Stock Market Update

[BRIEFING.COM] The S&P 500 (-0.5%), Nasdaq Composite (-1.0%), and DJIA (flat) now sit mostly lower as tech losses widen. 

The information technology sector is now down 1.1% today, facing another day of weakness across software names that push the iShares GS Software ETF (IGV) 2.5% lower. 

AppLovin (APP 373.50, -83.32, -18.24%) is one of the worst-performing S&P 500 names today, with recent weakness across the software space overshadowing an earnings beat and raised Q1 revenue guidance. 

Elsewhere in the sector, Cisco (CSCO 76.16, -9.38, -10.97%) is trading lower despite reporting modest EPS upside for Q2 (Jan). Revenue grew 9.7% year-over-year to $15.35 billion, which was above analyst expectations. Q3 (Apr) guidance was solid with in-line EPS and upside revenue. Cisco also raised its FY26 outlook and announced a small dividend increase, but rising memory prices are pressuring gross margins.

Cisco continues to execute well operationally, particularly in networking where AI infrastructure and next-generation campus products are driving meaningful acceleration in orders. The surge in AI-related demand, especially for Silicon One systems and optics, positions Cisco as a key beneficiary of hyperscaler spending in FY26. However, margin compression tied to rising memory prices is overshadowing the otherwise solid quarter. While management is taking pricing actions and adjusting contract terms to offset component inflation, investors appear concerned about the near-term gross margin trajectory.