Stock Market Update

[BRIEFING.COM] Stocks extended Monday's rally with another powerful advance as strong post-earnings reactions and a sharp rebound across semiconductor stocks continued to fuel the market's recovery. The S&P 500 rose 1.8% to claim record highs and close above the 7,700 level for the first time, while the DJIA gained 1.7%, also notching record highs. The technology-heavy Nasdaq Composite outperformed with a 2.6% gain, while the Russell 2000 (+1.9%) and S&P MidCap 400 (+1.8%) also posted strong advances, with the MidCap 400 finishing at a fresh all-time high.

Corporate earnings continued to shape leadership across the market, with investors rewarding strong results while rotating back into many of the technology names that struggled throughout July. The information technology sector climbed 4.1% as the PHLX Semiconductor Index surged 6.6%, extending yesterday's reversal with another broad-based advance. Marvell (MRVL 218.59, +24.82, +12.81%), Intel (INTC 100.94, +9.94, +10.92%), and Sandisk (SNDK 1427.62, +139.59, +10.84%) were among the group's standout performers, while software stocks also enjoyed another strong session. Palantir Technologies (PLTR 162.61, +36.96, +29.42%) finished as the S&P 500's top performer following its blowout earnings report, lifting the iShares Expanded Tech-Software Sector ETF (IGV) 4.7%.

The market's largest technology companies also remained a major source of strength. Microsoft (MSFT 492.81, +5.16, +1.06%) and NVIDIA (NVDA 211.94, +5.30, +2.56%) added to Monday's gains, while the broader rebound across semiconductor stocks helped reinforce the technology sector's leadership after a difficult July.

Outside of technology, several cyclical sectors also contributed meaningfully to the advance. The materials sector (+2.0%) benefited from continued strength in Freeport-McMoRan (FCX) as precious metals prices climbed, while the industrials sector (+1.8%) drew support from gains in electrical equipment stocks and a strong post-earnings rally in Caterpillar (CAT 876.54, +46.51, +5.60%) after the company delivered a beat-and-raise quarter.

The financials sector (+0.9%) also finished firmly higher, with Goldman Sachs (GS 1052.98, +25.92, +2.52%) and JPMorgan Chase (JPM 357.52, +4.88, +1.38%) helping lift the DJIA to another record close.

Although technology once again accounted for much of the index-level advance, participation broadened noticeably throughout the day. The S&P 500 Equal Weight Index climbed 1.4% after trailing the market-weighted index by a wider margin for most of the session. The strong gains in the Russell 2000 and S&P MidCap 400 further underscored investors' willingness to move beyond the market's largest companies.

Five S&P 500 sectors nevertheless finished lower as investors rotated away from more defensive areas of the market. The utilities (-0.6%) and health care (-0.1%) sectors lagged amid today's risk-on tone, with NRG Energy (NRG 117.04, -21.43, -15.48%) weighing on the former after missing earnings expectations.

The energy sector (-0.5%) also finished lower as WTI crude oil futures settled down $4.63 (-5.8%) at $75.73 per barrel after Treasury Secretary Scott Bessent said the U.S. and Iran could soon reach an agreement to reopen the Strait of Hormuz, helping send Treasury yields lower across the curve.

The consumer discretionary (-0.5%) faced pressure as Amazon (AMZN 277.42, -6.60, -2.32%) gave back a portion of yesterday's post-earnings gain. Aptiv (APTV 47.72, -9.51, -16.62%) slumped following a revenue miss, while Chipotle Mexican Grill (CMG 33.83, -3.64, -9.70%) sold off intraday after reports of a possible salmonella outbreak.

Elsewhere, the real estate sector (-0.1%) posted a modest decline as Alexandria RE (ARE 48.87, -4.16, -7.84%) weakened following its quarterly results.

The market's tone continues to improve after July's semiconductor-driven pullback, with investors increasingly rewarding strong corporate results while easing geopolitical tensions provide an additional tailwind. Attention now turns to another busy stretch of technology earnings, with Advanced Micro Devices (AMD 518.58, +33.94, +7.00%) and SpaceX (SPCX 126.06, +11.53, +10.07%) set to report after the bell, providing the next important test of whether mega-cap tech leadership can continue through the early stages of August.

U.S. Treasuries extended Monday's rebound from their July plunge, though even with today's steady buying, yields only made it back to their highs from May. The 2-year note yield settled down five basis points to 4.20%, and the 10-year note yield settled down six basis points to 4.63%.

