Stock Market Update

[BRIEFING.COM] The stock market got off to a solid start as strength in mega-cap stocks lifted the S&P 500 (+0.2%) and Nasdaq Composite (+0.4%), though narrowing gains in the information technology sector (+0.5%) and scattered areas of weakness have pulled the major indices back from their opening highs. The DJIA (-0.1%) has been unably to confidently move above its flatline. 

Smaller-cap names are also putting up weaker performances, with the Russell 2000 flat for the day and the S&P Mid Cap 400 down 0.2%. 

The information technology sector (+0.7%) leads the eight advancing S&P 500 sectors even after slipping from earlier highs. NVIDIA's (NVDA 182.24, +4.05, +2.27%) strong start is the best among the "magnificent seven" contributing to a 0.6% gain in the PHLX Semiconductor Index. 

Additionally, the sector benefits from strength in memory chip producers Western Digital (WDC 114.60, +7.72, +7.22%) and Seagate Tech (STX 226.60, +9.09, +4.18%), trading higher in conjunction with Sandisk (SNDK 112.11, +14.99, +15.43%) as NAND products continue to see strong demand. 

The information technology sector is the only sector with a gain wider than 0.5%, as buying and selling interest remains largely subdued today.

The exception to this trend is the energy sector (-2.1%), which trades lower as the price of oil falls $2.38, or 3.6%, to $63.34 per barrel after reports that OPEC+ will announce another ouptut increase in November.

Defensive sectors are also underperforming today, as the the consumer staples (-0.5%) and health care (-0.1%) sectors both hold losses, though the utilities sector (+0.3%) has recovered from an earlier loss. 

Corporate headlines are relatively thin today, though Electronic Arts (EA 202.34, +8.99, +4.65%) announced that the company will be taken private in a $55 billion all-cash deal, confirming initial reports of a buyout from Friday. 

Elsewhere, DoorDash (DASH 269.67, +7.20, +2.74%) and Kroger (KR 66.02, +0.56, +0.86%) trade higher on news of an expanded partnership, while Carnival (CCL 29.17, -1.45, -4.74%) faces some "sell the news" pressure after beating EPS expectations and raising both Q4 EPS and FY25 EPS guidance. 

Macro headlines are even slimmer as the market remains unvexed by a potential government shutdown, with Politico reporting that President Trump will meet with congressional leaders of both parties today ahead of the government funding deadline tomorrow night. 

Cleveland Fed President Beth Hammack (FOMC nonvoting member) told CNBC that the current environment is "a challenging time for monetary policy," though rate cut expectations have remained steady to start the week. 

Reviewing today's data:

• Pending home sales increased 4.0% month over month in August (Briefing.com consensus 0.5%) following an upwardly revised 0.3% decline in July (from -0.4%).