The S&P 500 (-0.5%) and Nasdaq Composite (-0.9%) did not extend their streak of record highs today as tech and mega-cap names faced some profit-taking after the recent stretch of leadership. There was some rotational activity into more defensive holdings and other parts of the market that helped the DJIA (-0.1%) close just below its flatline.

Weakness across semiconductor stocks weighed on the Nasdaq Composite in particular. After snapping an 18-session winning streak yesterday, the PHLX Semiconductor Index (-3.6%) faced a steeper retreat today, exacerbated by a Wall Street Journal report indicating that OpenAI missed internal revenue and user targets, raising concerns about its ability to fund future computing needs.

NVIDIA (NVDA 213.07, -3.54, -1.63%) was a "magnificent seven" laggard, and Corning (GLW 153.05, -14.96, -8.90%) faced pressure after topping earnings estimates and issuing in-line guidance, though the stock had been on an impressive run-up into its earnings report this morning.

The top-weighted information technology sector (-1.3%) finished as the worst-performing S&P 500 sector.

Outside of the tech space, earnings were a key driver of price action. The materials sector (-1.1%) faced pressure as precious metals prices retreated, though Nucor (NUE 225.11, +10.11, +4.70%) delivered a solid earnings report while Sherwin-Williams (SHW 324.27, -11.83, -3.52%) moved lower after its own results. Coca-Cola (KO 78.35, +2.91, +3.86%) was a notable standout, contributing to strength in the defensive consumer staples sector (+1.0%), while Pentair (PNR 82.86, -9.41, -10.20%) was among the worst-performing S&P 500 components, weighing on the industrials sector (-0.9%).

Meanwhile, the energy sector (+1.7%) captured the widest gain as crude oil futures settled $3.56 higher (+3.7%) at $99.95 per barrel. Headlines surrounding U.S.-Iran talks were relatively quiet, though Reuters reported that the UAE will leave OPEC and OPEC+.

All told, today's session reflects some caution ahead of an eventful day tomorrow. The market will receive the latest FOMC decision, where the Fed is widely expected to leave rates unchanged, though investors will be closely focused on any commentary that could suggest whether a potential rate hike remains on the table. In addition, four "Magnificent Seven" companies are set to report earnings after the close, while mega-cap leadership showed signs of fatigue today, with the Vanguard Mega Cap Growth ETF retreating 0.9%.

U.S. Treasuries of most tenors retreated for the second consecutive day while the long bond outperformed, recovering its opening loss.  The U.S. Treasury capped this week's note auction slate with a weak sale of $44 billion in 7-year notes, but post-auction selling was short-lived. The 2-year note yield settled up four basis points to 3.84%, and the 10-year note yield settled up two basis points to 4.35%.

• Russell 2000: +11.1% YTD
• S&P Mid Cap 400: +9.1% YTD
• Nasdaq Composite: +6.1% YTD
• S&P 500: +4.3% YTD
• DJIA: +2.3% YTD

 Reviewing today's data:

• February FHFA Housing Price Index 0.0% (Briefing.com consensus 0.2%); Prior was revised to 0.2% from 0.1%
• February S&P Case-Shiller Home Price Index 0.9% (Briefing.com consensus 1.2%); Prior 1.2%
• April Consumer Confidence 92.8 (Briefing.com consensus 89.2); Prior was revised to 92.2 from 91.8
  • The key takeaway from the report is that consumer attitudes were helped in April by perceptions of the labor market and income expectations.