FactSet Evening Market Recap

Stocks were mostly lower with Energy and healthcare the big specific decliners. Rotational dynamics were mostly on pause with cyclicals/small caps mostly lower and AI-linked/semis/Big Tech trading mixed. Treasuries were a bit firmer after today's high profile economic data.

US equities were lower in Monday trading as stocks ended a bit off worst levels. Stocks were modestly lower in anticipation of key catalysts later this week. In macro news, the December Empire State Manufacturing Index posted a surprise negative print.

US equities were mixed this week. The Nasdaq was the worst performing major average, while the S&P ended the week slightly lower despite capping off a fresh record close on Thursday. The big market story was the cyclical rotation that gained further traction at the expense of the momentum and AI trades. The rotation was tabbed to factors including the less hawkish FOMC takeaways, a looming 2026 fiscal impulse with OBBA, taxes, and deprecation expense tailwinds, as well as some company-specific updates around the AI trade.

US equities finished mostly higher in Thursday trading, ending near best levels. Tech was a notable underperformer with disappointing results from Oracle exacerbating the negative sentiment surrounding AI infrastructure. Additionally, Google lagged after the (expected) rollout of the new GPT 5.2 model, given recent enthusiasm over its Gemini 3 release.

US equities finished higher in Wednesday trading, ending just a bit off best levels, with the Dow Jones, S&P500, and Nasdaq closing up 105bps, 67bps, and 33bps respectively. FOMC in focus today with a 25 bp rate cut, three dissents, forward guidance tweak and plans to purchase $40B/month in Treasury bills. Elsewhere, Q3 ECI rose 80bps, a bit below Q2's 90bps and just shy of consensus. GE Vernova providing some positive AI-related commentary ahead of Oracle and Broadcom results. Sanguine conference commentary on US consumer, buyback tailwinds among other highlights of the day.