Stock Market Update

[BRIEFING.COM] The S&P 500 (+0.6%), Nasdaq Composite (+1.5%), and DJIA (+0.1%) are at session highs just before midday, with the S&P 500 reclaiming its 50-day mvoing average (7,705).

Technology and select mega-cap stocks are leading the market higher following last week's sharp selloff, which was driven in part by concerns about the reliance on debt to finance the massive AI infrastructure buildout. Investors have bought into the recent weakness, with the PHLX Semiconductor Index up 2.6%. The iShares GS Software (IGV 105.98, +1.64, +1.58%) is also up, and the top-weighted information technology sector (+1.8%) is charting session highs as a result.

The consumer discretionary sector (+2.6%) boasts an even wider gain as Tesla (TSLA 367.62, +12.90, +3.64%) and Amazon (AMZN 261.55, +11.55, +4.62%) move sharply higher, with Tesla set to report earnings Wednesday after the close.

A nice gain in Alphabet (GOOG 341.36, +4.45, +1.32%)keeps the communication services sector (+0.6%) higher, while seven S&P 500 sectors hold losses.

The divergence between the largest tech stocks and the rest of the market is notable as the S&P 500 Equal Weighted Index (-0.3%) charts session lows. The utilities (-1.7%) and real estate (-1.0%) sectors hold the widest losses amid the enthusiasm around tech stocks today and Treasury yields moving modestly higher across the curve.