Major indices are seeing choppy action and re-approaching earlier session lows.

Earlier in the session, and like Friday’s action, the S&P 500 and Nasdaq moved below their 50-day moving averages but rebounded quickly.

Six sectors are moving higher, with Utilities (XLU) in the lead, followed by Communication Services (XLC) and Health Care (XLV). Communication Services is getting a boost from Alphabet (GOOG/L) after Berkshire Hathway (BRK.A/B) took a stake in the company. On the other hand, Energy (XLE) and Financials (XLF) are lagging.

Trade Developments

India signed a deal to import ~10% of its LPG (2.2 million tonnes per annum) from the US starting in 2026. This comes as the country tries to smooth over trade tensions with the US resulting from their importation of Russian energy products.

AI Update

There was another big bond offering announcement today.  Amazon (AMZN) announced its plans to raise about $12 billion from a US bond offering, marking the latest company looking to debt offerings to fund artificial intelligence infrastructure. According to Bank of America (BAC), bond issuance has surged since September, and global financing of data centers is expected to go to almost $3 trillion, just through 2028.

Economic Data

Construction spending rose 0.2% M/M in August, matching July’s increase and beating expectations of a 0.1% decline. While residential spending rose 0.8%, nonresidential fell 0.2%.

The Atlanta Fed GDPNow now estimates a 4.1% seasonally adjusted annualized rate for Q3 GDP, up from 4% at the start of the month.