Alphabet Surges, Semiconductor Stocks Rally Today as S&P 500 Gains Ground

US stock indexes advanced today as investors recovered from earlier weekly losses, with the S&P 500 Index climbing 0.41%, the Dow Jones Industrials rising 0.02%, and the Nasdaq 100 increasing 0.60%. December E-mini S&P futures gained 0.44% while December E-mini Nasdaq futures jumped 0.63%, signaling sustained momentum into the close.

The rally was spearheaded by technology giants and semiconductor manufacturers. Alphabet surged over 5% after Google unveiled an enhanced version of its Gemini artificial intelligence model, with executives calling the update a “massive jump” in reasoning and coding capabilities. This advance by Alphabet topped the S&P 500 and Nasdaq 100 gainers today. Chip stocks provided additional lift, with ON Semiconductor and Lam Research each gaining more than 3%. Applied Materials and KLA Corp climbed over 2%, while Nvidia, ASML Holding NV, and Marvell Technology each rose over 1% in today’s stock market action.

Market participants engaged in mild short covering ahead of Nvidia’s earnings announcement after market close today. The semiconductor giant’s results carry significance as a barometer for whether technology valuations and substantial capital deployment in artificial intelligence infrastructure remain justified. Beyond chip stocks, other significant gainers today included Lowe’s, which jumped over 4% following an upward revision of its 2026 sales forecast to $86.0 billion from a prior range of $84.5 billion-$85.5 billion. Dycom Industries surged over 15% after announcing its acquisition of Power Solutions LLC for $1.95 billion. La-Z-Boy Inc gained over 10% on stronger-than-consensus second-quarter sales of $522.5 million.

Headwinds emerged from the energy sector today, with crude oil prices falling over 2%, pressuring energy stocks. APA Corp declined over 5%, while Valero Energy, Occidental Petroleum, Marathon Petroleum, Devon Energy, and Phillips 66 each fell over 3%. Exxon Mobil, ConocoPhillips, and Diamondback Energy lost over 2%, with Chevron leading Dow declines today at over 2% lower.

Economic Data and Market Context

The latest economic reports today paint a mixed picture. US MBA mortgage applications fell 5.2% for the week ended November 14, with purchase applications declining 2.3% and refinancing applications down 7.3%. The average 30-year fixed mortgage rate increased 3 basis points to 6.36% from 6.34% previously. More positively, the August trade deficit narrowed to -$59.6 billion from -$78.2 billion in July, beating forecasts of -$60.4 billion.

This week brings an exceptionally heavy economic calendar. Later today, the FOMC will release minutes from its October 28-29 policy meeting. Thursday’s releases include initial jobless claims, the September employment report, the Philadelphia Fed’s manufacturing index, October existing home sales, and the Kansas City Fed’s manufacturing survey. Friday features real earnings data, the S&P manufacturing and services PMI reports, the University of Michigan consumer sentiment index, and the Kansas City Fed’s services activity report.

Markets are currently pricing in a 48% probability of a 25-basis-point rate reduction at the December 9-10 FOMC meeting.

Treasury Markets and Interest Rates Today

December 10-year T-notes gained 3 ticks today, with the 10-year yield declining 0.8 basis points to 4.106%. The drop in crude oil prices reduced inflation expectations, providing support for Treasuries. However, strength in today’s stock market dampened demand for safe-haven government bonds. Treasury supply pressures also weighed on gains today, as the government was scheduled to auction $16 billion of 20-year bonds later in the session.

European government bond yields displayed mixed action today. Germany’s 10-year bund yield fell 1.5 basis points to 2.691%, while the UK’s 10-year gilt yield rose to a 1-month peak of 4.595%, up 1.0 basis point to 4.564% today. October UK inflation cooled to 3.6% year-over-year from 3.8%, with core CPI easing to 3.4% from 3.5%.

Earnings Season Momentum and Notable Movers

Corporate earnings season is winding down with 460 of 500 S&P 500 companies having reported. According to Bloomberg Intelligence, 82% of reporting companies beat forecasts, putting the quarter on track for the best performance since 2021. Third-quarter earnings rose 14.6%, more than doubling expectations of 7.2% year-over-year growth.

Additional stock gainers today included Constellation Energy, up over 2%, as it announced plans to restart its Three Mile Island nuclear facility with $1 billion in government backing amid the administration’s push for increased nuclear capacity. Insulet Corp advanced over 2% after UBS upgraded the medical device stock to buy with a $400 price target. MP Materials climbed over 4% on Goldman Sachs’ initiation of coverage with a buy rating and $77 price target.

Negative movers today included Agios Pharmaceuticals, which plummeted over 47% after its Phase 3 trial of mitapivat in sickle cell patients met one primary endpoint but missed another. Eversource Energy dropped over 7% after Connecticut regulators rejected its proposed sale of subsidiary Aquarion Water Company. QuantumScape Corp declined over 3% following HSBC’s downgrade to reduce from hold. Gitlab Inc fell over 2% on a Truist Securities downgrade to hold from buy today.

Global Markets and Outlook

International stock markets displayed mixed results today. The Euro Stoxx 50 recovered from 1-month lows, gaining 0.30%. China’s Shanghai Composite closed up 0.18%, while Japan’s Nikkei 225 retreated to 1-month lows, closing down 0.34% today.

Several major earnings reports are scheduled for today, including Lowe’s, Nvidia, Palo Alto Networks, Target, TJX Companies, Valvoline, Viking Holdings, and Williams-Sonoma. Investors will be closely monitoring these results today and beyond as markets assess corporate health and profitability in the current economic environment.