Stock Market Update

[BRIEFING.COM] The major averages are mixed shortly after midday, with renewed semiconductor weakness weighing on the S&P 500 (-0.2%) and Nasdaq Composite (-0.4%) even as lower oil prices and Treasury yields support broader market strength and help the DJIA (+0.2%) remain higher.

The PHLX Semiconductor Index (-2.7%) is off its worst levels of the session, which briefly pushed the index into negative territory for August, but remains firmly lower and weighs on the information technology sector (-1.2%). Today's retreat followed another weak showing in Asian markets, with memory names and semiconductor component stocks bearing the brunt of the selling. NVIDIA (NVDA 209.99, -4.73, -2.20%) is also a "Magnificent Seven" laggard ahead of its earnings report Wednesday after the close.

The energy sector (-1.3%) is another laggard as crude oil falls $1.67 (-1.9%) to $85.36 per barrel. While the decline is weighing on energy stocks, lower oil prices are providing some relief for the broader market ahead of Treasury Secretary Scott Bessent's afternoon press conference on sanctions against Iran. Treasury yields are also moving lower alongside crude, adding another supportive element to a market that is holding up considerably better beneath the surface than the technology-heavy averages suggest.

Six S&P 500 sectors remain higher, while the S&P 500 Equal Weighted Index is little changed and outperforming its market-cap-weighted counterpart.

The consumer staples sector (+1.4%) sits near the top of the standings, with Coca-Cola (KO 91.76, +0.66, +0.72%) reaching a fresh all-time high while Altria (MO 68.37, +2.28, +3.45%) is one of the top-performing S&P 500 components.

The financials sector (+0.9%) is another outperformer, with strength in major banking and payment names contributing to the DJIA's outperformance.

Currently, the communication services sector (+1.5%) holds the widest gain as Alphabet (GOOG 347.76, +6.02, +1.76%) and Meta Platforms (META 558.10, +8.20, +1.49%) trade higher amid a relatively strong showing for non-semiconductor mega-cap stocks.

Outside the S&P 500, the Russell 2000 (-0.6%) and S&P MidCap 400 (-0.9%) remain firmly lower.

Overall, today's action continues to highlight a divergence between pronounced weakness in the semiconductor trade and a considerably steadier showing across much of the rest of the market. Lower oil prices and Treasury yields are providing some support, but the continued retreat in chip stocks is weighing heavily enough to keep the S&P 500 and Nasdaq in negative territory. Attention now turns to Treasury Secretary Bessent's afternoon press conference for additional details on the administration's economic measures against Iran and any potential implications for oil prices and the broader market.

There is no economic data of note today.