Stock Market Update

[BRIEFING.COM] The major averages have recovered much of their earlier losses, leaving the S&P 500 (-0.1%), Nasdaq Composite (-0.1%), and DJIA (-0.3%) trading near their flat lines after a morning marked by uneven sector performance and another round of selling in semiconductor stocks.

The improvement has been driven in part by a rebound in technology shares from their morning lows. The PHLX Semiconductor Index (-0.8%) has pared a decline that exceeded 2.5% earlier in the session, helping the information technology sector (flat) return to unchanged. Memory chipmakers, including Micron (MU 942.46, -46.58, -4.71%), remain under pressure amid concerns about technological advances by Chinese competitors, although strength elsewhere in the sector, including Apple (AAPL 344.28, +3.31, +0.97%) reaching fresh all-time highs, has helped offset some of that weakness.

The communication services sector (+1.1%) is providing another source of support, with Meta Platforms (META 762.32, +19.36, +2.61%) and Alphabet (GOOG 351.32, +2.35, +0.67%) extending their recent gains.

The energy sector (+1.2%) is also outperforming, continuing a strong stretch that has lifted the sector 8.9% in October and nearly 50% year to date. Refiners have been particularly strong, with Marathon Petroleum (MPC 470.46, +11.66, +2.54%) and Valero Energy (VLO 450.50, +14.50, +3.33%) reaching fresh record highs. The advance comes despite relatively little movement in crude oil prices, with WTI modestly higher after recovering from overnight losses.

Elsewhere, weakness in the industrials sector (-0.9%) and health care sector (-1.2%) continues to weigh on the broader market. Caterpillar (CAT 763.33, -36.04, -4.51%) is extending its recent decline amid elevated Treasury yields, while electrical equipment names such as Generac (GNRC 212.19, -6.18, -2.83%) are also struggling as semiconductors retreat. In the health care sector, Johnson & Johnson (JNJ 245.46, -18.26, -6.93%)is a notable drag following its Q3 earnings report, as disappointing MedTech growth and a relatively modest increase to full-year guidance overshadowed stronger pharmaceutical sales.

The financials sector (-0.1%) is little changed as investors sort through a mixed batch of quarterly reports from major banks. Goldman Sachs (GS 900.30, +6.35, +0.71%) and JPMorgan Chase (JPM 335.45, +1.15, +0.35%) are holding modest gains, while Citigroup (C 127.43, -4.49, -3.40%) and Wells Fargo (WFC 81.98, -1.34, -1.61%) move lower.

Beyond the largest stocks, participation remains less encouraging. The Russell 2000 (-0.5%) and S&P Mid Cap 400 (-0.3%) are trailing the major averages, extending their recent underperformance. Advancers and decliners have been relatively balanced on the NYSE, while declining issues have held a sizable advantage on the Nasdaq. With Treasury yields and crude oil prices showing limited movement, company-specific developments and divergent performance across equity groups remain the main influences on today's trading.

Reviewing today's data:

• Sep NFIB Small Business Optimism 97.9 (Briefing.com consensus 98.0; Prior 98.7)
• Existing home sales increased 1.5% month-over-month in September to a seasonally adjusted annual rate of 3.99 million (Briefing.com consensus 3.96 million) from a downwardly revised 3.93 million (from 3.98 million) in August. Sales were down 2.2% on a year-over-year basis.
  
  • The key takeaway from the report is that year-over-year sales were down in all four regions, reflecting persistent headwinds from high mortgage rates. As a result, August and September have been the slowest two months for home sales so far in 2026.