Nasdaq Index: AI Infrastructure Leads as Energy Stocks Give Back Oil Premium

• The Nasdaq is testing resistance at 26,997 to 27,066, with Friday's high of 27,051 stopping within this zone, while the S&P 500 backed off its 7,722 to 7,737 retracement level
• WTI crude fell toward $93 and Brent toward $105 on Iran's conditional offer to reopen Hormuz, though physical risks remain with only nine tanker transits versus normal levels and continued Houthi attacks on Saudi targets
• The 10-year Treasury yield stayed elevated near 5.18% (highest since 2007), with Fed funds futures pricing 66% odds of an October rate hike, while buying remained concentrated in specific AI infrastructure names rather than broad technology gains

Market Summary: AI Infrastructure Rallies as Energy Sector Retreats

Key Market Movements

Major U.S. indices closed higher on September 25, 2026, with concentrated gains in AI infrastructure stocks. The S&P 500 rose 0.22% to 7,721.15, the Dow Jones gained 0.35% to 51,528.01, and the Nasdaq Composite advanced 0.30% to 27,018.78.

Sector Rotation: AI Winners, Energy Losers

AI infrastructure stocks led gains:

• Akamai: +8.27% (multiyear Anthropic deal)
• Dell: +4.01%
• Flex: +3.95%
• Synopsys, Microsoft, ON Semiconductor, Qualcomm, Super Micro Computer: all up 3%+

Energy stocks declined as oil prices retreated:

• Valero: -2.82%
• Devon Energy: -2.46%
• Marathon Petroleum: -2.40%

Oil Market Developments

November WTI crude traded near $93, while Brent crude hovered near $105, falling on Iran's conditional offer to reopen the Strait of Hormuz. However, physical supply risks remain—Hormuz transits dropped to nine vessels (far below normal), and Houthi attacks on Saudi targets continued Friday.

Bond Market Pressure

Treasury yields remained elevated, with the 10-year yield near 5.18% (highest since 2007) and the 30-year at 5.48% (highest since 2004). Fed funds futures indicate a 66% probability of another rate hike in October.

Technical Outlook

The Nasdaq tests resistance at 26,997-27,066, while the S&P 500 backs off its 7,722-7,736 retracement zone. The Dow faces its fourth consecutive losing week, while the Nasdaq is up 1.6% weekly.

Market Implications

Trading reflects narrow sector rotation rather than broad-based strength, with buyers targeting