[BRIEFING.COM] After some opening choppiness, the S&P 500 (+0.7%), Nasdaq Composite (+0.8%), and DJIA (+0.8%) sit near their session highs just before midday.

Some of the early volatility was driven by swings across semiconductor stocks, which were expected by some to rebound after a sharp retreat yesterday. The PHLX Semiconductor Index (-0.3%) has oscillated between positive and negative territory, currently modestly lower ahead of Micron's (MU 1035.78, -15.99, -1.52%) earnings release after the close.

While semiconductor stocks are not providing much of a boost, the market is supported by solid gains across many of its other largest names, with all of the "magnificent seven" cohort trading higher.

The Vanguard Mega Cap Growth ETF is up 0.9%, but even still, the S&P 500 Equal Weighted Index (+1.2%) outperforms the market-weighted S&P 500 (+0.7%) amid exceptional participation in the broader market.

Nine S&P 500 sectors trade higher, with the the consumer discretionary (+2.8%) and industrials (+1.9%) sectors posting the widest gains as a host of oil-and-rate-sensitive stocks surge in reaction to crude oil moving below $70 per barrel, which in turn sends treasury yields lower across the curve.

Similarily, the Russell 2000 (+1.2%) and S&P Mid Cap 400 (+1.2%) are outperforming. 

[BRIEFING.COM] The S&P 500 (+0.8%), Nasdaq Composite (+0.9%), and DJIA (+0.8%) are charting session highs as tech stocks stabilize after early volatility, while participation in the broader market remains strong.

The consumer discretionary sector (+2.2%) is a standout as oil prices and Treasury yields retreat this morning.

NIKE (NKE 41.53, -0.85, -2.01%) is one of just two stocks in the sector that trade lower after a handful of corporate news items. The stock is retreating even after saying Q4 results will include a tariff-refund benefit that was not contemplated in prior guidance, because the company also made clear that, excluding that one-time item, Q4 results are expected to be generally in line with its prior outlook rather than better on an underlying basis. The other headline change was a planned CFO transition, with David Denton joining on August 17 and current CFO Matthew Friend stepping down at that time, then remaining through September 4 to support the handoff, leaving investors to weigh a near-term reported earnings benefit against another leadership change during an already extended turnaround.

[BRIEFING.COM] The major averages remain modestly higher, supported by relatively broad participation this morning.

New home sales decreased 7.3% month-over-month in May to a seasonally adjusted annual rate of 580,000 (Briefing.com consensus: 627,000) from a downwardly revised 626,000 (from 622,000) in April. The level of sales in May is the second lowest over the last 12 months. On a year-over-year basis, new home sales were down 6.8%.

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.

Despite the weaker report, homebuilder stocks are rallying today as Treasury yields continue to move off their May highs.

[BRIEFING.COM] Stocks are mostly higher this morning, with the S&P 500 (+0.3%), Nasdaq Composite (+0.2%), and DJIA (+0.1%) holding modest gains.

Notably, the premarket buy-the-dip enthusiasm across semiconductor names has waned substantially, with the PHLX Semiconductor Index down 0.8%. After a nearly 5% premarket gain, Micron (MU 1046.91, -4.86, -0.46%) moves lower ahead of its earnings release this evening, with memory peers Seagate Tech (STX 1011.94, -26.66, -2.57%) and Western Digital (WDC 652.06, -18.69, -2.79%) among the worst-performing components of the information technology sector (flat).

Losses are pared by a solid early showing from "Magnificent Seven" names this morning, with NVIDIA (NVDA 200.58, +0.54, +0.27%), Apple (AAPL 295.22, +0.92, +0.31%), and Microsoft (MSFT 374.49, +0.55, +0.15%) all trading modestly higher. 

Amazon (AMZN 237.34, +3.23, +1.38%) is a standout among the group, helping the consumer discretionary sector (+1.5%) move firmly higher. The sector is also supported by solid gains across its homebuilding names, such as PulteGroup (PHM 136.48, +9.92, +7.84%) and D.R. Horton (DHI 167.58, +11.50, +7.37%), amid a busy morning for the group.

