The major averages finished mixed today as a pullback in semiconductor stocks erased much of the broader market's earlier advance. The S&P 500 (+0.1%) managed to close just above the 7,400 level after finding support there throughout the session, while the DJIA (+0.5%) outperformed and the Nasdaq Composite (-0.6%) lagged under renewed pressure from technology shares.

The broader tone of the session was nevertheless constructive. Crude oil futures settled $2.75 lower (-3.0%) at $89.34 per barrel, while Treasury yields declined modestly across the curve after a Reuters report suggested Pakistan and Iran are considering a new path toward peace talks with the U.S. following intervention from China. That optimism faded somewhat late in the day after The New York Times reported that President Trump met with top advisers to consider a major military escalation in Iran, though oil still finished well below its recent highs.

Participation remained broad beneath the surface despite the mixed finish. Ten S&P 500 sectors closed higher, and the S&P 500 Equal Weight Index rose 0.7%, outperforming the market-cap-weighted S&P 500 (+0.1%). The real estate sector (+2.5%) led the advance as lower Treasury yields and a beat-and-raise quarter from Digital Realty Trust (DLR 198.93, +19.59, +10.92%) supported the group, while the materials sector (+1.4%) also stood out behind strong gains from Smurfit Westrock plc (SW 48.57, +4.86, +11.13%) and Int'l Paper (IP 42.19, +4.28, +11.29%).

Technology remained the notable weak spot. The information technology sector (-0.9%) was the only S&P 500 sector to finish lower as the PHLX Semiconductor Index fell 4.4%, with AI infrastructure and memory names giving back ground after showing relative resilience following yesterday's hyperscaler capital expenditure announcements. Intel (INTC 92.32, -7.91, -7.89%) also weighed on sentiment after raising its 2026 capital expenditure outlook and indicating spending will increase further in 2027.

The weakness was not uniform across technology, however. The iShares Expanded Tech-Software Sector ETF (IGV) rose 1.1% as investors did some bargain hunting across software names that came under pressure following earnings yesterday.

Meanwhile, buying interest across the mega-cap complex was relatively muted. Apple (AAPL 333.02, +11.36, +3.53%) stood out as the primary "Magnificent Seven" winner, while Tesla (TSLA 313.03, -6.66, -2.08%) extended yesterday's steep decline. The Vanguard Mega Cap Growth ETF slipped 0.3%.

Elsewhere on the earnings front, Verizon (VZ 46.42, +2.60, +5.93%) advanced following a narrow EPS beat, while American Express (AXP 326.28, -14.56, -4.27%) moved lower despite topping earnings expectations after the company maintained, rather than raised, its FY26 guidance.

Looking ahead, investor attention will quickly shift to what will be the busiest week of the second-quarter earnings season, with four "Magnificent Seven" companies set to report alongside Wednesday's FOMC policy decision. Those catalysts should provide greater clarity on both the outlook for AI spending and the path of monetary policy after a volatile week for markets.

U.S. Treasuries ended the week on a higher note, but the shallow Friday bounce only recovered some of yesterday's losses, leaving the complex with solid losses for the week. The 2-year note yield settled down three basis points to 4.33% (+16 basis points this week), and the 10-year note yield settled down two basis points to 4.68% (+14 basis points this week). 

• Russell 2000: +18.1% YTD
• S&P Mid Cap 400: +14.5% YTD
• S&P 500: +8.3% YTD
• DJIA: +8.1% YTD
• Nasdaq Composite: +7.5% YTD

Reviewing today's data:

• July S&P Global U.S. Manufacturing PMI - Prelim 53.8; Prior 53.9
• July S&P Global U.S. Services PMI - Prelim 53.6; Prior 51.2
• June New Home Sales 628K (Briefing.com consensus 620K); Prior was revised to 618K from 580K
  • The key takeaway from the report is that new home sales in May were pressured by affordability constraints tied to rising mortgage rates. Notably, the West region, which features the highest-priced homes, saw the biggest hit to sales month-over-month; however, there was also weakness in the more affordable South region, which is the nation's largest homebuilding market.