Market Narratives

Acuity Brands reported a solid Q3 fiscal 2026 earnings beat this morning, with adjusted EPS surpassing consensus and the AIS segment growing at a double-digit pace year-over-year. The results provide a read-through for commercial and industrial construction activity, indicating that non-residential end markets remain healthy despite macro uncertainty. Other industrial and commercial construction names that have lagged could see catch-up bids as the earnings signal confirms demand strength.

Gilat Satellite Networks announced a multi-million dollar order to supply custom SATCOM terminals to a European Ministry of Defense, with delivery expected over the next year. This contract win builds on the broader trend of increased European defense spending and the growing importance of resilient satellite communications for military operations. The satellite and defense communications sector is seeing sustained demand as NATO allies bolster capabilities.

The Russell 2000 (^RUT) and IWM are carrying the strongest technical scores among all major US indices, with buy signals on both. Small caps show a MACD bullish crossover and have been powering higher while mega-cap tech names like MSFT, AAPL, and NVDA have been softening. This rotation into broader market participation is a classic signal that the rally is broadening beyond the mega-cap leaders, with the Fear & Greed index in 'fear' territory suggesting further upside as sentiment normalizes.