S&P 500 Sits Near Peak as Fresh Ratings Shift Before Friday Open

Heading into the final trading session of the week, major U.S. stock indexes sit close to recent highs following the close on Thursday, September 10. The S&P 500 closed -0.6% with its tracking fund SPY ending at $757.83, leaving the broad index sitting -2.6% from its peak. Market breadth showed that 30.5% of the largest U.S. companies advanced during the session. Across other major benchmarks, the Dow finished -0.6%, the Nasdaq 100 closed -1.1%, and the Russell 2000 small-cap index closed -1.0%.

While New York was shut, EasyAlpha re-evaluated its quality assessments across S&P 500 members. On the downgrade side, our model adjusted views downward: we lowered Lumentum Holdings Inc (LITE) B to D on its price behaviour, moved Intel Corporation (INTC) C to E on its price behaviour, and reduced Lam Research Corp (LRCX) B to D on its price behaviour.

On the upgrade side, our view improved as underlying measurements strengthened: we raised Gartner Inc (IT) E to C on its price behaviour, boosted IDEX Corporation (IEX) D to A on the sentiment around it, and lifted EQT Corporation (EQT) E to C on the sentiment around it.

In round-the-clock trading as of 10:15 am New York, overnight benchmark assets showed movement across metals and currencies. In metals, silver -2.7%. In currency trading, benchmarks registered the euro against the dollar -0.3%, the pound against the dollar -0.3%, and the yen against the dollar +0.1%.

Looking ahead to the session on Friday, September 11, the corporate calendar features early morning earnings results. Exactly 1 covered company is scheduled to report before the opening bell: Kroger Company (KR, graded D). Across the broader reporting calendar, 10 covered companies are scheduled to report quarterly results over the next seven days.

Several individual companies enter the session with notable activity. Freeport-McMoran Copper & Gold Inc (FCX) drew market attention after shares dipped more than the broader market. Semiconductor equipment maker Lam Research Corp (LRCX) remains under scrutiny following its rating change, while its long-term growth profile continues to attract historical return comparisons. Meanwhile, healthcare provider Elevance Health Inc (ELV) gained traction as its shares surged 5.0%.

Standout moves from the prior session also carry into the morning open. On the downside, The Cooper Companies, Inc (COO) -14.7% followed its fiscal third-quarter earnings release reporting revenue of $1.066 billion, as lowered fourth-quarter guidance and ongoing channel inventory destocking weighed on trading. Energy services provider Baker Hughes Co (BKR) -6.7% also retreated. On the upside, Skyworks Solutions Inc (SWKS) +9.8% climbed as investor focus centered on progress around its pending merger ahead of an executive presentation, while Reddit, Inc. (RDDT) +6.1% also advanced.

One concept that connects this morning's data is why foreign currency movements matter to an investor holding only domestic U.S. shares. Many large U.S. corporations generate a substantial share of their revenue outside the United States. When foreign currencies like the euro or the British pound decline against the U.S. dollar, international sales convert into fewer dollars when transferred back home, reducing reported revenue and earnings. A stronger dollar can also make American products more expensive in international markets, potentially reducing overseas customer demand. Conversely, when foreign currencies strengthen, international revenue gains additional value once translated into dollars. Even for an investor whose portfolio consists solely of U.S. stocks, global currency shifts directly influence multinational corporate profitability and earnings performance.