Stock Market Update

[BRIEFING.COM] The stock market experienced some selling pressure today, but index-level performance didn't reflect that. The S&P 500 (+0.6%) reached a fresh all-time high of 6,100.81, powered by mega caps and chipmakers. 

The Vanguard Mega Cap Growth ETF (MGK) closed 1.7% higher while the PHLX Semiconductor Index (SOX) gained 1.7%, buoyed by enthusiasm around AI initiatives. This followed President Trump’s $500 billion AI infrastructure announcement, which brought together notable industry leaders like Oracle's (ORCL 184.22, +11.65, +6.8%) Chairman Larry Ellison, SoftBank CEO Masayoshi Son, and OpenAI CEO Sam Altman, helping propel sentiment in the tech space.

Market internals painted a different picture. At both the NYSE and Nasdaq, decliners outpaced advancers and the equal-weighted S&P 500 closed 0.4% lower. Also, the Russell 2000 (-0.6%) and S&P Mid Cap 400 (-0.4%) closed lower.

This more subdued performance comes after a period of notable outperformance to kick off the year. The Russell 2000 and S&P Mid Cap 400 are still 3.3% and 5.1% higher, respectively, in 2025. Areas of the market that aren't seen as benefitting directly from the AI hype exhibited some consolidation activity today with the exception of some names that reported earnings results.

Netflix (NFLX 953.99, +84.31, +9.7%) was one of the day’s standout performers, surging after delivering the largest quarter of global streaming paid net ads in its history. Blue-chip names, including Procter & Gamble (PG 164.74, +3.02, +1.9%) and Dow component Travelers (TRV 246.72, +7.56, +3.2%), were also among the standouts, reporting strong earnings that bolstered investor confidence.

The 10-yr yield settled three basis points higher at 4.60% and the 2-yr yield settled two basis points higher at 4.30%. Treasuries moved to session lows after the $13 billion 20-yr bond reopening, which met stellar demand.

• S&P Midcap 400: +5.1% YTD
• Dow Jones Industrial Average: +3.8% YTD
• Nasdaq Composite: +3.6% YTD
• S&P 500: +3.5% YTD
• Russell 2000: +3.3% YTD

Reviewing today's economic data:

• Weekly MBA Mortgage Applications Index 0.1%; Prior 33.3%
• December Leading Indicators -0.1% (Briefing.com consensus 0.0%); Prior was revised to 0.4% from 0.3%

Thursday's economic data includes:

• 8:30 ET: Weekly Initial Claims (Briefing.com consensus 219,000; prior 217,000) and Continuing Claims (prior 1.859 mln)
• 10:30 ET: Weekly natural gas inventories (prior -258 bcf)
• 12:00 ET: Weekly crude oil inventories (prior -1.96 mln)