Stock Market Update

[BRIEFING.COM] The major averages are following up yesterday's rally with another strong showing today, pushing the S&P 500 (+1.3%) and DJIA (+1.5%) to fresh record highs while the Nasdaq Composite (+1.8%) posts an even wider daily gain.

If yesterday's session belonged to the "Magnificent Seven," the ball is firmly in the court of semiconductor stocks today. The PHLX Semiconductor Index is up 5.9%, pushing the information technology sector (+3.5%) firmly higher. The sector is also supported by a 3.7% surge in the iShares GS Software ETF (+3.8%), with Palantir Technologies (PLTR 158.85, +33.20, +26.42%) leading all S&P 500 names after a blowout earnings report.

Elsewhere, there are some solid gains across several cyclical sectors, including the materials (+1.1%), financials (+0.9%), and industrials (+0.9%) sectors, with Caterpillar (CAT 876.80, +46.78, +5.64%) another standout after topping earnings expectations.

Meanwhile, more defensive sectors continue to lag as investors continue to rotate into growth-oriented tech names, while the energy sector (-0.8%) slides amid another retreat in crude oil prices after Treasury Secretary Scott Bessent said the U.S. and Iran could soon reach an agreement to reopen the Strait of Hormuz.

Outside the S&P 500, the Russell 2000 (+1.2%) and S&P Mid Cap 400 (+1.2%) hold gains similar to those across the major averages.