Oil retreat and AI names lift the major averages while small caps trail.
SPY finished the session near 773.50, up roughly 1.55 percent. QQQ advanced more sharply, closing around 741.50 for a gain near 2.8 percent. IWM lagged with a modest 0.5 to 0.7 percent advance near 285.70. Volume across the core indexes stayed within recent norms, showing no extreme expansion or contraction that would signal unusual conviction either way.
Leadership concentrated in technology and communication services. The Technology Select Sector SPDR (XLK) and Communication Services Select Sector SPDR (XLC) led the broader group higher, reflecting renewed interest in AI-related names after the prior week’s rate decision and oil volatility. Energy Select Sector SPDR (XLE) moved lower as crude prices pulled back, illustrating the rotation away from the prior oil-driven strength. Semiconductors participated in the rebound, consistent with the relative-strength pattern that has defined much of the year’s tape.
Among individual names, Arm Holdings (ARM) posted a double-digit advance, Intel (INTC) followed with a strong double-digit gain, and Meta Platforms (META) moved higher on renewed AI optimism. Warner Bros. Discovery (WBD) also attracted attention after progress on its merger pathway. These moves aligned with the day’s preference for growth and communication names rather than a broad advance across all sectors.
AAII Investor Sentiment, released late last week, showed a clear shift: bullish readings fell to 28.8 percent, neutral to 17.9 percent, and bearish rose to 53.3 percent. That marks the most pessimistic reading in roughly sixteen months and a meaningful change from recent surveys. The latest available NAAIM Exposure Index sits near 72, down from the elevated readings seen earlier in the month. The next FOMC meeting is scheduled for October 27–28.
The tape today favored relative strength in technology and communication services while energy lagged on the oil retreat. Breadth improved but remained selective rather than expansive. Process continues to favor watching leadership persistence over short-term noise.
