In the absence of major economic news, earnings and geopolitical tensions continued to take center stage. Both Iran and the Houthis renewed attacks on oil infrastructure, sending crude oil (+4.3%) and the Energy sector (+1.6%) higher. Although only 9% of S&P 500 companies have reported, earnings growth is projected at 29.5% for Q3 2026 and 29.2% for Q4. However, concerns over returns on AI and data center spending fueled a risk-off trade, pushing the U.S. 10-year Treasury yield down from 5.10% to 4.99%. Unlike in previous quarters, higher capex is now facing greater scrutiny, with investors punishing undisciplined spending.