Stock Market Update

[BRIEFING.COM] The stock market retreated this morning as mega-cap and tech names faced some profit-taking amid renewed concerns of stretched valuations. The S&P 500 (-0.8%), Nasdaq Composite (-1.1%), and DJIA (-0.3%) all move lower, while the small-cap Russell 2000 (-0.8%) and S&P Mid Cap 400 (-0.6%) hold similar losses. 

Palantir Technologies (PLTR 193.73, -13.45, -6.49%) posted a stellar beat-and-raise Q3 earnings report yesterday after the close, yet the stock, which trades at a lofty forward price-to-earnings ratio above 230x, moved decidedly lower. 

The move took some steam out of a market that has been bolstered by the AI trade recently. NVIDIA (NVDA 201.50, -5.38, -2.60%) and other chipmakers face weakness today, sending the PHLX Semiconductor Index 2.0% lower. 

The broader information technology sector (-1.4%) is the top laggard so far, while the industrials (-1.2%), communication services (-1.1%), consumer discretionary (-1.0%), and energy (-1.0%) sectors also face significant losses.

Meanwhile, a combination of earnings strength and some buying interest among recent underperformers has four S&P 500 sectors trading with modest gains. 

Breadth figures are still markedly negative, with decliners outpacing advancers by a roughly 2-to-1 ratio on the NYSE and a roughly 3-to-1 clip on the Nasdaq. 

The Vanguard Mega Cap Growth ETF is down 1.2%, and the S&P 500 Equal Weighted Index (-0.3%) outperforms the market-weighted S&P 500 (-0.8%), highlighting outsized weakness across the market's largest names.