S&P 500 posts winning week, but Friday rally fizzles: Live updates

Traders work at the New York Stock Exchange on Oct. 3, 2025.

NYSE

The S&P 500 and Dow Jones Industrial Average finished Friday’s session higher.

The broad market index inched higher by only 0.01% to end at 6,715.79, while the blue-chip Dow jumped 238.56 points, or 0.51%, to finish at 46,758.28.

The Nasdaq Composite, however, fell 0.28%, closing at 22,780.51.

— Sean Conlon

The tech-heavy Nasdaq Composite stock index is lower today after hitting a fresh all-time high early in the session. The Nasdaq is pacing to form a bearish outside day if it closes in the red today.

High-flying stocks like Palantir (PLTR), Advanced Micro Devices (AMD) and Tesla (TSLA) are among the worst performers in the Nasdaq-100 today.

A bearish outside day is a two-day technical trading pattern in which the second day’s price range fully engulfs the prior day’s range and reverses the recent trend, closing lower. Traders often read this pattern as a signal of a reversal and potentially more pain ahead.

— Nick Wells

While the current government shutdown poses a threat to IPO activity, there might be some swift improvement once the U.S. government reopens, according to Morgan Stanley.

“In a shutdown, nonessential SEC activities are halted, like reviewing IPO filings. This temporarily pauses IPO activity except for pre-cleared registrations,” analyst Betsy Graseck wrote in a note dated Thursday.

“Our expectation is for activity to quickly resume once the shutdown is resolved, given strong market conditions and pent-up demand for issuance,” the analyst also said.

— Sean Conlon

Amazon’s cloud business and advertising tailwinds are “underappreciated,” according to Goldman Sachs.

Analyst Eric Sheridan hiked his price target by $35 to $275. Sheridan’s updated target implies an upside of more than 23% over Thursday’s close.

In a note to clients, Sheridan called the e-commerce giant a “preferred name” among large caps. Sheridan, who has a buy rating, said the narratives around Amazon Web Services and advertising should be framed positively.

Sheridan’s note come ahead of Amazon’s earnings report scheduled for later this month. Amazon shares are slightly above flat for 2025, a turn after two years of monster gains.

— Alex Harring

Bank of America reiterated its bullish outlook on a swath of AI stocks, despite rising concerns over the companies’ sky-high capital expenditures, a recent analyst note shows.

“We believe chip companies such as NVDA, AVGO, AMD, MRVL, CRDO and semicap equipment vendors such as LRCX, KLAC plus memory, optical, foundry well levered to this AI buildout,” BoA analysts wrote Thursday in the note to clients.

Concerns around vendor financing, including Nvidia’s $100 billion investment into OpenAI, are overblown, the analysts said, adding that the chipmaker’s massive capital injections into Silicon Valley giants will “be a force multiplier in motivating other organically-funded hyperscalers to acclerate their own competitive AI deployments.”

— Liz Napolitano

Health care stocks are on track to clinch their best week in more than three years.

The S&P 500‘s health care sector has surged more than 7% week to date. If that holds through Friday’s closing bell, it would mark the group’s biggest weekly gain since a rally of more than 8% in June 2022.

Bio-Techne and Charles River Laboratories led the way, with shares of both stocks soaring more than 20% week to date. But stocks like Insulet and Quest Diagnostics restricted gains for the group, with shares falling more than 2% and 5%, respectively.

— Alex Harring

• Peabody Energy — The coal company jumped 9%. Peabody began arbitration proceedings with Anglo American over the canceled purchase of steelmaking coat assets belonging to the Anglo.
• SanDisk — The maker of solid state drives jumped 10%, adding to its massive gains. Over the past six months, the stock is up 170%.
• Transunion, Equifax — The credit bureaus rose 4.8% and 1.4%, respectively, recovering some of the steep losses suffered in the previous session on the back of Fair Isaac moving to all mortgage lenders access FICO scores directly. Transunion on Thursday plunged 10.6%; Equifax shed 8.5%.

Read more here.

— Fred Imbert

Several quantum computing stocks notched double-digit gains this week on the back of positive news in the industry.

