Stock Market Update

[BRIEFING.COM] The S&P 500 (-0.2%), Nasdaq Composite (-0.4%), and DJIA (-0.2%) are lower just after midday as mega-cap weakness and rising Treasury yields pressure stocks, though the major averages are off their session lows as semiconductor stocks begin to garner some buying interest.

The information technology sector (-0.3%) holds a fraction of its previous loss, as the PHLX Semiconductor Index (+0.7%) reverses a nearly 2.0% slide. Memory names such as Micron (MU 714.97, +33.43, +4.91%) and Sandisk (SNDK 1368.52, +35.51, +2.66%) are leading the charge, while Intel (INTC 110.08, +1.91, +1.77%) also recovers from its early weakness.

The gains have come at the expense of software names, with the iShares GS Software ETF now down 0.8% after a solid early gain. Even so, the major averages are considerably improved.

The reversal in semiconductor stocks has not yet translated to momentum across mega-cap names. The Vanguard Mega Cap Growth ETF is down 0.7%, with particular weakness across Amazon (AMZN 258.02, -6.84, -2.58%), Tesla (TSLA 401.61, -8.38, -2.04%), and Alphabet (GOOG 386.88, -6.24, -1.59%), keeping the consumer discretionary (-1.5%) and communication services (-1.3%) sectors firmly lower.

The consumer discretionary sector is also pressured by its homebuilder components amid a surge in Treasury yields, with the iShares U.S. Home Construction ETF currently down 1.4%.

Rising interest rates are also contributing to pressure across building materials and construction names in the materials (-1.9%) and industrials (-0.7%) sectors.

Meanwhile, the defensive health care (+1.1%), utilities (+1.0%), and consumer staples (+0.7%) sectors outperform as mega-cap stocks slide again today.

The energy sector (+0.7%) also holds a solid gain despite a modest retreat in oil prices.

For now, today's session continues to reflect a tug-of-war between rising rates and selective dip-buying across AI-linked semiconductor names, while broader participation remains relatively defensive.

Reviewing today's data:

• Pending home sales increased 1.4% in April (Briefing.com consensus 1.6%), from an upwardly revised prior increase of 1.7% (from 1.5%)