[BRIEFING.COM] The S&P 500 (-0.8%), Nasdaq Composite (-1.1%), and DJIA (-1.5%) are steadily charting session lows this morning.

Memory stocks continue to face volatility today, with Seagate Tech (STX 761.00, +13.70, +1.83%) giving up the bulk of its early gain after delivering another clean beat-and-raise quarter, with investors focusing less on the headline Q4 results than on a Q1 outlook that points to another meaningful step-up in revenue and earnings following the stock's sharp pre-print pullback. At the midpoint, Q1 guidance implies roughly 13% sequential revenue growth and nearly 28% sequential non-GAAP EPS growth, reinforcing management's view that AI-driven mass-capacity storage demand, pricing, and product mix remain firmly in its favor rather than peaking.

Meanwhile, Sandisk (SNDK 1020.00, -76.10, -6.94%) is one of the worst-performing S&P 500 components, while Micron (MU 790.51, -30.02, -3.66%) also moves firmly lower.

SK hynix Inc.'s (SKHY 130.02, -0.16, -0.12%) Korean-listed shares plunged overnight after a relatively disappointing Q2 earnings report, adding to the volatile backdrop. 

[BRIEFING.COM] The S&P 500 (-0.4%), Nasdaq Composite (-0.6%), and DJIA (-1.1%) are lower shortly after the open as rising oil prices and continued weakness across semiconductor names drag the market lower.

Strength is mixed at the sector level, with five S&P 500 sectors trading higher. The energy sector (+2.5%) is a standout as the price of oil continues to surge, with WTI crude now up $5.60 (+7.1%) to $84.97 per barrel, a development which weighs on the broader market.

The defensive consumer staples (+0.6%), health care (+0.4%), and utilities (+0.4%) sectors are also out in front as the market anxiously awaits this afternoon's FOMC decision.

Meanwhile, the industrials sector (-1.6%) sits at the bottom of the leaderboard, pressured by post-earnings weakness in Lennox Int'l (LII 449.81, -94.30, -17.33%) and Vertiv (VRT 231.14, -38.42, -14.25%), while weakness in the semiconductor space continues to weigh on electrical product names. Currently, the PHLX Semiconductor Index (-2.5%) is retreating from a flattish open, weighing on both the information technology sector (-0.9%) and the major averages.

Equity futures now point to a lower open, with oil prices and Treasury yields moving higher as the market awaits this afternoon's FOMC decision.

Semiconductor stocks are set for a modestly lower open, with earnings driving sharp moves across the group. Whether the sector can find its footing after the opening bell, or repeat the gap-lower pattern seen in recent sessions, will likely be a key driver for the major averages.

The S&P 500 futures currently trade 17 points below fair value. 

Equity indices in the Asia-Pacific region ended the midweek session on a mostly higher note though South Korea's Kospi (-6.0%) continued struggling with SK Hynix falling nearly 10% after missing earnings expectations while tech stocks in Japan also had a poor showing. Separately, an earthquake in Japan prompted multiple companies to close their facilities for inspections. The Trump administration banned imports of new Chinese robots and power inverters.

• In economic data:
  • Australia's Q2 CPI 0.6% qtr/qtr (expected 0.7%; last 1.4%); 3.9% yr/yr (expected 4.1%; last 4.1%). June Monthly CPI Indicator 3.8% (expected 4.0%; last 4.0%)

---Equity Markets---

• Japan's Nikkei: -1.5%
• Hong Kong's Hang Seng: +2.0%
• China's Shanghai Composite: +0.4%
• India's Sensex: +1.2%
• South Korea's Kospi: -6.0%
• Australia's ASX All Ordinaries: +1.0%

Major European indices trade on a mostly lower note while the U.K.'s FTSE (+0.3%) outperforms with help from strong results from Standard Chartered while UBS and Deutsche Bank also reported good earnings. Porsche's operating profit for the first half of 2026 was better than expected while Hermes has fallen to its lowest level since late 2022 after underwhelming results. European Central Bank policymaker Patsalides said that the outcome of the September policy meeting remains uncertain.

