Stock Market Update

[BRIEFING.COM] The S&P 500 (-0.6%), Nasdaq Composite (-1.2%), and DJIA (+0.1%) sit mostly lower just before midday as a weak showing from tech and mega-cap names weighs against mixed strength in the broader market. The S&P 500 moved below its 50-day moving average (6,898.97), where it found support, now trading a few points above the technical level. 

The Russell 2000 and S&P Mid Cap 400 both sit on their flatlines following some choppy action this morning. 

NVIDIA's (NVDA 187.54, -8.08, -4.13%) price action following its earnigns report yesterday evening has been a major development today. The company posted another stellar beat-and-raise report, which saw the stock shoot up several percent in after-hours trading. The enthusiasm waned overnight, and the stock quickly ceded its gains after the open, retreating before finding support around its 50-day moving average (185.62). 

As a result, chipmakers are sharply lower today, with the PHLX Semiconductor Index down 3.5%. The information technology sector (-1.9%) is unsurprisingly a laggard, though the losses are somewhat eased by continued strength across software names, sending the iShares GS Software ETF 1.7% higher. Salesforce (CRM 197.23, +5.48, +2.86%) holds a solid gain after its own earnings release yesterday evening. 

Elsewhere, mega-cap stocks are generally weaker today, with the Vanguard Mega Cap Growth ETF down 1.2%. The S&P 500 Equal Weighted Index (+0.4%) actually holds a solid gain despite sector strength tilting negative. 

Among the outperformers are the financial sector (+1.2%), which is the beneficiary of a sustained rebound effort over the past several sessions, and the energy sector (+1.2%), which is supported by a rising price of oil. The U.S. and Iran are set to begin nuclear negotiations today, with Senate Majority Leader John Thune telling reporters if the U.S. were to attack Iran, regime change should be the goal.