Stock Market Update

[BRIEFING.COM] The stock market drifted sideways today, with a lack of catalysts keeping the S&P 500 (-0.1%), Nasdaq Composite (-0.2%), and DJIA (-0.2%) within close range of their flatlines. 

Sector strength was a nearly even split, with five S&P 500 sectors finishing at or above their baselines. 

The energy sector (+0.8%) captured the widest gain, with strong leadership from oil and gas producers despite crude oil settling today's session $0.16 lower (-0.3%) at $57.94 per barrel. It was the only sector to finish with a gain wider than 0.5%.

The communication services sector (+0.3%) captured the next widest gain, supported by a strong showing from Meta Platforms (META 666.01, +7.32, +1.11%) amid a muted day for mega-cap stocks that saw the Vanguard Mega Cap Growth ETF finish 0.1% lower. The stock traded higher this morning after the company announced its acquisition of the Singapore-based AI startup Manus. 

Elsewhere in the sector, CNBC and Bloomberg both reported that Warner Bros. Discovery (WBD 28.96, +0.16, +0.57%) plans to reject Paramount Skydance's (PSKY 13.51, +0.01, +0.07%) latest takeover bid. 

Meanwhile, the materials sector finished flat as metal prices rebounded from yesterday's slide. Silver led the advance, settling today's session $7.41 higher (+10.5%) at $77.93 per ozt. Newmont Corporation (NEM 101.87, +2.06, +2.06%) was a standout after falling 5.6% yesterday.

Losses across the six retreating sectors were contained to 0.3% or less. However, the top-weighted information technology sector (-0.3%) was one of the sectors that finished at the bottom of the leaderboard, with its late slide pushing the major averages near session lows at the close.

The sector spent the session oscillating around its flatline, with Intel (INTC 37.30, +0.62, +1.69%) spending time as the top-performing S&P 500 name before giving up around half of its gain. NVIDIA (NVDA 187.54, -0.68, -0.36%) and Apple (AAPL 273.02, -0.74, -0.27%) finished with modest losses, while Palantir Technologies (PLTR 180.84, -3.34, -1.81%) was a laggard. 

Outside of the S&P 500, the Russell 2000 (-0.8%) and S&P Mid Cap 400 (-0.4%) underperformed. 

Ultimately today's low-volume action reflected a market in search of fresh catalysts heading into the new year. Last week's renewed enthusiasm in the AI trade has waned, leaving investors to question if the "Santa Claus" rally has come to a close as the market tilts slightly negative this week. The market will be open for a full trading day tomorrow before closing on Thursday for the New Year's Day holiday.

The 2:00 p.m. ET release of the December FOMC minutes did not produce any surprises. Most policymakers anticipate additional rate cuts if inflation continues to cool, although some officials favor keeping rates at current levels for a period of time.

U.S. Treasuries continued their quiet start to the week with a shallow Tuesday dip that narrowed Monday's gains in the belly of the curve. The 2-year note yield settled down one basis point at 3.45%, and the 10-year note yield settled up one basis point at 4.13%. 

• Nasdaq Composite: +21.3% YTD
• S&P 500: +17.3% YTD
• DJIA: +13.7% YTD
• Russell 2000: +12.2% YTD
• S&P Mid Cap 400: +7.1% YTD

Reviewing today's data:

• The Chicago PMI hit 43.5 in December (Briefing.com consensus 40.4), up from 36.3 in November.
• The FHFA Housing Price Index was up 0.4% month-over-month in October (Briefing.com consensus 0.1%) after decreasing a revised 0.1% (from 0.0%) in September.
• The S&P Case-Shiller Home Price Index was up 1.3% year-over-year in October (Briefing.com consensus 1.1%), down from 1.4% in September.