Stock Market Update

[BRIEFING.COM] The S&P 500 (-1.1%), Nasdaq Composite (-1.9%), and DJIA (-0.5%) have reversed course from their solid opening gains as the buy-the-dip bid across tech and mega-cap stocks falters. Stocks opened to an extension of yesterday's tech rally, with retreating oil prices providing an accommodative backdrop for broader market strength that was absent in yesterday's session.

To be fair, rate-sensitive and oil-sensitive stocks such as homebuilders and airlines are still outperforming, but the turnover across tech stocks proves to be too much for the major indices. The information technology sector (-3.0%) is now sharply lower after holding a gain of nearly 1%, with the PHLX Semiconductor Index now 4.2% lower after an earlier gain of roughly 2%.

Apple (AAPL 291.41, -10.13, -3.36%) lagged from the start as investors remain unenthused by yesterday's developments at the company's WWDC, while NVIDIA (NVDA 203.38, -5.26, -2.52%) and other prominent semiconductor names face a sharp intraday reversal.

Elsewhere, Alphabet (GOOG 357.98, -3.19, -0.88%) and Amazon (AMZN 242.70, -2.52, -1.03%) also ceded their early gains, with the weakness pressuring the consumer discretionary (-0.6%) and communication services (-0.4%) sectors, which were early outperformers.

The Vanguard Mega Cap Growth ETF is now down 1.8%, and the market-weighted S&P 500 (-1.1%) trails the S&P 500 Equal Weighted Index (+0.2%) considerably.