Stock Market Update

[BRIEFING.COM] The S&P 500 (+0.2%), Nasdaq Composite (+0.3%), and DJIA (+0.1%) sit a touch off their session highs just after midday, with the S&P 500 and Nasdaq Composite notching fresh record highs.

The initial highs were set shortly after the open, though the major averages briefly drifted lower as mega-cap and tech stocks pulled back modestly following yesterday's rally. Tech and other growth-oriented areas eventually shook off the early weakness, helping the indices reclaim their flatlines and pushing the S&P 500 and Nasdaq Composite further into record territory.

After facing an early loss, the PHLX Semiconductor Index (+0.9%) is now firmly higher, which helped the top-weighted information technology sector (+0.7%) move back into positive territory. Though not a component of the S&P 500, Taiwan Semiconductor Manufacturing (TSM 364.01, -11.09, -2.96%) said in its earnings call that the company continues to see robust AI-related demand, which supports an extension of recent gains across the industry. Advanced Micro Devices (AMD 278.01, +19.89, +7.71%) is a notable standout, and onsemi (ON 78.98, +6.55, +9.04%) is one of the best-performing S&P 500 components.

Notably, today's gains across semiconductor names have not come at the expense of software stocks, and the iShares GS Software ETF trades 1.7% higher.

Improvements across the broader mega-cap space push the communication services sector (+0.6%) higher after it lagged this morning, while the consumer discretionary sector (-0.2%) has considerably narrowed its loss.

The Vanguard Mega Cap Growth ETF is now up 0.3%.

Outside of the mega-cap realm, the energy sector (+1.5%) holds the widest gain amid an increase in oil prices today, with WTI crude currently up $2.87 (+3.3%) to $91.00 per barrel. The increase does weigh on some oil-sensitive pockets of the market, such as airlines and cruise lines, but oil remains stable in comparison to recent weeks amid an improving geopolitical backdrop.

President Trump said via Truth Social that Israel and Lebanon have agreed to a 10-day ceasefire starting at 5:00 p.m. ET tonight, and the countries will meet in Washington on Tuesday.

Elsewhere, the materials sector (+0.5%) recovers nicely from recent weakness, supported by a sharp gain in Albemarle (ALB 205.54, +20.16, +10.88%) as global lithium prices continue to rebound.

The defensive consumer staples (+0.3%) and utilities (flat) sectors opened to nice gains this morning, but steadily moved lower as growth stocks stirred from their sluggish start. PepsiCo (PEP 158.37, +3.52, +2.27%) trades higher after topping earnings estimates and reaffirming its FY26 guidance.

Elsewhere on the earnings front, Abbott Labs (ABT 94.84, -6.72, -6.62%) is the worst-performing S&P 500 component, as below-consensus Q2 and FY26 guidance overshadows the company's earnings beat.

Outside of the S&P 500, the Russell 2000 (-0.1%) and S&P Mid Cap 400 (+0.2%) are little changed.

Overall, the market tone remains constructive as leadership from semiconductors and mega-cap growth continues to underpin index strength, while participation has broadend out some today. 

Reviewing today's data:

• April Philadelphia Fed Index 26.7 (Briefing.com consensus 12.7); Prior 18.1
• Weekly Initial Claims 207K (Briefing.com consensus 215K); Prior was revised to 218K from 219K, Weekly Continuing Claims 1.818 mln; Prior was revised to 1.787 mln from 1.794 mln
  • The key takeaway from the report is that it refutes any notion that the labor market is cracking in a way that will lock up discretionary spending. Initial jobless claims—a leading indicator—continue to run at historically low levels.
• March Industrial Production -0.5% (Briefing.com consensus 0.1%); Prior was revised to 0.7% from 0.2%, March Capacity Utilization 75.7% (Briefing.com consensus 76.4%); Prior was revised to 76.1% from 76.3%
  • The key takeaway from the report is that the headline decline is not as bad as it looks when taking into account the large upward revision to industrial production in February, which effectively offsets the decline in March.