Stock Market Update

[BRIEFING.COM] The stock market has at least temporarily recovered from a turbulent morning, with the S&P 500 (+0.2%), Nasdaq Composite (+0.3%), and DJIA (+0.5%) now holding modest gains. 

After a morning in which several S&P 500 sectors oscillated between positive and negative territory, only the materials (-0.5%) and utilities (-0.5%) sectors have remained below their baselines in the past hour or so. 

The information technology sector (flat) has reclaimed its flat line after lagging for most of the morning, which prevented earlier gains across the major averages. Relative weakness in chipmakers still has the PHLX Semiconductor Index down 0.5%, but this is significantly improved from previous levels. 

Oracle (ORCL 292.10, -20.90, -6.68%) remains one of the S&P 500's weakest performers today following its AI World Conference, as investors focused on the company's plans to ramp up near-term spending—raising concerns about margin and earnings pressure despite a strong long-term growth outlook.

Meanwhile, the financials sector (+0.7%) has recovered some of yesterday's losses that came as regional banks faced pressure in response to Zions Bancorp's (ZION 48.70, +1.77, +3.77%) exposure to fraudulent loans. 

The company has taken back a chunk of yesterday's 13% retreat, supported by strength across the industry as names such as Truist (TFC 42.62, +1.52, +3.71%), Fifth Third (FITB 40.80, +0.44, +1.10%), and Comerica (CMA 74.70, +0.86, +1.16%) beat earnings expectations this morning.

The KBW Regional Bank ETF is up 1.1% today.

The broader sector also benefits from a strong earnings beat and upside guidance from American Express (AXP 342.26, +19.14, +5.92%), which has other creditor names up as well. 

The consumer staples sector (+1.1%) is also posting solid gains, with most components trading higher. Kenvue (KVUE 15.22, +1.12, +7.9%) has recovered more than half of yesterday's losses after reports of a U.K. lawsuit over talc products tied to ovarian cancer.

Macro headlines are relatively quiet this Friday, with the ongoing government shutdown preventing the release of any economic data this morning.

CNBC reports that Treasury Secretary Scott Bessent will discuss trade with the Chinese Vice Premier He Lifeng over the phone today, though no developments have been reported yet. 

The market has shown resilience in response to this morning's bumpy action, with the major averages now poised to end the week on a higher note and capture solid week-to-date gains. 

However, breadth figures still favor decliners by a roughly 3-to-2 ratio on the NYSE and a 5-to-3 clip on the Nasdaq, suggesting some weakness beneath the surface.