[BRIEFING.COM] It was a tough session for stocks today as sustained pressure across mega-cap and tech stocks came without the support of the broader market from previous sessions. 

The S&P 500 (-1.2%), Nasdaq Composite (-1.6%), and DJIA (-1.2%) finished lower across the board, with the Russell 2000 (-1.8%) and S&P Mid Cap 400 (-0.5%) closing with losses as well. Today's weakness moved the S&P 500 into negative territory for the year and saw the index close below its 50-day moving average (6,882.21).

Much of today's coverage revolved around the price action of Alphabet (GOOG 331.33, -2.01, -0.60%) after its earnings report yesterday afternoon. While the company decidedly topped earnings estimates, a massive FY26 capital expenditure plan of $175-$185 billion prompted some questions about if the company can continue to generate meaningful returns with that level of spending. Though the stock was down as much as 5% this morning, it battled back throughout the session, an encouraging sign given the size and scope of losses across other mega caps.

Despite sharp early losses, the communication services sector (-0.3%) finished as one of the better-performing S&P 500 sectors today. 

The same cannot be said of the consumer discretionary sector (-2.6%), which lagged as a majority of its components traded lower, while Amazon (AMZN 222.69, -10.30, -4.42%) and Tesla (TSLA 396.93, -9.08, -2.24%) provided weak leadership ahead of Amazon's earnings after the close. 

The information technology sector (-1.7%) also logged another disappointing finish after a choppy session. Alphabet's massive capital expenditure plans were touted by many analysts as a positive for select semiconductor and AI infrastructure names, which saw the sector open to a modest gain. Despite a midday run back towards its opening levels, the sector plotted a steady retreat throughout the afternoon. 

Broadcom (AVGO 310.51, +2.46, +0.80%) ceded nearly all of its solid early gain, while NVIDIA (NVDA 171.81, -2.38, -1.37%) also finished lower after spending time in positive territory. The PHLX Semiconductor Index (-0.1%) closed with a modest loss. 

Meanwhile, software stocks continued to freefall, with the iShares GS Software ETF finishing 5.0% lower. Microsoft (MSFT 393.67, -20.52, -4.95%) was yet again a "magnificent seven" laggard. 

The Vanguard Mega Cap Growth ETF closed 1.9% lower, adding to its early losses for the year. 

Outside of the mega-cap space, the market was devoid of the rotational strength that helped somewhat limit losses in the previous two sessions. 

The materials sector (-2.8%) finished as the worst-performing S&P 500 sector, garnering some profit-taking after a hot start to the year. 

Meanwhile, the financials sector (-1.2%) also had a rough session after a solid gain yesterday.  Coinbase Global (COIN 146.12, -22.50, -13.34%) and Robinhood Markets (HOOD 72.68, -7.94, -9.85%) finished sharply lower as Bitcoin extended its recent losses with another sizable slide today, which added to the stock market's intraday volatility. Bitcoin is currently down about 13% for the day, moving below the $64,000 mark. 

Only the consumer staples (+0.3%) and utilities (+0.1%) sectors managed meager gains.  Walmart (WMT 126.94, -1.06, -0.83%) finally saw a touch of profit-taking, though the move was negated by broader strength in the sector. 

Hershey Foods (HSY 224.38, +18.59, +9.03%) made a solid upward move after a beat-and-raise earnings report, while Estee Lauder (EL 96.75, -22.86, -19.11%) was the worst-performing S&P 500 name despite topping earnings estimates of its own. 

Overall, today's action reflects the recent heightened volatility across risk assets. Alphabet's battle from session lows was an encouraging sign for the stock, but the market could be in for more volatility tomorrow in reaction to Amazon's earnings. The CBOE Volatility Index surged over 20% during the session and remains elevated at 21.59 (+15.8%), suggesting an uneasiness throughout the market as some of its weightiest names continue to face pressure this year. 

U.S. Treasuries followed their two days of quiet sideways trade with a Thursday rally that took place alongside continued weakness in tech stocks. The 2-year note yield settled down seven basis points to 3.49%, and the 10-year note yield settled down seven basis points to 4.21%. 

