Stock Market Update

[BRIEFING.COM] The S&P 500 (+0.1%), Nasdaq Composite (-0.4%), and DJIA (+0.8%) sit mixed in the early afternoon as mega-cap tech lags while the broader market posts mixed performances. The DJIA is in the midst of its second consecutive day of outperformance, and notched a record intraday high in today's trade. 

Equity futures pointed to a possible rally in tech names, with Advanced Micro Devices (AMD 254.50, +16.98, +7.15%) trading higher in the premarket as investors reacted (albeit in a delayed fashion) to the company's financial analyst day announcements from yesterday. The company now expects to see $100 billion in data center revenues over the next three to five years, with projections for the total addressable AI market reaching $1 trillion by 2030. 

To be fair, chipmaker names are among today's better performers, with the PHLX Semiconductor Index up 1.2%. However, NVIDIA (NVDA 192.03, -1.13, -0.59%) reversed course from its premarket gain that exceeded 1.0%, a move that has seemingly weighed on investor sentiment across other mega-cap names. 

Microsoft (MSFT 502.02, -6.66, -1.31%) is another laggard in the information technology sector (-0.2%), which moves lower despite roughly two-thirds of its components trading higher.

The consumer discretionary sector (-0.6%) also trades lower as Amazon (AMZN 245.27, -3.83, -1.54%) and Tesla (TSLA 430.65, -8.97, -2.04%) display weak leadership despite a majority of other components moving higher, while the communication services sector (-1.0%) holds the widest loss as its mega-cap components come under pressure. 

The Vanguard Mega Cap Growth ETF is down 0.4%, and the S&P 500 Equal Weighted Index (+0.6%) outperforms the market-weighted S&P 500 (+0.1%). 

Separately, the energy sector (-1.0%) lags as the price of oil slips $2.48 (-4.1%) to $58.56 per barrel. Reuters reports that OPEC now projects oil supply will now match global demand in 2026 after previously anticipating a supply deficit. 

Meanwhile, the health care (+1.4%) and materials (+1.3%) sectors expand upon yesterday's strength, and the financials sector (+1.2%) moves higher as President Trump is set to have dinner with JPMorgan Chase (JPM 321.72, +6.10, +1.93%) CEO Jamie Dimon and other top financial executives this evening. 

This evening will also bring forth a House vote on the government funding bill that would end the ongoing government shutdown. CNN reports that House Speaker Mike Johnson is "very optimistic' the government funding bill will pass tonight. 

Optimism around an end to the longest shutdown in U.S. history is reflected in the performances of airline stocks, which have faced pressure due to increased cancellations amid a shortage of air traffic controllers. Delta Air Lines (DAL 59.84, +2.10, +3.64%) CEO Ed Bastian told CNBC that air traffic should be "close to normal" by Saturday as long as the government reopens.

U.S. Treasuries also hold gains as investors look to the government reopening and backlog of economic data as a possible tailwind for further easing from the Fed this year. 

However, Atlanta Fed President Raphael Bostic (FOMC non-voting member) said that inflation still poses a larger risk than the labor market and supports holding rates steady until the target 2% inflation rate is in sight, according to Bloomberg. 

Mr. Bostic announced he will retire at the end of his current term, which concludes on February 28, 2026. The Atlanta Fed President will not be a voting FOMC member until 2027. 

Reviewing today's data:

• Weekly MBA Mortgage Applications Index 0.6%; Prior -1.9%