Stock Market Update

[BRIEFING.COM] Early strength in the market’s top-weighted names lifted the Nasdaq Composite (+0.5%) to a record high of 21,885.62, while the S&P 500 (+0.2%) and DJIA (+0.3%) closed with more modest gains. 

The information technology (+0.7%) and consumer discretionary (+0.5%) sectors led the way for the entirety of the session, supported by strong leadership in their mega-cap components. A flurry of late afternoon buying activity saw the materials (+0.2%) and industrials (+0.2%) sectors eke out a modest gain, while the financials sector finished on its flatline. 

The Vanguard Mega Cap Growth ETF advanced 0.7%, with the mega-cap advantage helping the market-weighted S&P 500 (+0.2%) outperform the S&P 500 Equal Weighted Index (-0.1%).

A mix of semiconductor strength and earnings buzz kept the technology sector seated as the top-performing S&P 500 sector.

The PHLX Semiconductor Index closed with a 0.9% gain. Broadcom (AVGO 345.65, +10.76, +3.21%) was a notable standout, with the stock continuing to trade higher following the company's impressive earnings report Friday before the open.

Oracle (ORCL 238.50, +5.70, +2.45%) finished with a nice gain ahead of its own earnings report after the close tomorrow.

Meanwhile, Apple (AAPL 237.88, -1.81, -0.76%) traded lower ahead of the company's annual September showcase tomorrow, at which reports predict the company will unveil the iPhone 17 along with a slimmer model of the iPhone.

Within the consumer discretionary sector, Amazon's (AMZN 235.84, +3.51, +1.51%) advance was enough to offset a loss in Tesla (TSLA 347.34, -3.50, -1.00%), which traded lower following a report from Reuters that showed Tesla's U.S. market share has fallen to its lowest level since 2017 as the company faces increasing competition in the EV space.

The communication services sector (-0.3%) spent most of the day among the best-performing sectors, though it finished lower as Alphabet (GOOG 234.16, -1.01, -0.43%) ceded its early gain. 

The sector also faced pressure in its telecom components T-Mobile US (TMUS 242.90, -9.86, -3.90%), Verizon (VZ 43.32, -1.06, -2.39%), and AT&T (T 28.92, -0.68, -2.28%) following EchoStar's (SATS 80.63, +13.39, +19.91%) $17 billion spectrum sale to SpaceX.

Smaller-cap indices had a subdued performance, with the Russell 2000 (+0.1%) shaking off early weakness to the tune of a slight gain, while the S&P Mid Cap 400 finished flat. 

Ultimately there was not a great deal of conviction on the part of buyers or sellers today. 

Breadth figures reflected this notion, with advancers outpacing decliners by a slim 5-to-4 margin on the NYSE and a roughly 13-to-9 margin on the Nasdaq.

Besides a 1.1% loss in the thinly traded utilities sector, gains and losses were limited to a maximum of 0.7% across the other ten S&P 500 sectors.

At the index level, the market benefitted from investors buying the dip in mega-cap names from Friday's retreat, with a lack of notable developments preserving but not furthering the early gains. The market now turns to the release of August PPI and CPI data as the next key drivers of market direction. Corporate headlines were otherwise relatively quiet, though Robinhood Markets (HOOD 117.28, +16.03, +15.83%) and AppLovin (APP 547.04, +56.80, +11.59%) traded sharply in response to their addition to the S&P 500 before the open on September 22.

U.S. Treasuries climbed to begin the week, with 10s and 30s adding to their big post-NFP gains from Friday while the short end started higher, but pulled back as the day went on. The 2-year note yield settled down two basis points to 3.49% and the 10-year note yield settled down four basis points to 4.05%. 

• Nasdaq Composite: +12.9% YTD
• S&P 500: +10.4% YTD
• Russell 2000: +7.4% YTD
• DJIA: +7.0% YTD
• S&P Mid Cap 400: +5.6% YTD

Reviewing today's data:

• Consumer credit increased by $16.0 billion in July (Briefing.com consensus: $10.5 billion) following a downwardly revised $4.3 billion decline (from +$7.4 billion) in June.
  • The key takeaway from the report is that the expansion in consumer credit was driven by revolving credit, which saw the largest jump since January 2024. That might be construed as a sign that consumers are using credit cards more to fund everyday purchases in the face of higher costs, but noticing the jump in nonrevolving credit in July suggests that may not be fully accurate in a broad sense.