Major indices are rebounding from yesterday’s losses. Technology stocks are recovering after an AI scare yesterday following reports that OpenAI’s annualized revenue fell short of consensus.

The news from Lumentum’s (LITE) CEO is also helping the AI rebound trade after mentioning his company’s optical components are almost sold out through early 2029.

The decline in oil prices is also helping to boost stocks. The move in oil comes even after reports Iran’s Revolutionary Guard (IRGC) claimed responsibility on Friday for striking an oil tanker.

Ten sectors are holding modest gains, with Consumer Discretionary (XLY) leading, supported by gains in Tesla (TSLA) after news that September sales of Shanghai-built Model 3 and Model Y vehicles rose 5% YoY. In addition, Amazon’s (AMZN) performance is helping the sector. Consumer Staples (XLP) is the only sector lower after outperforming during yesterday’s technology sell-off. Notably, the strength hasn’t extended to Technology (XLK) due to Apple’s (AAPL) weakness after news that the company asked some suppliers to reduce component production for its iPhone refresh by around 20%. The news added pressure to supplier Skyworks (SWKS) and other semiconductor names.

Economic Data

Consumer Sentiment for October declined again to 46.3, missing consensus of 47.6, and mirroring the increase in inflation expectations.

• 1-Year up to 4.7% from 4.6%
• 5-10-Year up to 3.5% from 3.4%

Current conditions declined to their lowest level on record to 44.7, while expectations saw their first increase since July to 47.3. Moreover, buying conditions for durables declined to a record low.

Have a great weekend!