Schwab Network

While most of the Mag 7 have recently reestablished leadership in the stock market, Amazon (AMZN) has lagged in recent weeks since hitting all-time highs in early August. Kai Wu says the stock has the "most interesting set-up" of the group. He says the fundamentals for the ecommerce giant remain strong, it's the AI CapEx that Kai believes ignites investor concerns. He makes the case that Amazon's "very tangible" investments into data centers keeps the company toe-to-toe with competitors like Microsoft (MSFT), Alphabet (GOOGL), Meta Platforms (META), and even SpaceX (SPCX). George Tsilis offers an example options trade for Amazon.

Collin Martin (@CharlesSchwab) sees one more interest rate hike from the Fed with a second "very likely" before the end of 2026. He outlines his case for further hikes and offers a closer look into the "junk bond" market, which has seen more interest during the AI buildout. Alexandra Semenova makes the case the rate hiking cycle will be a shallow one but expresses concerns for waning market breadth. She also discusses the 10-year Treasury yield hitting 5% after rising for seven consecutive months. That said, strong earnings and economic growth don't flash warning signals yet.

A new seven-year deal between Anthropic and Akamai (AKAM) sent shares for the latter higher on Friday's session thanks to the deal's $11.6 billion price tag. Marley Kayden offers more details on the agreement and why it's a big deal for the greater AI trade. Dan Deming offers an example options trade for Akamai.

Earnings expanding at a "historic rate" is what Ahmed Reisgo points to as the key driver to lasting market momentum even as Treasury yields spike. He also brushes back concerns that the U.S. economy is "overheating" despite the earnings uptick. On the Fed, Ahmed makes the case that the committee will make a "mistake" to hike interest rates as much as markets are pricing in. "Not all parts of the economy are on stable footing," says Ahmed, points out ways that a rate hike will undercut the components currently working.

September's consumer sentiment report was better than expected but still fell from August. Kevin Green notes that the figures dragged down the major indexes and explains why the report is so significant to investors. He also talks about the flat durable goods orders print that underwhelmed investors ahead of Friday's opening bell. As for crude oil, KG points to the latest headlines leading to a small dip in prices, though his focus lies primarily in diesel and a potential rollover for that commodity.

Akamai (AKAM) and Anthropic's $11.6 billion deal is something BofA expects to benefit AMD Inc. (AMD). Daine King Hall talks about the firm's price target hike from the analyst on expectations of strengthening CPU demand. On the downside, she notes HSBC's downgrade on Twilio (TWLO) and BofA's downgrade on Nike (NKE).

Art Hogan says the 10-year Treasury yield being above 5%, paired with elevated moves in other long-term yields, are "normal," it's just that "we're not use to it." He weighs how strength in the U.S. economy pushes his concerns back. Art adds that the narrowness of the tech and energy-led rally isn't concerning to him either, so long as the economy flexes strength. On the Fed, he believes the inflation ramp will eventually subside and let Kevin Warsh and company to focus on establishing its neutral interest rate target.

Sam Stovall talks about the "limbo period" between earnings season markets are currently existing in, though it hasn't felt like it for some with the historic climb in Treasury yields. He talks about how it affects the Fed's interest rate outlook. As for what to expect next earnings season, Sam warns of a rising earnings bar, suggesting the mentality of "it doesn't get much better than this" due to the previous season's surge keeping that bar high.

Renewed hope for a U.S.-Iran peace deal is keeping crude oil pinned below $95 after the commodity tapped levels above the price Thursday. Kevin Hincks adds that the positive tone extends to the Trump-Xi summit that is continuing Friday, noting that several top company executives also had a chance to speak with China President Xi Jinping Thursday night. Though Treasury yields remain at historic highs, Kevin tells investors to "add perspective," pointing out significantly higher levels in past decades. Also on his docket: durable goods orders.

BofA hiked its price target for AMD Inc. (AMD) after the chipmaker's stock already surged about 200% since the start of 2026. Rick Ducat highlights the stunning climb in shares and key levels to watch while offering an example options trade for AMD.