[BRIEFING.COM] The major averages finished lower today, slipping back toward their session lows as semiconductor weakness and rising oil prices weighed on sentiment. The S&P 500 (-0.5%), Nasdaq Composite (-1.2%), and DJIA (-0.3%) all ended lower, while the Russell 2000 (-0.9%) and S&P Mid Cap 400 (-1.2%) faced even sharper losses.

Semiconductor stocks remained under pressure after Samsung Electronics' preliminary second-quarter results sparked renewed profit-taking across the group. While Samsung reported operating profit that was more than 1,800% higher than a year ago, revenue came in just shy of elevated expectations, reinforcing concerns that much of the optimism surrounding the semiconductor industry may already be reflected in valuations.

The PHLX Semiconductor Index fell 4.7%, as names such as Teradyne (TER 343.11, -36.41, -9.59%) and Intel (INTC 110.39, -11.81, -9.66%) were among the worst-performing S&P 500 components. The weakness weighed heavily on the information technology sector (-1.6%), though losses were not uniform across mega-cap technology.

NVIDIA (NVDA 196.93, +1.38, +0.71%) managed to finish higher, but the Vanguard Mega Cap Growth ETF still declined 0.9%, reflecting broader pressure across several large growth names.

The industrials sector (-1.7%) also lagged as electrical equipment names including Generac (GNRC 235.76, -22.05, -8.55%) continued to move in tandem with semiconductor stocks.

The consumer discretionary sector (-0.4%) finished lower as Tesla (TSLA 402.90, -16.87, -4.02%) fell sharply, while cruise lines and other oil- and rate-sensitive stocks came under pressure amid the surge in oil prices.

The energy sector (+3.0%) was the clear standout as geopolitical tensions pushed crude oil sharply higher. Crude oil futures settled today's session $1.93 higher (+2.8%) at $70.48 per barrel following reports of attacks on three separate ships in the Strait of Hormuz. Oil prices continued to climb after the settlement after CNBC reported, citing a U.S. official, that the Treasury Department is revoking the waiver allowing Iran to sell its oil in response to the strikes.

The communication services sector (+0.6%) was another relative bright spot, supported by broad gains across its components. Meta Platforms (META 615.58, +15.29, +2.55%) was a mega-cap standout after announcing the release of Muse Image, the first image generation model from Meta Superintelligence Labs.

Defensive sectors continued to hold up relatively well, with the health care (+1.6%), utilities (+0.9%), consumer staples (+1.0%), and real estate (+1.5%) sectors maintaining much of their midday strength as investors rotated away from semiconductor stocks.

Today's session reflected a somewhat more cautious tone than was evident earlier in the day. Semiconductor stocks remained the primary source of pressure, while the late-day surge in oil prices added another headwind for smaller-cap stocks and other economically sensitive areas of the market.

Even so, the broader market once again benefited from rotational buying, allowing the S&P 500 to close above the 7,500 level (7,503.85) after spending much of the session below that key technical mark. That resilience has become a defining theme to start the month, with the S&P 500 up 0.1% since the beginning of July despite the PHLX Semiconductor Index falling 13.7% over the same period, underscoring that strength elsewhere in the market continues to offset the semiconductor group's pullback.

U.S. Treasuries retreated on Tuesday, giving back their slim gains from the start of the week and finishing on lows even though the Treasury launched this week's note and bond auction slate with a solid $58 billion 3-year note sale. The 2-year note yield settled up four basis points to 4.16%, and the 10-year note yield settled up five basis points to 4.53%.

• Russell 2000: +20.2% YTD
• S&P Mid Cap 400: +14.2% YTD
• Nasdaq Composite: +11.1% YTD
• DJIA: +10.1% YTD
• S&P 500: +9.6% YTD 

Reviewing today's data:

• May Trade Balance -$77.6 bln (Briefing.com consensus -$78.8 bln); Prior was revised to -$54.6 bln from -$55.9 bln
  • The key takeaway from the report is that it reflected stronger demand for goods in the U.S. versus elsewhere, evidenced by the wide gap between exports and imports in May.

