Stock Market Update

[BRIEFING.COM] The S&P 500 (-0.8%), Nasdaq Composite (-1.0%), and DJIA (-0.7%) are lower across the board this afternoon, though considerably improved from session lows. Mega-caps and select tech names continue to face pressure, without the broader rotational strength of previous sessions this week. Additionally, Bitcoin continues to plummet past the $67,000 mark, adding to the uneasiness in today's trade. 

Alphabet (GOOG 324.53, -8.81, -2.64%) has garnered a fair share of coverage today after its earnings report yesterday afternoon. The company easily topped earnings estimates, but a massive FY26 capital expenditure plan of $175-$185 billion weighs on the stock as investors question if it can deliver sufficient returns on that level of spending, particularly as AI-related investments continue to pressure near-term margins. The communication services sector (-1.2%) is firmly lower as a result. 

The consumer discretionary sector (-1.8%) also faces pressure from weak mega-cap leadership, with Amazon (AMZN 225.08, -7.91, -3.40%) trading lower ahead of its earnings after the close. The Vanguard Mega Cap Growth ETF is down 0.8%, expanding this week's losses to 4.1%.

Meanwhile, the information technology sector (-0.5%) holds a much narrower loss. Alphabet's massive capital expenditure plans were viewed as a positive for select semiconductors and other AI infrastructure stocks, pushing the sector higher at the open. The sector quickly retreated as losses swelled throughout the broader market but has since pared its losses considerably. 

The PHLX Semiconductor Index (+0.5%) is back in modestly positive territory, with Broadcom (AVGO 320.30, +12.25, +3.98%) a notable standout. 

Microsoft (MSFT 403.86, -10.33, -2.49%) and other software names, however, continue to move lower. 

Elsewhere, the broader market remains mostly lower. 

The materials sector (-2.3%) holds the widest loss, facing some profit-taking after a strong week with plenty of earnings-related moves that still seats it as the second-best-performing S&P 500 sector this week. Additionally, precious metals prices are retreating from a solid rebound earlier in the week. 

Similarly, the energy sector (-1.6%) faces pressure as the price of oil swings lower today. The U.S. and Iran are now back on track for negotiations tomorrow in Iran. 

Only the defensive consumer staples (+0.2%) and utilities (+0.2%) sectors hold gains amid the broad weakness.  Hershey Foods (HSY 222.64, +16.85, +8.19%) holds a nice gain after a beat-and-raise earnings report. 

Overall, the session reflects a defensive tilt as investors digest earnings, reassess large-scale AI spending plans, and contend with renewed volatility across risk assets.

Reviewing today's data:

• Weekly Initial Claims 231K (Briefing.com consensus 210K); Prior 209K, Weekly Continuing Claims 1.844 mln; Prior was revised to 1.819 mln from 1.827 mln
  • The key takeaway from the report was the jump in initial claims, which hit their highest level since early December. That created some headline surprise, but to be fair, the absolute level isn't that bad.
• December JOLTS - Job Openings 6.542 mln; Prior was revised to 6.928 mln from 7.146 mln