• S&P MidCap 400: +5.3% YTD
• Russell 2000: +3.9% YTD
• DJIA: +1.8% YTD
• S&P 500: -0.7% YTD
• Nasdaq Composite: -3.0% YTD

Reviewing today's data:

• Weekly Initial Claims 231K (Briefing.com consensus 210K); Prior 209K, Weekly Continuing Claims 1.844 mln; Prior was revised to 1.819 mln from 1.827 mln
  • The key takeaway from the report was the jump in initial claims, which hit their highest level since early December. That created some headline surprise, but to be fair, the absolute level isn't that bad.
• December JOLTS - Job Openings 6.542 mln; Prior was revised to 6.928 mln from 7.146 mln

[BRIEFING.COM] The major averages remain firmly lower with just half an hour left in today's session. 

Investors have another sizable batch of earnings reports on tap after the close, including that of Amazon (AMZN 222.72, -10.27, -4.41%).

The stock heads into Q4 earnings with expectations elevated following an exceptional Q3, making guidance the primary swing factor for the stock. Investors will watch closely to see whether AWS can sustain its recent reacceleration and whether operating income lands toward the upper end of guidance. With Microsoft's (MSFT 393.52, -20.66, -4.99%) Azure results providing a mixed signal, sentiment hinges on whether AWS demand remains robust enough to justify premium cloud valuations. Given AMZN's streak of 11 consecutive double-digit EPS beats, execution is not the concern; rather, the stock's reaction will likely depend on Q1 commentary and management's confidence in cloud, AI investment returns, and margin durability as 2026 begins.

[BRIEFING.COM] The S&P 500 (-1.1%), Nasdaq Composite (-1.4%), and DJIA (-1.0%) remain firmly lower with just an hour left in today's session. 

While not much has changed at the index level, there have been a few changes at the sector level. 

The information technology sector (-1.3%) is back near session lows, with the PHLX Semiconductor Index (-0.2%) moving back into negative territory. 

Meanwhile, the communication services sector is at session highs as Alphabet (GOOG 329.10, -4.24, -1.27%) has pared its losses. 

[BRIEFING.COM] The S&P 500 (-0.70%) is down 48 points this afternoon, hosting the shallowest losses among the major averages on an otherwise widely lower session.

Briefly, S&P 500 constituents Cummins (CMI 533.00, -72.63, -11.99%), Huntington Ingalls (HII 367.30, -45.84, -11.10%), and Coinbase (COIN 150.65, -17.97, -10.66%) dot the bottom of the average. CMI and HII fall after reporting earnings, while COIN slips due in part to losses in cryptocurrencies.

Meanwhile, Tapestry (TPR 144.94, +15.02, +11.56%) is near the top of the standings and making new all-time highs after delivering a strong Q2 beat and a sizable FY EPS raise, sharply improving its margin outlook, highlighting sustained demand with FX and Europe as tailwinds, and boosting free cash flow and shareholder return expectations.

[BRIEFING.COM] With about two hours to go on Thursday afternoon, the tech-heavy Nasdaq Composite (-1.38%) is in last place down almost 317 points.

Gold futures settled $61.30 lower (-1.2%) at $4,889.50/oz, as a firmer U.S. dollar and shifting rate expectations after Kevin Warsh's Fed chair nomination sparked profit-taking and position unwinds. The move was amplified by broader risk aversion, margin pressures in metals futures, and cross-asset liquidation, even as longer-term safe-haven fundamentals remain intact.

Meanwhile, the U.S. Dollar Index is up about +0.2% to $97.82.

[BRIEFING.COM] The Dow Jones Industrial Average (-1.01%) is down 500 points this afternoon, breaching the 49K level.

A look inside the DJIA shows that Salesforce (CRM 189.34, -10.10, -5.06%), Amazon (AMZN 223.54, -9.45, -4.06%), and Nike (NKE 62.31, -1.91, -2.97%) are underperforming.

Meanwhile, Merck (MRK 121.32, +2.99, +2.53%) is firmly higher.

The DJIA is now only up +0.22% week-to-date.

[BRIEFING.COM] The S&P 500 (-0.8%), Nasdaq Composite (-1.0%), and DJIA (-0.7%) are lower across the board this afternoon, though considerably improved from session lows. Mega-caps and select tech names continue to face pressure, without the broader rotational strength of previous sessions this week. Additionally, Bitcoin continues to plummet past the $67,000 mark, adding to the uneasiness in today's trade. 