[BRIEFING.COM] The major averages are once again moving lower with just over half an hour left in the session.

Oil-sensitive pockets of the market have come under increasing pressure this afternoon amid some volatility on the geopolitical front. Crude oil futures settled today's session $1.93 higher (+2.8%) at $70.48 per barrel after reports of attacks on three separate ships in the Strait of Hormuz today.

Oil prices have continued to rise from their settlement levels after CNBC reported that the Treasury Department is revoking the waiver that allows Iran to sell its oil, according to a U.S. official. WTI Crude Oil is currently up $3.70 (+5.4%) to $72.25 per barrel.

The energy sector (+3.2%) is now the top-performing S&P 500 sector by a considerable margin. 

[BRIEFING.COM] The S&P 500 (+0.3%), Nasdaq Composite (-0.8%), and DJIA (-0.2%) continue to drift sideways as the market enters the final hour of the session.

Meanwhile, the communication services sector (+1.2%) continues to move towards its opening highs. The sector is supported by broad strength across its components, while Meta Platforms (META 620.04, +19.75, +3.29%) is now a mega-cap standout after announcing the release of Muse Image, the first image generation model from Meta Superintelligence Labs.

[BRIEFING.COM] The S&P 500 (-0.27%) is in second place on Tuesday afternoon, down about 20 points.

Briefly, S&P 500 constituents Generac (GNRC 232.44, -25.37, -9.84%), Teradyne (TER 342.69, -36.83, -9.70%), and Intel (INTC 110.63, -11.57, -9.47%) pepper the bottom of the average. GNRC slips as the stock cools from its AI-driven rally, while TER and INTC find losses in much the same ilk. 

Meanwhile, Cboe Global Markets (CBOE 260.54, +15.46, +6.31%) is atop the standings following the company's June metrics report.

[BRIEFING.COM] The tech-heavy Nasdaq Composite (-0.61%) is in last place among the major averages, down about 160 points.

Gold futures settled $10.10 lower (-0.2%) at $4,157.40/oz, as investors awaited the Federal Reserve's June meeting minutes for additional clues on the interest rate outlook. Safe-haven demand tied to Middle East tensions helped limit losses, though higher Treasury yields and expectations that rates could stay elevated pressured bullion.

Meanwhile, the U.S. Dollar Index is up less than +0.1% to $100.95.

[BRIEFING.COM] The Dow Jones Industrial Average (-0.26%) is down about 137 points this afternoon, posting the shallowest losses among the major averages.

A look inside the DJIA shows that Caterpillar (CAT 923.99, -45.93, -4.74%), Honeywell (HON 224.23, -6.95, -3.01%), and Home Depot (HD 344.94, -5.71, -1.63%) hold decent losses.

Meanwhile, Salesforce (CRM 171.44, +5.79, +3.50%) rises to the top of the standings.

The DJIA is now +1.15% higher on the month.

Elsewhere, recent action saw the 10-yr note and the long bond dip to fresh lows for the day while shorter tenors continue trading on lows that were reached in mid-morning action. The market has held steady in immediate reaction to today's $58 bln 3-yr Treasury note auction, which met good demand. The sale drew a high yield of 4.179%, which stopped through the when-issued yield by 0.6 basis points. The bid-to-cover ratio (2.60x) was a touch below average (2.63x), but indirect takedown (67.5%) was above the prior 12-auction average (63.2%). The U.S. Treasury will continue this week's auction slate with a $39 bln 10-yr note reopening tomorrow.

[BRIEFING.COM] The S&P 500 (-0.3%), Nasdaq Composite (-0.6%), and DJIA (-0.3%) are modestly lower just after midday as the major averages stabilize following another bout of weakness across semiconductor stocks. The S&P 500 has found support near the 7,500 level, which it reclaimed yesterday after spending much of the past two weeks below that mark.

