Stock Market Update

[BRIEFING.COM] The S&P 500 (-0.2%) and Nasdaq Composite (-0.3%) initially moved higher, powered by gains in chipmakers after Broadcom's (AVGO 217.57, +36.99, +20.4%) pleasing earnings and guidance. Early gains have dissipated at the index level, though, as market rates climbed. 

The 10-yr yield is at 4.39%, which is 24 basis points higher for the week. The 2-yr yield is at 4.24%, which is 14 basis points higher this week. This price action follows disappointing inflation data this week in the form of November CPI and PPI, along with data showing some softening the labor market. 

Small caps, which are more sensitive to changes in market rates, have underperformed today and throughout the week. The Russell 2000 sports a 1.0% decline, bringing its loss since last Friday to 3.0%. The market-cap weighted S&P 500 shows a 0.9% decline since last Friday.

The semiconductor space has been a pocket of strength in an otherwise downbeat session, but some influential chipmakers have declined alongside the broader equity market. NVIDIA (NVDA 133.54, -3.80, -2.8%) had been trading up as much as 1.6% at its high, but sports a solid decline now. The PHLX Semiconductor Index (SOX) still shows a 2.3% increase.

WTI crude oil futures are 1.1% higher today to $70.77/bbl after the IEA said world oil demand growth is set to accelerate from 840 kb/d in 2024 to 1.1 mb/d next year, lifting consumption to 103.9 mb/d in 2025. WTI crude oil futures have struggled to hold above $70.00/bbl since the start of September.

Other energy-related commodities trading lower, weighing down the S&P 500 energy sector (-0.6%). Natural gas futures are 4.1% lower at $3.31/mmbtu.

Reviewing today's economic data:

• November Export Prices 0.0%; Prior was revised to 1.0% from 0.8%
• November Export Prices ex-ag. 0.1%; Prior was revised to 0.8% from 0.6%
• November Import Prices 0.1%; Prior was revised to 0.1% from 0.3%
• November Import Prices ex-oil 0.0%; Prior 0.2%