[BRIEFING.COM] The S&P 500 (-0.3%), Nasdaq Composite (-0.6%), and DJIA (-0.3%) finished lower today as the major averages steadily faded from another quiet start amid rising oil prices and weakness across most mega-cap technology stocks.

A relatively light corporate news flow and some caution ahead of tomorrow's July Consumer Price Index (Briefing.com consensus 0.1%) kept the major averages near their flatlines through the first two hours of trading. Crude oil initially retreated from its overnight highs after Bloomberg reported that Pakistan's Defense Minister Khawaja Asif said the U.S. and Iran were close to "some sort of an arrangement." The tone shifted later in the morning, however, as reports reiterated that Iran's demands must be met before it will agree to reopen the Strait of Hormuz.

Stocks began to move lower as oil prices climbed, with WTI crude oil futures ultimately settling $1.00 higher (+1.2%) at $83.17 per barrel. The energy sector (+1.1%) was one of the best-performing S&P 500 sectors as a result.

While there were pockets of weakness throughout the broader market, losses were more pronounced across mega-cap technology names, with the Vanguard Mega Cap Growth ETF retreating 0.7%. The communication services sector (-2.1%) finished as the worst-performing S&P 500 sector as Alphabet (GOOG 343.00, -12.84, -3.61%) was a particular laggard, while weakness in Amazon (AMZN 272.27, -5.82, -2.09%) weighed on the consumer discretionary sector (-0.8%).

Within the information technology sector (-0.3%), software names such as Oracle (ORCL 145.44, -5.60, -3.71%) and AppLovin (APP 318.68, -20.32, -5.99%) added pressure following yesterday's rally.

Semiconductor stocks were a relative bright spot, though the PHLX Semiconductor Index (+0.9%) finished well off its earlier highs. NVIDIA (NVDA 217.48, -0.07, -0.03%) gave back the entirety of a strong opening gain that followed yesterday's late selloff on news of its initiative with several major asset managers to mobilize up to $500 billion for AI compute infrastructure. KKR (KKR 111.02, +7.18, +6.92%) and Apollo Global Management (APO 140.24, +8.22, +6.23%) both participants in the initiative, were among the day's best-performing S&P 500 components.

Elsewhere, the industrials sector (+0.6%) followed the semiconductor group higher, with the usual collection of electrical equipment names outperforming, while Axon (AXON 636.31, +39.98, +6.70%) was an S&P 500 standout as it recovered some of its sharp post-earnings slide from last week.

The defensive utilities sector (+1.1%) tied the energy sector for the day's top performance amid the weakness in mega-cap technology stocks.

While eight S&P 500 sectors finished lower, the market displayed some resilience beneath the surface. The S&P 500 Equal Weight Index (+0.3%) finished higher, and advancers still outpaced decliners on both the NYSE and Nasdaq. Additionally, the Russell 2000 (+0.3%) and S&P MidCap 400 (+0.3%) outperformed the major averages.

Still, below-average trading volume and the pullback across mega-cap stocks pointed to some caution ahead of tomorrow's July CPI release (Briefing.com consensus 0.1%). The inflation reading could play a decisive role in shaping the Fed's next policy move, as the CME FedWatch tool currently assigns equal odds to a rate hike or a hold at the September FOMC meeting.

U.S. Treasuries recorded modest gains on Tuesday, inching higher ahead of the highly anticipated Wednesday morning release of July CPI. The U.S. Treasury started this week's note and bond auction slate with a strong $58 billion 3-year note offering, though Treasuries held at their pre-auction levels into the close. The 2-year note yield settled down two basis points to 4.22%, and the 10-year note yield settle down two basis points to 4.68%. 

• Russell 2000: +22.0% YTD
• S&P Mid Cap 400: +17.5% YTD
• Nasdaq Composite: +13.8% YTD
• S&P 500: +12.9% YTD
• DJIA: +11.9% YTD

Reviewing today's data:

• July NFIB Small Business Optimism 99.8 (Briefing.com consensus 97.1); Prior 97.4
• July Existing Home Sales 4.06 mln (Briefing.com consensus 4.07 mln); Prior was revised to 4.13 mln from 4.09 mln
  • The key takeaway from the report is that mortgage rates above 6.00%, limited inventory, and elevated prices continue to work against stronger existing home sales activity.

[BRIEFING.COM] The S&P 500 (-0.3%), Nasdaq Composite (-0.6%), and DJIA (-0.3%) are slightly improved from session lows with just half an hour left in the session.

