Weekly market performance

S&P 500: +1.2%, closing at 7,811.54

Dow Jones: +0.9%, closing at 51,654.95

Nasdaq Composite: +0.6%, closing at 27,366.17

Russell 2000: -0.9%, closing at 2,806.98

A record-setting but volatile week

Wall Street began the week strongly, with the S&P 500 and Nasdaq reaching record highs on Tuesday.

Momentum weakened later as Treasury yields climbed and renewed concerns about AI company revenues triggered selling across technology and semiconductor shares.

The U.S. 10-year Treasury yield briefly reached approximately 5.36%, its highest level in more than two decades, before easing toward 5.24% by Friday.

Stocks recovered into the weekend, supported by improving sentiment and a partial reversal of Thursday's technology selloff.

Where investors found gains

Consumer staples and utilities led the S&P 500's weekly advance, while nine of its 11 sectors finished higher.

AI-related infrastructure remained an important source of individual stock gains despite broader volatility.

Constellation Energy surged more than 12% on Tuesday after announcing a major nuclear power agreement with Alphabet.

On Friday, Oracle rebounded roughly 4.7%, while optical-networking shares such as Lumentum benefited from renewed optimism about AI infrastructure demand.

Elsewhere, Humana jumped approximately 11.6% on Friday following improved Medicare Advantage ratings.

Cell tower operators Crown Castle and American Tower also rallied sharply after SpaceX's wireless-spectrum acquisition raised the prospect of additional demand for communications infrastructure.

Not everyone participated

Traditional wireless carriers were among Friday's biggest losers.

T-Mobile dropped approximately 13.3%, while AT&T and Verizon fell roughly 9.8% and 8.7%, respectively, following concerns about potential competition from SpaceX's Starlink Mobile business.

Small-cap stocks also underperformed. The Russell 2000 lost 0.9% over the full week despite Friday's rebound.

Oil and Treasury yields remain important

Oil prices remained elevated amid Middle East shipping disruptions and tensions involving Iran.

President Donald Trump's statement that the U.S. would not launch new strikes against Iran before the November midterm elections provided some temporary relief to energy markets.

However, Brent crude remained above $100 a barrel, while the 10-year Treasury yield ended Friday near 5.24%.

Those conditions continue to complicate the inflation outlook and place pressure on interest-rate-sensitive businesses.

What to watch next week

The market faces a significantly heavier calendar from October 12–16.

Major U.S. banks begin reporting third-quarter earnings, giving investors a clearer picture of consumer credit, trading activity and corporate financial conditions.

Wednesday's consumer price index report will be particularly important after the sharp rise in bond yields.

Thursday's producer inflation and retail sales releases will provide additional evidence about whether higher energy costs are feeding broader price pressures and whether consumer spending remains resilient.

Semiconductor investors will also focus on upcoming results and guidance from major chip-industry companies.

Bottom line

Wall Street continues to advance, but the rally is far from uniform.

The S&P 500 and Nasdaq remain near record highs, while small-cap weakness and elevated bond yields show that investors are still discriminating between sectors.

Whether the rally can continue may depend on next week's inflation data and corporate earnings confirming that profit growth can withstand high borrowing costs.