Alphabet (GOOG 324.53, -8.81, -2.64%) has garnered a fair share of coverage today after its earnings report yesterday afternoon. The company easily topped earnings estimates, but a massive FY26 capital expenditure plan of $175-$185 billion weighs on the stock as investors question if it can deliver sufficient returns on that level of spending, particularly as AI-related investments continue to pressure near-term margins. The communication services sector (-1.2%) is firmly lower as a result. 

The consumer discretionary sector (-1.8%) also faces pressure from weak mega-cap leadership, with Amazon (AMZN 225.08, -7.91, -3.40%) trading lower ahead of its earnings after the close. The Vanguard Mega Cap Growth ETF is down 0.8%, expanding this week's losses to 4.1%.

Meanwhile, the information technology sector (-0.5%) holds a much narrower loss. Alphabet's massive capital expenditure plans were viewed as a positive for select semiconductors and other AI infrastructure stocks, pushing the sector higher at the open. The sector quickly retreated as losses swelled throughout the broader market but has since pared its losses considerably. 

The PHLX Semiconductor Index (+0.5%) is back in modestly positive territory, with Broadcom (AVGO 320.30, +12.25, +3.98%) a notable standout. 

Microsoft (MSFT 403.86, -10.33, -2.49%) and other software names, however, continue to move lower. 

Elsewhere, the broader market remains mostly lower. 

The materials sector (-2.3%) holds the widest loss, facing some profit-taking after a strong week with plenty of earnings-related moves that still seats it as the second-best-performing S&P 500 sector this week. Additionally, precious metals prices are retreating from a solid rebound earlier in the week. 

Similarly, the energy sector (-1.6%) faces pressure as the price of oil swings lower today. The U.S. and Iran are now back on track for negotiations tomorrow in Iran. 

Only the defensive consumer staples (+0.2%) and utilities (+0.2%) sectors hold gains amid the broad weakness.  Hershey Foods (HSY 222.64, +16.85, +8.19%) holds a nice gain after a beat-and-raise earnings report. 

Overall, the session reflects a defensive tilt as investors digest earnings, reassess large-scale AI spending plans, and contend with renewed volatility across risk assets.

Reviewing today's data:

• Weekly Initial Claims 231K (Briefing.com consensus 210K); Prior 209K, Weekly Continuing Claims 1.844 mln; Prior was revised to 1.819 mln from 1.827 mln
  • The key takeaway from the report was the jump in initial claims, which hit their highest level since early December. That created some headline surprise, but to be fair, the absolute level isn't that bad.
• December JOLTS - Job Openings 6.542 mln; Prior was revised to 6.928 mln from 7.146 mln

[BRIEFING.COM] The S&P 500 (-0.7%), Nasdaq Composite (-0.7%), and DJIA (-0.6%) continue to tick higher just after midday. 

The S&P 500 is now just 0.1% lower for the year after moving well beneath that mark this morning. However, the index remains 0.6% below its 50-day moving average that was also violated this morning. 

The information technology sector (-0.3%) has narrowed its loss by a considerable margin, with semiconductor stocks garnering some buying support.  NVIDIA (NVDA 175.43, +1.24, +0.71%) re-enters positive territory, and the PHLX Semiconductor Index is now 0.6% higher for the day. 

[BRIEFING.COM] The S&P 500 (-0.8%), Nasdaq Composite (-0.8%), and DJIA (-0.8%) are steadily ticking higher from this morning's worst levels. 

While today's weakness is broad-based, there are still some notable stock-specific moves in the fold due to a hefty batch of earnings reports before the open.

McKesson (MCK 951.20, +129.20, +15.72%) is the best-performing S&P 500 name today following a robust fiscal Q3 beat-and-raise report that demonstrated strong broad-based momentum across its core business segments.

Meanwhile, Estee Lauder (EL 91.48, -28.13, -23.52%) is diving lower despite a 2Q26 beat-and-raise as investors reacted to an outlook that remains slightly below FactSet consensus estimates. While the FY26 EPS guidance was raised to $2.05-$2.25, the midpoint remains below the FactSet Consensus of $2.19, and the revenue forecast of $14.76--$15.04 billion is also trailing analyst expectations.

[BRIEFING.COM] The S&P 500 (-1.1%), Nasdaq Composite (-1.2%), and DJIA (-1.0%) are in the midst of a considerable pullback, as mega-cap and tech names face sustained pressure while Bitcoin continues to slide. 

