Stock Market Update

[BRIEFING.COM] The stock market faces another retreat this morning, with dampened sentiment across the AI trade sending the S&P 500 (-0.8%), Nasdaq Composite (-1.3%), and DJIA (-1.0%) lower. 

Nine S&P 500 sectors hold losses, with the information technology (-1.7%) and consumer discretionary (-1.7%) sectors retreating the furthest as losses mount across the mega-caps. 

Microsoft (MSFT 489.11, -18.38, -3.62%) and Amazon (AMZN 225.00, -7.87, -3.38%) were both downgraded by Rothschild & Co. this morning.

The announcement of a partnership between Microsoft and NVIDIA (NVDA 181.68, -4.92, -2.64%) and Anthropic has done little to restore confidence in the AI trade today. The PHLX Semiconductor Index is down 2.6%, and the Vanguard Mega Cap Growth ETF is down 1.6%. 

On the earnings front, Home Depot (HD 345.28, -12.75, -3.56%) is a notable laggard after missing EPS estimates and lowering its FY26 guidance. 

Outside of the S&P 500, the Russell 2000 (0.7%) and S&P Mid Cap 400 (-0.5%) fare slightly better than their larger-cap counterparts. 

The CBOE Volatility Index is up 14.2% to 25.61 today, implying a heightened sense of uncertainty throughout the market.