NBC News reports that the House passed a major housing affordability bill, which will reduce regulations to increase the supply of homes. Additionally, KB Home (KBH 61.32, +8.59, +16.29%) soars higher after its earnings release, while oil has moved below $70 per barrel, which in turn has sent Treasury yields lower. The iShares U.S. Home Construction ETF is up 6.0%.

The energy sector (-1.4%) is a laggard as a result, but it is one of just three S&P 500 sectors that trade lower. The financials (-0.4%) and real estate (-0.3%) sectors hold more modest losses.

Just released, new home sales decreased 7.3% month-over-month in May to a seasonally adjusted annual rate of 580,000 from an upwardly revised 626,000 (from 622,000) in April.

The stock market remains on track for a higher opening this morning as semiconductor and other AI-related stocks garner some buy-the-dip interest after yesterday's retreat.

Losses across heavyweight tech names have the S&P 500 (-1.8%) and Nasdaq Composite (-3.5%) sharply lower for the week, while resilience in the broader market and some rotational buying keeps the DJIA (+0.2%) little changed.

Strength in the broader market continues to be supported by lower oil prices, with WTI crude moving towards the $70 per barrel mark as tanker traffic picks up through the Strait of Hormuz.

The S&P 500 futures currently trade 29 points above fair value. 

Most equity indices in the Asia-Pacific region rebounded on Wednesday while Japan's Nikkei (-0.9%) underperformed, deepening its pullback from a record high. Samsung announced a $58 bln buyback for employee equity bonuses while SK Hynix updated its plan for a U.S. listing. An adviser from the People's Bank of China said that rate cuts are still possible this year. MSCI extended its review of Indonesia's market classification and chose not to upgrade South Korea to developed market status due to currency-related concerns.

• In economic data:
  • Japan's May Corporate Services Price Index 3.3% yr/yr, as expected (last 3.3%)
  • Australia's May Monthly CPI Indicator 4.0% (expected 4.3%; last 4.2%)

---Equity Markets---

• Japan's Nikkei: -0.9%
• Hong Kong's Hang Seng: +0.3%
• China's Shanghai Composite: +0.1%
• India's Sensex: +1.0%
• South Korea's Kospi: +3.3%
• Australia's ASX All Ordinaries: +0.3%

Major European indices trade on a mostly lower note while France's CAC (+0.4%) and the U.K.'s FTSE (+0.1%) outperform. Rheinmetall has plunged to its lowest level since early 2025 after Germany canceled its plan to build six warships and purchase frigates from ThyssenKrupp instead. Sweden's central bank indicated readiness to raise rates in its meeting minutes for June.

• In economic data:
  • Germany's June ifo Business Climate Index 85.6, as expected (last 85.0). June Current Assessment 87.0 (expected 86.0; last 86.1) and June Business Expectations 84.1 (expected 85.0; last 83.9)
  • Swiss June ZEW Expectations -25.0 (last -11.1)

---Equity Markets---

• STOXX Europe 600: -0.1%
• Germany's DAX: -1.2%
• U.K.'s FTSE 100: +0.1%
• France's CAC 40: +0.4%
• Italy's FTSE MIB: -0.6%
• Spain's IBEX 35: -0.5%

The S&P 500 futures currently trade 35 points above fair value, supported by a rebound across tech names after Monday's "magnificent seven" selloff and yesterday's semiconductor retreat.

Alphabet (GOOG 348.26, +2.18, +0.6%) will replace Verizon Communications Inc. (VZ 46.41, -0.32, -0.7%) in the Dow Jones Industrial Average effective prior to the opening of trading on Monday, June 29, 2026.

Just released, the Q1 Current Account Balance decreased to -$226.8 billion (Briefing.com consensus -$237.5 billion), from the downwardly revised prior level of -$221.1 billion (from -$190.7 billion).