Alphabet (GOOG 320.83, -12.51, -3.75%) is the latest mega-cap stock to fall under scrutiny after topping earnings estimates but guiding for a massive increase to capital expenditure. 

The "magnificent seven" are mostly lower, with Amazon (AMZN 222.73, -10.26, -4.40%) a notable laggard ahead of its own earnings after the close. 

Microsoft (MSFT 400.22, -13.97, -3.37%) and other software names continue to slide, while the PHLX Semiconductor Index (-1.4%) quickly gave back its modest opening gains. 

The market is no stranger to mega-cap and tech pressure this week. The Vanguard Mega Cap Growth ETF is down 2.1%, widening its week-to-date losses past 5.0%. The information technology (-1.3%), consumer discretionary (-2.7%), and communication services (-2.1%) are all among the worst-performing sectors this week due to weak mega-cap leadership. 

What is different about today's action from previous sessions this week is there is not much support in the broader market. Ten S&P 500 sectors trade lower, and six of those hold losses of 1.0% or wider. The S&P 500 Equal Weighted Index (-0.8%) still outperforms the market-weighted S&P 500 (-1.1%), but it too is firmly lower. 

Meanwhile, the consumer staples sector (+0.5%) continues to shine, with Hershey Foods (HSY 220.31, +14.52, +7.06%) a big earnings winner today. 

Outside of the S&P 500, the Russell 2000 (-1.1%) and S&P Mid Cap 400 (-0.5%) are lower as well. 

The CBOE Volatility Index has surged 20.9% to 22.53, suggesting an uneasiness across the market as it continues to slide this week. 

[BRIEFING.COM] The major averages have at least temporarily leveled from a sharp retreat this morning. 

Alphabet (GOOG 317.34, -16.00, -4.80%) delivered another impressive performance for 4Q25, yet the stock is trading sharply lower as investors grapple with the staggering price tag of the company's AI ambitions. While GOOG crushed 4Q25 estimates across revenue and earnings, its massive FY26 CapEx guidance has sent a shockwave through the market, overshadowing a quarter where Cloud and Search both showed accelerating momentum.

The company's Q4 results present a "good news is bad news" paradox. While the company proved its AI investments drive revenue growth-evidenced by the 48% Cloud surge and record Search usage signals-the cost to remain competitive is staggering. The AAPL partnership is a significant strategic win, but the market is currently fixated on near-term margin pressure from depreciation and rising infrastructure costs. The question isn't whether GOOG can lead in AI, but at what cost to the bottom line. GOOG is betting its $240 billion backlog will eventually outpace the massive infrastructure bill required to power the Gemini era.

[BRIEFING.COM] The S&P 500 (-1.3%), Nasdaq Composite (-1.7%), and DJIA (-1.1%) continue to chart session lows, with today's weakness sending the S&P 500 firmly below its 50-day moving average (6,882.21). 

While Alphabet's (GOOG 317.57, -15.77, -4.73%) massive capital expenditure plans briefly sent semiconductor stocks higher this morning, the gains have been ceded, and the information technology sector (-1.5%) is now firmly lower.  The PHLX Semiconductor Index (-1.6%) is down similarly. 

Qualcomm (QCOM 134.28, -14.61, -9.81%) is a notable laggard, falling to its lowest level since mid-April. The company beat Q1 EPS expectations and issued below-consensus guidance for Q2. BofA Securities downgraded the stock to Neutral from Buy with a $155 target, while Susquehanna downgraded shares to Neutral from Positive with a $140 target.

[BRIEFING.COM] The S&P 500 (-1.0%), Nasdaq Composite (-1.3%), and DJIA (-0.7%) sit lower across the board amid weakness in the broader market and sustained pressure across mega-cap stocks. 

Alphabet (GOOG 319.84, -13.50, -4.05%) is lower after its earnings report, sending the communication services sector (-2.1%) lower, while Amazon (AMZN 222.39, -10.60, -4.55%) holds a similar loss ahead of its earnings after the close, providing weak leadership for the consumer discretionary sector (-2.5%). 

The Vanguard Mega Cap Growth ETF is down 1.8% early in the session. 

Unlike previous sessions this week that have benefitted from broad strength, only the defensive consumer staples (+0.4%), health care (+0.2%), and utilities (+0.1%) sectors hold gains. 

