Stock Market Update

[BRIEFING.COM] The S&P 500 (+1.7%), Nasdaq Composite (+2.0%), and DJIA (+2.1%) are charting session highs amid a considerable rebound in tech and mega-cap stocks after several consecutive sessions of weakness. 

The S&P 500 has reclaimed its 50-day moving average (6,884.75) which it closed below yesterday, while the DJIA notched an all-time high, coming within 100 points of the 50,000 mark. 

Bitcoin stabilized overnight, with a sharp rebound today pushing it back above the $70,000 mark, helping ease some recent volatility across risk assets. 

While Amazon (AMZN 208.88, -13.81, -6.20%) is sharply lower after an earnings miss and a massive $200 billion capital expenditure forecast, and Alphabet (GOOG 323.09, -8.24, -2.49%) lags after issuing a comparably immense spending plan, the broader AI trade is benefitting from strong "buy-the-dip" support after a previously rough week. Still, the communication services (-1.5%) and  consumer discretionary (-1.0%) sectors trade lower

Meanwhile, the nine other S&P 500 sectors trade higher, with the top-weighted information technology sector (+3.7%) leading the strength.

While massive mega-cap spending plans prompt return on investment concerns, the development is seen as a positive for the broader AI infrastructure space, which is set to benefit from the spending. Semiconductors escaped yesterday's session relatively unscathed amid Alphabet's spending guidance and are at the forefront of today's strength. The PHLX Semiconductor Index is up 5.4%, moving it back into modestly positive territory for the week. 

NVIDIA (NVDA 184.71, +12.83, +7.46%) is a "magnificent seven" standout. CEO Jensen Huang said demand for Nvidia's AI products within Amazon Web Services is extremely strong, which helped Amazon's stock rise to its best levels of the session. 

Elsewhere, Microsoft (MSFT 398.71, +5.04, +1.28%) and other software names finally garner some buying support after a sharp retreat this week, with the iShares GS Software ETF up 2.9%. 

Outside of the tech space, the broader market is firmly higher, with several solid gains in the mix. 

The industrials sector (+2.5%) is one of the top performers, supported by strength in airline names such as United Airlines (UAL 115.47, +9.38, +8.84%) and Delta Air Lines (DAL 75.03, +5.25, +7.52%). 

The energy sector (+2.1) also sports a nice gain as the price of oil increased $1.03 (+1.6%) to $64.32 per barrel. The Wall Street Journal reported that Iran rejected the U.S. request to stop its nuclear program, but signaled willingness to keep working toward a diplomatic solution.

Outside of the S&P 500, the Russell 2000 (+3.2%) and S&P Mid Cap 400 (+2.8%) are sharply higher, underscoring the improvement in risk sentiment today as growth stocks bounce off of recent lows. 

Overall, improving risk appetite is driving broad participation beyond mega-cap tech, signaling a notable change in tone after several tough sessions. Attention now turns to whether the rebound can hold into the close or fades as investors reassess positioning after a volatile week.

Reviewing today's data:

• February Univ. of Michigan Consumer Sentiment - Prelim 57.3 (Briefing.com consensus 54.3); Prior 56.4
  • The key takeaway from the report is that there was a surge in sentiment among consumers with the largest stock portfolios, whereas it remained at "dismal levels" for consumers without stock holdings. [Note: interviews for this release ended this past Monday, so with steep losses in many tech stocks since then, there is a good chance of a downward revision when the final report is released on February 20, barring a sustained rebound effort.