Chipmakers have given back a portion of yesterday's rebound after Samsung Electronics' preliminary second-quarter results prompted renewed profit-taking across the group. While Samsung reported operating profit that was more than 1,800% higher than a year ago, revenue came in just shy of elevated expectations, sending the stock nearly 7% lower in South Korea. The reaction reinforced concerns that much of the recent optimism surrounding the semiconductor industry may already be reflected in valuations. Teradyne (TER 341.42, -38.10, -10.04%) and Intel (INTC 111.00, -11.20, -9.17%) are among the worst-performing S&P 500 components and the PHLX Semiconductor Index is down 4.5%, pushing the group firmly into negative territory for the week.

Weakness remains concentrated across memory, equipment, and AI infrastructure stocks, leaving the information technology sector (-1.0%) among today's laggards. Electrical equipment companies continue to move in tandem with semiconductor names, weighing on the industrials sector (-2.2%) as well.

Despite the pressure on chipmakers, the market's largest technology stocks have steadily improved throughout the morning. Six of the "Magnificent Seven" stocks now trade higher, with NVIDIA's (NVDA 197.24, +1.69, +0.86%) move back into positive territory helping the S&P 500 and Nasdaq Composite recover nearly half of their earlier losses. Although the Vanguard Mega Cap Growth ETF remains down 0.5%, it has rebounded considerably from its intraday low, highlighting a more constructive tone beneath the surface.

SpaceX (SPCX 152.48, -7.94, -4.95%), meanwhile, remains sharply lower despite a wave of bullish sell-side initiations.

Away from technology, leadership remains concentrated in several cyclical and defensive groups. The energy sector (+1.3%) outperforms after reports of attacks on ships around the Strait of Hormuz pushed WTI crude oil back above the $70 per barrel mark.

The real estate (+1.6%), health care (+1.5%), utilities (+1.2%), and consumer staples (+0.9%) sectors are also posting solid gains. Walmart (WMT 111.81, +1.16, +1.05%) is contributing to the strength in consumer staples after announcing thousands of summer Rollbacks across grocery, household essentials, outdoor products, toys, apparel, and other categories, along with more than 250 price reductions at Sam's Club.

Outside the S&P 500, the Russell 2000 (-0.4%) and S&P Mid Cap 400 (-0.9%) are lower after a solid start to the week yesterday, further highlighting some back-and-forth action across equities.

So far, today's session continues to reflect rotation rather than broad-based selling. Semiconductor stocks are giving back a portion of yesterday's gains as investors reassess lofty expectations for the AI trade, but improving action across mega-cap technology names and continued leadership from several cyclical and defensive sectors have helped the S&P 500 stabilize near the key 7,500 level.

Reviewing today's data:

• May Trade Balance -$77.6 bln (Briefing.com consensus -$78.8 bln); Prior was revised to -$54.6bln from -$55.9 bln
  • The key takeaway from the report is that it reflected stronger demand for goods in the U.S. versus elsewhere, evidenced by the wide gap between exports and imports in May.

[BRIEFING.COM] The S&P 500 (-0.4%), Nasdaq Composite (-0.8%), and DJIA (-0.4%) continue to improve from session lows.

Part of the index-level improvement can be attributed to the market's largest company, NVIDIA (NVDA 196.66, +1.11, +0.57%), which now trades higher after holding a loss of nearly 2% earlier in the session despite a dearth of corporate news. NVIDIA's gain helps both the PHLX Semiconductor Index (-4.4%) and information technology sector (-1.1%) rise from earlier lows. With NVIDIA's gain, Tesla (TSLA 406.93, -12.84, -3.06%) is now the only "Magnificent Seven" stock that currently trades lower.

[BRIEFING.COM] The S&P 500 (-0.5%), Nasdaq Composite (-1.2%), and DJIA (-0.4%) are slightly improved from their session lows at midday.

