Google bought power. CEG got 12%.

Good morning. The S&P 500 closed at a record 7,818.93 Tuesday, up 0.6% and above 7,800 for the first time, as the 10-year Treasury yield eased 4 bp to 5.27% (AP; US Treasury). Google supplied the spark: it contracted for about 3.6 gigawatts of power from Constellation Energy, and power stocks lit up (company release; CNBC). A quiet night since: S&P 500 futures are within 0.1% of flat, though the 10-year yield is back up to 5.31% (CNBC).

Stocks, VIX and yields are Tuesday's close. Futures and oil as of ~3:45 AM ET Wednesday vs. Tuesday's settle. Crypto as of ~3:55 AM ET Wednesday, vs. its 24-hour open. Nikkei is Wednesday's close. Stoxx 600 as of ~3:40 AM ET Wednesday vs. Tuesday's close.

One-line read: A record for the S&P 500 and flat futures, but yields are creeping back up and Asia and Europe are in the red.

The S&P 500 rose 0.6% to 7,818.93 Tuesday, topping its Aug. 13 record close of 7,798.99 and finishing above 7,800 for the first time (AP; Yahoo Finance). The Nasdaq added 0.4% for its second straight record close. It was the S&P's fourth straight gain (CNBC).

The numbers: All 11 sectors but health care rose, led by utilities; the utilities fund XLU gained 3.0%, while the biotech fund XBI fell 3.4% (Reuters; Yahoo Finance). Marvell rose 5.8% after lifting its fiscal 2028 revenue target to about $20 billion from $18 billion, and AMD gained 2.8% after CEO Lisa Su said it plans to substantially increase chip supply in 2027 (Reuters). Nvidia edged up 0.1% to $239.24, another record close (Reuters; Yahoo Finance). Under the hood it was thinner: the Russell 2000 fell 0.6%, Nasdaq gainers beat losers only 2,394 to 2,378, and the Dow is still more than 5% below its Aug. 5 record close (Reuters).

Why it matters: If you own an S&P 500 fund, it closed at a record, carried mostly by the biggest names. Small-cap funds sat this one out. Analysts expect S&P 500 third-quarter earnings to rise 30.6% from a year ago, and the banks start testing that next Tuesday (LSEG via Reuters). A record is a record. This one had a short guest list.

What to watch: Treasury's $39 billion 10-year note sale at 1 PM ET, then the Fed's September minutes at 2 PM ET (TreasuryDirect; Fed).

The 10-year yield fell 4 bp to 5.27% Tuesday, a day after its highest close since May 2002, and the 2-year fell 5 bp to 4.79% (US Treasury). Steadier oil helped, per Reuters. The relief had limits: Treasury's $58 billion 3-year auction cleared at 4.932%, the highest 3-year auction yield since May 2006, with a below-average 2.62 bid-to-cover ratio (Dow Jones; TreasuryDirect). And it faded overnight: the 10-year was back at 5.31% at 3:55 AM ET, up 4 bp, as yields rose in Europe too (CNBC). CME FedWatch put the odds of an October rate hike at 19.4% as of Tuesday, down from 50.9% a week earlier (Reuters). Today's minutes cover the Sep 15–16 meeting, where the Fed raised rates for the first time since 2023.

Why it matters: The minutes show how many officials want more hikes. That sets what your money-market fund pays and pushes on mortgage rates; Freddie Mac's 30-year average was 7.28% last week (Freddie Mac via FRED).

McKesson and private-equity firm CD&R agreed to buy home-infusion provider Option Care Health for $32.05 a share in cash, about $5.8 billion including debt and a 37% premium to Monday's close (company release). The stock rose 32.7% to $31.00 (Yahoo Finance). Lamb Weston rose 7.5% to $47.91 after fiscal first-quarter adjusted EPS of $0.75 beat its own guidance; it raised its full-year outlook to $3.05–$3.35 a share from $2.95–$3.25 (company release; WSJ). After the bell, Constellation Brands beat estimates but held its full-year profit outlook, with Modelo depletions down about 2% and Corona about 5%. Shares fell 4.5% to $110.50 after hours (company release; Yahoo Finance).

Why it matters: Takeover premiums are one way index-fund owners get paid. And beer and fries are a cheap read on the consumer: Constellation's two biggest brands are still selling fewer cases.

The Nikkei closed down 0.9% at 70,035.71 Wednesday, with AI and chip stocks leading the profit-taking after a two-day run of nearly 2,400 points (Nikkei; CNBC). South Korea's Kospi fell 2.0%; mainland China is still closed for Golden Week (Yahoo Finance; CNBC). Europe opened lower, with the Stoxx 600 down 0.5% and Germany's DAX down 0.9%, led by mining and tech (CNBC; Yahoo Finance). Brent settled Tuesday at $100.58, up 0.3%, and WTI settled flat at $89.44 (Dow Jones Market Data). Overnight, Brent was up 0.5% at $101.11 as Houthi attacks on Saudi Arabia revived supply worries (Yahoo Finance; CNBC).

Why it matters: Oil is the bond market's mood ring right now: steadier crude helped yields ease Tuesday (Reuters). Higher yields feed straight into mortgages and bond funds.

Google signed the deal. Power stocks got paid. For context, Constellation's 12.2% gain Tuesday was its best day since April 2025 (Yahoo Finance data). Notice the bottom bar: Alphabet, the buyer, rose 0.35%. Talen and Vistra weren't party to the deal and still rose 12.4% and 10.8% "in sympathy," per CNBC; Evercore ISI told clients the deals are good news for other nuclear owners that could add capacity the same way.

Source: exchange closing prices via Yahoo Finance, Oct 5–6, 2026. Deal terms: Constellation Energy and Google, Oct 6, 2026.

An uprate squeezes more electricity out of a reactor that already exists, with new turbines, steam generators and control systems (CNBC). Constellation will spend more than $4.3 billion upgrading 11 units in Illinois, Pennsylvania and New Jersey to add 890 megawatts, roughly one large reactor's worth, with the first upgrade due in 2028 (company release; Google). Google buys that power under a 20-year contract. Why not build new? It takes years longer, and nearly every closed plant worth restarting is already spoken for (CNBC). Evercore ISI estimates uprates could add 4 to 8 gigawatts by the mid-2030s (CNBC). The quickest new power plant is an old one with better parts.

That's the desk. See you tomorrow at 6 AM ET.

— The Overnight Desk Team

Note: The Overnight Desk Team may hold positions in assets discussed. Nothing here is investment advice. · Sponsor: No one paid for any mention in this issue.