• Russell 2000: +22.4% YTD
• S&P Mid Cap 400: +17.0% YTD
• Nasdaq Composite: +14.4% YTD
• S&P 500: +13.0% YTD
• DJIA: +12.5% YTD

Reviewing today's data:

• June Trade Balance -$73.3 bln (Briefing.com consensus -$73.0 bln); Prior -$77.6 bln
  • The key takeaway from the report is that, while the real goods deficit narrowed to $94.5 billion in June from $99.8 billion in May, the Q2 average is still 18% greater than the Q1 average, so it will be factored in as a drag on Q2 GDP.
• June Factory Orders -0.3% (Briefing.com consensus 0.2%); Prior was revised to -1.1% from -1.3%
  • The key takeaway from the report is rooted in the strong business investment activity, which shows up in the 1.2% increase in new orders for capital goods, excluding aircraft, that followed a 1.9% increase in May.
• June JOLTs - Job Openings 7.359 mln; Prior was revised to 7.537 mln from 7.594 mln

[BRIEFING.COM] The major averages boast impressive gains as the market enters the final half hour of the session. Attention now turns to another sizable batch of earnings reports after the close, with several key names in the mix.

Advanced Micro Devices (AMD 526.67, +42.03, +8.67%) heads into this report with elevated expectations following back-to-back beats and an expanded outlook for its Data Center business. Investors will focus on whether strong EPYC and Instinct demand can drive another step-up in Data Center revenue and what management says about the timing and scale of the Helios ramp beginning in the second half. While Q2 results will be important, guidance and whether the outlook supports continued Data Center growth and the expected second-half Helios ramp will likely matter more. AMD already expects double-digit sequential growth in both server CPU and Data Center AI revenue in Q2, reinforcing the strength of its current Data Center tailwinds. That puts greater emphasis on whether momentum can build through the second half as Helios begins to scale. Gross margin will also be closely watched as favorable Data Center mix offsets the initially lower margin profile of MI450. A constructive Q3 outlook and confidence in a larger Q4 ramp would further support AMD's expanded Data Center growth outlook.

Meanwhile, SpaceX (SPCX 124.13, +9.60, +8.38%) heads into its first report as a public company with shares rebounding from recent lows, although the stock remains below both its $135 IPO price and $150 opening price. Despite the pullback, SpaceX still carries a lofty valuation, leaving a high bar for Starlink growth and profitability as the company spends heavily across AI infrastructure and Starship. Accordingly, Starlink growth and margins, the pace of capital spending, and the AI and Starship development roadmaps are likely to be key focuses.

[BRIEFING.COM] The S&P 500 (+2.0%), Nasdaq Composite (+2.8%), and DJIA (+2.0%) continue to plot session highs, pushing the S&P 500 and DJIA further into record territory.

Meanwhile, the S&P Mid Cap 40 (+1.8%) has also reached a new all-time high today, while the Russell 2000 (+1.8%) sits less than 0.5% off its own record level.

Crude oil futures settled today's session $4.63 lower (-5.8%) at $75.73 per barrel, sending Treasury yields lower across the curve and adding to the constructive backdrop for equities today.

[BRIEFING.COM] The S&P 500 (+1.91%) is in second place on Tuesday afternoon, up about 145 points.

Briefly, S&P 500 constituents Zebra Tech (ZBRA 361.10, +69.46, +23.82%), Gartner (IT 185.58, +34.05, +22.47%), and Generac (GNRC 217.90, +16.69, +8.29%) pepper the top of the standings. ZBRA and IT rise following earnings, while GNRC caught a target increase to $340 (from $335) out of UBS this morning.

Meanwhile, Aptiv (APTV 46.65, -10.58, -18.49%) gets crushed after the company cut FY26 and Q3 guidance, with investors focusing on weaker automotive demand, unfavorable customer mix, and a softer near-term earnings outlook despite a better-than-expected Q2 profit.

[BRIEFING.COM] The Nasdaq Composite (+2.61%) leads the major averages with about two hours to go on Tuesday, up about 676 points.

Gold futures settled $62.10 higher (+1.5%) at $4,152.60/oz, as declining oil prices eased inflation concerns and boosted expectations that the Federal Reserve may keep interest rates steady. Investors also positioned ahead of this week's key U.S. labor market reports, while lower energy prices increased demand for the precious metal as a safe-haven asset.

Meanwhile, the U.S. Dollar Index is down less than -0.1% to $99.91.