Stock Market Update

[BRIEFING.COM] A disappointing reaction to NVIDIA's (NVDA 187.26, -8.37, -4.28%) earnings results has mega-cap and semiconductor names under pressure, pushing the S&P 500 (-1.1%), Nasdaq Composite (-1.7%), and DJIA (-0.4%) lower. The losses move the major averages back into negative territory for the week and have the S&P 500 back below its 50-day moving average (6,898.97). 

While NVIDIA delivered another impressive beat-and-raise earnings report that featured record data-center revenues, the stock rolled over shortly after the open. The price action suggests that investors still hold concerns that AI infrastructure spending is peaking or that customers are overextending their balance sheets. 

The move lower has pressured other chipmaker names today, sending the PHLX Semiconductor Index 4.0% lower. Those losses weigh heavily on the information technology sector (-2.3%), though they are somewhat softened by another strong showing from software names today, with the iShares GS Software ETF up 1.1%. 

Salesforce (CRM 197.09, +5.34, +2.78%) has seen a sort of opposite reaction to its own earnings from that of NVIDIA. The stock was on track to open lower as it issued cautious guidance but has since charted a nice advance as the software space continues to stabilize this week. 

NVIDIA's move lower seems to be having a negative effect on other mega-cap stocks, with Tesla (TSLA 404.01, -13.39, -3.21%) and Alphabet (GOOG 304.91, -8.12, -2.59%) among the worst laggards, pressuring the consumer discretionary (-1.2%) and communication services (-1.2%) sectors. 

The Vanguard Mega Cap Growth ETF is down 1.7%, contributing to the underperformance of the market-weighted S&P 500 (-1.1%) relative to the S&P 500 Equal Weighted Index (-0.1%). The equal-weighted benchmark held a solid gain for much of the morning but has since turned negative as losses widen and broaden. 

Only three S&P 500 sectors remain in positive territory. 

The financial sector (+0.5%) has seen over half of its previous gain eroded, though it still holds a solid gain. Major banking names continue to rebound, while asset managers are back under pressure. 

PayPal (PYPL 45.04, -2.28, -4.82%) is a laggard after a Semafor report that the company is not looking to be sold to Stripe Inc. or any other company. 

The energy sector (+0.8%) now holds the widest gain as the price of oil climbs $1.04 (+1.6%) to $66.46 per barrel as the market awaits updates on nuclear negotiations between the U.S. and Iran.

The real estate sector (+0.2%) also holds a modest gain. 

Outside of the S&P 500, the Russell 2000 (-0.7%) and DJIA (-0.5%) trade lower after some choppy action this morning. 

So far, today's session has been a bit of a disappointment. NVIDIA delivered a bullish earnings report, but valuation and capital expenditure concerns continue to burden some of the market's largest names in 2026, which shows up as weakness at the index level. 

Reviewing today's data:

• Weekly Initial Claims 212K (Briefing.com consensus 211K); Prior was revised to 208K from 206K, Weekly Continuing Claims 1.833 mln; Prior was revised to 1.864 mln from 1.869 mln
  
  • The key takeaway from the report is its persistent low-firing, low-hiring messaging.