• In economic data:
  • Germany's June Import Price Index -0.7% m/m, as expected (last 0.7%); 6.1% yr/yr (expected 6.0%; last 6.8%)
  • U.K.'s June Mortgage Approvals 58,200 (expected 57,000; last 56,570), June Mortgage Lending GBP7.73 bln (expected GBP3.95 bln; last GBP3.27 bln), and June net lending to individuals GBP9.50 bln (expected GBP5.50 bln; last GBP4.60 bln)
  • Italy's May Industrial Sales 0.6% m/m (last -0.2%); 5.3% yr/yr (last 2.7%)
  • Swiss July ZEW Expectations 10.0 (last -25.0)

---Equity Markets---

• STOXX Europe 600: -0.2%
• Germany's DAX: UNCH
• U.K.'s FTSE 100: +0.3%
• France's CAC 40: -0.7%
• Italy's FTSE MIB: -0.1%
• Spain's IBEX 35: -1.7%

The S&P 500 futures currently trade 25 points below fair value. 

WTI crude oil is currently up $5.20 (+6.6%) to $84.48 per barrel amid renewed hostilities in the Middle East. President Trump told Fox News reporter Trey Yingst on the phone that the U.S. "will be hitting Iran hard" after Iran launched missiles at U.S. forces in the Middle East.

Additionally, The Wall Street Journal reported that Iran rejected Oman's proposal to secure the Strait of Hormuz.

Equity futures point to a mixed opening this morning ahead of a day full of potential catalysts.

Semiconductor stocks have largely stabilized overnight after two sharp retreats to start the week, despite an earnings miss from SK Hynix Inc. (SKHY 128.70, -1.48, -1.1%) that pushed South Korea's Kospi sharply lower. Plenty of notable earnings are in the fold this morning as the Q2 reporting season ramps up, with Meta Platforms (META 595.61, +2.20, +0.4%) and Microsoft (MSFT 394.07, +0.72, +0.2%) set to deliver results after the close.

On the macro front, investors are awaiting the FOMC's policy decision at 2:00 p.m. ET and the subsequent press conference from Fed Chair Kevin Warsh. The CME FedWatch tool currently assigns a 64.2% probability to the Fed leaving rates unchanged.

Oil is making a fairly sharp move higher after the U.S. intercepted multiple missile attacks from Iran across the Middle East, reclaiming some of its losses that have supported solid gains throughout the broader market despite the elevated volatility across semiconductor stocks.

In corporate news:

• KLA Corp (KLAC 176.40, -14.40, -7.6%) beat EPS expectations by $0.05, beat revenue expectations, guided Q1 EPS in-line and guided Q1 revenues in-line.
• Seagate Tech (STX 782.20, +34.90, +4.7%) beat EPS expectations by $0.61 and beat on revenues while guiding Q1 EPS above consensus and revenues above consensus.
• Teradyne (TER 348.07, +27.42, +8.6%) beat EPS by $0.38, beat revenue expectations, and guided Q3 EPS and revenues above consensus.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended the midweek session on a mostly higher note though South Korea's Kospi (-6.0%) continued struggling with SK Hynix falling nearly 10% after missing earnings expectations while tech stocks in Japan also had a poor showing. Japan's Nikkei: -1.5%, Hong Kong's Hang Seng: +2.0%, China's Shanghai Composite: +0.4%, India's Sensex: +1.2%, South Korea's Kospi: -6.0%, Australia's ASX All Ordinaries: +1.0%.

In news:

• An earthquake in Japan prompted multiple companies to close their facilities for inspections.
• The Trump administration banned imports of new Chinese robots and power inverters.

In economic data:

• Australia's Q2 CPI 0.6% qtr/qtr (expected 0.7%; last 1.4%); 3.9% yr/yr (expected 4.1%; last 4.1%). June Monthly CPI Indicator 3.8% (expected 4.0%; last 4.0%)

Major European indices trade on a mostly lower note while the U.K.'s FTSE (+0.3%) outperforms with help from strong results from Standard Chartered while UBS and Deutsche Bank also reported good earnings. STOXX Europe 600: -0.2%, Germany's DAX: UNCH, U.K.'s FTSE 100: +0.3%, France's CAC 40: -0.5%, Italy's FTSE MIB: -0.1%, Spain's IBEX 35: -1.4%.

In news:

• Porsche's operating profit for the first half of 2026 was better than expected while Hermes has fallen to its lowest level since late 2022 after underwhelming results.
• European Central Bank policymaker Patsalides said that the outcome of the September policy meeting remains uncertain.

