Stock Market Update

[BRIEFING.COM] The major averages have retreated throughout the first half of today's session, unable to maintain modest opening gains as the broader market moved lower, leaving only the information technology sector (+1.0%) in positive territory. The tech-heavy Nasdaq Composite (-0.1%) outperforms the S&P 500 (-0.3%) and the DJIA (-0.4%) as a result. 

Several stock-specific headlines contribute to the technology sector's outperformance. IBM (IBM 310.45, +2.51, +0.82%) moves higher after confirming plans to acquire Confluent (CFLT 29.91, +6.77, +29.25%) for $31 per share, while Microsoft (MSFT 490.40, +7.24, +1.50%) is reportedly in talks to shift its custom chip business to Broadcom (AVGO 401.54, +11.30, +2.90%). The latter headline has weighed heavily on Marvell (MRVL 91.82, -7.09, -7.17%), though it is not a component of the sector or the S&P 500. 

Elsewhere, NVIDIA (NVDA 183.45, +1.04, +0.57%) is up with a gain similar to that of the PHLX Semiconductor Index (+0.7%). 

While the technology sector's gain kept the major averages flattish for much of the morning, widening losses across the other ten S&P 500 sectors eventually led to a decisive move lower. 

The communication services sector (-2.0%) is the worst performer, facing pressure from its largest components, Alphabet (GOOG 313.11, -8.98, -2.79%) and Meta Platforms (META 669.46, -3.96, -0.59%). 

The sector also houses what has been one of the most closely watched corporate news developments over the past several weeks. Paramount Skydance's (PSKY 14.63, +1.27, +9.47%) unsolicited $30-per-share all-cash offer for Warner Bros. Discovery (WBD 27.00, +0.92, +3.53%) marks a fresh turn in the takeover battle, directly countering WBD's prior $27.75-per-share cash-and-stock deal with Netflix (NFLX 96.02, -4.22, -4.21%) that valued the company at roughly $82.7 billion.

Netflix faces additional pressure after being downgraded to Neutral from Buy at Rosenblatt. 

Tesla (TSLA 438.62, -16.38, -3.60%) also faces pressure from a downgrade today, with Morgan Stanley downgrading the stock to Equal Weight from Overweight, citing valuation concerns. 

The consumer discretionary sector (-1.4%) holds one of the widest losses as a result, with a majority of its names contributing to its weakness. 

The health care (-0.9%), consumer staples (-0.8%), and energy (-0.8%) sectors round out the five weakest performers. 

Outside of the S&P 500, Carvana (CVNA 449.83, +50.06, +12.52%) and CRH Plc. (CRH 126.74, +7.25, +6.07%) trade sharply higher after reports that they will soon join the S&P 500. 

The market did not receive any economic data today. Investor attention remains squarely on Wednesday's FOMC decision, with expectations centered on a 25-basis-point rate cut accompanied by guidance that tempers hopes for further easing in January.

Even with the broader market under pressure, the small-cap Russell 2000 (+0.2%) continues to outperform, supported by lingering optimism of policy easing.