Top U.S. Stories

  • Dow leads Wall Street higher on a healthcare rally. The Dow rose 529.85 points, or 1.02%, to 52,495.88, as the S&P 500 healthcare sector hit a record high while tech lagged. Why it matters: Investors are hedging AI risk by moving into defensive sectors rather than leaving stocks altogether.
  • Housing slides into a “deep freeze.” Pending home sales fell 7.3% in September to the lowest level in records back to 2001, with mortgage rates at 7.43%. Why it matters: If the Fed raises rates to fight inflation, borrowing costs for homebuyers could climb further.
  • New lawsuit targets 50% tariffs on Canada. A New Jersey food importer sued to block tariffs imposed under Section 338 of the 1930 Tariff Act, seeking refunds with interest. Why it matters: After the Supreme Court struck down the “reciprocal” tariffs in February, courts remain a key check on trade policy.
  • Boeing wins FAA approval for the 737 Max 10 after years of review.
  • Netflix beats on earnings, but shares fall. Its full-year revenue forecast of $51.1 billion came in below estimates, and shares dropped about 6% after hours.
  • Abroad: Zelensky said U.S. intelligence sharing “works now” after talks with envoy Steve Witkoff in Oslo, and Alberta voters rejected separation from Canada.

Compass Insight

Tuesday’s tape was less about direction than about where money hides. Tech paused, while healthcare, utilities and small caps drew buyers — a sign that investors still want equity exposure but are growing wary of AI names funded by heavy borrowing. In Tokyo, the same worry hit harder: concerns over CoreWeave’s debt helped drag the Nikkei down more than 800 yen. Meanwhile, oil swung wildly on rumors of a U.S.-Iran compromise, showing how headline-driven energy prices have become with crude near $100. In the short term, watch Iran-related headlines and the Fed’s tone on further hikes. Over the longer run, the key questions are whether AI capital spending stays financeable and how far high oil prices feed into inflation and mortgage rates.

Markets

Stocks in Focus

  • Braze: Salesforce agreed to buy it for about $5.66 billion; shares soared more than 51% to close at $45.57.
  • Eli Lilly, UnitedHealth, Merck: Led the healthcare rally that lifted the Dow.
  • Netflix: Fell after hours on soft revenue and advertising guidance.

Not a recommendation to buy or sell any security.

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Auto-generated and AI-written. Not investment advice.