Stock Market Update

[BRIEFING.COM] The stock market has maintained its modest opening gains but has found some resistance near last week's highs, with the S&P 500 currently up 0.3% while the tech-heavy Nasdaq Composite (+0.7%) outperforms and the DJIA (+0.2%) lags. 

The major averages trade higher largely due the strong performance of mega-cap stocks, which have rebounded nicely from yesterday's underperformance. 

The Vanguard Mega Cap Growth Index Fund (MGK 368.90, +2.72, +0.7%) is up 0.6%, but the market cap-weighted S&P 500 is up just 0.2%, while the equal-weighted S&P 500 is flat.

The communication services sector (+1.0%) is the strongest performing sector, due to its mega-components Meta Platforms (META 735.50, +14.83, +2.1%) and Alphabet (GOOG 178.61, +3.45, +2.0%).

Early strength from Microsoft (MSFT 500.90, +4.28, +0.9%) following an upgrade from Oppenheimer, and NVIDIA (NVDA 163.33, +3.33, +2.1%) has the technology sector (+0.6) up, though NVIDIA's performance has not translated to outperformance in chip stocks as a whole, as the PHLX Semiconductor Index tracks the broader market with a gain of 0.3%.

There have been no unexpected developments on the trade front today, as the market did not flinch when President Trump announced a 25% tariff on the Philippines and a 30% tariff on Libya and Iraq, effective August 1. 

Treasuries are displaying strength today amid speculation that the Fed will be compelled to lower rates, either because inflation remains tame or a new Fed Chair nominated by the president is a proactive rate-cut proponent. 

The 2-yr note yield is down four basis points to 3.87%, and the 10-yr note yield is down five basis points to 4.36% ahead of the $39 billion 10-yr note reopening results at 1:00 p.m. ET and the Minutes for the June 17-18 FOMC meeting at 2:00 p.m. ET.