Crude oil futures settled today's session $1.00 higher (+1.2%) at $83.17 per barrel, with the bump adding a headwind to a session relatively devoid of catalysts.

The effects of higher oil prices on inflation will come into full focus tomorrow morning with the release of the July Consumer Price Index, with headline CPI expected to increase by 0.1% month-over-month and Core CPI expected to increase 0.2%. The report will likely play a key role in the Fed's next policy decision, with the CME FedWatch tool currently assigning roughly equal odds to the FOMC holding rates steady or raising them at its September meeting.

[BRIEFING.COM] The S&P 500 (-0.4%), Nasdaq Composite (-0.7%), and DJIA (-0.3%) continue to drift lower as the market enters the final hour of the session.

After the close, investors will have another modest batch of earnings reports to assess, with some notable tech names in the mix.

CoreWeave (CRWV 87.86, -0.33, -0.37%) heads into its after-close report with the stock rebounding sharply from late-July lows, helped by renewed AI infrastructure enthusiasm, new partnership announcements, and fresh bullish analyst initiations. The setup is straightforward: investors already expect strong top-line growth, but sentiment will likely hinge on whether CoreWeave can show better earnings conversion, support its capital-intensive buildout, and keep FY26 revenue confidence intact.

Meanwhile, Super Micro Computer (SMCI 31.23, -0.23, -0.73%) heads into earnings with investors balancing strong AI infrastructure demand against persistent questions around margin quality, customer mix, and execution. SMCI just provided Q4 (Jun) guidance last month. The July guidance materially raised the stakes for tonight's report. While the low-end revenue outlook initially looked disappointing, investors quickly focused on the much stronger margin profile and record order activity, sending SMCI sharply higher and providing a positive read-through for the broader AI infrastructure trade. The most important question now is whether the 15-17% gross margin range represents a sustainable improvement in mix or simply a favorable quarter.

[BRIEFING.COM] The S&P 500 (-0.32%) is in second place on Tuesday afternoon, down about 25 points.

Briefly, S&P 500 constituents Ferguson Enterprises (FERG 252.37, -11.41, -4.33%), Dell (DELL 436.24, -21.64, -4.73%), and Ventas (VTR 88.37, -3.58, -3.89%) pepper the bottom of the standings. FERG reported earnings yesterday morning, DELL slides after Jefferies analysts said CoreWeave (CRWV 87.97, -0.22, -0.25%) and SpaceX (SPCX 131.17, -7.57, -5.46%) may source AI servers directly from Taiwanese ODMs, potentially reducing Dell's share of AI infrastructure spending.

Meanwhile, Jabil (JBL 354.08, +17.45, +5.18%) is one of today's better performers after UBS upgraded the shares to Buy citing the multiyear growth cycle and valuation upside.

[BRIEFING.COM] The tech-heavy Nasdaq Composite (-0.51%) is in last place on Tuesday afternoon, down about 135 points.

Gold futures settled $18.80 higher (+0.4%) at $4,438.50/oz, as investors anticipate softer U.S. inflation data, while the weaker-than-expected July jobs report has boosted expectations for a less hawkish Federal Reserve. Ongoing Middle East tensions and continued central bank buying are also supporting safe-haven demand for gold ahead of this week's key inflation reports.

Meanwhile, the U.S. Dollar Index is up less than +0.1% to $99.85.

[BRIEFING.COM] The Dow Jones Industrial Average (-0.21%) is down about 112 points, in first place on Tuesday afternoon.

A look inside the DJIA shows that Honeywell (HON 232.63, -10.30, -4.24%), Alphabet (GOOGL 347.05, -10.47, -2.93%), and Nike (NKE 40.91, -1.20, -2.85%) hold solid losses.

Meanwhile, Home Depot (HD 354.95, +4.17, +1.19%) is atop the standings.

The DJIA is now +2.65% higher in August.

Elsewhere, U.S. Treasuries continue holding slim gains after establishing today's trading range during the opening 90 minutes of action. The belly trades a step ahead of other tenors as the patiently market awaits tomorrow's release of July CPI (Briefing.com consensus 0.1%; prior -0.4%) and Core CPI (Briefing.com consensus 0.2%; prior 0.0%) at 8:30 ET. Treasuries are holding their ground in reaction to the just completed $58 bln 3-yr note offering, which met good demand. The sale drew a high yield of %, which stopped through the when-issued yield by half of a basis point while the bid-to-cover ratio (2.71x vs 2.64x average) and indirect takedown (64.2% vs 63.3% average) were above average. The U.S. Treasury will follow today's sale with a $42 bln 10-yr note offering tomorrow.

