Stock Market Update

[BRIEFING.COM] The S&P 500 (-0.1%), Nasdaq Composite (-0.2%), and DJIA (-0.1%) are now modestly lower as the information technology sector (-0.4%) begins to face some pressure. The major averages remain modestly lower.

Applied Materials (AMAT 508.60, -25.94, -4.85%) is one of the worst-performing S&P 500 names after delivering another strong quarter and raising its Semiconductor Systems outlook again, but the weaker reaction appears to reflect just how high expectations had become following the stock's sharp run and strong results across the semi-cap equipment group. Applied Materials now expects CY26 Semiconductor Systems growth to exceed its prior outlook of more than 30%, while management also expects another sequential increase in fiscal Q1, underscoring the strength of the current ramp. Gross margin is expected to remain roughly flat sequentially despite the revenue increase as Applied Materials absorbs hiring and other ramp costs. Still, the underlying demand picture remains very strong, particularly across DRAM/HBM, leading-edge foundry-logic, and advanced packaging, with longer customer visibility supporting confidence in another strong growth year in 2027.