Stocks had a choppy session that culminated in considerable late afternoon selling pressure, sending the S&P 500 (+0.1%), Nasdaq Composite (-0.2%), and DJIA (+0.1%) to a mixed finish. The S&P 500 was unable to reclaim its 50-day moving average (6,894.75), which it closed below yesterday. 

While the broader market traded higher for most of the session, the major averages moved in tandem with fluctuations across mega-cap and tech names. 

The top-weighted information technology sector (-0.5%) had a particularly volatile session. The sector spent much of the morning oscillating around its unchanged level before plotting a steady advance through the midday hours. 

Software names finally saw some relief, with the iShares GS Software ETF (IGV) finishing 2.2% higher. 

Applied Materials (AMAT 354.91, +26.52, +8.08%) and Arista Networks (ANET 141.59, +6.47, +4.79%) also contributed solid gains after their earnings reports. 

However, increasing pressure across some of the sector's largest components ultimately led it to a lower finish. NVIDIA (NVDA 182.78, -4.16, -2.23%) and Apple (AAPL 255.78, -5.95, -2.27%) were especially weak, with the losses overshadowing broad gains throughout the sector. 

The communication services sector (-0.8%) finished with the widest loss today as Meta Platforms (META 639.77, -10.04, -1.55%) and Alphabet (GOOG 306.02, -3.35, -1.08%) added to the pressure across mega-caps

The consumer discretionary sector (-0.1%) also logged a lower finish as Amazon (AMZN 198.79, -0.81, -0.41%) has yet to notch a gain since its earnings release last week. 

Ultimately, the Vanguard Mega Cap Growth ETF finished 0.6% lower, which contributed to the underperformance of the market-weighted S&P 500 (+0.1%) relative to the S&P 500 Equal-Weighted Index (+1.0%). 

Despite the persistent weakness in some of the markets' weightiest names, there were some solid performances across other sectors. 

The defensive utilities sector (+2.7%) surged higher as more defensive pockets continue to generate rotational interest amid the weakness in tech. All 31 of the sector's components finished higher. 

The health care sector (+1.0%) also notched a solid gain, while certain cyclical sectors, including the materials (+1.1%) and industrials (+0.8%) sectors, rebounded from a sharp slide yesterday. 

Meanwhile, rate-sensitive pockets of the market also outperformed today following a solid CPI report for January, which showed a cooler-than-expected increase at the headline level (0.2%; Briefing.com consensus 0.3%) that resulted in a deceleration in the year-over-year rate to 2.4% from 2.7%. Core CPI (0.3%) matched expectations, with the year-over-year growth rate decelerating to 2.5% from 2.6%.

The real estate sector (+1.5%) logged a solid gain, finishing as one of the top-performing S&P 500 sectors this week. 

The smaller-cap Russell 2000 (+1.2%) and S&P Mid Cap 400 (+0.8%) also outperformed, further distancing themselves from the major averages this year. 

Ultimately, the session underscored the market's ongoing bifurcation, with late-day pressure in mega-cap growth offset by sustained rotational strength elsewhere. Until leadership broadens meaningfully beyond the largest tech names, the major averages may continue to struggle for decisive upside traction.

U.S. Treasuries enjoyed a strong finish to the week, sending yields on the 5-year note and longer tenors to their lowest closing levels since early December, while the 2-year yield settled at its lowest level since September 2022, though it remained above its 2025 intraday low that was notched on October 17 (3.378%).

The 2-year note yield settled down six basis points to 3.41% (-9 basis points this week) and the 10-year note yield settled down five basis points to 4.06% (-15 basis points this week).

Bond and equity markets will be closed on Monday for Presidents Day.

• S&P Mid Cap 400: +7.8% YTD
• Russell 2000: +6.6% YTD
• DJIA: +3.0% YTD
• S&P 500: -0.1% YTD
• Nasdaq Composite: -3.0% YTD

Reviewing today's data:

• January CPI 0.2% (Briefing.com consensus 0.3%); Prior 0.3%, January Core CPI 0.3% (Briefing.com consensus 0.3%); Prior 0.2%
  • The key takeaway from the report is that it showed some encouraging disinflation on a year-over-year basis, which the market will perceive as an opening for the Fed to consider additional rate cuts even with GDP growth running above potential.