[BRIEFING.COM] Opening gains in the stock market propelled the S&P 500 (+0.1%) to a new record high, supported by an upbeat Q2 GDP revision and another low initial jobless claims report, though fluctuations in the price of NVIDIA (NVDA 179.84, -1.76, -0.97%) after its earnings report have seen the major averages move in and out of positive territory. After spending some time below its baseline, the S&P 500 charted new session highs just before midday, establishing another record high of 6,497.35.
Despite mixed sector strength and a loss in NVIDIA, the mega-cap cohort is performing well today, lifting the Nasdaq Composite (+0.4%) to a nice gain. The Vanguard Mega Cap Growth ETF (+0.4%) holds an identical gain. The outperformance of the market-weighted S&P 500 (+0.1%) over the S&P 500 Equal Weighted Index (-0.3%) reflects the role the market's largest names are playing in its advance today.
Meanwhile, the DJIA remains flat.
Five S&P 500 sectors currently trade in positive territory, with the communication services sector (+1.0%) holding the widest gains due to strong performances from Alphabet (GOOG 212.74, +4.53, +2.18%) and Meta Platforms (META 752.32, +4.94, +0.66%).
The information technology sector (+0.5%) has improved its standing after an early retreat. NVIDIA (NVDA 179.84, -1.76, -0.97%), which dipped as much as 2.5% in response to its earnings report, contributed to the early slide, though relative strength across other chipmaker names has spearheaded the rebound.
NVIDIA posted mixed Q2 results, with EPS and revenue topping estimates, though the upside was modest. The company's Q3 guidance came in-line, a departure from its usual beat-and-raise pattern. Data Center revenue rose 56% year-over-year to $41.1 billion but missed Street estimates due to a $4 billion sequential drop in H20 revenue tied to export restrictions. No H20 sales to China occurred in Q2, and none are assumed in Q3 guidance.
Nonetheless, the PHLX Semiconductor Index is up 0.4% today, with names such as First Solar (FSLR 199.19, +7.96, +4.16%), Micron (MU 121.92, +4.16, +3.54%), and Broadcom (AVGO 308.09, +7.84, +2.61%) contributing to the advance.
Elsewhere in the sector, packaged software names, such as Datadog (DDOG 139.53, +7.80, +5.92%) and ServiceNow (NOW 918.52, +30.54, +3.44%), continue to trade higher after MongoDB's (MDB 314.42, +18.72, +6.33%) impressive earnings report earlier in the week.
The energy (+0.3%), financials (+0.2%), industrials (+0.2%), and consumer discretionary (+0.1%) sectors round out the six advancing S&P 500 sectors.
As for the decliners, the health care (-0.7%), consumer staples (-0.5%), and real estate (-0.5%) sectors hold the widest losses.
Hormel Foods (HRL 25.30, -3.72, -12.84%) and Cooper (COO 65.50, -8.60, -11.61%) are the worst-performing names in the S&P 500 following their earnings reports, contributing to losses in the consumer discretionary and health care sectors.
Retailers are also a point of relative weakness in today's market after a slate of household names reported earnings before the open.
Losses in Bath & Body Works (BBWI 28.88, -2.66, -8.42%), Best Buy (BBY 71.86, -3.58, -4.75%), and Dick's Sporting Goods (DKS 217.84, -8.17, -3.61%) following earnings seat the SPDR S&P Retail ETF with a 0.8% loss for the day.
Meanwhile, Burlington Stores (BURL 301.36, +21.06, +7.51%) is a notable exception to the trend, trading higher after beating EPS and revenue expectations and raising its FY26 EPS and revenue guidance to in-line.
On the policy front, Bloomberg reported that Fed Governor Lisa Cook is suing to challenge her dismissal by President Trump, with CNBC reporting that a hearing has been set for Friday.
Additionally, Bloomberg reported Fed Governor nominee Stephen Miran's confirmation process may be fast-tracked ahead of the September FOMC meeting. Rate cut expectations remain largely steady, with the CME FedWatch tool pricing in an 85.2% probability of a 25-basis point cut next month ahead of tomorrow's PCE report.
Reviewing today's data: