Stock Market Update

[BRIEFING.COM] While early strength in the broader market saw the S&P 500 (-0.2%) and DJIA (+0.1%) capture new all-time highs, increasing weakness in mega-cap tech names now seats the major averages near session lows. The tech-heavy Nasdaq Composite (-0.4%) has spent the entirety of the session in negative territory as several of the market's largest names face some profit-taking after yesterday's rally.

The consumer discretionary (-0.8%) and information technology (-0.8%) sectors bear the brunt of the losses, with names such as NVIDIA (NVDA 179.04, -4.57, -2.49%) and Amazon (AMZN 222.69, -4.94, -2.17%) contributing to a 0.7% retreat in the Vanguard Mega Cap Growth ETF. 

In contrast to yesterday's action, which saw mega-cap names drive index-level gains, the S&P 500 Equal Weighted Index (+0.3%) outperforms the market-weighted S&P 500 (-0.3%). 

Strength in the broader market saw the DJIA hold a decent gain this morning, but the mostly modest gains across the five advancing S&P 500 sectors no longer outweigh widening mega-cap losses.

The energy sector (+2.4%) is the outlier today, mounting an advance as crude oil prices increase $1.14 to $63.42 per barrel, an increase of 1.8%.

The sector also benefits from several headline developments, including the OECD raising its 2025 global growth forecast to 3.2% from 2.9% and President Trump's admonishment of the EU for continuing to buy Russian oil in his address to the UN General Assembly. 

Smaller cap indices are also moving in the right direction today, as the Russell 2000 (+0.6%) and S&P Mid Cap 400 (+0.4%) outperform.

The market has heard from several FOMC members today, though none of their comments triggered a significant market reaction.

Fed Chair Jerome Powell (FOMC voting member) largely reiterated his September 17 press conference remarks, describing policy as "modestly restrictive" and noting that last week's cut was intended to move toward neutrality amid elevated inflation and rising job risks.

Chicago Fed President Austan Goolsbee (FOMC voting member) highlighted a gradual, conditional path for rate cuts if stagflation risks ease, while Fed Governor Michelle Bowman (FOMC voting member) emphasized a forward-looking approach given labor market concerns.

Reviewing today's data:

• Q2 Current Account Balance -$251.3 bln (Briefing.com consensus -$302.1 bln); Prior was revised to -$439.8 bln from -$450.2 bln
• September S&P Global U.S. Manufacturing PMI - Prelim 52.0; Prior 53.0
• September S&P Global U.S. Services PMI - Prelim 53.9; Prior 54.5