[BRIEFING.COM] The S&P 500 (-0.3%), Nasdaq Composite (-0.6%), and DJIA (-0.2%) are moving lower just after midday as higher oil prices and widening losses across mega-cap stocks weigh on the major averages following another subdued morning.

Stocks currently sit at session lows, coinciding with oil's move toward its highs of the day. Crude initially retreated from its overnight highs after Bloomberg reported that Pakistan's Defense Minister Khawaja Asif said the U.S. and Iran are close to "some sort of an arrangement." More recent reports, however, indicate that Iran will not reopen the Strait of Hormuz until its demands are met, with WTI crude currently up $0.95 (+1.2%) to $83.10 per barrel. The energy sector (+0.9%) is the best performing S&P 500 sector as a result.

Much of the weakness at the index level stems from the market's largest stocks. The Vanguard Mega Cap Growth ETF is down 0.5%, with Alphabet (GOOG 346.89, -8.95, -2.52%) and Amazon (AMZN 271.89, -6.20, -2.23%) weighing heavily on the communication services (-1.3%) and consumer discretionary (-0.8%) sectors, respectively. SpaceX (SPCX 131.65, -7.09, -5.11%) is another notable laggard, falling back below its $135 IPO price after closing above that level yesterday for the first time in weeks.

The information technology sector (-0.4%) also contributes to the modest retreat as software stocks give back some of yesterday's gains. Oracle (ORCL 144.81, -6.24, -4.13%) is among the laggards, and the iShares GS Software ETF (IGV) is down 1.0%.

Semiconductor stocks are providing some offsetting support after opening firmly higher, though the group has steadily surrendered much of its early advance. The PHLX Semiconductor Index (+0.4%) is at session lows as NVIDIA (NVDA 217.65, +0.10, +0.05%) gives back most of its opening gain. The stock initially rebounded from yesterday's late selloff, which followed news of its initiative with several major asset managers to mobilize up to $500 billion in financing for AI compute infrastructure.

KKR (KKR 111.08, +7.25, +6.98%) and Apollo Global Management (APO 140.56, +8.54, +6.47%), both participants in the initiative, are among today's best-performing S&P 500 components.

The industrials sector (+0.6%) has followed the semiconductor group higher, with the usual collection of electrical equipment names outperforming alongside a solid gain in Caterpillar (CAT 845.83, +8.25, +0.98%) after several consecutive weaker showings.

Elsewhere, the S&P 500 Equal Weight Index (+0.3%) remains higher, while the Russell 2000 (+0.4%) and S&P MidCap 400 (+0.4%) outperform amid some modest easing in Treasury yields.

So far, today's action remains relatively subdued ahead of tomorrow's July Consumer Price Index. Renewed uncertainty surrounding the Strait of Hormuz and weakness across several mega-cap stocks are keeping the headline indices modestly lower, though strength across several cyclical areas and the broader market points to a steadier tone beneath the surface.

Reviewing today's data:

• July NFIB Small Business Optimism 99.8 (Briefing.com consensus 97.1); Prior 97.4
• July Existing Home Sales 4.06 mln (Briefing.com consensus 4.07 mln); Prior was revised to 4.13 mln from 4.09 mln
  • The key takeaway from the report is that mortgage rates above 6.00%, limited inventory, and elevated prices continue to work against stronger existing home sales activity.

[BRIEFING.COM] Mega-cap stocks have slipped to their worst levels of the session, contributing to the modest drift lower across the major averages at midday.

The Vanguard Mega Cap Growth ETF is down 0.4%, with Alphabet (GOOG 349.00, -6.84, -1.92%) and Amazon (AMZN 271.71, -6.38, -2.29%) weighing heavily on the communication services (+0.9%) and consumer discretionary (+0.8%) sectors.

Meanwhile, the S&P 500 Equal Weighted Index (+0.3%) remains higher, highlighting the influence of the market's largest names at the index level.

[BRIEFING.COM] The S&P 500 (-0.2%), Nasdaq Composite (-0.4%), and DJIA (-0.1%) are charting session lows at midday.

KKR (KKR 109.62, +5.78, +5.57%) and Apollo Global Management (APO 139.90, +7.88, +5.97%) are among the best-performing S&P 500 components today, with both firms participating in NVIDIA's initiative to mobilize up to $500 billion in financing for AI compute infrastructure.

