Stock Market Update

[BRIEFING.COM] The S&P 500 (+0.3%), Nasdaq Composite (+0.9%), and DJIA (-0.2%) started the week on a mostly higher note as semiconductor names rebounded from Friday's selloff, though the major indices finished well off their session highs as participation narrowed throughout the day.

The top-weighted information technology sector (+1.5%) paced the gains, though it too finished with just over half of its earlier gain. Semiconductor stocks led the advance and the PHLX Semiconductor Index (+5.6%) finished with the bulk of its strength.

Gains across the group were relatively broad as investors bought into Friday's dip, with some perhaps following the advice of NVIDIA (NVDA 208.64, +3.54, +1.73%) CEO Jensen Huang, who said over the weekend that the pullback creates a buying opportunity.

In addition to the broader rebound effort, several stock-specific headlines contributed to the action. Intel (INTC 110.27, +11.10, +11.19%) was the top performing S&P 500 name after The Information reported that Alphabet (GOOG 361.17, -4.59, -1.25%) and NVIDIA (NVDA 208.64, +3.54, +1.73%) are considering using the company as a backup chip supplier, while Corning (GLW 187.54, +9.96, +5.61%) moved higher after announcing a multibillion-dollar data center infrastructure deal with Amazon (AMZN 245.22, -0.81, -0.33%).

Though not S&P 500 components, Cerebras Systems (CBRS 237.83, +36.82, +18.32%) surged following its quiet-period expiration after most Wall Street initiations came in with bullish ratings, while Marvell (MRVL 288.85, +25.38, +9.63%) rallied after news that it will join the S&P 500 before the market opens on June 22. Both stocks added to the enthusiasm across technology and AI-related names that supported today's advance.

Elsewhere in the technology sector, Apple (AAPL 301.54, -5.80, -1.89%) reversed a 3% gain after underwhelming investors at its World Wide Developers Conference, where it introduced Siri AI and other AI features for its products.

Participation in the broader market waned considerably throughout the session, leaving just three S&P 500 sectors in positive territory at the closing bell.

The energy sector (+1.1%) outperformed amid a modest bump in oil prices, with crude oil futures settled today's session $0.69 higher (+0.8%) at $91.26 per barrel. Oil finished well off its overnight highs as Israel and Iran, which had been exchanging fire, agreed to halt strikes for the time being.

The consumer discretionary sector (+0.5%) rounds out the three advancing sectors, which was largely due to a solid rebound effort in Tesla (TSLA 408.90, +17.90, +4.58%) after Friday's slide.

Meanwhile, the communication services sector (-1.1%) finished near the bottom of the leaderboard amid weak leadership from its mega-cap components. Alphabet (GOOG 361.17, -4.59, -1.25%) continues to move lower following last week's announcement of an $84.75 billion equity raise, while Meta Platforms (META 585.39, -7.61, -1.28%) finished with a similar loss.

The utilities sector (-1.9%) and real estate (-1.6%) sectors finished with the widest losses after outperforming on Friday, while the materials sector (-1.3%) was pressured by weakness in its construction materials components.

Outside of the S&P 500, the Russell 2000 (+0.8%) and S&P Mid Cap 400 (+0.2%) finished higher, but like the broader market, ceded much of their earlier gains.

Altogether, today's session was somewhat underwhelming, as a powerful rebound across semiconductor stocks translated into only modest gains at the index level. The market continued to face weakness across many of its largest non-semiconductor components, while participation in the broader market steadily narrowed throughout the session. Additionally, the market will face several notable tests throughout the remainder of the week, including key inflation readings, Oracle's (ORCL 211.80, -1.88, -0.88%)earnings release, and the eagerly anticipated mega-IPO of SpaceX on Friday.

There was no economic data of note. 

U.S. Treasuries had a mixed showing to begin the week, as 5s and shorter tenors finished flat while 10s and 30s settled modestly lower after outperforming last week. The 2-year note yield settled unchanged at 4.16%, and the 10-year note yield settled up two basis points to 4.55%. 

• Russell 2000: +15.1% YTD
• S&P Mid Cap 400: +11.9% YTD
• Nasdaq Composite: +11.6% YTD
• S&P 500: +8.2% YTD
• DJIA: +5.7% YTD

[BRIEFING.COM] The S&P 500 (+0.2%) has seen the bulk of its early gains whittled away, sitting just modestly above its flatline in the last half hour of today's action.

The top-weighted information technology sector (+1.2%) remains firmly higher but has given back roughly half of its gain today, with Apple (AAPL 302.58, -4.76, -1.55%) reversing a 3% gain after developments at the company's WWDC seemingly disappointed investors.

The market will receive just a small batch of earnings reports after the close and before tomorrow’s open tomorrow, none of which are expected to have market-moving potential.

[BRIEFING.COM] The S&P 500 (+0.5%), Nasdaq Composite (+1.1%), and DJIA (unch) are little changed from previous levels as the market enters the final hour of the session.

Advancers continue to outpace decliners by a modest ratio on both the NYSE and Nasdaq, though sector strength skews towards the negative, with eight S&P 500 sectors trading lower.

Mega-cap stocks remain among the outperformers, with the Vanguard Mega Cap Growth ETF up 0.7%, contributing to the outperformance of the market-weighted S&P 500 (+0.5%) compared to the S&P 500 Equal Weighted Index (+0.2%).

[BRIEFING.COM] Today's primary trading trends remain intact, with strength in the rebound effort concentrated in the tech sector just as Friday's sell-off was.

Notably, Apple (AAPL 304.80, -2.54, -0.82%) kicked off its Worldwide Developers Conference today, where it introduced Siri AI and other AI features for its products. Investors seemed to be underwhelmed, as shares of Apple retreated during the presentation, which ended a short time ago.

AAPL had been up as much as 3.3% earlier today but has turned negative for the session. That has curtailed some of the information technology sector's (+1.9%) strength, but it hasn't derailed its position as a relative and absolute strength leader thanks to the heady gains seen in many of the semiconductor stocks.

[BRIEFING.COM] Micro-cap stocks, small-cap stocks, high-beta stocks, the information technology sector (+2.1%), and the semiconductor space (SOX Index +6.8%) are among the standouts in today's session, as they have received a renewed boost from buy-the-dip action.

The rest of the market, so to speak, has been underwhelming with rate-hike concerns—or, at least, concern about higher rates for longer—helping to keep a lid on things.

The latter point notwithstanding, it is clear that some of the edge has been taken off from Friday's broad-based and deep pullback, as seen in the CBOE Volatility Index. The VIX Index, or so-called "fear gauge," surged as high as 21.57 on Friday (up from 15.40 last Thursday) but has backed down 12.9% today to 18.73.