Closing Bell: Markets End on a High Note with Small Caps Outperforming

Key Points

• Equities advanced broadly, with the Russell 2000 outperforming (+1.91%) and strength concentrated in Energy, Financials, and Industrials.
• CrowdStrike recovered intraday, reversing early post-earnings losses as analysts raised price targets despite softer-than-hoped guidance.
• Bitcoin extended its rebound, gaining over 2.4% on technical oversold buying and renewed attention on potential MSCI index implications.

Markets finished higher today, with the S&P 500 (SPX) gaining 0.3% and the tech-heavy Nasdaq-100 (NDX) closing up 0.2%. The Russell 2000 (RUT) was the standout performer, ending the session up 1.91%. Energy, Financials, and Industrials led the advance, while Information Technology and Utilities lagged.

CrowdStrike Reverses Early Losses Post Earnings

Following its earnings release Tuesday evening, CrowdStrike (CRWD) initially faced selling pressure. The company reported earnings and revenue that exceeded analyst expectations, but its guidance fell short of what the market had hoped for. After the early decline, several analysts issued price-target increases that helped lift the stock intraday. BMO raised its price target to $475 from $435, and UBS increased its target to $590 from $580.

Bitcoin Advances Higher for a Second Day

Bitcoin futures logged a second consecutive day of gains as risk appetite crept back into the market, with the December contract rising more than 2.4% on the session. Technical oversold conditions may have attracted buyers in the near term. Strategy, formally MicroStrategy (MSTR), CEO Michael Saylor also noted he is in discussions with MSCI regarding potential index exclusion—a development that has weighed on the stock recently due to concerns about passive outflows tied to a possible removal.

Key Market Events for Tomorrow

• 07:30 AM ET: Challenger Job Cuts
• 08:30 AM ET: Unemployment Claims
• 10:30 AM ET: Natural Gas Storage
• 12:00 PM ET: FOMC Member Bowman Speaks                      

Notable Earnings for Tomorrow

• Premarket: DG, HRL, KR
• Postmarket: DOCU, HPE, S, ULTA

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