Stock Market Update

[BRIEFING.COM] The S&P 500 (+0.2%), Nasdaq Composite (flat), and DJIA (+0.3%) now trade in a stable range after some opening weakness across many of the chipmaker names that led yesterday's rally.

The major averages opened mostly lower as the PHLX Semiconductor Index slid nearly 1%, though the index has steadily recovered and now sports a 1.2% gain. NVIDIA (NVDA 214.04, +6.75, +3.26%) is a standout among the "Magnificent Seven," while Advanced Micro Devices (AMD 556.23, +11.80, +2.17%) trades higher after announcing a strategic partnership with Anthropic.

This morning's recovery across chipmaker names pushed the information technology sector (+0.4%) into positive territory, though its gain is capped by pronounced weakness across software names. The iShares GS Software ETF (IGV) is down 2.7% following an earnings miss from Pegasystems (PEGA 25.99, -4.95, -16.00%), in which the company said unprecedented changes in the AI market caused clients to delay purchasing decisions, weighing on the broader software space today.

Meanwhile, server names such as Dell (DELL 443.44, +39.28, +9.72%) and Hewlett Packard Enterprise (HPE 48.83, +2.11, +4.52%) move firmly higher alongside a massive gain in Super Micro Computer (SMCI 31.58, +6.08, +23.82%) after the company reported encouraging margin guidance and a record backlog.

Outside of tech, the broader market leans higher, with seven S&P 500 sectors trading in positive territory. Despite another bump in Treasury yields today, the utilities sector (+1.9%) outperforms amid the market's ongoing focus on AI-related power demand. The materials sector (+1.5%) is another standout as precious metal prices climb, while the energy sector (+1.2%) benefits from higher oil prices.

Crude oil is currently up $2.00 (+2.4%) to $86.34 per barrel amid renewed threats of strikes against Iranian infrastructure from President Trump, while Secretary of State Marco Rubio said Iran is "not serious" about talks.

The rise in oil prices is putting upward pressure on Treasury yields, weighing on some rate-sensitive pockets of the market. The consumer discretionary sector (-0.6%) holds the widest loss among the S&P 500 sectors as names such as DoorDash (DASH 179.28, -8.76, -4.66%) and Carvana (CVNA 63.93, -1.65, -2.52%) lag, while the Russell 2000 (-0.6%) also underperforms today.

In other earnings news, GE Vernova (GEV 995.00, -83.81, -7.77%) is one of the worst-performing S&P 500 stocks after missing earnings expectations, while Philip Morris International (PM 195.05, +7.01, +3.73%) and AT&T (T 22.93, +0.67, +3.01%) are standouts after topping expectations.

After the early rebound across chipmaker stocks, stocks now drift in a range-bound fashion as investors await a high-profile batch of earnings after the close. Reports from Alphabet (GOOG 347.11, +0.92, +0.27%) and Tesla (TSLA 377.77, -1.16, -0.31%) should provide the market's next major catalyst and offer further insight into AI spending trends and consumer demand.

Reviewing today's data:

• Weekly MBA Mortgage Applications Index 1.9%; Prior -2.7%