Solar stocks are pulling back after moving higher yesterday as interest rates creep back up, with SolarEdge Technologies (SEDG 51.78, -5.14, -9.02%), Sunrun (RUN 11.82, -1.15, -8.88%), and Enphase Energy (ENPH 41.70, -2.84, -6.39%) among the laggards. The 2-year note yield is up two basis points to 4.14%, and the 10-year note yield is up four basis points to 4.52%. The rise in Treasury yields in recent days appears to be driven by a combination of higher inflation expectations and investors pushing back expectations for Federal Reserve rate cuts.

To that end, the Federal Reserve Bank of New York's Center for Microeconomic Data today released the June 2026 Survey of Consumer Expectations, which showed that households' inflation expectations increased at the short- and medium-term horizons and were unchanged at the longer-term horizon.

[BRIEFING.COM] The S&P 500 (-0.7%), Nasdaq Composite (-1.4%), and DJIA (-0.5%) are under pressure today as semiconductor stocks face a relatively sharp retreat on the heels of yesterday's gains and a disappointing reaction to Samsung Electronics' (SSNLF) earnings. The PHLX Semiconductor Index (-6.6%) is down sharply, weighing on the top-weighted information technology sector (-2.2%) as chipmakers such as Intel (INTC 109.06, -13.14, -10.75%) and memory names such as Sandisk (SNDK 1551.29, -193.14, -11.07%) face widening losses.

Electrical equipment names including Generac (GNRC 232.33, -25.48, -9.88%) and GE Vernova (GEV 1032.00, -120.04, -10.42%) are posting similar losses as the group continues to track the performance of semiconductor stocks, making the industrials sector (-2.4%) a laggard as well.

Losses are more modest in the materials (-1.1%) and consumer discretionary (-0.5%) sectors, while the seven other S&P 500 sectors trade higher.

The energy sector (+2.1%) holds the widest gain as reports of attacks on ships around the Strait of Hormuz have pushed WTI crude oil back above the $70 per barrel mark.

Meanwhile, more defensive-oriented sectors such as real estate (+1.9%), health care (+1.8%), utilities (+1.8%), and consumer staples (+1.7%) also outperform, suggesting some rotational action as semiconductor stocks give back yesterday's gains.

Outside the S&P 500, the Russell 2000 (-0.8%) and S&P Mid Cap 400 (-1.1%) are also giving back yesterday's gains, further suggesting some churn across the market.

[BRIEFING.COM] The major averages are charting session lows as losses across semiconductor stocks and related names continue to widen.

Tesla (TSLA 409.51, -10.26, -2.44%) is a "magnificent seven" laggard, facing some profit-taking after a nearly 7% gain yesterday.

Separately, Rivian Automotive (RIVN 17.47, -2.67, -13.26%) is sharply lower after launching an underwritten public offering of 75 million shares, with underwriters receiving an option to purchase another 11.25 million shares. The offering follows a strong run, with shares gaining roughly 20% from the June 29 close through yesterday, including a sharp move following last week's Q2 delivery update and raised FY26 delivery outlook. While the financing would provide Rivian with additional capital for its expansion, it also dilutes existing shareholders and reminds investors that the company still requires substantial outside funding to support its growth plans.

[BRIEFING.COM] The S&P 500 (-0.5%), Nasdaq Composite (-1.3%), and DJIA (-0.1%) are now lower across the board an hour into today's session.

In addition to pressure across semiconductor components, the Nasdaq Composite faces weakness across satellite and other space-related technology names. SpaceX (SPCX 151.08, -9.34, -5.83%) is sharply lower despite a wave of bullish sell-side coverage this morning.

SpaceX's move seems to be weighing on peers such as Rocket Lab USA (RKLB 84.04, -9.05, -9.72%) and AST SpaceMobile (ASTS 75.39, -5.25, -6.51%).

[BRIEFING.COM] The S&P 500 (-0.3%), Nasdaq Composite (-1.0%), and DJIA (flat) are mostly lower as chipmaker stocks face early losses, though some rotation into other pockets of the market keeps things relatively tame at the index level.

