Stock Market Update

[BRIEFING.COM] The stock market's modest early gains sent the Nasdaq Composite (+0.5%) to a new record high level, while the S&P 500 (+0.3%) and DJIA (+0.3%) have improved from session lows, not far off from their own record high levels set yesterday. 

Mega-cap strength is preventing losses at the index level as the broader market shows signs of weakness. The Vanguard Mega Cap Growth ETF is up 0.4%, and the market-weighted S&P 500 (+0.3%) outperforms the S&P 500 Equal Weighted Index (-0.2%). Decliners currently outpace advancers by a greater than 2-to-1 ratio on the NYSE and a nearly 3-to-2 ratio on the Nasdaq. 

Nonetheless, widening gains in the information technology (+0.8%) and consumer discretionary (+0.5%) sectors keep the major averages within striking distance of record highs.

Within the information technology sector, Apple (AAPL 245.39, +7.51, +3.16%) trades higher as the release of its iPhone 17 lineup has been met with good international demand. 

Oracle (ORCL 302.09, +5.47, +1.84%) reversed its earlier loss after President Trump announced his call with Chinese President Xi was productive, saying "appreciate the TikTok approval." Both U.S. and Chinese officials have told the press that the call was productive, but the market has yet to receive concrete details. 

Decent gains in several of the sector's top components mask a weak performance from chipmakers that has the PHLX Semiconductor Index down 0.9%. 

The consumer discretionary sector also benefits from its mega-cap names, Tesla (TSLA 424.41, +7.56, +1.81%) and Amazon (AMZN 233.28, +2.05, +0.89%).

Meanwhile, the energy sector (-1.2%) is the only sector to hold a loss wider than 0.2% as crude oil slips beneath $63 per barrel. 

Sector strength has varied today, reflecting a mixed disposition in the broader market. Eight S&P 500 sectors currently trade with a gain or loss of 0.2% or narrower. 

On the earnings front, FedEx (FDX 233.52, +7.02, +3.10%) trades higher after an earnings beat and strong upside guidance, while Lennar (LEN 127.92, -4.95, -3.73%) slips after missing revenue expectations. 

The market's bolstered rate cut expectations that sent the major averages to record high levels yesterday have held steady so far, with no economic data of note today.

Fed Governor Stephan Miran (voting FOMC member) told CNBC he doesn't see any material inflation from tariffs. Mr. Miran stated he wants five rate cuts this year, as he believes growth will be better in the second half of the year.

Additionally, Minneapolis Fed President Neel Kashkari (FOMC nonvoting member) stated in a Bloomberg interview that he supports two additional rate cuts this year.