NVIDIA (NVDA 218.50, +0.96, +0.44%) opened firmly higher this morning after the headline sent the stock lower into the close yesterday, but it has since given back the majority of its strength, narrowing the gain of the PHLX Semiconductor Index (-0.9%).

[BRIEFING.COM] The stock market is having another subdued session today, reinforcing a degree of caution ahead of tomorrow's release of the July Consumer Price Index (Briefing.com consensus 0.1%).

The S&P 500 (+0.1%), Nasdaq Composite (-0.2%), and DJIA (-0.1%) have spent the session in close proximity to their flatlines amid mixed strength in the broader market. The energy sector (+1.1%) is a standout as oil creeps higher, though it remains well off its overnight highs after Bloomberg reported that Pakistan's defense minister Khawaja Asif said the U.S. and Iran are close to "some sort of an arrangement."

The industrials sector (+0.6%) also holds a solid gain as its electrical product names surge alongside a higher showing from semiconductor names today. The PHLX Semiconductor Index is up 0.9%, though it has given up around half of its earlier gain. Still, strength across the group helps offset a weaker showing from Oracle (ORCL 145.24, -5.80, -3.84%) and other software names today, keeping the information technology sector (+0.1%) near its flatline.

Outside the S&P 500, the Russell 2000 (+0.4%) and S&P Mid Cap 400 (+0.4%) are outperforming the major averages amid some modest easing in Treasury yields today.

[BRIEFING.COM] The S&P 500 (+0.1%), Nasdaq Composite (+0.1%), and DJIA (flat) have a slightly positive tilt, due to some improvements across the mega-cap and tech spaces.

SpaceX (SPCX 134.50, -4.24, -3.06%), however, is a laggard, moving back below its $135 IPO price after closing above that mark for the first time in weeks yesterday.

Meanwhile, competitor Rocket Lab USA (RKLB 79.36, -0.68, -0.85%) is trading lower today after its Q2 results last night. The company missed EPS expectations, while revenue jumped 62% year-over-year and 16.8% sequentially to $234.06 million, above expectations. Rocket Lab also guided Q3 revenue to $250-265 million, well above expectations, but investors appear more focused on the narrowing year-end launch window for Neutron, softer Q3 margins, and elevated cash burn.

[BRIEFING.COM] The S&P 500 (+0.1%) has surfaced above its flat line, with the Nasdaq Composite (-0.1%) and DJIA (flat) also little changed. 

Existing home sales decreased 1.7% month-over-month in July to a seasonally adjusted annual rate of 4.06 million (Briefing.com consensus: 4.07 million) from an upwardly revised 4.13 million (from 4.09 million) in June. Sales were up 0.7% on a year-over-year basis.

The key takeaway from the report is that mortgage rates above 6.00%, limited inventory, and elevated prices continue to work against stronger existing home sales activity.

[BRIEFING.COM] The S&P 500 (+0.1%), Nasdaq Composite (-0.1%), and DJIA (+0.4%) are mixed shortly after the open as weakness across mega-cap tech names weighs against a broader market that tilts higher amid retreating oil prices.

Alphabet (GOOG 350.14, -5.70, -1.60%) and Amazon (AMZN 274.81, -3.28, -1.18%) are among the early laggards, pushing the communications services (-0.6%) and consumer discretionary (-0.3%) sectors lower.

The information technology sector is flat as Microsoft (MSFT 500.90, -5.16, -1.02%) and other software names give back some of yesterday's gains. Those losses are partially offset by strength in NVIDIA (NVDA 219.56, +2.02, +0.93%) and the broader semiconductor group, with the PHLX Semiconductor Index up 1.2% after a late-session report involving NVIDIA and several asset managers' plans to mobilize up to $500 billion for AI infrastructure helped drive chip stocks lower into Monday's close.

The industrials sector (+1.1%) follows the semiconductor group higher with the usual host of electrical product names outperforming, while a solid gain in Caterpillar (CAT 860.19, +22.61, +2.70%) contributes to the DJIA's strength this morning.

Just released, existing home sales decreased 1.7% month-over-month in July to a seasonally adjusted annual rate of 4.06 million (Briefing.com consensus: 4.07 million) from an upwardly revised 4.13 million (from 4.09 million) in June.