The materials (-1.1%) and energy (-1.1%) sectors are among the underperformers as gold and oil prices both move lower after a solid rebound yesterday. 

Just released, the December Job Openings and Labor Turnover report saw 6.542 million job openings in December, down from the downwardly revised previous level of 6.928 million (from 7.146 million). 

The stock market is on track for a lower opening this morning as tech names remain under pressure. Mega-cap stocks are mostly lower after Alphabet's (GOOG 316.93, -16.41, -4.9%) earnings release, which will likely pressure the major averages at the open.

Initial jobless claims for the week ending January 31 increased by 22,000 to 231,000 (Briefing.com consensus: 210,000). Continuing jobless claims for the week ending January 24 increased by 25,000 to 1.844 million.

The key takeaway from the report was the jump in initial claims, which hit their highest level since early December. That created some headline surprise, but to be fair, the absolute level isn't that bad.

The S&P 500 futures currently trade 47 points below fair value. 

Equity indices in the Asia-Pacific region ended Thursday on a lower note with South Korea's Kospi (-3.9%) pulling back from its blistering start to 2026. Precious metals had a volatile night, contributing to overall caution among investors. There was some speculation that Japan's Prime Minister Takaichi might not live up to her pledge to cut taxes on food due to worries about the fiscal impact. Expectations for a near-term reserve requirement ratio cut from the People's Bank of China are on the low side, though the potential for a cut in the second quarter remains alive.

• In economic data:
  • Australia's December trade surplus AUD3.373 bln (expected surplus of AUD3.420 bln; last surplus of AUD2.597 bln). December Imports -0.8% m/m (last -0.2%) and Exports 1.0% m/m (last -4.0%)
  • Singapore's December Retail Sales -5.4% m/m (last -0.2%); 2.7% yr/yr (last 6.2%)

---Equity Markets---

• Japan's Nikkei: -0.9%
• Hong Kong's Hang Seng: +0.1%
• China's Shanghai Composite: -0.6%
• India's Sensex: -0.6%
• South Korea's Kospi: -3.9%
• Australia's ASX All Ordinaries: -0.5%

Major European indices trade in the red. Military contractor Rheinmetall has been pressured by weak guidance while shipper Maersk announced that some corporate positions will be cut and confirmed resumption of transit through the Red Sea. The Bank of England voted 5-4 to keep its bank rate at 3.75%, which was expected. The European Central Bank will release its own policy statement at 8:15 ET, but it too is expected to keep policy steady. There has been some speculation that European Central Bank President Lagarde could try to talk down the euro after the single currency reached its highest level against the dollar since mid-2021.

• In economic data:
  • Eurozone's December Retail Sales -0.5% m/m (expected -0.2%; last 0.1%); 1.3% yr/yr (expected 1.6%; last 2.4%)
  • Germany's December Factory Orders 7.8% m/m (expected -1.8%; last 5.7%)
  • U.K.'s January S&P Global Construction PMI 46.4 (expected 42.2; last 40.1)
  • France's December Industrial Production -0.7% m/m (expected 0.2%; last 0.1%)
  • Italy's December Retail Sales -0.8% m/m (expected -0.4%; last 0.5%); 0.9% yr/yr (last 1.3%)

---Equity Markets---

• STOXX Europe 600: -0.4%
• Germany's DAX: -1.2%
• U.K.'s FTSE 100: -0.7%
• France's CAC 40: -0.4%
• Italy's FTSE MIB: -1.2%
• Spain's IBEX 35: -1.8%

The S&P 500 futures currently trade 31 points below fair value. 

Just released, initial jobless claims for the week ending January 31 increased by 22,000 to 231,000 (Briefing.com consensus: 210,000).

Continuing jobless claims for the week ending January 24 increased by 25,000 to 1.844 million, from a downwardly revised prior level of 1.819 million (from 1.827 million).

Equity futures point to a lower opening this morning after the major averages finished mostly lower in yesterday's trade. Mega-cap and tech stocks faced another session of considerable pressure, with semiconductors among the worst performers yesterday. Meanwhile, select defensive and cyclical sectors garnered some strong rotational interest, helping somewhat ease losses at the index level. 

