Stocks Recover as Broad Strength Lifts Major Averages

The stock market overcame a shaky start on Thursday, with broad-based buying lifting the S&P 500 (+0.5%), Nasdaq Composite (+0.5%), and Dow Jones Industrial Average (+0.5%) to modest gains, solidifying their week-to-date advances. Sector leadership shifted throughout the session, but nine of eleven S&P 500 sectors ultimately closed higher, reflecting renewed investor appetite after recent volatility.

The consumer staples sector (+1.2%) led the advance, driven by widespread strength across its components. Kenvue (KVUE 15.29, +1.18, +8.36%) topped the S&P 500 leaderboard, rebounding sharply after heavy losses the prior day tied to new litigation risks in the U.K. surrounding its talc-based products.

The financials sector (+0.8%) also outperformed, rebounding from yesterday’s regional banking turmoil. Zions Bancorp (ZION 49.67, +2.74, +5.84%) recovered part of its steep decline after disclosing $50 million in fraudulent loan charge-offs, while the KBW Regional Bank ETF (KRE 59.08, +0.94, +1.61%) clawed back losses. Strength extended to major lenders such as Truist (+3.7%), Comerica (+1.5%), and Fifth Third (+1.3%), which all posted better-than-expected quarterly results.

A standout performer in the financial space was American Express (AXP 346.62, +23.50, +7.27%), which surged after beating earnings estimates and raising the low end of its 2025 guidance.

Technology stocks offered modest but crucial support. The information technology sector (+0.4%) briefly lagged but turned positive late in the session, helping stabilize the major averages. The PHLX Semiconductor Index (-0.3%) pared early losses, while NVIDIA (+0.8%), Microsoft (+0.4%), and Apple (+2.0%) all posted gains. However, Oracle (ORCL 291.45, -21.55, -6.88%) weighed on the group after investors reacted negatively to comments from its AI World Conference suggesting higher near-term spending could pressure margins.

Outside of technology and finance, real estate (+1.1%), industrials (+1.2%), and utilities (+0.9%) also notched solid advances. Only materials (-0.4%) and utilities (-0.4%) finished in the red.

Macro headlines were relatively quiet. Treasury Secretary Scott Bessent was set to meet Chinese Vice Premier He Lifeng later in the day to discuss trade, while President Trump is still expected to hold talks with President Xi in the coming weeks. The ongoing government shutdown continues to delay key economic data, leaving rate-cut expectations unchanged ahead of next week’s postponed September CPI release.

In all, the session showed investors cautiously re-embracing risk, with defensives, financials, and select growth names contributing to a broad but measured rebound.

Our FTinvest 11 model portfolio extended its rebound this week, rising 1.11% to close at 834.38, including a 0.25% gain on Friday that marked its third consecutive positive finish. The move helped the index recover from recent volatility, though it still trailed the broader S&P 500’s +1.7% advance. Year to date, FTInvest 11 is up 14.59%, continuing to outperform the S&P 500’s 13.3% gain.

The week’s performance underscored FTinvest 11’s resilience after a sharp early-October correction. With risk sentiment improving, the index appears positioned to continue its recovery, though relative performance will depend on whether momentum in mega-cap technology can sustain. Investors will watch upcoming economic data and policy signals closely as the market weighs the potential for further rate cuts before year-end.

Overall, FTinvest 11 closed the week on firm footing—outpacing most mid-cap benchmarks and maintaining a comfortable lead on the year, even as volatility beneath the surface reminds investors that the market’s balance between optimism and caution remains delicate.