Stock Market Update

[BRIEFING.COM] The S&P 500 (-0.9%) and Nasdaq Composite (-1.5%) have seen much of this week's progress erased at the open as technology stocks retreat sharply following the latest batch of earnings reports. The DJIA (-0.2%) is holding a more modest loss as buying interest in defensive areas provides some support, even as rising oil prices add to pressure on the broader market.

The communication services sector (-2.1%) is once again at the bottom of the standings, weighed down by a sharp post-earnings decline in Meta Platforms (META 654.32, -43.20, -6.19%). Concerns about the substantial costs associated with the company's AI infrastructure investments are pressuring the stock, while its five-year credit default swaps have reached new highs, reflecting heightened concerns about its credit risk.

Mega-cap technology stocks are mostly lower this morning, with the Vanguard Mega Cap Growth ETF down 1.7%. Tesla (TSLA 387.59, +1.12, +0.29%), however, is a relative standout after reversing its premarket losses following its own earnings release.

Meanwhile, the information technology sector (-1.5%) is also firmly lower, with increased scrutiny of capital spending plans across major hyperscalers weighing on AI infrastructure stocks. The PHLX Semiconductor Index (-3.3%) is facing particularly pronounced selling pressure.

Elsewhere, crude oil prices are up 2.0%, hovering around $99 per barrel and adding to pressure on economically sensitive stocks. The defensive health care (+1.1%) and consumer staples (+1.3%) sectors are both posting solid gains, while the financials sector (+0.8%) is also outperforming as safe-haven buying in U.S. Treasuries pushes yields lower.

Just released, the September Leading Economic Index was flat month-over-month (Briefing.com consensus -0.2%), from a prior decrease of -0.1%.