Stock Market Update

[BRIEFING.COM] The stock market's opening gains pushed the S&P 500 (-0.4%) and Nasdaq Composite (-0.7%) to fresh record highs before a late morning slip in mega-cap and tech names triggered a broad-based retreat, leaving the major averages devoid of any record closes today. 

The DJIA (-0.2%) also closed lower, while the small-cap Russell 2000 (-1.1%) and S&P Mid Cap 400 (-1.1%) underperformed, highlighting the market's risk-off disposition today. 

Only the defensive consumer staples (+0.9) and utilities (+0.4%) sectors created any sort of positive distance from their flat lines. Some late afternoon buying activity saw the financials, energy, and health care sectors all close with 0.1% gains. 

Meanwhile, the consumer discretionary sector (-1.4%) finished with the widest loss, as Tesla's (TSLA 433.09, -20.16, -4.45%) release of a more affordable, rear-wheel-drive Model Y failed to live up to the hype that its teased announcement generated yesterday. 

Ford Motor (F 11.92, -0.77, -6.07%) added to the auto woes today, sliding after The Wall Street Journal reported that a fire at an aluminum supplier plant could disrupt the business for months.

The sector also faced pressure in its homebuilder names, sending the iShares U.S. Home Construction ETF 3.1% lower. 

Mega-cap weakness contributed to losses in the communication services (-0.7%) and information technology (-0.5%) sectors, with the Vanguard Mega Cap Growth ETF closing with a 0.6% loss. 

While the technology sector did not close with the widest loss today, its reversal from an earlier gain prompted the major averages to retreat beneath their flat lines. 

The sector got off to a hot start after IBM (IBM 293.89, +4.47, +1.54%) announced a partnership with Anthropic, Dell (DELL 150.85, +5.09, +3.49%) increased its long-term annual revenue growth expectations, and Advanced Micro Devices (AMD 211.51, +7.80, +3.83%) continued to build on yesterday's momentum after announcing a partnership with OpenAI. 

Just before midday, the sector slipped into negative territory following a report from The Information that suggested Oracle (ORCL 284.57, -7.02, -2.41%) will face financial challenges renting out NVIDIA (NVDA 185.04, -0.50, -0.27%) chips.

The PHLX Semiconductor Index would go on to finish with a 2.1% loss after an early gain.

Though today's retreat was broad-based, it was also modest. The S&P 500 and Nasdaq Composite both sit on their flatlines for the week, while the DJIA holds a modest 0.3% week-to-date loss. The lingering lack of macro developments combined with a few negative corporate headlines kept the major averages range-bound for the majority of the session. While a buy-the-dip move did not transpire today, the major averages remain within striking distance of their fresh record highs.

U.S. Treasuries overcame some opening weakness on Tuesday, recording their first higher finish since Thursday. The 2-year note yield settled down three basis points to 3.57%, and the 10-year note yield settled down four basis points to 4.13%. 

• Nasdaq Composite: +18.0% YTD
• S&P 500: +14.2% YTD
• Russell 2000: +10.2% YTD
• DJIA: +9.5% YTD
• S&P Mid Cap 400: +4.3% YTD

Reviewing today's economic data: 

• Consumer credit increased by $0.4 billion in August (Briefing.com consensus: $13.1 billion) following an upwardly revised $18.0 billion increase (from $16.0 billion) in July.
  • The key takeaway from the report is that the expansion in consumer credit was miniscule in August due to a decrease in revolving credit, which saw its biggest decrease since March.