Stock Market Update

[BRIEFING.COM] The S&P 500 (-0.2%), Nasdaq Composite (-0.5%), and DJIA (+0.2%) are mixed jsut after midday after surrendering the bulk of their early gains. The major averages opened firmly higher as crude oil prices retreated following reports that the U.S. had paused military strikes on Iran, but renewed selling across semiconductor stocks has since erased much of that early strength.

The information technology sector (-1.3%) is among the market's weakest performers as the PHLX Semiconductor Index falls 3.2%. Chip equipment stocks are under pressure, led by ASML (ASML 1646.86, -110.23, -6.27%) after The Information reported that China is mass-producing DUV chipmaking tools. AI infrastructure and memory names have also come under pressure, with Sandisk (SNDK 1281.57, -154.99, -10.79%) the worst-performing S&P 500 component. NVIDIA (NVDA 197.63, -9.21, -4.45%) is the weakest-performing "Magnificent Seven" stock.

Despite the weakness in semiconductors, the broader market remains on firmer footing. Crude oil is down $6.34 (-7.1%) to $83.96 per barrel after the U.S. paused military strikes on Iran, while Treasury yields have moved lower across the curve. Although participation has moderated from the open, advancers still outpace decliners by roughly a 3-to-2 margin on both the NYSE and Nasdaq, and the S&P 500 Equal Weight Index (+0.7%) continues to outperform the market-weighted S&P 500 (flat), highlighting that today's weakness remains concentrated in a relatively small group of large-cap technology stocks.

There is still selective buying interest across the mega-cap complex. The communication services sector (+2.0%) leads the market as Alphabet (GOOG 327.52, +8.43, +2.64%) rebounds from last week's post-earnings selloff, while Apple (AAPL 336.42, +3.40, +1.02%) trades at a fresh all-time high. Software stocks are also outperforming, with the iShares Expanded Tech-Software Sector ETF (IGV) up 3.8%, helping offset some of the weakness elsewhere in technology. Even so, the Vanguard Mega Cap Growth ETF is down 0.2%, reflecting the continued drag from semiconductor names and other large-cap growth stocks.

Tesla (TSLA 307.59, -5.44, -1.74%), meanwhile, extends last week's post-earnings decline, limiting strength in the consumer discretionary sector (+0.7%), where DoorDash (DASH 184.34, +11.44, +6.61%) and Expedia Group (EXPE 277.80, +17.86, +6.87%) are among the strongest S&P 500 performers.

Outside of technology, the consumer staples (+1.2%), health care (+0.9%), and financials (+0.6%) sectors also trade higher.

The energy sector (-1.6%) is among the market's laggards as lower crude prices weigh on the group, although Baker Hughes (BKR 60.99, +3.74, +6.53%) is a notable outperformer following a strong earnings report.

Looking ahead, investors face one of the busiest weeks of the second-quarter earnings season, with several mega-cap technology companies set to report alongside key inflation data and Wednesday's FOMC policy decision. For now, continued volatility across semiconductor stocks remains a primary driver of index-level performance, while the sharp retreat in oil prices is helping support broader market participation beneath the surface.

Reviewing today's data:

• June Durable Orders 0.3% (Briefing.com consensus 2.0%); Prior was revised to -4.0% from -4.5%, June Durable Goods - Ex transportation 0.6% (Briefing.com consensus 0.9%); Prior was revised to 1.8% from 1.3%
  
  • The key takeaway from the report is that the headline miss masked upward revisions to readings from May and concealed a 0.9% increase in new orders for nondefense capital goods excluding transportation, which is considered a proxy for business spending. On a year-over-year basis, these orders are up 9.3%.