Stock Market Update

[BRIEFING.COM] The S&P 500 (-0.9%) and Nasdaq Composite (-1.2%), are firmly lower this morning as semiconductor stocks and related names face sharp losses, while the DJIA (-0.2%) holds a more modest loss amid relative strength in the broader market. Tech weakness is pronounced, but the major averages are already off their opening lows, suggesting investors may already be stepping in to buy the dip.

Micron (MU 1104.60, -106.78, -8.81%) and other memory names, such as Sandisk (SNDK 1992.91, -280.82, -12.35%) , are pulling back from an extended run of record highs, while other AI-infrastructure names, including Corning (GLW 192.76, -17.07, -8.14%) face similar losses. The PHLX Semiconductor Index is down 5.6%, weighing on the information technology sector (-2.3%).

The semiconductor sell-off also weighs on the industrials sector (-1.8%), with electrical production equipment names such as Vertiv (VRT 326.82, -31.14, -8.70%) retreating, while weakness in precious metals keeps the materials sector (-1.1%) firmly lower as well. 

Meanwhile, six S&P 500 sectors trade higher, with the defensive consumer staples (+1.5%) and health care (+1.0%) holding the widest gains as growth-oriented pockets of the market lag.

The preliminary reading of the S&P Global U.S. Manufacturing PMI for June checked in at 55.7, from the prior level of 55.1.

The preliminary reading of the S&P Global U.S. PMI was 51.3, up from the final reading of 50.7.