Stock Market Update

[BRIEFING.COM] The S&P 500 (-0.5%) and Nasdaq Composite (-0.7%) captured new record high levels this morning before a reversal in tech and mega-cap names sent the major averages lower. 

The DJIA (-0.4%) sits with a similar loss as pressure has permeated through to all but the defensive consumer staples (+0.8%), utilities (+0.7%), and health care (+0.1%) sectors. 

The information technology sector (-0.7%) led an early advance, supported by continued strength in Advanced Micro Devices (AMD 212.75, +9.04, +4.44%) and an early gain in NVIDIA (NVDA 185.90, +0.36, +0.19%).

The sector moved lower after a report from The Information called into question the financial challenges of Oracle (ORCL 278.67, -12.92, -4.43%) renting chips from NVIDIA, dragging the major averages beneath their flat lines in the ensuing sell-off.

After a healthy early gain, the PHLX Semiconductor Index now holds a 1.7% loss for the day. 

The consumer discretionary sector (-1.0%) holds the widest loss, as all but four of its components currently trade in negative territory. 

Ford Motor (F 11.92, -0.78, -6.10%) is one of the worst-performing names in the S&P 500 today, facing pressure after The Wall Street Journal reported that a fire at an aluminum supplier plant could disrupt the business for months.

Homebuilders are also notably underperforming today, sending the iShares U.S. Home Construction ETF 2.8% lower. 

Tesla (TSLA 446.37, -6.88, -1.52%) is well off of its session lows but still contributes to weakness across mega-cap names. The stock captured a 5.4% gain yesterday after teasing a product unveiling on its social media, which is expected to be a lower-priced Model Y SUV. 

The communication services sector (-0.7%) moved lower as its own mega-cap components, Alphabet (GOOG 247.70, -3.81, -1.51%) and Meta Platforms (META 709.25, -6.41, -0.90%), both face losses.  The Vanguard Mega Cap Growth ETF is down 0.7%. 

Outside of the S&P 500, the small-cap Russell 2000 (-1.0%) and S&P Mid Cap 400 (-1.2%) both underperform, as today's "risk off" disposition is keeping investors turning to more countercyclical opportunities.  

As a result, U.S. Treasuries have followed an inverse path today, starting with modest losses but now holding modest gains across the curve. The 2-year note yield is three basis points to 3.57%, and the 10-year note yield is down four basis points to 4.12%.