Equity futures point to a higher open this morning as tech stocks, and in particular, semiconductor and memory names, are rebounding from yesterday's selloff. A similar bounce was seen in South Korea's Kospi index (+3.3%), which moved higher after shedding 10% ahead of yesterday's rout.

Micron (MU 1,098.80, +47.03, +4.5%) is a top mover ahead of its earnings release after the close, which analysts are touting as an important read-through of demand, though expectations for the stock are extremely elevated.

The market has a few geopolitical developments to monitor this morning, with oil prices moving lower again. Reports suggest that Iran will not charge tolls for ships traversing the Strait of Hormuz, but Reuters reported the U.S. and Iran remain in disagreement on the terms of nuclear inspections.

This morning is once again lighter on the data front ahead of tomorrow's full slate, with May New Home Sales (Briefing.com consensus 627K) the most notable release.

The MBA Mortgage Applications Index for the week ended June 20 increased 1.0%, from a prior decrease of 3.8%.

In corporate news:

• Cerebras Systems (CBRS 203.00, -23.72, -10.5%) is sharply lower after missing EPS expectations and announcing a multi-year deal with OpenAI valued at more than $20 billion.
• FedEx (FDX 297.30, -19.94, -6.3%) beat EPS expectations by $0.35 and beat revenue expectations.
• Nike (NKE 42.57, +0.19, +0.5%) announced that David Denton will join the company as Executive Vice President and Chief Financial Officer, effective August 17, as Matthew Friends steps down at that time

Reviewing overnight developments:

Most equity indices in the Asia-Pacific region rebounded on Wednesday while Japan's Nikkei (-0.9%) underperformed, deepening its pullback from a record high. Japan's Nikkei: -0.9%, Hong Kong's Hang Seng: +0.3%, China's Shanghai Composite: +0.1%, India's Sensex: +1.0%, South Korea's Kospi: +3.3%, Australia's ASX All Ordinaries: +0.3%.

In news:

• Samsung announced a $58 bln buyback for employee equity bonuses while SK Hynix updated its plan for a U.S. listing.
• An adviser from the People's Bank of China said that rate cuts are still possible this year.
• MSCI extended its review of Indonesia's market classification and chose not to upgrade South Korea to developed market status due to currency-related concerns.

In economic data:

• Japan's May Corporate Services Price Index 3.3% yr/yr, as expected (last 3.3%)
• Australia's May Monthly CPI Indicator 4.0% (expected 4.3%; last 4.2%)

Major European indices trade on a mostly lower note. STOXX Europe 600: -0.1%, Germany's DAX: -1.3%, U.K.'s FTSE 100: UNCH, France's CAC 40: +0.2%, Italy's FTSE MIB: -0.6%, Spain's IBEX 35: -0.5%.

In news:

• Rheinmetall has plunged to its lowest level since early 2025 after Germany canceled its plan to build six warships and purchase frigates from ThyssenKrupp instead.
• Sweden's central bank indicated readiness to raise rates in its meeting minutes for June.

In economic data:

• Germany's June ifo Business Climate Index 85.6, as expected (last 85.0). June Current Assessment 87.0 (expected 86.0; last 86.1) and June Business Expectations 84.1 (expected 85.0; last 83.9)
• Swiss June ZEW Expectations -25.0 (last -11.1)

[BRIEFING.COM] The major averages finished lower today, as pronounced weakness across semiconductor stocks masked a considerably more balanced performance beneath the surface. The S&P 500 (-1.4%) and Nasdaq Composite (-2.2%) both retreated sharply, while the DJIA (-0.1%) spent the session near its flat line. Notably, the S&P 500 Equal Weight Index (-0.4%) finished with a much narrower loss than its market-weighted counterpart, highlighting the concentrated nature of today's weakness.

