The Closing Bell
Stocks closed mixed but mostly higher as a blowout Micron number and an Accenture-led software rally offset a jumpy Fed and a crude spike tied to the Iran standoff.
The Fed is still fighting the last war on inflation, even as yields do the talking.
Governors Cook, Jefferson and Kashkari all hit the tape today, and the message was consistent: inflation remains above target, expectations risk becoming unanchored, and the central bank is in no hurry to move again. Jefferson flagged that bond yields show "market participants rethinking the outlook," and that showed up directly in the tape, Treasuries sold off (TLT down marginally on the day but still off double digits over six months) as yields pushed toward multi-decade highs. ISM Manufacturing PMI came in at 54.5 with new orders at 55.3, alongside jobless claims of 197,000, a combination solid enough to keep the Fed talking caution rather than cuts. Oil added to the inflation worry: USO jumped 3% after Chinese refiners suspended October fuel exports and reports that Washington may send a third carrier strike group as Trump weighs further action against Iran. European and Japanese bank stocks slid on the same rates-and-energy combination, with the Bank of Japan's September minutes showing some policymakers pushing for faster hikes.
The AI trade found fresh legs through Micron (MU), even as megacap tech split.
Micron's Q4 results and guidance lit up the chip complex, Micron itself up nearly 3% and dragging Applied Materials, Lam Research, KLA, ON Semi, Teradyne and a long list of suppliers higher in sympathy, with strength echoed in South Korea's KOSPI and Japan's Nikkei overnight. Lumentum and Coherent ripped on reports Washington is targeting Chinese optical transceivers. Anthropic's IPO filing revealed a $42 billion Broadcom (AVGO) lending arrangement, and Nvidia and SoftBank reportedly closed out OpenAI's funding round, keeping the AI-capex narrative front and center. But megacap breadth was thin: Alphabet (GOOG, GOOGL) dropped 1.7% on a fresh $3.2 billion EU ad-tech damages claim, Amazon (AMZN) slipped, and Microsoft (MSFT) was flat. The S&P (SPY) still eked out a 0.2% gain and the Nasdaq-tracking QQQ added 0.3%.
Accenture (ACN) reported before the bell and pulled the services complex up with it.
Strong Q4 numbers sent IT services, professional services and software names higher across the board, ServiceNow and Unity among the beneficiaries, reinforcing that enterprise AI spending is still flowing.
Mattel (MAT) was the day's standout, surging nearly 19% and tripping circuit breakers
on a Wall Street Journal report that Authentic Brands Group is circling the Barbie maker. On the losing side, AppLovin (APP) sank to a 52-week low, and Carvana (CVNA) also slid.
After the bell and tomorrow:
Nike (NKE) reports after the close tonight, the session's marquee print, with McCormick (MKC) already out this morning. Watch Fed speak to continue dribbling out, along with any follow-through in oil and yields.
Bottom line: the AI and chip trade still has the market's attention, but rising yields and Middle East risk are doing the real work under the surface.