The S&P 500 Index ($SPX) (SPY) is up by +0.26% today, the Dow Jones Industrial Average ($DOWI) (DIA) is up by +0.45%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.34%. December E-mini S&P futures (ESZ26) are up +0.24%, and December E-mini Nasdaq futures (NQZ26) are up +0.35%.

Stock indexes are moving higher today amid weakness in crude oil prices and stable bond yields. WTI crude oil is down more than -1% on a report that US and Iranian negotiators are exploring a phased deal to reopen the Strait of Hormuz. The lower crude prices are easing inflation risks and stabilizing bond yields, after the 10-year T-note soared to a 19-year high of 5.22% on Thursday. The 10-year T-note yield is little changed at 5.18% today.

Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.

Strength in chipmakers and AI stocks today is also a supportive factor for stocks amid optimism over AI and demand for AI infrastructure. Also, today’s US economic news was better than expected after Aug nondefense ex-aircraft capital goods new orders, a proxy for capital spending, rose +1.6% m/m, stronger than expectations of +0.6% m/m. July was also revised upward to +0.6% m/m from the previously reported unchanged m/m.

New York Fed President John Williams said the Fed can't ignore supply shocks if they have a persistent effect on prices and it needs to return inflation to target.

Nov WTI crude oil prices (CLX26) are down more than -1% today as US and Iranian negotiators explored a phased deal that would see Iran reopen the Strait of Hormuz. The Financial Times reported that Iranian Foreign Minister Abbas Araghchi had submitted a new seven-day proposal to the US to reopen Hormuz if certain conditions were met.

Markets are discounting a 64% 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 +0.71%. China's Shanghai Composite did not trade today, with markets in China closed for the Mid-Autumn Festival holiday. Japan's Nikkei-225 Stock Average rose to a 2.5-week high and closed up +1.30%.

December 10-year T-notes (ZNZ6) are down by -2 ticks today. The 10-year T-note yield is up +0.4 bp to 5.181%. Dec T-notes gave up an overnight advance and turned slightly lower on hawkish comments from New York Fed President John Williams, who stressed that the Fed needs to return inflation to target. T-notes also fell on signs of strength in the US economy after Aug nondefense ex-aircraft capital goods new orders rose more than expected, a hawkish factor for Fed policy. T-notes initially moved higher today as WTI crude oil prices fell more than -1%, easing inflation expectations and sparking some mid short covering.

European government bond yields are mixed today. The 10-year German bund yield is up +0.7 bp to 3.606%. The 10-year UK gilt yield is down -1.8 bp to 5.363%.

The German Oct GfK consumer confidence index fell -3.8 to a 5-month low of -30.6, weaker than expectations of -27.2.

Markets are discounting a 47% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.

Chipmakers and AI stocks are moving higher today, supporting the overall market. The iShares Semiconductor ETF (SOXX) is up more than +1%. ARM Holdings Plc (ARM) is up more than +4%, and SanDisk (SNDK) is up more than +3%. Also, Micron Technology (MU) and Analog Devices (ADI) are up more than +2%. In addition, Marvell Technology (MRVL), ASML Holding NV (ASML), Applied Materials (AMAT), Western Digital (WDC), Broadcom (AVGO), Qualcomm (QCOM), Microchip Technology (MCHP), Seagate Technology Holdings Plc (STX) and Texas Instruments (TXN) are up more than +1%.

Cybersecurity stocks are under pressure today, led by a -4% decline in Zscaler (ZS) after announcing Ross Tackett as the new chief revenue officer, effective October 1. Also, Palo Alto Networks (PANW) is down more than -3% to lead losers in the S&P 500 and Nasdaq 100, and Okta (OKTA), and SentinelOne (S) are down more than -2%. In addition, Fortinet (FTNT) and Gen Digital (GEN) are down more than -1%.

Energy stocks and service providers are weaker today, with WTI crude oil down more than -1%. Valero Energy (VLO) is down more than -3%, and Devon Energy (DVN), Phillips 66 (PSX), and Marathon Petroleum (MPC) are down more than -2%. Also, APA Corp (APA), ConocoPhillips (COP), Diamondback Energy (FANG), and Occidental Petroleum (OXY) are down more than -1%,

Atlas Energy Solutions (AESI) is up more than +15% after announcing a purchase agreement with Wyoming Machinery Company for $340.5 million of Balance of Plant equipment for a power generation project.

People Inc. (PPLI) is up more than +9% after the Wall Street Journal reported that MGM Resorts International is discussing making a bid for the company.

Akamai Technologies (AKAM) is up more than +8% to lead gainers in the S&P 500 after agreeing to a seven-year $11.6 billion deal to provide computing power to Anthropic.

Synopsys (SNPS) is up more than +3% after HSBC upgraded the stock to buy from hold with a price target of $700.

Twilio (TWLO) is down more than -3% after HSBC downgraded the stock to reduce from hold with a price target of $211.

Lionsgate Studios (LION) is down more than -2% after JPMorgan Chase initiated coverage on the stock with a recommendation of underweight and a price target of $9.

Comcast Corp (CMCSA) is down more than -2% after KeyBanc Capital Markets downgraded the stock to underweight from sector weight with a price target of $18.

Nike (NKE) is down more than -1% to lead losers in the Dow Jones Industrials after Bank of America Global Research downgraded the stock to underperform from neutral with a price target of $30.

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.