Stock Market Update

[BRIEFING.COM] The stock market had an eventful session today that saw the S&P 500 (+0.3%) and Nasdaq Composite (+0.3%) finish significantly below their session highs as mega-cap tech faced considerable afternoon profit taking. Broad strength helped the DJIA (+0.6%) finish closer to its own session high, though most pockets of the market closed off of their best levels. 

Despite facing a considerable pullback of their own, semiconductor names were still one of the day's biggest winners. An impressive earnings report from Taiwan Semiconductor Manufacturing (TSM 341.64, +14.53, +4.44%) precipitated the sharp early gains across chipmakers and other AI plays. Notably, the company expects between $52 billion and $56 billion in capital spending in 2026, which provided a boost to the AI trade today. 

The PHLX Semiconductor Index (+1.8%) traded as much as 3.9% higher, though it found itself in the crosshairs of some selling activity this afternoon. The broader information technology sector (+0.5%) shed the bulk of its early gain after trading over 1.5% higher today. 

The pullback did somewhat coincide with comments from Commerce Secretary Howard Lutnick, who said in a CNBC interview that semiconductor companies without production in the U.S. will likely face a 100% tariff rate. However, the space was likely due for some profit-taking after a hot start to 2026 that had the PHLX Semiconductor Index up over 12% for the year. 

KLA Corporation (KLAC 1544.96, +110.46, +7.70%) still managed to capture the widest gain across S&P 500 names today, supported by Wells Fargo upgrading the stock to Overweight from Equal Weight with a $1600 target, while Morgan Stanley upgraded shares to Overweight from Equal Weight with a $1697 target.

Additionally, NVIDIA (NVDA 186.99, +3.85, +2.10%) remained a mega-cap standout despite a tough afternoon for the market's largest names. The Vanguard Mega Cap Growth ETF (+0.1%) finished flattish after moving as much as 0.7% higher. 

Mega-cap weakness saw the consumer discretionary sector (+0.4%) finish with about half of its previous gain, while a retreat in Alphabet (GOOG 333.16, -3.15, -0.94%) sent the communication services sector (-0.4%) lower. 

Seven total S&P 500 sectors closed with gains, with the defensive utilities sector (+1.0%) capturing the widest gain as it was largely resilient to the afternoon sell-off. 

Cyclical sectors finished mostly higher, with the industrials sector (+0.9%) finishing near the top of the leaderboard. Airline names such as Delta Air Lines (DAL 71.34, +2.85, +4.16%) and United Airlines (UAL 116.02, +5.27, +4.76%) outperformed today as they rebounded from previous losses this week that followed Delta's earnings release on Monday. 

The financials sector (+0.4%) also closed with a gain, though it was one of many sectors to finish well off of its best levels.  Morgan Stanley (MS 191.29, +10.51, +5.81%), Goldman Sachs (GS 975.88, +43.21, +4.63%), and BlackRock (BLK 1156.90, +65.05, +5.96%) all finished sharply higher after topping earnings estimates this morning, providing the financials sector with some reprieve after what has been a tough week. 

Meanwhile, the energy sector (-0.9%) closed with the widest loss as oil prices continued to fall sharply in response to a de-escalation of tensions between the U.S. and Iran that makes a U.S. strike seem unlikely for the time being.  Crude oil futures settled today's session $2.79 lower (-4.5%) at $59.09 per barrel. 

The health care sector (-0.6%) was another laggard, though its weakness was exacerbated by a few stock-specific developments. Eli Lilly (LLY 1032.72, -40.58, -3.78%) provided weak leadership after Reuters reported the FDA has delayed its approval decision of the company's weight loss pill to April 10. Boston Scientific (BSX 90.00, -3.74, -3.99%) was another laggard following the announcement of its agreement to acquire Penumbra (PEN 350.42, +37.00, +11.80%) in a deal valued at approximately $14.5 billion.

Outside of the S&P 500, the Russell 2000 (+0.9%) and S&P Mid Cap 400 (+1.2%) also ceded some of their early strength, though they were much more resilient to the pullback and once again decidedly outperformed the larger-cap major averages. 

The trend of broadening leadership continues to pervade the market as mega-cap stocks struggle in 2026. The Vanguard Mega Cap Growth ETF is down 0.9% year-to-date, while the Russell 2000 (+7.8% year-to-date) and S&P Mid Cap 400 (+6.4% year-to-date) have surged. This dynamic is also evident in the widening performance gap between the market-cap-weighted S&P 500 (+1.5% year-to-date) and the S&P 500 Equal Weight Index (+4.2% year-to-date), as cyclical sectors continue to post solid gains on expectations for a strong economy in 2026, even with recent Fed commentary pointing to several months before the next potential rate cut. 

