“`html
The S&P 500 Index is up 0.06%, the Dow Jones is up 0.26%, and the Nasdaq 100 is up 0.03% as of today. Notably, chip makers are driving this increase, while AI optimism follows Alibaba’s announcement to boost its AI spending beyond a $50 billion target. The 10-year T-note yield has risen by 2 basis points to 4.13%, limiting stock market gains.
U.S. MBA mortgage applications increased by 0.6% in the week ending September 19, with the average 30-year fixed mortgage rate falling from 6.39% to 6.34%. Expectations for corporate earnings are improving, with over 22% of S&P 500 companies forecasting Q3 results above analysts’ expectations. The S&P is anticipated to see earnings growth of 6.9% in Q3.
Key economic indicators this week include projected declines in new home sales by 0.3% to 650,000 and a rise in initial unemployment claims by 2,000 to 233,000. The markets are pricing in a 92% chance of a 25 basis point rate cut at the upcoming FOMC meeting on October 28-29.
“`
