Stock Market Update

[BRIEFING.COM] The stock market started the session with mixed action, but equities are mostly lower now. The major indices trade off session lows with losses ranging from 0.4% to 1.0%.

Index level deterioration coincided with mega caps and semiconductor shares extending early declines. The Vanguard Mega Cap Growth ETF (MGK) sports a 1.0% loss and the PHLX Semiconductor Index (SOX) shows a 1.6% decline.

NVIDIA (NVDA 125.51, -2.75, -2.1%) is a standout in that respect as investors wait on its earnings report after the close, which may impact the market's optimism around AI that has helped fuel recent gains.

AI-related name Super Micro Computer (SMCI 410.50, -137.34, -25.1%) is down sharply on news that it is delaying its annual 10K filing for the fiscal year ended June 30, 2024, to "complete its assessment of the design and operating effectiveness of its internals controls over financial reporting."

This price action has pinned the S&P 500 information technology sector in last place on the leaderboard, trading 1.3% lower.

Bank stocks are a positive spot in the market, contributing to the outperformance of the S&P 500 financial sector (+0.1%). The SPDR S&P Regional Banking ETF (KRE) shows a 0.6% increase and the SPDR S&P Bank ETF (KBE) sports a 0.5% gain.

The gain in Berkshire Hathaway (BRK.B 462.42, +1.79, +0.4%), which topped a $1 trillion value in terms of market capitalization today, has also contributed to the performance of the financial sector.

Volume is still below-average at the NYSE and Nasdaq, which has been the case all week, due to light participation in front of Labor Day.

Reviewing today's economic data:

• Weekly MBA Mortgage Applications Index 0.5%; Prior -10.1