Stock Market Update

[BRIEFING.COM] The S&P 500 (+0.3%), Nasdaq Composite (-0.2%), and DJIA (+0.8%) are mixed just before midday as the stock market faces some rebalancing action.  

Notably, the information technology sector (-1.0%) has given back roughly half of yesterday's advance, with considerable weakness coming from its chipmaker components and other AI plays. 

NVIDIA (NVDA 172.67, -9.88, -5.41%) is sharply lower following a report by The Information that Alphabet (GOOG 321.80, +3.32, +1.04%) is increasing efforts to compete with NVIDIA on artificial intelligence chips, and Meta Platforms (META 627.45, +14.40, +2.35%) is interested in using Google's chips.

A 1.7% slide in the PHLX Semiconductor Index has the information technology sector (-1.0%) at the bottom of today's leaderboard, with only the energy (-0.6%) and utilities (-0.4%) also holding losses. 

Though the rotation out of the tech sector is hampering gains at the index level, the broader market is doing a nice job of expanding upon yesterday's strength. Eight S&P 500 sectors are higher, and four hold gains of 1.0% or wider (the industrials sector (+0.7%) holds the smallest gain). 

The health care sector (+1.7%), which has outperformed amid recent struggles in the AI trade, continues to see strong rotational interest today as tech names lag. 

The Vanguard Mega Cap Growth ETF (-0.3%) sits below its baseline, contributing to the underperformance of the market-weighted S&P 500 (+0.3%) compared to the S&P 500 Equal Weighted Index (+1.1%). 

Outside of the S&P 500, the Russell 2000 (+1.3%) and S&P Mid Cap 400 (+1.2%) outperform their larger-cap counterparts, further illustrating a rotational element to today's trade.