Stock Market Update

[BRIEFING.COM] The S&P 500 (+0.8%), Nasdaq Composite (+1.2%), and DJIA (+0.6%) hold solid gains for the second consecutive session amid strong leadership from mega-cap and tech names today. The S&P 500 quickly reclaimed its 50-day moving average (6,895.87), and the Nasdaq Composite is now knocking on the door of positive year-to-date territory. 

Leadership is relatively narrow, with only three S&P 500 sectors trading more than 0.1% above their baselines. However, the broader market has seen its losses narrow over the past hour, while a move into positive territory from the Russell 2000 (+0.4%) and S&P Mid Cap 400 (+0.3%) suggests strength may be broadening. 

Still, the information technology sector (+1.9%) remains a clear standout, supported by gains across the majority of its components. Software names continue to see some bargain hunting and a continuation of yesterday's strength that was somewhat attributed to headlines that Anthropic's Claude Cowork suite will now include plugins for traditional productivity software applications. The gains are still just a drop in the bucket compared to this year's losses, but they are a welcome reprieve. Oracle (ORCL 149.72, +3.58, +2.45%) holds a nice gain after Oppenheimer upgraded the stock to Outperform from Perform. 

Meanwhile, the PHLX Semiconductor Index (+1.7%) is also decently higher as NVIDIA's (NVDA 197.29, +4.44, +2.30%) earnings loom after the close. The market is looking for a decisive beat and raise performance, though that has at times proven not to be enough when it comes to post-earnings mega-cap price action so far this year. 

Mega-cap stocks elsewhere are also higher today, which helps the communication services (+0.5%) and consumer discretionary (+0.1%) sectors trade modestly higher despite broader weakness. The Vanguard Mega-Cap Growth ETF is up 1.3%, and the market-weighted S&P 500 (+0.8%) decidedly outperforms the S&P 500 Equal Weighted Index (-0.1%). 

Elsewhere in the consumer discretionary sector, homebuilders are particularly weak, lagging in response to disappointing guidance from Lowe's (LOW 262.81, -15.78, -5.66%) in its earnings report. The iShares U.S. Home Construction ETF is down 3.7%.

Cyclical sectors as a whole tilt lower, though the financials sector (+1.6%) is a standout. Coinbase Global (COIN 183.54, +21.52, +13.28%) is one of the best-performing S&P 500 names today after announcing an expansion into stock trading for U.S. users, while a 7.5% rebound in Bitcoin certainly adds to the positive tone. 

Major banking names are also mostly higher after a soft start to the week. 

Meanwhile, the energy sector (-0.9%) is the biggest laggard as the price of oil decreases $0.11 (-0.2%) to $65.52 per barrel. 

So far the market has displayed a clear rotation back into its weightiest tech components, reflecting high expectations for NVIDIA to deliver a blowout earnings report. 

Reviewing today's data:

• Weekly MBA Mortgage Applications Index 0.4%; Prior 2.8%