Stock Market Update

[BRIEFING.COM] Stocks had a mostly positive start to the week, albeit a somewhat uneventful one. A continuation in Friday's leadership across mega-cap, tech, and high-beta names helped the S&P 500 (+0.5%) and Nasdaq Composite (+0.9%) notch solid gains, while broadening strength throughout the session saw the DJIA (flat) nab fresh record highs after early losses. 

The Russell 2000 (+0.7%) also captured a nice gain, while the S&P Mid Cap 400 (+0.2%) had a more subdued session. 

Early in the session, the information technology sector (+1.6%) was the only S&P 500 sector to hold a gain, which it maintained throughout the course of the day. 

Investors continued to do some bargain hunting across software names that fell under immense pressure, with AppLovin (APP 460.38, +53.66, +13.19%) and Oracle (ORCL 156.61, +13.79, +9.66%) (which was upgraded to Buy from Neutral at DA Davidson with a target price of $180) being among the best-performing S&P 500 names today, while Microsoft (MSFT 413.72, +12.58, +3.13%) also managed a nice gain. The iShares GS Software ETF (IGV) finished 3.2% higher. 

Chipmakers also contributed to the strength, with the PHLX Semiconductor Index (+1.4%) posting a nice gain due to solid showings from the likes of NVIDIA (NVDA 190.04, +4.63, +2.50%) and Broadcom (AVGO 343.94, +11.02, +3.31%). 

Other mega-cap stocks outside of the technology sector were also mostly higher today, helping the Vanguard Mega Cap Growth ETF (+1.0%) close with a nice gain.

Meta Platforms (META 677.37, +15.91, +2.41%) was a standout, while Alphabet (GOOG 324.40, +1.30, +0.40%), which sold seven tranches of debt, including a British pound-denominated 100-year bond, also finished higher, helping the communication services sector (+0.8%) end the day near the top of the leaderboard. 

While the consumer discretionary sector's (-0.3%) mega-caps, Tesla (TSLA 417.20, +6.10, +1.48%) and Amazon (AMZN 208.72, -1.60, -0.76%), finished mixed, Amazon ended the day significantly improved from early session lows following a sharp post-earnings retreat on Friday. 

Other cyclical sectors had mixed showings. The financials sector (-0.6%) lagged amid a tough day for insurance names.  Insurance Information reported that OpenAI has authorized the first AI application from an insurance provider on ChatGPT. Willis Towers Watson (WTW 290.09, -39.95, -12.10%) and Arthur J. Gallagher (AJG 217.74, -23.84, -9.87%) were among the worst-performing S&P 500 components, while the Dow component Travelers (TRV 292.82, -8.68, -2.88%) also finished lower. 

Meanwhile, the materials (+1.4%) and energy (+0.8%) sectors posted solid gains as oil and precious metals prices increased today. 

The defensive consumer staples (-0.9%) and health care (-0.9%) sectors were today's laggards amid a more risk-on tone in the market today. 

Though not components of the health care sector (or S&P 500), Hims & Hers Health (HIMS 19.33, -3.69, -16.03%) plummeted today after Novo Nordisk A/S (NVO 49.37, +1.73, +3.63%) filed a lawsuit over its compounded versions of Wegovy and Ozempic, which coincides with a weekend FDA announcement targeting non-FDA-approved GLP-1 drugs.

Though the session was largely devoid of new catalysts, the stocks still managed to advance in a relatively broad fashion today. Strong performances from some of the market's largest tech components resonated at the index level and provided confidence that Friday's rebound effort was not a one-off event. 

Earnings results will pick up throughout the week, which will likely be a catalyst of price action. 

There was no economic data of note today, adding to the somewhat subdued corporate news flow.  

U.S. Treasuries began the week with slim gains across the curve after a steady bounce off morning lows in longer tenors. The 2-year note yield settled down two basis points to 3.48%, and the 10-year note yield settled down one basis point to 4.20%. 

• S&P Mid Cap 400: +8.7% YTD
• Russell 200: +8.4% YTD
• DJIA: +4.3% YTD
• S&P 500: +1.7% YTD
• Nasdaq Composite: UNCH YTD