Stock Market Update

[BRIEFING.COM] Stocks are sporting broad gains just before midday as the market recovers from yesterday's post-FOMC meeting selloff. Solid leadership across the AI trade and other tech names pushes the S&P 500 (+1.0%) and Nasdaq Composite (+1.5%) firmly higher, while the DJIA (+0.6%) holds a more modest gain.

Yesterday's decision by the FOMC to raise the fed funds target range to 3.75-4.00% reflected continued concerns about above-target inflation, with Fed Chair Kevin Warsh reiterating his commitment to bringing inflation under control during his subsequent press conference. His comments prompted a selloff as investors interpreted them as signaling the potential for additional rate hikes in the near term.

The market is supported by some relief on the inflation front so far today, with crude oil currently down $1.71 (-1.6%) to $100.72 per barrel. In turn, Treasury yields are lower across the curve, with the 10-year note yield down six basis points to 4.95%.

The improved macro backdrop has paved the way for broad participation and solid leadership across mega-cap stocks and other growth names. Eight S&P 500 sectors trade higher, with the information technology (+2.0%) and consumer discretionary (+1.7%) sectors out in front. The PHLX Semiconductor Index is up 2.9%, and the Vanguard Mega Cap Growth ETF is up 1.9%.

Weakness is limited to the more defensively oriented consumer staples sector (-0.5%), while the energy sector (-0.2%) follows crude prices lower and the financials sector (-0.2%) continues to face pressure from banking names following yesterday's rate hike.