The PHLX Semiconductor Index is down 4.5% this morning, weighing on the top-weighted information technology sector (-2.0%) and dragging them both into negative week-to-date territory. Large chipmakers such as Advanced Micro Devices (AMD 512.49, -39.56, -7.17%) and Intel (INTC 112.12, -10.08, -8.25%) are lower on the heels of Samsung Electronics' (SSNLF) retreat despite the company announcing a massive Q2 operating profit.

The industrials sector (-1.8%) is another laggard as electrical product names such as GE Vernova (GEV 1043.89, -108.15, -9.39%) and Vertiv (VRT 296.09, -22.38, -7.03%) continue to move in lockstep with semiconductor names.

Elsewhere, strength is broad, with eight S&P 500 sectors trading higher, five of which hold gains of 1.4% or wider. The rotation back into the broader market is particularly beneficial to more defensive-oriented sectors, which retreated yesterday as the semiconductor group outperformed.

The consumer staples sector (+2.4%) holds the widest gain, with its largest component, Walmart (WMT 113.20, +2.55, +2.31%), trading higher after the company announced thousands of summer Rollbacks across grocery, household essentials, outdoor products, toys, apparel, and other categories, along with more than 250 price reductions at Sam's Club.

Equity futures continue to signal a mostly lower open as chipmaker stocks retreat in the premarket.

On the data front, the trade deficit widened to $77.6 billion in May (Briefing.com consensus: -$78.8 billion) following an upwardly revised $54.6 billion deficit (from -$55.9 billion) in April. The widening deficit was the result of exports being $10.5 billion less than April exports and imports being $12.5 billion more than April imports.

The key takeaway from the report is that it reflected stronger demand for goods in the U.S. versus elsewhere, evidenced by the wide gap between exports and imports in May.

The S&P 500 futures currently trade 10 points below fair value.

Equity indices in the Asia-Pacific region retreated on Tuesday with South Korea's Kospi (-4.9%) revisiting Friday's low before narrowing its loss. Samsung was among the laggards after its preliminary results for Q2 were not as strong as the market had expected. Japan sold 30-yr JGBs to solid demand, resulting in a slight dip in the 30-yr JGB yield (3.98%) while yields on other tenors inched higher. The World Bank expects China's GDP to decelerate to 4.4% in 2026 with another dip to 4.3% expected in 2027.

• In economic data:
  • Japan's May Household Spending 3.7% m/m (expected 1.4%; last 1.6%); -0.4% yr/yr (expected -2.3%; last -0.5%). May Overall Wage Income 3.2% yr/yr (expected 3.4%; last 3.6%) and May Overtime Pay 2.9% yr/yr (last 4.8%). May Leading Index 116.8 (expected 116.9; last 116.1) and Coincident Indicator 0.4% m/m (last 1.3%)

---Equity Markets---

• Japan's Nikkei: -2.1%
• Hong Kong's Hang Seng: -0.5%
• China's Shanghai Composite: -1.3%
• India's Sensex: -0.1%
• South Korea's Kospi: -4.9%
• Australia's ASX All Ordinaries: -0.4%

Major European indices trade on a modestly higher note while Germany's DAX (-0.7%) underperforms. Tech stocks are among the laggards after an overnight release of underwhelming preliminary Q1 results from Samsung. Germany's Industrial Production growth was much stronger than expected in May. Germany's Finance Minister Klingbeil acknowledged that Germany's debt will reach 69.5% of GDP in 2027. NATO officials are meeting in Ankara today and tomorrow.

• In economic data:
  • Germany's May Industrial Production 0.9% m/m (expected 0.1%; last 0.2%); 0.1% yr/yr (last -0.8%)
  • U.K.'s June Halifax House Price Index 0.2% m/m (expected 0.1%; last -0.2%); 0.6% yr/yr (last 0.5%)
  • France's May trade deficit EUR6.9 bln (expected deficit of EUR5.9 bln; last deficit of EUR5.4 bln)

---Equity Markets---

• STOXX Europe 600: -0.1%
• Germany's DAX: -0.7%
• U.K.'s FTSE 100: +0.6%
• France's CAC 40: +0.3%
• Italy's FTSE MIB: -0.2%
• Spain's IBEX 35: +0.3%

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

Just released, the trade deficit widened to $77.6 billion in May (Briefing.com consensus: -$78.8 billion) from an upwardly revised $54.6 billion (from -$55.9 billion) in April.

