Stocks had a volatile start to the holiday-abbreviated week, with the slight gains across the S&P 500 (+0.1%), Nasdaq Composite (+0.1%), and DJIA (+0.1%) belying the intraday swings of the market. The Russell 2000 (flat) and S&P Mid Cap 400 (+0.1%) followed a similar course today and ended up on near flat lines. 

The major averages faced considerable losses this morning as the market opened to what appeared to be a continuation of weakness across its mega-cap components and many of its tech components. 

The information technology sector (+0.5%) traded as much as 1.0% lower in the morning but steadily chipped away at the early weakness, rising as much as 1.1% in the afternoon before finishing with a more modest gain. 

Several of the sector's largest components mounted solid advances that masked broader weakness in the sector. Apple (AAPL 263.88, +8.10, +3.17%) was a mega-cap standout ahead of potential new product launches on March 4, while NVIDIA (NVDA 184.97, +2.16, +1.18%) and Broadcom (AVGO 332.54, +7.37, +2.27%) helped the PHLX Semiconductor Index (flat) erase its early losses that neared 2.5%.

However, software names never found their footing, sending the iShares GS Software (-2.2%) firmly lower.

Mega-cap performance was mixed outside of the technology sector, with the communication services sector (-0.6%) finishing lower amid weakness in Alphabet (GOOG 302.82, -3.20, -1.05%). 

CNBC reported that Netflix (NFLX 77.00, +0.13, +0.17%) has granted Warner Bros. Discovery (WBD 28.75, +0.76, +2.72%) a seven-day waiver to reopen potential deal talks with Paramount Skydance (PSKY 10.83, +0.51, +4.94%), which traded sharply higher today.

The consumer discretionary sector finished flat, as Tesla (TSLA 410.63, -6.81, -1.63%) was a mega-cap laggard, while Amazon (AMZN 201.15, +2.36, +1.19%) notched its first higher finish since Monday, February 2. All told, the Vanguard Mega Cap Growth ETF finished 0.3% higher. 

Elsewhere in the sector, Norwegian Cruise Line (NCLH 24.12, +2.63, +12.24%) was the best-performing S&P 500 stock after Eliott Investment Management disclosed a roughly 10% stake in the company, while Genuine Parts (GPC 125.75, -21.41, -14.55%) was the worst-performing S&P 500 component following an earnings miss and plans to split into two distinct companies. 

Other cyclical sectors posted mixed performances today. 

The financials sector (+1.0%) outperformed amid solid performances across major banking and card names, while Fiserv (FISV 63.45, +4.09, +6.89%) notched the widest after The Wall Street Journal reported that Jana Partners has built a stake of undetermined size in the company.

The industrials sector also finished nicely higher as Southwest Air (LUV 54.24, +3.14, +6.13%) rose after UBS upgraded the stock to Buy from Neutral, sending airline peers higher as well. 

Meanwhile, the energy sector (-1.4%) retreated as crude oil futures settled today's session $0.52 lower (-0.8%) at $62.33 per barrel amid optimistic developments in the negotiations between the U.S. and Iran. 

Similarly, decreasing precious metals prices sent the materials sector (-1.2%) lower, with Vulcan Materials (VMC 302.19, -25.46, -7.77%) a notable post-earnings laggard. 

Defensive sectors generally retreated as tech and other growth stocks shook off their early weakness. The consumer staples sector (-1.5%) closed with the widest loss today. After an impressive run-up, Walmart (WMT 128.85, -5.04, -3.76%) moved lower ahead of its earnigns this week. 

General Mills (GIS 44.96, -3.38, -6.98%) sunk after lowering its FY26 outlook, while other food brands such as Campbell Soup (CPB 27.77, -1.72, -5.83%) and Conagra (CAG 18.89, -0.87, -4.40%) lagged after HHS Secretary Kennedy said on 60 Minutes that ultra-processed foods are responsible for the country's obesity problems.

All told, it was an eventful start to the week, with earnings, guidance, brokerage research, and activist investors all generating some notable moves today. Action remains volatile across mega-cap and tech spaces, though the major averages were able to shake off the early weakness to notch slight gains today. 

U.S. Treasuries started the holiday-shortened week with a modest gain in the 30-year bond, while the 2-year note underperformed, giving back a chunk of its solid gain from Friday. The 2-year note yield settled up three basis points to 3.44%, the 10-year note yield finished unchanged at 4.05%, and the 30-year note yield settled down two basis points to 4.68%. 

• S&P Mid Cap 400: +7.9% YTD
• Russell 2000: +6.9% YTD
• DJIA: +3.1% YTD
• S&P 500: flat YTD
• Nasdaq Composite: -2.9% YTD

Reviewing today's data:

• February Empire State Manufacturing 7.1 (Briefing.com consensus 7.1); Prior 7.7
• February NAHB Housing Market Index 36 (Briefing.com consensus 38); Prior 37