Shares ofRigetti Computing and Quantum Computinghave each jumped more than 27% this week, while D-Wave Quantumshares are up about 23%. Rigetti and D-Wave Quantum have more than doubled and tripled, respectively, since the start of the year.Arqit Quantumhas rallied almost 37% this week.

IonQ, another high-flying quantum computing name, took a breather from its rally the previous week, but still gained about 9% this week.

The rally in quantum stocks came after Rigetti announced it purchased orders worth $5.7 million for two of its 9-qubitNovera quantumcomputing systems. The owner of drugmakerNovo Nordiskand the Danish government alsoinvested 300 million eurosin a quantum venture fund. In a blog post earlier this week, Nvidia also highlighted accelerated computing, which it argues can make “quantum computing breakthroughs of today and tomorrow possible.” Read more here.

— Samantha Subin, Pia Singh

More individual investors said they are bullish about the short-term outlook for stocks in the latest weekly poll by the American Association of Individual Investors than at any time since the first week of July, rising to 42.9% from 41.7% last week and a recent, early-September low of 28.0%.

Investors who are bearish about the outlook for stocks over the next six months were unchanged at 39.2%, and those who said they are neutral on the market outlook fell to 17.9% from 19.1% last week and a recent high of almost 30% in early June.

Main street investor sentiment is often used as a contrarian indicator, with rising bullishness sometimes signaling an exhaustion of buying power out of a belief that most purchases have already been made, leaving less cash on the sidelines to put to work in the market.

In a special question this week, more than half of those surveyed (55.6%) by AAII said they didn’t own gold or other precious metals directly or through an exchange-trade fund. Fewer than one in five (18.7%) said they did, while roughly 16% said they owned both precious metals and mining companies, nearly 8% said they only own miners only and not the metals, and less than 2% said they were considering adding gold to their portfolios.

— Scott Schnipper

Russell 2000 year to date

Service sector activity in the U.S. stalled in September amid a slowdown in production to its lowest level since the early months of the Covid pandemic.

The ISM services PMI registered a 50.0% reading for the month, down 2 percentage points from August and below the Dow Jones consensus estimate for an unchanged level of 52%. The various purchase manager surveys reflect the percentage of companies reporting growth, so anything less than 50 is contraction.

Within the survey, the business activity and production index dropped to 49.9, a decrease of 5.1 points. Though just below the line, the slip into contraction is the first since May 2020, just two months after the pandemic was officially declared.

Elsewhere, the employment index nudged higher to a still-contractionary 47.2 while the prices index also was edged up to 69.4. Order backlogs posted a strong 6.9-point gain to 47.3 while new orders and inventories both fell by more than 5 points.

— Jeff Cox

Chicago Federal Reserve President Austan Goolsbee said Friday he’s leery of cutting interest rates too quickly as threats increase both inflation and employment.

In a “Squawk Box” interview on CNBC, the central banker indicated that pressure is coming to both sides of the Fed’s so-called dual mandate of stable prices and low unemployment.

“This uptick of inflation that we’ve been seeing, coupled with the payroll jobs numbers deteriorating, have put the central bank in a bit of a sticky spot where you’re getting deterioration of both sides of the mandate at the same time,” Goolsbee said. “I’m a little wary about front-loading too many rate cuts and just counting on the inflation going away.”

Read more.

— Jeff Cox

The S&P 500 and Nasdaq Composite rose to new heights on Friday morning.

The S&P 500 rose 0.2% shortly after the opening bell, while the Nasdaq Composite climbed 0.3%. Both indexes hit new all-time intraday highs.

The Dow Jones Industrial Average also gained 92 points, or 0.2%.

— Sean Conlon

These are the stocks making the biggest premarket moves:

• USA Rare Earth — The rare earth miner jumped 8.8% after CEO Barbara Humpton told CNBC that the company is in “close communication” with the White House.
• GameStop — The meme stock fell 2.7% after the company said in a filing it’s selling a combination of assets ranging from common stock to debt for an undisclosed amount.
• Applied Materials — Shares slipped 2.2% after the company acknowledged in a regulatory filling that new U.S. export restrictions will hurt revenue.

Click here for the full list.