In economic data:

• Germany's June Import Price Index -0.7% m/m, as expected (last 0.7%); 6.1% yr/yr (expected 6.0%; last 6.8%)
• U.K.'s June Mortgage Approvals 58,200 (expected 57,000; last 56,570), June Mortgage Lending GBP7.73 bln (expected GBP3.95 bln; last GBP3.27 bln), and June net lending to individuals GBP9.50 bln (expected GBP5.50 bln; last GBP4.60 bln)
• Italy's May Industrial Sales 0.6% m/m (last -0.2%); 5.3% yr/yr (last 2.7%)
• Swiss July ZEW Expectations 10.0 (last -25.0)

[BRIEFING.COM] Stocks finished mostly higher as broad earnings-driven strength and another sharp decline in oil prices helped offset continued weakness across semiconductor stocks. The S&P 500 gained 0.2%, while the Nasdaq Composite slipped 0.2% and the DJIA climbed 1.0%.

The latest round of earnings reports drove buying across much of the market, with seven S&P 500 sectors finishing higher. The health care sector (+2.4%) led the advance behind a strong post-earnings gain in IQVIA (IQV 243.31, +30.09, +14.11%), while the consumer staples sector (+2.0%) also outperformed as Coca-Cola (KO 88.27, +4.20, +5.00%) traded higher following its quarterly results. Similarily, the materials sector remained among the session's leaders after Sherwin-Williams (SHW 354.27, +27.00, +8.25%) rallied on a better-than-expected earnings report.

Meanwhile, the communication services (+1.6%) drew support from Alphabet (GOOG 332.60, +6.03, +1.85%), which extended its rebound from last week's post-earnings selloff.

The broader market also remained stronger than the headline indices suggested, with the S&P 500 Equal Weight Index (+1.1%) outperforming its market-cap-weighted counterpart despite another difficult session for semiconductor stocks.

The information technology sector fell 1.2% as the PHLX Semiconductor Index tumbled 4.5%, extending its month-to-date decline to nearly 23%. Memory stocks remained under pressure ahead of SK hynix Inc.'s (SKHY 130.17, -12.85, -8.98%) earnings report Wednesday morning, with investors looking for additional insight into AI-driven HBM demand, memory pricing trends, and the broader outlook for the group.

Outside of semiconductors, however, weakness was relatively contained. The Vanguard Mega Cap Growth ETF slipped just 0.1% as Alphabet continued to recover from last week's post-earnings decline, while Apple (AAPL 340.08, +3.17, +0.94%) climbed to another record high and Microsoft (MSFT 393.35, +4.25, +1.09%)) also advanced ahead of their quarterly reports later this week.

Meanwhile, the energy sector (-1.4%) posted the market's largest decline as crude oil prices continued to retreat. Reuters reported that Oman presented Iran with a proposal for voluntary transit fees through the Strait of Hormuz that has the backing of Gulf states, while a separate Reuters report said China held direct discussions with the Houthis regarding safe passage through the Red Sea. Those developments helped send WTI crude futures down $3.33 (-4.0%) to settle at $79.32 per barrel.

Attention now turns to Wednesday's FOMC policy decision, with the CME FedWatch Tool currently implying a 31.5% probability of a rate hike. Investors will also be watching SK hynix's earnings before the open as it has been a focal point of recent volatility across the semiconductor space, followed by another busy slate of large-cap technology earnings later this week, for additional insight into AI demand and the broader corporate earnings outlook.

U.S. Treasuries climbed again on Tuesday, making for the third consecutive day of gains after most tenors set fresh 2026 lows late last week. The 2-year note yield settled down four basis points to 4.28%, and the 10-year note yield settled down four basis points to 4.60%. 

• Russell 2000: +19.0% YTD
• S&P Mid Cap 400: +14.9% YTD
• DJIA: +9.8% YTD
• S&P 500: +8.5% YTD
• Nasdaq Composite: +7.0% YTD

Reviewing today's data:

• June Adv. Intl. Trade in Goods -$101.5 bln; Prior was revised to -$105.9 bln from -$105.8 bln
• June Adv. Retail Inventories 0.0%; Prior was revised to 0.5% from 0.6%
• June Adv. Wholesale Inventories 0.3%; Prior 0.3%
• May FHFA Housing Price Index 0.3% (Briefing.com consensus 0.0%); Prior -0.1%
• May S&P Case-Shiller Home Price Index 1.6% (Briefing.com consensus 1.3%); Prior was revised to 1.2% from 1.1%
• July Consumer Confidence 90.8 (Briefing.com consensus 92.1); Prior was revised to 92.2 from 91.2
  • The key takeaway from the report is that consumers don't appear to be overly enthused about current business conditions or future business conditions.