Stock Market Update

[BRIEFING.COM] The S&P 500 (-0.8%), Nasdaq Composite (-1.3%), and DJIA (-0.3%) have retreated as sizable losses across tech and mega-cap names outweigh mixed strength in the broader market. The smaller-cap Russell 2000 (-0.2%) and S&P Mid Cap 400 (flat) have also moved lower since the open. 

The major averages spent much of the morning in a mixed fashion as modest tech losses were largely balanced out by solid participation elsewhere. Around 10:30 a.m., tech names began a much sharper retreat, which saw the S&P 500 slip below its 50-day moving average (6,766.98). Losses broadened to other pockets of the market as well, with five S&P 500 sectors now trading lower. 

The information technology sector (-1.7%) holds the widest loss, currently sitting a touch above its session lows. Broadcom (AVGO 323.05, -18.25, -5.35%) and Oracle (ORCL 179.57, -9.08, -4.81%) are among the sector's worst performers, extending a post-earnings slide that began last week. Financial Times reported that Oracle's $10 billion data center project in Michigan will not receive backing from Blue Owl Capital (OWL 15.46, -0.38, -2.37%). 

NVIDIA (NVDA 171.84, -5.88, -3.31%) is another notable laggard, with weakness in chipmakers sending the PHLX Semiconductor Index (-3.1%) lower. 

The mega-cap retreat also puts pressure on the communication services (-1.1%) and consumer discretionary (-0.5%) sectors as Alphabet (GOOG 300.29, -7.44, -2.42%) and Tesla (TSLA 473.56, -16.32, -3.33%) lag. Amazon (AMZN 223.64, +1.08, +0.48%) maintains a modest gain after Financial Times reported the company is in discussions to invest more than $10 billion in OpenAI.

The Vanguard Mega Cap Growth ETF is down 1.3%, contributing to the underperformance of the market-weighted S&P 500 (-0.8%) relative to the S&P 500 Equal Weighted Index (flat). 

Six S&P 500 sectors still hold gains, suggesting some underlying resilience in the broader market. Breadth figures are nearly even on the NYSE, while decliners now outpace advancers by a roughly 4-to-3 clip on the Nasdaq. 

The energy sector (+1.3%) is the standout, supported by oil prices rebounding from a 2.7% slide yesterday. The price of oil has increased $0.89 (+1.6%) to $56.02, with the bump largely attributed to President Trump's orders for a blockade of sanctioned tankers entering and leaving Venezuela. 

Elsewhere, a smattering of defensive and cyclical sectors hold modest gains of 0.3% or narrower, though strength certainly does not extend to all cyclical and defensive sectors, as the industrials (-1.1%) and utilities (-0.9%) sectors face relatively wide retreats. 

In corporate news, Warner Bros. Discovery's (WBD 28.40, -0.50, -1.75%) Board of Directors unanimously recommended that shareholders reject Paramount Skydance's (PSKY 13.30, -0.56, -4.01%) hostile takeover bid, noting that they do not find it provides superior value to Netflix's (NFLX 95.82, +1.26, +1.33%) offer. Nonetheless, Paramount affirmed its commitment to acquiring Warner Bros. Discovery despite the recommendation. 

Reviewing today's data:

• Weekly MBA Mortgage Applications Index -3.8%; Prior 4.8%