The S&P 500 Index ($SPX) (SPY) closed up +0.31% on Friday, the Dow Jones Industrial Average ($DOWI) (DIA) closed down -0.46%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +1.35%. December E-mini S&P futures (ESZ26) rose +0.31%, and December E-mini Nasdaq futures (NQZ26) rose +1.28%.
US stock indices settled mixed on Friday, with the Dow Jones Industrials falling to a 4-week low. The broader market moved higher Friday, recovering some of Thursday’s rout as dip buying in chipmakers and AI-infrastructure stocks lifted the broader market. Stocks plummeted on Thursday amid speculation that the Democratic sweep of Congress in Tuesday’s midterm elections will usher in a new era of regulation for the artificial-intelligence industry. Weakness in software stocks on Friday limited overall market upside and kept the Dow Jones Industrials in negative territory.
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Stocks also found support Friday on better-than-expected US economic news. The Oct nonfarm payrolls and average hourly earnings rose more than expected, and the unemployment rate unexpectedly declined. Consumer sentiment also improved, and inflation expectations declined in the University of Michigan’s Nov consumer sentiment index.
US Oct nonfarm payrolls rose by +165,000, stronger than expectations of +70,000 and the biggest increase in 7 months. Also, Sep nonfarm payrolls were revised upward to +60,000 from the previously reported +29,000. The Oct unemployment rate unexpectedly fell -0.1 to 4.1% versus expectations of no change at 4.2%.
US Oct average hourly earnings rose +0.4% m/m and +3.1% y/y, stronger than expectations of +0.3% m/m and +2.9% y/y.
The University of Michigan US Nov consumer sentiment index rose +3.0 to 51.0, stronger than expectations of no change at 48.0.
The University of Michigan US Nov 1-year inflation expectations fell -0.4 to 4.3%, weaker than expectations of 4.6%. The Nov 5-10 year inflation expectations fell -0.1 to 3.4%, weaker than expectations of no change at 3.5%.
Hawkish Fed comments on Friday were negative for stocks and bonds. New York Fed President Williams said that inflation is "absolutely too high" and monetary policy "does have a critical role in making sure that these relative price shocks don't translate into broader or more persistent inflation." Also, San Francisco Fed President May Daly said inflation has been high for too long and "My expectation is we're going to have to tighten monetary policy further," but it is still too soon to know how much higher rates will need to go.
Dec WTI crude oil prices (CLZ26) fluctuated between gains and losses on Friday and finally settled higher. Crude found support Friday as Ukraine ramped up drone attacks on Russian refineries, potentially leading to a further squeeze of global energy supplies. Ukraine launched a drone attack on a sixth Russian crude-processing plant in the past week, with Russia's Yanos refinery, which has a capacity of 300,000 bpd, halting operations following a drone attack late Wednesday, which could further curb global distillate supplies.
Crude gains were limited on signs of progress in diplomatic efforts to end the war in Iran, which could lead to a full resumption of energy supplies from the Middle East. Iran has shown a willingness to discuss issues related to its nuclear program that were previously off the table. Qatar, which is mediating efforts to end the war, said Friday that Emir Sheikh Tamin Bin Hamad Al-Thani spoke with President Trump about efforts to resolve differences between Iran and the US and secure a comprehensive agreement to end the conflict.
Stocks are supported by the prospect of solid quarterly earnings. According to data compiled by Bloomberg Intelligence, Q3 S&P 500 earnings are expected to climb by +31% from a year earlier, up from a July estimate of 22%. As of Friday, 440 of the S&P 500 companies have reported results, with 84% beating estimates.
Overseas stock markets settled lower on Friday. The Euro Stoxx 50 closed down -0.98%. China’s Shanghai Composite closed down -1.10%. Japan's Nikkei-225 Stock Average tumbled to a 6.75-month low and closed down sharply by -5.96%.
Interest Rates
December 10-year T-notes (ZNZ6) closed down by -7 ticks on Friday. The 10-year T-note yield rose +2.4 bp to 4.859%. T-notes were under pressure Friday as a rebound in equity markets curbed safe-haven demand for T-notes. Friday’s stronger-than-expected US Oct payroll report also knocked T-note prices lower after non-farm payrolls and hourly earnings rose more than expected, and the unemployment rate unexpectedly declined, hawkish factors for Fed policy.