Equity futures point to a mostly lower open this morning as chipmaker stocks are on pace to give back much of yesterday's gains. Strength across the group and support from other mega-cap tech names helped the major averages finish higher yesterday after semiconductor stocks retreated in the prior two sessions.

The early weakness across semiconductor stocks is being somewhat attributed to an underwhelming reaction to Samsung Electronics' earnings report overnight, which weighed heavily on South Korea's Kospi. Futures tied to the tech-heavy Nasdaq Composite are under particular pressure this morning, though the DJIA is still on track for a higher opening, suggesting some rotational action could be in play.

Headlines are relatively quiet elsewhere, with corporate news flow on the lighter side as the market drifts towards the next earnings season, while not much has changed surrounding the U.S.-Iran conflict.

Investors will receive the May Trade Balance at 8:30 a.m. ET (Briefing.com consensus -$78.8 billion), the only economic data release of note.

In corporate news:

• Airlines are not lowering fares despite a drop in jet fuel costs, according to The Wall Street Journal.
• JP Morgan (JPM 341.78, +4.06, +1.2%) and Bank of America (BAC 60.43, +0.53, +0.9%) are in discussions to acquire Fiserv's (FISV 54.36, +2.658, +5.0%) network, according to The Wall Street Journal.
• Walmart (WMT 111.67, +1.02, +0.9%) confirmed it will lower prices on beef and other "summer favorites" this summer.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region retreated on Tuesday with South Korea's Kospi (-4.9%) revisiting Friday's low before narrowing its loss. Japan's Nikkei: -2.1%, Hong Kong's Hang Seng: -0.5%, China's Shanghai Composite: -1.3%, India's Sensex: -0.1%, South Korea's Kospi: -4.9%, Australia's ASX All Ordinaries: -0.4%.

In news:

• Samsung was among the laggards after its preliminary results for Q2 were not as strong as the market had expected.
• Japan sold 30-yr JGBs to solid demand, resulting in a slight dip in the 30-yr JGB yield (3.98%) while yields on other tenors inched higher.
• The World Bank expects China's GDP to decelerate to 4.4% in 2026 with another dip to 4.3% expected in 2027.

In economic data:

• Japan's May Household Spending 3.7% m/m (expected 1.4%; last 1.6%); -0.4% yr/yr (expected -2.3%; last -0.5%). May Overall Wage Income 3.2% yr/yr (expected 3.4%; last 3.6%) and May Overtime Pay 2.9% yr/yr (last 4.8%). May Leading Index 116.8 (expected 116.9; last 116.1) and Coincident Indicator 0.4% m/m (last 1.3%)

Major European indices trade on a modestly higher note while Germany's DAX (-0.7%) underperforms. STOXX Europe 600: -0.2%, Germany's DAX: -0.7%, U.K.'s FTSE 100: +0.3%, France's CAC 40: +0.2%, Italy's FTSE MIB: +0.1%, Spain's IBEX 35: +0.2%.

In news: 

• Tech stocks are among the laggards after an overnight release of underwhelming preliminary Q1 results from Samsung.
• Germany's Industrial Production growth was much stronger than expected in May.
• Germany's Finance Minister Klingbeil acknowledged that Germany's debt will reach 69.5% of GDP in 2027.
• NATO officials are meeting in Ankara today and tomorrow.

