NDW Morning Pulse

Below are highlights from the NDW Morning Update Video for the morning of 10/08. Access the video on the NDW Morning Update Video page. 

• The S&P 500 Index (SPX) declined 0.22% on 10/7, followed by the Dow Jones Industrial Average (.DJIA), which fell 0.66%. International equities also weakened, with the iShares Emerging Markets ETF down 1.32% for the day. 

• The Ten week for the S&P 500 (^TWSPX) reversed back up into Xs from washed out levels, signaling an increase in near-term participation. However, the bullish percent for the S&P 500 (^BPSPX) remains in a column of Os, as the intermediate-term participation remains on fragile footing.

• Futures markets are currently pricing in more than an 80% chance of a rate hike at the December 9, 2026 Fed meeting. Higher rate expectations could weigh on growth-oriented sectors, which tend to be more sensitive to changes in interest rates.

• On the earnings front, a few major companies are expected to report earnings over the next week: Taiwan Semiconductor (TSM 5/5 TA Score on 10/15), J.P. Morgan Chase & Co. (JPM 4/5 TA Score on 10/13), and ASML Holding (ASML 4/5 TA on 10/14).

• Yesterday’s research highlighted the latest ETF leaders over Q3. The last quarter’s performance was driven primarily by technology, energy, and biotechnology-related ETFs, although leadership rotated beneath the surface and some tech segments, particularly semiconductors, struggled. Looking year-to-date, technology remains the dominant theme despite recent weakness, while China, metals, homebuilders, and other cyclical areas have been persistent laggards, highlighting the importance of focusing on sustained momentum trends rather than short-term performance swings.