Stock Market Update

[BRIEFING.COM] The S&P 500 (-0.9%), Nasdaq Composite (-1.4%), and DJIA (-0.3%) are firmly lower as yesterday's AI-trade retreat has intensified and expanded into a broader-market pullback. 

The information technology sector (-2.4%) holds a considerable loss, with Broadcom's (AVGO 362.28, -44.09, -10.85%) post-earnings slide a catalyst of the sell-off. The company beat expectations and issued upside guidance for the next quarter, suggesting that the double-digit move lower is sentiment-based, with investors looking for a more aggressive outlook. 

In turn, chipmakers and related plays are mostly lower. NVIDIA (NVDA 177.25, -3.68, -2.03%) holds a loss, and the PHLX Semiconductor Index is down 4.0%. 

Oracle (ORCL 190.20, -8.65, -4.35%), which posted a double-digit loss yesterday in reaction to a solid earnings report of its own, furthers its slide today. 

While tech names faced pressure yesterday, the move reflected more of a rotation out of the AI trade and into cyclical and defensive sectors. That trend is still somewhat evident today, though only a handful of sectors hold increasingly modest gains after the broader market retreated this morning, pushing the DJIA lower after it notched a record intraday high for the second consecutive session shortly after the open.

The materials sector (+0.3%) holds the widest gain, adding to yesterday's 2.3% advance, while the consumer staples sector (+0.2%) is also modestly positive. 

Costco (COST 870.59, -13.89, -1.57%) trades lower after beating EPS estimates and reporting revenues in line with expectations, while Walmart's (WMT 115.89, +0.37, +0.32%) modest gain saw it notch an all-time high.

Meanwhile, the consumer discretionary sector (-0.2%), which also outperformed yesterday, trades lower despite a higher start this morning. lululemon athletica (LULU 205.86, +18.85, +10.08%) is the top-performing S&P 500 name today following the company's Q3 earnings report. The company beat top-and-bottom-line expectations and announced that CEO Calvin McDonald will step down on January 31. 

Seven S&P 500 sectors trade lower, though all things considered, losses are modest with the exception of the technology sector. 

A 1.3% retreat in the Vanguard Mega Cap Growth ETF certainly weighs on the market-weighted S&P 500 (-0.9%), though broader weakness seats the S&P 500 Equal Weighted Index (-0.5%) with a loss as well.

The smaller-cap Russell 2000 (-1.1%) and S&P Mid Cap 400 (-1.1%) finally trade lower after a run of outperformance leading up to and directly after Wednesday's FOMC meeting, which resulted in a 25-basis point rate cut. 

There were no economic data releases of note today.