Stock Market Update

[BRIEFING.COM] Investors have stepped in on yesterday's weakness, leading the S&P 500 (+0.9%), Nasdaq Composite (+1.2%), and DJIA (+0.9%) to solid gains shortly after midday. The S&P 500 has reclaimed its 50-day moving average (6,895.59), which it closed below yesterday. 

While early strength was largely limited to yesterday's worst laggards, the buy-the-dip bid has expanded into a broader advance, with nine S&P 500 sectors trading higher. 

Still, several of yesterday's weakest sectors remain at the top of today's leaderboard. Currently the consumer discretionary sector (+1.5%) holds the widest gain. Stocks that traded lower yesterday after President Trump announced he would increase the Section 122 global tariff rate to 15% are rebounding nicely today, including Williams-Sonoma (WSM 207.18, +5.29, +2.62%) and NIKE (NKE 63.95, +0.86, +1.36%). 

Elsewhere in the sector, travel-related names such as Expedia Group (EXPE 197.42, +8.91, +4.73%) and Booking Holdings (BKNG 4027.33, +156.50, +4.04%) hold even wider gains after pronounced weakness yesterday. 

Home Depot (HD 388.00, +11.01, +2.92%) moves higher after delivering its first EPS beat after three consecutive misses.

The top-weighted information technology sector (+1.4%) is another standout. Investors are doing some bargain hunting across software names, sending the iShares GS Software ETF 1.6% higher. 

Chipmakers are also having a better session today, with the PHLX Semiconductor Index (+2.1%) tracking for another record close. Advanced Micro Devices (AMD 215.68, +19.08, +9.70%) trades sharply higher after announcing a landmark multi-year agreement to deploy up to 6 gigawatts of custom MI450/Helios AI systems with Meta Platforms (META 640.84, +3.59, +0.56%). 

The information technology and consumer discretionary sectors also house today's top-performing mega-cap names, Amazon (AMZN 209.58, +4.30, +2.10%) and Apple (AAPL 272.65, +6.47, +2.43%). The Vanguard Mega Cap Growth ETF is up 1.1%, which adds to the sense of relative ease across the major averages so far today. 

Elsewhere, the industrials sector (+1.0%) is another example of today's rebound strength after charting a loss of a similar size yesterday. United Airlines (UAL 111.68, +4.51, +4.21%) takes back the bulk of its 5.2% slide, while data processing stocks that slid amid fears of AI disruption also dot the top of today's leaderboard. 

Even the financials sector (+0.3%) now sports a modest gain after facing pressure this morning. Similarly, stocks that have faced pressure amid fears of AI disruption lead the strength today. The group includes financial services names such as FactSet (FDS 201.96, +11.70, +6.15%), asset managers such as KKR (KKR 95.73, +3.54, +3.84%), and stocks across the payment landscape such as Capital One (COF 196.03, +6.03, +3.17%). 

Weakness is now just limited to the energy sector (-0.4%) amid a modestly lower price of oil today and the health care sector (-0.2%), which outperformed yesterday. 

Outside of the S&P 500, the Russell 2000 (+1.1%) and S&P Mid Cap 400 (+0.8%) hold gains similar to those of the major averages as risk sentiment improves today. 

Ultimately, stocks have had a solid session, with the early rebound action continuing to broaden. The CBOE Volatility Index is down 7.0% to 19.54, reflecting a calmer disposition across the market today. However, it is worth noting that the advance does not quite yet match the scale of yesterday's retreat, keeping the major averages mostly lower for the week. 

Reviewing today's data:

• December FHFA Housing Price Index 0.1% (Briefing.com consensus 0.4%); Prior was revised to 0.7% from 0.6%
• December S&P Case-Shiller Home Price Index 1.4% (Briefing.com consensus 1.4%); Prior 1.4%
• February Consumer Confidence 91.2 (Briefing.com consensus 86.0); Prior was revised to 89.0 from 84.5
  • The key takeaway from the report is that the month-over-month improvement was driven by increased expectations, with all three components of the index—income, business, and labor market conditions—advancing from January.
• December Wholesale Inventories 0.2% (Briefing.com consensus 0.2%); Prior 0.2%