Alphabet (GOOG 318.64, -14.70, -4.4%) is under pressure after beating earnings estimates, with investors showing caution after the company guided for FY26 capital expenditure of $175-$185 billion. However, the massive spending plans are seen as a positive for the broader AI trade, sending select chipmakers and related stocks higher in the premarket. 

There are plenty of other earnings reports for investors to assess this morning, with over 100 S&P 500 companies set to report by the end of the week.

Elsewhere, the price of oil is falling this morning as diplomatic discussions between the U.S. and Iran are now once again set to take place in Oman tomorrow, according to The New York Times. 

Bitcoin is also moving lower, with a sharp intraday retreat coinciding with the stock market's worst levels of the session. The cryptocurrency has moved below the $70,000 mark this morning. 

This morning also brings about some important labor market data. In addition to the weekly initial claims report (Briefing.com consensus 210K) at 8:30 a.m. ET, the December Job Openings and Labor Turnover report, which was initially scheduled to be released on Tuesday, will be released at 10:00 a.m. ET. 

In corporate news:

• Alphabet (GOOG 318.64, -14.70, -4.4%) beat EPS expectations by $0.19, beat revenue expectations, and reported Google Cloud growth of 48%. The company guided for FY26 capital expenditure of $175-$185 billion.
• Qualcomm (QCOM 131.90, -16.99, -11.4%) beat EPS expectations by $0.11 and reported revenues in-line. The company guided Q2 EPS below consensus with revenues below consensus. 
• SpaceX is mulling an early index entry for its massive IPO, according to The Wall Street Journal. 

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended Thursday on a lower note with South Korea's Kospi (-3.9%) pulling back from its blistering start to 2026. Japan's Nikkei: -0.9%, Hong Kong's Hang Seng: +0.1%, China's Shanghai Composite: -0.6%, India's Sensex: -0.6%, South Korea's Kospi: -3.9%, Australia's ASX All Ordinaries: -0.5%.

In news:

• Precious metals had a volatile night, contributing to overall caution among investors.
• There was some speculation that Japan's Prime Minister Takaichi might not live up to her pledge to cut taxes on food due to worries about the fiscal impact.
• Expectations for a near-term reserve requirement ratio cut from the People's Bank of China are on the low side, though the potential for a cut in the second quarter remains alive.

In economic data:

• Australia's December trade surplus AUD3.373 bln (expected surplus of AUD3.420 bln; last surplus of AUD2.597 bln). December Imports -0.8% m/m (last -0.2%) and Exports 1.0% m/m (last -4.0%)
• Singapore's December Retail Sales -5.4% m/m (last -0.2%); 2.7% yr/yr (last 6.2%)

Major European indices trade in the red. STOXX Europe 600: -0.8%, Germany's DAX: -1.1%, U.K.'s FTSE 100: -0.5%, France's CAC 40: -0.3%, Italy's FTSE MIB: -0.9%, Spain's IBEX 35: -1.5%.

In news:

• Military contractor Rheinmetall has been pressured by weak guidance while shipper Maersk announced that some corporate positions will be cut and confirmed resumption of transit through the Red Sea.
• The Bank of England voted 5-4 to keep its bank rate at 3.75%, which was expected.
• The European Central Bank will release its own policy statement at 8:15 ET, but it too is expected to keep policy steady.
• There has been some speculation that European Central Bank President Lagarde could try to talk down the euro after the single currency reached its highest level against the dollar since mid-2021.

In economic data:

• Eurozone's December Retail Sales -0.5% m/m (expected -0.2%; last 0.1%); 1.3% yr/yr (expected 1.6%; last 2.4%)
• Germany's December Factory Orders 7.8% m/m (expected -1.8%; last 5.7%)
• U.K.'s January S&P Global Construction PMI 46.4 (expected 42.2; last 40.1)
• France's December Industrial Production -0.7% m/m (expected 0.2%; last 0.1%)
• Italy's December Retail Sales -0.8% m/m (expected -0.4%; last 0.5%); 0.9% yr/yr (last 1.3%)

The midweek session unfolded in a similar fashion to yesterday's action, with significant losses across tech and mega-cap stocks pressuring the S&P 500 (-0.5%) and Nasdaq Composite (-1.5%) while the DJIA (+0.5%) benefited from rotational strength into other corners of the market. 

While the DJIA made a run towards fresh record highs this morning, the S&P 500 dipped below its 50-day moving average (6,878.02) as selling pressure increased in the early afternoon, though the index recovered and closed just above the key technical level. 