U.S. Treasuries had a mixed showing on Thursday, with relative weakness in the front end lifting the 2-year yield to its highest settlement since early December while the long bond outperformed, recording its third consecutive gain. The 2-year note yield settled up five basis points to 3.56%, the 10-year note yield settled up two basis points to 4.16%, and the 30-year note yield settled down one basis point to 4.79%. 

• Russell 2000: +7.8% YTD
• S&P Mid Cap 400: +6.4% YTD
• DJIA: +2.9% YTD
• S&P 500: +1.5% YTD
• Nasdaq Composite: +1.2% YTD

Reviewing today's data:

• Weekly Initial Claims 198K (Briefing.com consensus 210K); Prior was revised to 207K from 208K, Weekly Continuing Claims 1.884 mln; Prior was revised to 1.903 mln from 1.914 mln
  • The key takeaway from the report is that it corroborates a low firing-low hiring environment that will keep the Fed on watch but also on hold in terms of a rate cut this month and possibly until June, which is when the fed funds futures market is projecting the first cut in 2026.
• January Philadelphia Fed Index 12.6 (Briefing.com consensus -5.0); Prior was revised to -8.8 from -10.2
• November Import Prices 0.4%; Prior 0.1%
• November Import Prices ex-oil 0.6%; Prior 0.1%
• November Export Priices 0.5%; Prior 0.0%
• November Export Prices ex-ag. 0.4%; Prior 0.0%
• January Empire State Manufacturing 7.7 (Briefing.com consensus 1.0); Prior was revised to -3.7 from -3.9

[BRIEFING.COM] The S&P 500 (+0.2%), Nasdaq Composite (+0.2%), and DJIA (+0.5%) are under pressure just before the close, as the major averages now sit considerably below earlier highs. 

Notably, mega-caps have given up the majority of their early advacne, with the Vanguard Mega Cap Growth ETF now up just 0.1% after trading as much as 0.7% higher today. 

Though semiconductor names have seen some profit taking from earlier levels, NVIDIA (NVDA 187.64, +4.50, +2.46%) remains a mega-cap standout, but weakness in Apple (AAPL 257.65, -2.31, -0.89%) and Microsoft (MSFT 456.59, -2.79, -0.61%) pressure the information technology sector (+0.8%) to its lowest levels of the session. 

Elsewhere, Amazon (AMZN 237.32, +0.67, +0.28%) and Tesla (TSLA 440.10, +0.90, +0.20%) are now flattish, which contributes to the consumer discretionary sector (+0.4%) giving up about half of its previous strength, while Alphabet's (GOOG 332.89, -3.42, -1.02%) underperformance keeps the communication services sector (-0.7%) firmly lower. 

[BRIEFING.COM] The S&P 500 (+0.4%), Nasdaq Composite (+0.4%), and DJIA (+0.7%) are trending lower as the market enters the final hour of the session. 

The Commerce Department annouced a trade and investment deal with Taiwan, in which Taiwan will provide credit guarantees of at least $250 billion to facilitate additional investment. The U.S. will lower tariffs on Taiwan to 15% from 20% in exchange. The deal also significantly rewards semiconductor companies that invest in U.S. production. 

In a CNBC interview, Commerce Secretary Howad Lutnick said that Taiwan Semiconductor Manufacturing (TSM 342.42, +15.31, +4.68%) could double its amnufacturing size in the U.S. Additionally, Mr. Lutnick doe not anticipate the Taiwanese trade deal, or tariffs on Iran discrupting trade talks with China. 

[BRIEFING.COM] The S&P 500 (+0.60%) is in last place on Thursday afternoon, but up a decent 41 points, to allow the average back into positive territory (+0.02%) on the week.

Briefly, S&P 500 constituents SanDisk (SNDK 416.74, +28.93, +7.46%), Vistra Corp. (VST 181.95, +12.98, +7.68%), and Amphenol (APH 154.92, +8.17, +5.57%) dot the top of the standings. SNDK was initiated with a Sector Perform, tgt $400 at RBC Capital this morning, while APH rises as investors view the ADC India open offer as a low-risk, value-accretive move that tightens control over a fast-growing emerging-market asset with minimal balance-sheet impact.

Meanwhile, Robinhood Markets (HOOD 114.37, -5.30, -4.43%) slides hard as losses in crypto pressures the stock.

[BRIEFING.COM] The Nasdaq Composite (+0.90%) is in first place among the major averages, up about 210 points.

Gold futures settled $12.00 lower (-0.3%) at $4,623.70/oz, as traders took profits after recent record highs, with some safe-haven demand easing amid calmer geopolitical rhetoric and reduced near-term policy uncertainty. While expectations for eventual Fed rate cuts remain supportive longer term, improved risk sentiment prompted a modest bout of consolidation in bullion prices.

Meanwhile, the U.S. Dollar Index is now up +0.2% to $99.32.