5-month high.
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Stocks garnered support today on optimism about talks between the US and China after US and Chinese officials offered upbeat assessments of their talks on artificial intelligence, trade, and investment ahead of this week's summit between Presidents Trump and Xi Jinping. US Trade Representative Jamieson Greer said, “The focus is on stability between the US and China,” and we are working on a trade truce extension.
Today's US economic news showed the Aug Chicago Fed national activity index fell -0.12 to -0.04, right on expectations.
Hawkish comments today from Chicago Fed President Austan Goolsbee were negative for stocks and bonds when he said that to restore price stability, the Fed may need to raise interest rates further and narrow the gap between supply and demand, which could lead to drops in employment, wages, and growth.
Bitcoin (^BTCUSD) is up more than +5% today at a 7.5-month high, adding to last Friday’s +5% surge, after the SEC moved forward with a plan to allow digital versions of securities to start trading in the US.
Oct WTI crude oil prices (CLV26) are down more than -4% today to a 1-week low on diplomatic efforts to end the US-Iran war and signs that crude flows are still getting through the Strait of Hormuz. President Trump said he would "probably" be open to meeting Iranian President Masoud Pezeshkian on the sidelines of the UN General Assembly in New York this week. Also, Admiral Brad Cooper, head of US Central Command, said crude and LNG flows in the past two weeks through the Strait of Hormuz are running at a six-month high.
Markets are discounting a 53% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets are higher today. The Euro Stoxx 50 is up +1.17%. China's Shanghai Composite climbed to a 1.5-week high and closed up +0.97%. Japan's Nikkei-225 Stock Average did not trade today with Japanese markets closed for the Respect-for-the-Aged Day holiday.
Interest Rates
December 10-year T-notes (ZNZ6) are up by +8 ticks today. The 10-year T-note yield is down -3.9 bp to 4.957%. T-notes are climbing today after WTI crude oil fell more than -3% to a 1-week low, easing inflation expectations. T-notes fell back from their best level on hawkish comments from Chicago Fed President Austan Goolsbee, who said that to restore price stability, the Fed may need to raise interest rates further. Supply pressures are also bearish for T-notes as the Treasury will auction $211 billion of T-notes and floating-rate notes this week, beginning with Tuesday’s auction of $69 billion of 2-year T-notes.
European government bond yields are moving lower today. The 10-year German bund yield fell to a 1-week low of 3.442% and is down -7.2 bp to 3.447%. The 10-year UK gilt yield dropped to a 1-week low of 5.200% and is down -8.4 bp to 5.211%.
In its monthly report released today, the German Bundesbank said Q3 GDP will expand only "modestly" in Q3 because of short-term drivers like low water levels in the Rhine River, but the economy is expected to grow at a "stronger" pace again in Q4 and will "remain on its current path to recovery." The Bundesbank added that "persistently high prices, not only for crude oil but also for natural gas and electricity, could amplify both direct and indirect effects and delay the return of the inflation rate to 2%."
Markets are discounting a 46% 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 climbing today, supporting gains in the broader market. The iShares Semiconductor ETF (SOXX) is up more than +3% at a 5-week high. ARM Holdings Plc (ARM) is up more than +12% to lead gainers in the Nasdaq 100, and Intel (INTC) is up more than +11% to lead gainers in the S&P 500. Also, Advanced Micro Devices (AMD) is up more than +9%, and Qualcomm (QCOM) is up more than +5%. In addition, Marvell Technology (MRVL), Micron Technology (MU), Applied Materials (AMAT), Lam Research (LRCX), and KLA Corp (KLAC) are up more than +2%.
Cryptocurrency-exposed stocks are moving higher today, with Bitcoin (^BTCUSD) up more than +5% to a 7.5-month high on positive carryover from last Friday when the SEC moved forward with a plan to allow digital versions of securities to start trading in the US. Strategy (MSTR) is up more than +7%, and BitMine Immersion Technologies (BMNR) is up more than +6%. Also, Coinbase Global (COIN) and Galaxy Digital Holdings (GLXY) are up more than +5%, and Circle Internet Group (CRCL) and Riot Platforms (RIOT) are up more than +4%. In addition, Robinhood Markets (HOOD) is up more than +3%, Bullish (BLSH) is up more than +2%, and MARA Holdings (MARA) and Iren Ltd (IREN) are up more than +1%.
Cybersecurity stocks are climbing today, supporting gains in the overall market. Cloudflare (NET) is up more than +5%, and SentinelOne (S) and Zscaler (ZS) are up mor than +4%. Also, Crowdstrike Holdings (CRWD) and Okta (OKTA) are up more than +3%, and Palo Alto Networks (PANW) and Fortinet (FTNT) are up more than +2%.
Airlines and cruise line operators are gaining today due to the -4% plunge in WTI crude oil to a 1-weeklow, which lowers fuel costs and boosts profitability prospects for the companies. United Airlines Holdings (UAL) is up more than +3%, and American Airlines Group (AAL) is up more than +2%. Also, Delta Air Lines (DAL), Alaska Air Group (ALK), Carnival (CCL), Royal Caribbean Cruises (RCL), and Norwegian Cruise Line Holdings (NCLH) are up more than +1%.
Energy stocks and service providers are falling today, with WTI crude oil down more than -4% to a 1-week low. ConocoPhillips (COP) is down more than -3%, and Diamondback Energy (FANG), ExxonMobil Holdings (XOM), Halliburton (HAL), Occidental Petroleum (OXY), APA Corp (APA), Devon Energy (DVN), Phillips 66 (PSX), and Valero Energy (VLO) are down more than -2%. In addition, Slb Ltd (SLB) is down more than -1%, and Chevron (CVX) is down more than -1% to lead losers in the Dow Jones Industrials.
Warner Bros. Discovery (WBD) is up more than +10%, and Paramount Skydance (PSKY) is up more than +5% as Paramount is in settlement talks with California officials over its planned acquisition of Warner.
Candel Therapeutics (CADL) is up more than +5% after Bank of America Global Research upgraded the stock to buy from neutral with a price target of $18.
Ciena (CIEN) is up more than +3% after Evercore ISI upgraded the stock to outperform from in line with a price target of $550.
HP Inc. (HPQ) is down more than -4% to lead losers in the S&P 500 after projecting that industry-wide personal computer unit volumes will decline mid-single-digits in 2027.
Earnings Reports (9/21/2026)
BRT Apartments Corp (BRT).
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.

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