In economic data:

• Germany's May Industrial Production 0.9% m/m (expected 0.1%; last 0.2%); 0.1% yr/yr (last -0.8%)
• U.K.'s June Halifax House Price Index 0.2% m/m (expected 0.1%; last -0.2%); 0.6% yr/yr (last 0.5%)
• France's May trade deficit EUR6.9 bln (expected deficit of EUR5.9 bln; last deficit of EUR5.4 bln)

[BRIEFING.COM] The major averages moved in a relatively stable range in their first session back from the long holiday weekend, with the Nasdaq Composite (+1.1%) and S&P 500 (+0.7%) buoyed by continued strength across mega-cap stocks and a rebound in semiconductor names today. That momentum helped the S&P 500 close above the 7,500 mark for the first time since June 18. The DJIA (+0.3%) notched a more modest gain as there was some rotational selling across more defensive pockets of the market amid the outperformance in tech, though it was enough for the index to secure all-time highs and close above the 53,000 mark for the first time.

Today's rebound across semiconductor stocks was widely attributed to investors buying last week's pullback rather than any single industry-specific catalyst. There were still a few news items of note, with Advanced Micro Devices (AMD 552.05, +34.23, +6.61%) outperforming after Goldman Sachs reiterated its Buy rating on the stock and increased its target price to $640 from $450, while Broadcom (AVGO 373.90, +13.45, +3.73%) and Apple (AAPL 312.66, +4.03, +1.31%) agreed to expand their long-standing technology collaboration through 2031. The PHLX Semiconductor Index advanced 2.2%, helping the top-weighted information technology sector (+1.3%) finish as one of the top-performing S&P 500 sectors.

Only the communication services sector (+1.6%) notched a wider gain, with Meta Platforms (META 600.29, +17.39, +2.98%) and Alphabet (GOOG 364.90, +8.72, +2.45%) charting session highs this afternoon to offset broader weakness in the sector.

Tesla (TSLA 419.77, +26.32, +6.69%) was another mega-cap standout, reclaiming nearly all of Friday's loss and pushing the consumer discretionary sector (+1.0%) higher despite weakness across most of the sector. Specialty stores such as O'Reilly Auto (ORLY 84.24, -6.01, -6.66%) and AutoZone (AZO 2957.71, -201.57, -6.38%) were the worst-performing S&P 500 components today.

In total, the Vanguard Mega Cap Growth ETF gained 1.5%, and the market-weighted S&P 500 (+0.7%) outperformed the S&P 500 Equal Weighted Index (flat).

Performance across other cyclical sectors was mixed, with the financials (+0.9%) and industrials (+0.8%) sectors posting solid gains while the energy (-0.3%) and materials (-0.2%) sectors faced modest retreats.

Meanwhile, the defensive health care (+1.2%), utilities (-1.1%), and consumer staples (-0.9%) sectors lagged as investors rotated back into mega-cap tech and semiconductor names today. The real estate sector (-0.9%) faced a similar retreat.

Outside the S&P 500, the Russell 2000 (+0.5%) and S&P Mid Cap 400 (+0.4%) notched decent gains after underperforming last week.

All told, the stock market returned from the holiday weekend on solid footing, with continued strength across technology helping the major averages push through several notable round-number milestones. While those gains came at the expense of some more defensive areas of the market, overall breadth remained decidedly positive, with analysts characterizing the rotation beneath the surface as a healthy feature of the ongoing bull market.

U.S. Treasuries began the week on a mixed, but largely quiet note, with the long bond recording its fourth consecutive loss while the 5-year note yield and shorter tenors climbed for the second day in a row. The 2-year note yield settled down two basis points to 4.12%, and the 10-year note yield settled down one basis point to 4.48%.

• Russell 2000: +21.3% YTD
• S&P Mid Cap 400: +15.5% YTD
• Nasdaq Composite: +12.4% YTD
• DJIA: +10.4% YTD
• S&P 500: +10.1% YTD

Reviewing today's data:

• June S&P Global U.S. Services PMI - Final 51.2; Prior 51.3
• June ISM Non-Manufacturing Index 54.0% (Briefing.com consensus 54.2%); Prior 54.5%
  • The key takeaway from the report is that activity in the services sector is still running at a good pace despite ongoing price pressures. The June reading was 0.9 percentage points above the 12-month average of 53.1%.