— Alex Harring

Stock markets are due a “drawdown” in the next year or two after years of being propelled to record highs by an AI frenzy, according to Goldman Sachs CEO David Solomon.

“Markets run in cycles, and whenever we’ve historically had a significant acceleration in a new technology that creates a lot of capital formation, and therefore lots of interesting new companies around it, you generally see the market run ahead of the potential … there are going to be winners and losers,” he said at Italian Tech Week in Turin, Italy, on Friday.

Solomon pointed to the mass adoption of the internet in the late 1990s and early 2000s, which led to the emergence of some of the world’s largest companies — but also saw investors lose money to what became known as the “dotcom bubble.”

“You’re going to see a similar phenomenon here,” he said. “I wouldn’t be surprised if in the next 12 to 24 months, we see a drawdown with respect to equity markets … I think that there will be a lot of capital that’s deployed that will turn out to not deliver returns, and when that happens, people won’t feel good.”

Read more here.

— Chloe Taylor

Johnson and Johnsonis a buy as executives project strong medicine sales over the next two years and as the company expands its drug-making operations in the U.S., according to Wells Fargo.

The bank upgraded the pharma giant to overweight from equal weight. It also raised its price target for shares to $212 from $170, implying about 14% upside.

“Given the potential upside to JNJ’s Pharma business, lower Pharma tariff and pricing risk, and investor confidence that JNJ can grow through the Stelara LOE, we could see JNJ’s valuation move higher,” analyst Larry Biegelsen said Friday in a note to clients.

Shares were last nearly 1% higher in premarket trading on Friday.

CNBC Pro subscribers can read more here.

— Liz Napolitano

With a Georgetown University degree and several internships under her belt, Christina Salvadore thought she’d be starting a career in New York City’s fashion or beauty industries around now. The problem: She can’t find a job.

The 23-year-old hasn’t been able to land a full-time role despite filling out hundreds of applications and taking dozens of networking calls since graduating in the spring. She’s currently applying to part-time gigs to tide her over financially.

“It definitely sucks when people are like, ‘So what are you doing now?,'” Salvadore, a Florida native, told CNBC. “I’m sitting in my parents’ house on LinkedIn 24 hours a day.”

A growing body of data shows Salvadore isn’t alone. Young college grads are having a uniquely difficult time trying to clinch their first full-time jobs and feeling the brunt of the weakening labor market.

Read more here.

— Alex Harring

Crude oil futures were on pace for a lower week, even as they ticked higher on Friday.

WTI crude futureswere down 7.5% week to date, looking at its second weekly loss in three andworst week since June. Brent crudehas fallen 8.5% this week and is also tracking for its worst weekly performance since June.

WTI crude vs. brent, 5-day

The firm initiated coverage of the Italian supercar maker with a buy rating, noting “there is significant investor interest, which is starting to coalesce with our view on the group’s 2026 price/mix, although there were mixed but high capital markets day (CMD) expectations. Many investors now accept that Ferrari is a high-quality compounder. Several expressed regret about staying on the sidelines, while a small minority raised concerns about residual values.”

U.S.-listed shares of Ferrari are up 18.7% year to date.

RACE year to date

USA Rare Earth CEO Barbara Humpton told CNBC that the company is in “close communication” with the White House. Her statement comes as the Trump administration has made investments in other rare earth miners in an effort to shore up the industry’s supply chain.

“This is a field where it will not be a zero sum game,” Humpton said. “It’s going to take a lot of players to build out this marketplace.”

USA Rare Earth shares were last up about 8% after hours.

Read the full story here.

— Spencer Kimball, Christina Cheddar Berk

Applied Materials shares dropped more than 3% in after-hours trading Thursday following a disclosure that new U.S. export restrictions will hit revenue.

The chipmaker said in an 8-K filing that the U.S. Department of Commerce’s “BIS Affiliates Rule” will limit Applied Materials’ ability to export some products and provide certain parts and services to China-based customers without a license.

Applied Materials estimated the new restrictions will reduce fourth-quarter revenue by about $110 million and cut its fiscal year 2026 revenue by roughly $600 million.

Shares of Applied Materials are up about 37% year to date.

— Pia Singh