Stock Market Update

[BRIEFING.COM] The stock market is in rally-mode, again. The S&P 500 (+0.9%) moved further above its 200-day moving average (5,752) and turned positive for the year (+0.2%). The Nasdaq Composite shows a 1.7%% gain.

The Dow Jones Industrial Average is left out of the rally, trading 190 points lower due to a sharp decline in UnitedHealth (UNH 317.91, -60.80, -16%). It's one of the most influential names in the price-weighted average, sinking following the news that CEO Andrew Witty is stepping down for personal reasons and that the company is suspending its 2025 outlook as it grapples with higher-than-expected medical costs. 

The overall positive bias is driven by a fear of missing out on further gains, momentum after the notable de-escalation in the trade war with China, and an April Consumer Price Index that lacked any tariff inflation shock. Also, it has been enthused by the news that Saudi Arabia, in conjunction with President Trump's visit there, announced a $600 billion investment plan in the U.S. 

Just about everything has participated in today's gains with a risk-on bias still driving moves. Mega caps and chipmakers have played an integral role in index performance. The Vanguard Mega Cap Growth ETF (MGK) trades 1.8% higher and the PHLX Semiconductor Index (SOX) trades 3.3% higher.

This price action has propelled the S&P 500 technology sector to trade 2.3% above its prior close. The communication services (+1.6%) and consumer discretionary (+1.2%) sectors are also top performers that contain mega caps.

Reviewing today's economic data:

• April NFIB Small Business Optimism 95.8; Prior 97.4
• April CPI 0.2% (Briefing.com consensus 0.3%); Prior -0.1%, April Core CPI 0.2% (Briefing.com consensus 0.3%); Prior 0.1%
  • The key takeaway from the report is the absence of any tariff shock in the headlines. Consumer prices, overall, were held in check, for the most part, including food and gasoline.