Stock Market Update

[BRIEFING.COM] The S&P 500 (-1.1%), Nasdaq Composite (-2.0%), and DJIA (-0.3%) are lower just before midday as another bout of semiconductor weakness and rising Treasury yields weigh on sentiment.

The top-weighted information technology sector (-3.2%) is once again moving sharply lower as investors continue to rotate out of semiconductor names. The PHLX Semiconductor Index is down 5.8%, with weakness across large chipmakers such as Advanced Micro Devices (AMD 485.90, -37.30, -7.13%) , memory names such as Micron (MU 928.92, -67.08, -6.74%) , and other AI- related infrastructure names including Corning (GLW 185.38, -12.32, -6.23%). 

Similar to yesterday's action, there is some rotation into other pockets of the market, though the buying action is not as strong as the previous session. The defensive consumer staples (+1.7%), health care (+1.4%), and utilities (+0.9%) sectors are among the outperformers as rising yields weigh on more growth-oriented sectors.

The spike in yields is attributed to a strong jobs report for May putting upward pressure on the market's overall rate expectations. The CME FedWatch tool now assigns a roughly 71% probability to a rate hike at the December FOMC meeting, up from around 50% yesterday.