Mid-session market 10/05: OPEC+ cuts oil production, market pulls back

Stock market opens Thursday's trading session with quite cautious investor sentiment as SPY drops below 375 after overnight futures session and volatility appears right at the morning open with technology and financial sectors under pressure amid bonds yield rising again. OPEC's decision announced about 30 minutes after open pushes entire market plunging before SPY finds footing at 371 and starts recovering. However sector rotation evident with money flowing out of consumer-related sectors (consumer bank, retail and utilities) and moving into oil & gas, industrials and some mega cap tech. VIX barely moves much in the morning indicating relief from recent options pressure with most OTM put positions not creating gamma-sensitive state for index and investors' fairly stable sentiment on near-term macro conditions not creating strong hedging activity in the morning.

1. US trade deficit continues to improve in August, reaching $67.7 billion vs $70.5 billion previous month.