The pressure was most apparent in the semiconductor space, where the PHLX Semiconductor Index tumbled 7.9%. The selloff lacked a definitive company-specific catalyst but followed a nearly 10% overnight decline in South Korea's Kospi, driven in part by significant losses in SK Hynix and Samsung Electronics. Bloomberg also reported that South Korea's top financial regulator expressed regret over allowing several leveraged ETFs tied to the two companies to launch.

The overseas weakness spilled into U.S. chipmakers, particularly memory-related names. Sandisk (SNDK 1963.60, -310.13, -13.64%) and Micron (MU 1051.77, -159.61, -13.18%) were among the notable laggards, while equipment and analog names such as Lam Research (LRCX 371.33, -38.21, -9.33%) and onsemi (ON 116.97, -14.58, -11.08%) also endured heavy selling pressure. As a result, the information technology sector (-3.7%) finished as the weakest S&P 500 sector by a wide margin.

The Vanguard Mega Cap Growth ETF declined 2.1%, though weakness was not universal across large-cap technology stocks. IBM (IBM 264.94, +12.72, +5.04%) was the best-performing Dow component after JPMorgan upgraded the stock to Overweight from Neutral, while Microsoft (MSFT 373.94, +6.60, +1.80%) recovered some of yesterday's losses amid a decent day for software names.

Notably, SpaceX (SPCX 156.03, +1.43, +0.92%) bucked the trend and snapped a three-day skid after Bloomberg reported that the company is seeking to raise $25 billion through a bond offering. Demand for the deal appeared robust, with reports indicating orders approached $90 billion. The gain came after SPCX briefly dipped below its $150 debut price earlier in the session.

Elsewhere, electrical equipment names such as GE Vernova (GEV 1035.21, -92.38, -8.19%) and Vertiv (VRT 318.20, -39.76, -11.11%) moved lower in sympathy with semiconductor stocks, weighing on the industrials sector (-2.0%).

The consumer discretionary sector (-0.9%) also finished lower as Tesla (TSLA 381.53, -23.52, -5.81%) lagged and Carnival (CCL 28.72, -1.47, -4.87%) fell following an earnings report that included downside forward guidance.

Away from technology, the tone was noticeably more constructive. Six S&P 500 sectors finished higher, led by the consumer staples sector (+1.8%) as several food-related names rebounded from depressed levels.

The health care (+1.4%) and utilities (+0.8%) sectors also outperformed, while the real estate sector (+1.4%) continued its recent run of strength and remains the best-performing S&P 500 sector this week.

The defensive leadership coincided with a rise in volatility, as the CBOE Volatility Index climbed 12.4% to 19.43. Even so, lower oil prices and easing Treasury yields continued to support several rate-sensitive areas of the market.

Outside the S&P 500, the Russell 2000 (-1.0%) retreated from yesterday's all-time high levels, while the S&P Mid Cap 400 (-1.0%) logged a similar loss.

Despite the sharp decline in semiconductor stocks, today's session offered few signs of broad market stress. Participation remained relatively healthy beneath the surface, with six S&P 500 sectors finishing higher and the equal-weighted index significantly outperforming its market-weighted counterpart. The next test for the group arrives tomorrow evening with Micron's earnings report, which could help determine whether investors once again view weakness across semiconductor stocks as a buying opportunity.

U.S. Treasuries recorded modest gains on Tuesday, though intraday action turned into a sideways affair, leaving the complex near today's opening levels at the close. The late pullback included the front end, even though the U.S. Treasury sold $69 bln in 2-year notes to solid demand. The 2-year note yield settled down four basis points to 4.19%, and the 10-year note yield settled down two basis points to 4.49%. 

• Russell 2000: +19.9% YTD
• S&P Mid Cap 400: +14.0% YTD
• Nasdaqo Composite: +10.1% YTD
• S&P 500: +7.6% YTD
• DJIA: +7.5% YTD

Reviewing today's data:

• June S&P Global U.S. Manufacturing PMI - Prelim 55.7; Prior 55.1
• June S&P Global U.S. Services PMI - Prelim 51.3; Prior 50.7