Daily Bulletin · Friday, October 16, 2026 · pre-market

Rotation out of tech lifts S&P 500 +0.29% as chip slide deepens

S&P 5007,743.88+0.29%Nasdaq26,712.26+0.04%10Y5.09%−0.10WTI$95.83−0.30%Gold$4,155.81−0.35%VIX16.41−2.61%

In brief

Rotation out of tech: The S&P 500 rose +0.29% as money rotated out of key tech names, while the Nasdaq edged up +0.04%.¹
Chips slide again: A closely watched chip index fell for a seventh straight day, sending investors into other sectors and government bonds.²
Yields ease: The 10-year yield fell -0.10 pts as bonds drew demand after hotter-than-expected inflation data.²^,3

What it means

Inflation stayed hot. September consumer prices rose 3.7% from a year earlier, above the 3.6% economists expected, and high energy prices tied to the U.S.-Iran war added pressure.³^,4 Saxo strategist Neil Wilson wrote that worries about the AI buildout, valuations, Chinese competition, inflation and rates had sent investors running for cover.² Before the open, S&P 500 futures were up +0.15% and Nasdaq 100 futures were up +0.25%.

The day in review and where money is flowing

In Metravise's sector data, Technology still ranked first over the past month at -2.4 pts versus the S&P 500, but its momentum is weakening, while Consumer Staples, Consumer Discretionary and Utilities are improving. The weakest sector stood at -11.7 pts. Within Technology, Electronics & Computer Distribution led at +7.7 pts, followed by Semiconductor Equipment & Materials at +3.3 pts. Over five sessions the Nasdaq 100 lost -2.62%, and on Thursday health care stocks led the S&P 500.²

Fed: Warsh before the blackout

Fed Chair Kevin Warsh's appearance at the IMF-World Bank meeting in Bangkok is the last Fed speech before the blackout ahead of the Oct. 27-28 meeting.⁵ Warsh said he is optimistic AI can make economies that use it well more productive, but warned the path will be "very bumpy" and its near-term effect on jobs is unknown.⁶ Before the CPI report, fed funds futures traders anticipated the next rate increase in December, after the Fed raised rates in September.⁷

Market mood

The VIX eased -2.61% to 16.41, a normal zone that shows calm despite the chip slide. The equity put/call ratio was 0.61 against a 5-day average of 0.59, an average range that signals no rush for protection.

What to watch today

Times are US Eastern (ET).

Reported last night

IBKRInteractive Brokers Group, Inc.EPS in line with the estimate (-0.1%)

00:15
US index futures (futures, not the session)Versus the prior close, S&P 500 futures are +0.15% and Nasdaq 100 futures +0.25%; these are futures prices, not the session. The US session opens at 9:30 ET.
Fri 08:30
Import and export pricesAbove-consensus import prices are generally read as added inflation pressure, a sensitive point after the hot CPI report.⁴
Fri 09:15
Industrial production and capacity utilizationA stronger-than-expected industrial production reading is generally read as firm factory activity, a weaker one as cooling.
Fri
The Travelers Companies, Inc. (TRV) earnings · today before the openTravelers reports before the bell, offering an early look at financial-sector earnings in a rising-rate setting.³^,7
Fri
Citizens Financial Group, Inc. (CFG) earnings · today before the openAnalysts see rising rates starting to sting bank loan growth and bond holdings, putting Citizens Financial's results in focus.³^,8
Fri
Truist Financial Corporation (TFC) earnings · today before the openTruist also reports, and analysts noted that bank earnings and guidance could push the stocks either way.⁸

Metravise Portfolio

PortfolioThursday change−0.80%
—No entries or exits in the last session.

Metravise is an educational research platform — this bulletin is not investment advice. News summaries are based on the footnoted sources; numbers are Metravise data. Past performance is not indicative of future results.

Sources

S&P 500 futures are little changed as index heads for losing week: Live updates — CNBC · Oct 16
Chipmaker sell-off sends investors to other stocks and bonds for safety — CNN · Oct 16
S&P 500 futures are little changed as index heads for losing week: Live updates — CNBC · Oct 16
Inflation rose to 3.7% last month in last snapshot of consumer prices before the midterms — CNN · Oct 15
Will the Fed raise interest rates this month? A Kevin Warsh speech could offer clues — NBC News · Oct 16
Fed's Warsh says AI path will be 'very bumpy' but ultimately 'very good' for wealth — CNBC · Oct 16
The latest inflation data is expected to show price increases are accelerating — CNBC · Oct 14
Earnings beats are now the norm. What the stock market needs to keep rallying — CNBC · Oct 13