Stock Market Update

[BRIEFING.COM] The stock market is in rally-mode after yesterday's dip. The S&P 500 (+0.8%) and Nasdaq Composite (+1.2%) trade up nicely while the Dow Jones Industrial Average (+0.1%) and Russell 2000 (+0.4%) underperform somewhat. 

Mega caps and chipmakers, benefitting from buy-the-dip interest, have boosted the broader market thus far. NVIDIA (NVDA 132.36, +4.64, +3.6%) is among the top performers after a Bloomberg report that Hon Hai Precision is aiming to increase capacity to meet demand for artificial intelligence products.

The PHLX Semiconductor Index (SOX) shows a 1.1% gain and the Vanguard Mega Cap Growth ETF (MGK) sports a 1.5% gain. This price action has also helped the heavily-weighted S&P 500 information technology (+1.6%), consumer discretionary (+0.9%), and communication services (+0.6%) sectors.

Calm action in the Treasury market after recent, sharp selling activity has contributed to the upside bias in equities. The 10-yr yield is unchanged from yesterday at 4.03% and the 2-yr yield is down three basis points to 3.97%.

Oil prices are also moderating today after their recent runup. WTI crude oil futures are down 4.6% to $73.66/bbl.

Reviewing today's economic data:

• September NFIB Small Business Optimism 91.5; Prior 91.2
• August Trade Balance -$70.4 bln (Briefing.com consensus -$71.3 bln); Prior was revised to -$78.9 bln from -$78.8 bln
  • The key takeaway from the report is that the net exports component for August will be a positive input for Q3 GDP forecasts.