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

Equity indices in the Asia-Pacific region had a mixed showing on Tuesday while Japan's Nikkei was closed for a holiday. South Korea's exports through the first ten days of August were up 45.3% yr/yr with chip exports jumping 155.4%. The Reserve Bank of Australia left its official cash rate at 4.35%, as expected, and its inflation outlook was little changed from May. New Zealand's Prime Minister Luxon is reportedly facing growing displeasure within his party.

• In economic data:
  • Australia's July NAB Business Confidence -6 (last -6) and NAB Business Survey 4 (last 3)
  • Singapore's Q2 GDP 1.4% qtr/qtr (expected 1.1%; last 1.2%); 5.9% yr/yr (expected 5.7%; last 6.3%)

---Equity Markets---

• Japan's Nikkei: CLOSED
• Hong Kong's Hang Seng: -1.1%
• China's Shanghai Composite: -0.8%
• India's Sensex: -0.5%
• South Korea's Kospi: +0.7%
• Australia's ASX All Ordinaries: +0.2%

Major European indices trade near their flat lines, showing limited movement ahead of tomorrow's release of July CPI readings for Germany, Italy, and the U.S. Sweden's National Institute of Economic Research raised its growth forecast for 2026 to 2.4% from 2.2% and kept its 2027 forecast for 2.8% growth.

• In economic data:
  • Italy's June trade surplus EUR4.232 bln (expected surplus of EUR4.74 bln; last surplus of EUR4.946 bln). June EU trade surplus EUR1.58 bln (last surplus of EUR1.00 bln)

---Equity Markets---

• STOXX Europe 600: +0.1%
• Germany's DAX: +0.2%
• U.K.'s FTSE 100: +0.2%
• France's CAC 40: +0.1%
• Italy's FTSE MIB: +0.2%
• Spain's IBEX 35: +0.5%

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

Bloomberg reported that Pakistan's defense minister Khawaja Asif said the U.S. and Iran are close to "some sort of an arrangement", helping drive oil prices back near the $82 per barrel mark after reaching highs around $84 per barrel.

Equity futures point to a modestly higher open this morning after stocks started the week on a subdued note, with the major averages incurring modest losses yesterday as oil surged while semiconductor stocks sold off into the close.

Crude oil is currently hovering around its baseline, off its earlier highs after a report from Pakistan that the U.S. and Iran are moving toward a plan for peace. The report follows some back and forth from both sides demanding reparations from the other.

Elsewhere on the macro front, investors continue to display some caution ahead of tomorrow's release of the July Consumer Price Index (Briefing.com consensus 0.1%), which will be highly influential to the Fed's next policy move. Today's data includes July existing home sales (Briefing.com consensus 4.07 million) at 10:00 a.m. ET, along with the earlier released NFIB Small Business Optimism index, which expanded to 99.8 from the prior reading of 97.4.

Meanwhile, corporate news flow continues to be on the lighter side as Q2 earnings season winds down.

In corporate news:

• Hims & Hers Health (HIMS 29.90, -1.87, -5.9%) moves lower despite topping earnings estimates after trimming the upper end of its full-year outlook, according to CNBC.
• Intel (INTC 96.33, -1.19, -1.2%) upsized its recently announced common stock offering to $20 billion at $95 per share.
• NVIDIA (NVDA 220.03, +2.48, +1.1%) CEO Jensen Huang told CNBC that yesterday's announcement of a $500 billion AI infrastructure development financing package helps make NVIDIA compute an "investable asset."

Reviewing overnight developments:

Equity indices in the Asia-Pacific region had a mixed showing on Tuesday while Japan's Nikkei was closed for a holiday. Japan's Nikkei: CLOSED, Hong Kong's Hang Seng: -1.1%, China's Shanghai Composite: -0.8%, India's Sensex: -0.5%, South Korea's Kospi: +0.7%, Australia's ASX All Ordinaries: +0.2%.

In news:

• South Korea's exports through the first ten days of August were up 45.3% yr/yr with chip exports jumping 155.4%.
• The Reserve Bank of Australia left its official cash rate at 4.35%, as expected, and its inflation outlook was little changed from May.
• New Zealand's Prime Minister Luxon is reportedly facing growing displeasure within his party.

In economic data:

• Australia's July NAB Business Confidence -6 (last -6) and NAB Business Survey 4 (last 3)
• Singapore's Q2 GDP 1.4% qtr/qtr (expected 1.1%; last 1.2%); 5.9% yr/yr (expected 5.7%; last 6.3%)

Major European indices trade near their flat lines, showing limited movement ahead of tomorrow's release of July CPI readings for Germany, Italy, and the U.S. STOXX Europe 600: +0.1%, Germany's DAX: UNCH, U.K.'s FTSE 100: UNCH, France's CAC 40: -0.1%, Italy's FTSE MIB: +0.1%, Spain's IBEX 35: +0.4%.