In addition, hawkish Fed comments on Friday weighed on T-notes as New York Fed President Williams said that inflation is "absolutely too high," and San Francisco Fed President May Daly said, "My expectation is we're going to have to tighten monetary policy further."
The markets are now pricing in a 76% chance of a +25 bp rate hike at the FOMC’s next meeting on December 8-9.
European government bond yields moved higher on Friday. The 10-year German bund yield rebounded from a 2.5-month low of 3.207% and finished up +1.4 bp to 3.254%. The 10-year UK gilt yield rose +2.2 bp to 5.154%.
Eurozone Sep retail sales fell -0.7% m/m, weaker than expectations of -0.1% m/m.
German Sep industrial production unexpectedly rose +0.7% m/m, stronger than expectations of -0.1% m/m.
The markets are now pricing in a 79% chance of a +25 bp rate hike at the ECB’s next policy meeting on December 17.
US Stock Movers
Chipmakers and AI-infrastructure stocks moved higher on Friday, recovering some of Thursday’s rout. The iShares Semiconductor ETF (SOXX) closed up more than +4%. Advanced Micro Devices (AMD) closed up more than +11%, and Lam Research (LRCX) closed up more than +8%. Also, Intel (INTC) closed up more than +7%, and KLA Corp (KLAC) closed up more than +6%. In addition, ASML Holding NV (ASML), Marvell Technology (MRVL), Micron Technology (MU), and Qualcomm (QCOM) closed up more than +5%, and ARM Holdings Plc (ARM) and Applied Materials (AMAT) closed up more than +4%. Finally, Sandisk (SNDK) closed up more than +3%, and Nvidia (NVDA) closed up more than +2% to lead gainers in the Dow Jones Industrials.
Cloud infrastructure stocks are moving higher today, recovering some of Thursday’s sharp decline. Applied Digital (APLD) closed up more than +10%, and Nebius Group NV (NBIS) closed up more than +8%. Also, Arista Networks (ANET) closed up more than +7%, and Lumentum Holdings (LITE) and CoreWeave (CRWV) closed up more than +6%.
Atlassian (TEAM) closed down more than -16% to lead software stocks lower despite reporting better-than-expected Q1 results, as its future outlook was seen as underwhelming. Also, Salesforce (CRM) closed down more than -3% to lead losers in the Dow Jones Industrials, and Intuit (INTU) and Workday (WDAY) closed down more than -3%. In addition, Autodesk (ADSK), Adobe Systems (ADBE), and Thomson Reuters (TRI) closed down more than -2%.
Airbnb (ABNB) closed up more than +11% after reporting Q3 revenue of $4.87 billion, stronger than the consensus of $4.75 billion, and forecasting Q4 revenue of $3.22 billion to $3.28 billion, well above the consensus of $3.16 billion.
Cloudflare (NET) closed up more than +10% after raising its full-year adjusted EPS forecast to $1.35 from a previous estimate of $1.25 to $1.26, above the consensus of $1.27.
Akamai Technologies (AKAM) closed up more than +7% after reporting Q3 adjusted EPS of $1.77, better than the consensus of $1.68.
Moderna (MRNA) closed up more than +6% after reporting Q3 revenue of $1.33 billion, stronger than the consensus of $888.1 million.
DraftKings (DKNG) closed down more than -20% after reporting Q3 revenue of $1.33 billion, weaker than the consensus of $1.39 billion, and forecasting 2027 revenue of $7.35 billion to $7.75 billion, the midpoint below the consensus of $7.61 billion.
Axon Enterprise (AXON) closed down more than -18% to lead losers in the S&P 500 and Nasdaq 100 after forecasting full-year adjusted Ebitda of $924 million to $929 million, weaker than the consensus of $949.4 million.
Microchip Technology (MCHP) closed down more than -10% after forecasting Q3 net sales of $1.57 billion to $1.64 billion, the midpoint below the consensus of $1.62 billion.
Charter Communications (CHTR) closed down more than -6% after reporting Q3 free cash flow of $674 million, well below the consensus of $1.5 billion.
Earnings Reports (11/9/2026)
Constellation Energy Corp (CEG), Ferguson Enterprises Inc (FERG), KKR & Co Inc (KKR), NRG Energy Inc (NRG), Occidental Petroleum Corp (OXY), Skydance Corp (SKYD), Take-Two Interactive Software (TTWO).
On the date of publication, Rich Asplund did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.