Stock Market Update

[BRIEFING.COM] Stocks are putting together a strong session with broad strength and firm mega-cap leadership lifting the S&P 500 (+1.0%), Nasdaq Composite (+1.4%), and DJIA (+0.7%) throughout the session. Notably, today's gains have the S&P 500 back into modestly positive year-to-date territory and back above its 50-day moving average (6,894.53). 

Seven S&P 500 sectors trade higher, with several notable gains in the mix. 

The top-weighted information technology sector (+1.5%) is near the top of the leaderboard, supported by broad strength across its components. 

Software stocks are finally garnering some buying interest after prolonged weakness, with the iShares GS Software ETF currently up 1.9%. Cadence Design (CDNS 308.78, +25.32, +8.93%) leads the advance after Rosenblatt upgraded the stock to Buy from Neutral, while AppLovin (APP 402.28, +25.90, +6.88%) and even Microsoft (MSFT 401.01, +4.15, +1.05%) also sport solid gains. 

The PHLX Semiconductor Index (+1.5%) is also higher today. Micron (MU 425.08, +25.30, +6.33%) and other memory names are rebounding nicely from yesterday's weakness, while NVIDIA (NVDA 189.08, +4.11, +2.22%) is a mega-cap standout after announcing a multiyear strategic partnership with Meta Platforms (META 640.50, +1.21, +0.19%). 

Amazon (AMZN 205.95, +4.80, +2.38%) and Tesla (TSLA 415.34, +4.71, +1.15%) add to the mega-cap strength, contributing to the Vanguard Mega Cap Growth ETF's 1.0% advance. 

Elsewhere in the consumer discretionary sector (+1.5%), Garmin (GRMN 238.77, +21.79, +10.04%) moves higher after earnings while casino stocks are also among the outperformers. 

Several other cyclical sectors boast nice gains early in the afternoon, which helps the S&P 500 Equal Weighted Index (+0.8%) keep up with the market-weighted S&P 500 (+1.0%). 

The energy sector (+1.6%) holds the widest gain as crude oil prices increase $2.59 (+4.2%) to $64.85 per barrel following an Axios report that the Trump administration is moving closer to a large-scale military intervention in Iran. 

The materials sector (+1.0%) moves higher as precious metal prices recover from yesterday's slide, while the financials sector (+1.0%) holds a similar gain as financial publishing names, which have faced weakness recently due to fears of AI disruption, move higher. 

Today's weakness is largely concentrated in more defensive sectors, with the utilities (-1.0%), consumer staples (-0.4%), and health care (-0.1%) sectors all moving lower. The real estate sector (-1.2%) also faces considerable pressure. 

Outside of the S&P 500, the Russell 2000 (+1.1%) and S&P Mid Cap 400 (+0.9%) sport solid gains as the broader market displays a more risk-on positioning today. 

Overall, the session underscores improving breadth and leadership, with cyclical sectors and mega-caps driving a well-rounded advance. If these gains hold into the close, the action would point to a more constructive tone following recent consolidation and choppy trading.

Reviewing today's data:

• Weekly MBA Mortgage Applications Index 2.8%; Prior -0.3%
• December Housing Starts 1.404 mln (Briefing.com consensus 1.320 mln); Prior 1.322 mln, December Building Permits 1.448 mln (Briefing.com consensus 1.412 mln); Prior 1.388 mln
  • The key takeaway from the report is that it is not the answer for a supply-constrained housing market. Single-unit permits were down overall, but they fell the sharpest in the South (-5.3%), which is the nation's largest homebuilding region.
• December Durable Orders -1.4% (Briefing.com consensus -2.6%); Prior was revised to 5.4% from 5.3%, December Durable Orders - ex transportation 0.9% (Briefing.com consensus 0.3%); Prior was revised to 0.4% from 0.5%
  • The key takeaway from the report is that the weakness was concentrated in the transportation component. Otherwise, it was a solid report featuring a 0.6% increase in nondefense capital goods orders, excluding aircraft, which is a key gauge of business spending.
• December Industrial Production 0.7% (Briefing.com consensus 0.4%); Prior was revised to 0.2% from 0.4%, December Capacity Utilization 76.2% (Briefing.com consensus 76.5%); Prior was revised to 75.7% from 76.3%
  • The key takeaway from the report is that industrial production growth easily exceeded estimates thanks to a healthy 0.6% increase in manufacturing output, which was the biggest since February 2025, and a secondary boost from an increase in the output of utilities.