In news:

• Sweden's National Institute of Economic Research raised its growth forecast for 2026 to 2.4% from 2.2% and kept its 2027 forecast for 2.8% growth.

In economic data:

• Italy's June trade surplus EUR4.232 bln (expected surplus of EUR4.74 bln; last surplus of EUR4.946 bln). June EU trade surplus EUR1.58 bln (last surplus of EUR1.00 bln)

[BRIEFING.COM] Stocks started the week on a muted note, with the S&P 500 (-0.1%), Nasdaq Composite (-0.3%), and DJIA (-0.1%) finishing modestly lower amid a surge in oil prices and a late retreat across select tech names.

Rising oil prices weighed on the market at the open and continued to climb throughout the day, with crude oil futures settling today's session $3.98 higher (+5.1%) at $82.17 per barrel. President Trump said that the U.S. will give Iran time to face mounting economic pressure amid the inability to reach a lasting deal, while Iran reiterated that reopening the Strait of Hormuz is contingent on the U.S. permanently ending the conflict and paying reparations.

The spike in oil prices sent Treasury yields higher across the curve, weighing on oil- and rate-sensitive areas of the market. The real estate (-1.2%) and utilities (-1.1%) sectors were the worst-performing S&P 500 groups, while the iShares U.S. Home Construction ETF fell 2.7% and the Russell 2000 (-0.6%) underperformed the major averages.

However, the broader market weathered the oil-driven pressure relatively well, with mixed sector strength keeping losses muted at the index level. Outside of the energy sector (+4.6%), the health care sector (+1.5%) outperformed, with Vertex Pharma (VRTX 523.91, +27.84, +5.61%) surging after competitor Sionna Therapeutics (SION 4.50, -46.54, -91.18%) halted development of a cystic fibrosis treatment following disappointing Phase 2a results.

The materials sector (+0.7%) also posted a decent gain as precious metals prices continued to move higher, while positive showings from Alphabet (GOOG 355.84, +2.37, +0.67%) and Meta Platforms (META 594.92, +2.82, +0.48%) helped outweigh lingering post-earnings weakness in The Trade Desk (TTD 13.39, -0.41, -2.97%) within the communication services sector (+0.7%).

Meanwhile, the information technology sector (-1.1%) faced pressure as semiconductor stocks weakened throughout the session. The PHLX Semiconductor Index fell 2.9%, closing at a session low as some profit-taking followed last week's strong rebound. NVIDIA (NVDA 217.56, -6.40, -2.86%) contributed to the late weakness, sliding to session lows after the Financial Times reported that the company is working with a host of large asset managers on financing platforms aimed at mobilizing more than $500 billion for AI infrastructure development.

Intel (INTC 97.52, -4.13, -4.06%) also weighed on the chipmaker index after announcing a $15 billion underwritten common stock offering, while Apple (AAPL 308.26, -5.07, -1.62%) lagged after Jefferies downgraded the stock to Underperform from Hold.

Software stocks provided a notable counterweight to the weakness in semiconductors. The iShares GS Software ETF (IGV) climbed 2.3%, helping limit the information technology sector's decline despite the late selling across chipmakers.

Even with late weakness in technology and a sharp rise in oil prices, the major averages finished only modestly lower, remaining near last week's record highs and reflecting some underlying strength following a strong Q2 earnings season.

With earnings beginning to wind down, the market's next test of sentiment looms with Wednesday's release of the July Consumer Price Index (Briefing.com consensus 0.1%), which will likely be influential in the Fed's next policy decision. The CME FedWatch tool now assigns a 51.7% probability of a rate hike at the September FOMC meeting, up from 44.4% on Friday but down from 67.2% a week ago.

U.S. Treasuries retreated to begin the week, lifting yields on the 5-year note and longer tenors to one-week highs while the 2-year note reversed its decrease from Friday, staying just above its 50-day moving average (4.186%). The 2-year note yield settled up three basis points to 4.24%, and the 10-year note yield settled up four basis points to 4.70%. 

There was no economic data of note. 

• Russell 2000: +21.6% YTD
• S&P Mid Cap 400: +17.1% YTD
• Nasdaq Composite: +14.5% YTD
• S&P 500: +13.3% YTD
• DJIA: +12.3% YTD