Stock Market Update

[BRIEFING.COM] The S&P 500 (flat), Nasdaq Composite (+0.2%), and DJIA (flat) finished today's session in close proximity to their flatlines as the January FOMC meeting provided the market with no surprises as it gears up for a slate of mega-cap earnings reports after the close. The Russell 2000 (-0.4%) and S&P Mid Cap 400 (-0.2%) continue to underwhelm this week after a hot start to the year. 

Strength in tech names sent the S&P 500 and Nasdaq Composite higher at the open, with the S&P 500 notching another record intraday high on the heels of yesterday's records. The major averages then drifted lower until they reached their flatlines, trading in a steady range until the close. 

The FOMC's decision to keep the fed funds target rate unchanged came as no surprise to a market that is not expectant of another rate cut for several months. Fed Chair Powell's press conference was also in line with expectations, with Mr. Powell confirming that the decision to keep rates unchanged had broad support from the committee, and they are well positioned to make decisions on a meeting-by-meeting basis. 

Sector performance was largely muted, with four S&P 500 sectors finishing higher. 

The energy sector (+0.7%) led the way, supported by crude oil futures settling today's session $0.77 higher (+1.2%) at $63.16 per barrel. 

The information technology sector (+0.6%) was also among the relative outperformers, which helped prevent losses at the index level. 

Semiconductor stocks led the strength, with Seagate Tech (STX 442.93, +71.17, +19.14%) finishing as the best-performing S&P 500 name today.  Intel (INTC 48.78, +4.85, +11.04%) was another double-digit gainer after Digitimes reported that NVIDIA (NVDA 191.52, +3.00, +1.59%) is looking to shift its 2028 chip production to Intel. The PHLX Semiconductor Index finished 2.3% higher. 

NVIDIA itself was a mega-cap standout today, boosted by a report from The Wall Street Journal that China has approved the purchase of the company's H200 chips.

Elsewhere, Apple (AAPL 256.44, -1.83, -0.71%) traded lower, while Microsoft (MSFT 481.63, +1.05, +0.22%), which reports its earnings after the close, escaped with a slight gain. 

Mega-caps as a group saw a step back in momentum after three consecutive days of outperformance. The Vanguard Mega Cap Growth ETF finished 0.2% lower ahead of Microsoft's, Tesla's (TSLA 430.46, -0.44, -0.10%), and Meta Platforms' (META 668.73, -4.24, -0.63%) earnings after the close. 

Tesla's loss combined with weakness in Amazon (AMZN 243.01, -1.67, -0.68%) provided weak leadership for the consumer discretionary sector (-0.7%). Elsewhere in the sector, Starbucks (SBUX 95.16, -0.56, -0.59%) reversed a nice early gain. The company missed earnings estimates but initially traded higher as investors focused on a 4% increase in global comparative sales. 

Meanwhile, the real estate sector (-0.9%) finished with the widest loss, while the healthcare sector (-0.8%) also traded lower amid sustained weakness so far this week. 

Other notable earnings-related moves today include Texas Instruments (TXN 216.13, +19.50, +9.92%), AT&T (T 24.08, +1.08, +4.70%), and Amphenol (APH 145.98, -20.26, -12.19%).

Despite a few notable earnings-related moves, trading was generally subdued as investors awaited results from the market’s largest companies. With the Fed delivering no market-moving surprises, attention now shifts to upcoming mega-cap earnings as the next potential catalyst for renewed momentum.

U.S. Treasuries retreated on Wednesday, but they inched up off session lows after the release of the January FOMC Statement, which did not contain any big surprises. The 2-year note yield settled up one basis point to 3.58%, and the 10-year note yield settled up three basis points to 4.25%.

• Russell 2000: +6.9% YTD
• S&P Mid Cap 400: +5.2% YTD
• Nasdaq Composite: +2.7 YTD
• DJIA: +2.0% YTD
• S&P 500: +1.9% YTD

Reviewing today's data:

• Weekly MBA Mortgage Applications Index -8.5%; Prior 14.1%