Meanwhile, the Nasdaq Composite remains below its own 50-day moving average (23,390.10), with today's losses moving the index into negative territory for the year. 

The top-weighted information technology sector (-1.9%) widened its year-to-date loss to 5.2%. While the sector lagged for the entirety of the session, it is worth noting that some support kicked in after an early afternoon slide that saw the sector's losses for the day expand past 3.0% amid a sharp retreat in bitcoin.

Still, the PHLX Semiconductor Index (-4.4%) faced a considerable retreat as shares of Advanced Micro Devices (AMD 200.19, -41.92, -17.31%) plummeted despite beating earnings expectations and delivering upside Q1 guidance. NVIDIA (NVDA 174.19, -6.15, -3.41%) had a poor showing, though the sector's other "magnificent seven" components, Apple (AAPL 276.49, +7.01, +2.60%) and Microsoft (MSFT 414.19, +2.98, +0.72%), fared better. 

Even with the modest gain in Microsoft, software stocks faced an extension of yesterday's pressure, sending the iShares GS Software ETF 1.8% lower. 

Pressure across mega-cap names elsewhere pushed the communication services (-1.7%) and consumer discretionary (-1.2%) sectors lower as well. Alphabet (GOOG 333.34, -7.36, -2.16%) was a laggard ahead of its earnings report after the close. 

The Vanguard Mega Cap Growth ETF finished 1.4% lower, widening its negative start to 2026. 

With the exception of a modest pullback in the utilities sector (-0.4%), which outperformed yesterday, the broader market saw another solid day of rotational interest. 

Seven S&P 500 sectors finished higher, with five boasting a gain of 1.0% or wider. As a result, the S&P 500 Equal Weighted Index (+0.9%) outperformed the market-weighted S&P 500 (-0.5%) by a considerable margin.

The energy sector (+2.3%) once again captured the widest gain as crude oil futures settled today's session $1.97 higher (+3.1%) at $65.13 a barrel. Axios reported that diplomatic talks between the U.S. and Iran have hit a roadblock regarding nuclear negotiations. 

The materials sector (+1.8%) also saw an extension of yesterday's gains. Smurfit Westrock plc (SW 44.38, +3.48, +8.51%) led the advance after the company announced it would increase its quarterly dividend, while Amcor (AMCR 48.58, +3.66, +8.16%) finished similarly after topping EPS estimates and reaffirming its FY26 EPS guidance. 

Meanwhile, the health care sector (+1.2%) notched a solid gain after a lower finish yesterday, with Eli Lilly (LLY 1107.75, +104.29, +10.39%) and Amgen (AMGN 366.20, +27.61, +8.15%) among the top performers after beating earnings estimates. 

The real estate sector (+1.5%) advanced on broad strength, rounding out the top five, while the financials (+0.8%) and industrials (+0.2%) sectors captured more modest gains. 

Outside of the S&P 500, the Russell 2000 (-0.9%) and S&P Mid Cap 400 (+0.7%) finished mixed. 

Overall, the session reinforced the market's recent tug-of-war between persistent pressure on tech and the resulting rotational strength elsewhere. The market has more key mega-cap earnings on tap, which will likely be key in determining whether leadership stabilizes or the current rotation continues.

U.S. Treasuries had another steady showing on Wednesday, keeping yields near levels seen during Tuesday's sideways session. The 2-year note yield settled down one basis point to 3.56%, and the 10-year note yield finished unchanged at 4.28%. 

• S&P Mid Cap 400: +5.8% YTD
• Russell 2000: +5.8% YTD
• DJIA: +3.0% YTD
• S&P 500: +0.5% YTD
• Nasdaq Composite: -1.5% YTD

Reviewing today's data:

• Weekly MBA Mortgage Applications Index -8.9%; Prior -8.5%
• January ADP Employment Change 22K (Briefing.com consensus 43K); Prior was revised to 37K from 41K
• January S&P Global U.S. Services PMI - Final 52.7; Prior 52.5
• January ISM Non-Manufacturing Index 53.8% (Briefing.com consensus 53.7%); Prior was revised to 53.8% from 54.4%
  • The key takeaway from the report is that activity in the services sector grew at a steady pace in January at the same time prices paid for materials and services increased.