Stock Market Update

[BRIEFING.COM] The S&P 500 (+0.2%), Nasdaq Composite (-0.9%), and DJIA (+0.9%) are mixed just before midday as another choppy session across technology stocks coincides with continued rotational strength beneath the surface.

The major averages opened firmly higher following Micron's (MU 1178.64, +130.13, +12.41%) stellar beat-and-raise earnings report, which initially sent the PHLX Semiconductor Index more than 5% higher. However, the early enthusiasm quickly faded, and the index briefly turned negative before recovering some of its losses to trade up 2.0%.

While semiconductor stocks return to positive territory, weakness has shifted toward other mega-cap technology names, continuing a trend that has persisted throughout much of this week. The Vanguard Mega Cap Growth ETF is down 2.0%, and the information technology sector (-0.6%) remains under pressure despite the rebound in chipmakers.

The communication services (-0.8%) and consumer discretionary (-0.8%) sectors are also lagging as several of their largest components trade lower.

Meanwhile, investors continue rotating into other areas of the market. Six S&P 500 sectors hold gains, led by the industrials (+2.3%), health care (+2.2%), and materials (+1.9%) sectors.

Today's action further highlights the growing divergence between the mega-cap technology stocks that powered the market to recent record highs and the broader market. That rotation is becoming increasingly evident in the major averages themselves, with the DJIA's year-to-date gain (+8.8%) now surpassing the S&P 500 (+7.7%), while the Nasdaq Composite (+9.1%) has surrendered much of its earlier lead.