[BRIEFING.COM] Stocks bounced back from Thursday's broad selloff on Friday, with strength across most areas of the market helping the major averages recover a portion of their losses. The S&P 500 (+0.4%) and Nasdaq Composite (+0.4%) posted modest gains, while the DJIA (+1.0%) outperformed as broader participation and its relatively limited exposure to semiconductor weakness worked in its favor. The rebound extended well beyond the large-cap benchmarks. The Russell 2000 (+0.9%) outperformed, while the S&P MidCap 400 (+0.4%) finished in line with the S&P 500.

The utilities sector (-2.3%) was the only S&P 500 sector to post a sizable decline. A continued rally in precious metals provided one of the clearest sources of leadership. The materials sector (+2.2%) topped the sector standings as Newmont Corporation (NEM 131.58, +3.94, +3.09%) and Freeport-McMoRan (FCX 76.67, +5.45, +7.65%) posted strong gains. Gold futures jumped $110.50 (+2.4%) to $4,680.10 per ounce, extending their August advance to nearly $600 per ounce, while silver added 2.1% to $69.56 per ounce.

The health care sector (+1.3%) also remained near the top of the standings as Moderna (MRNA 145.13, +11.81, +8.86%) rebounded after giving back a portion of Wednesday's massive cancer-vaccine-driven rally on Thursday.

Strength in banking and crypto-related names helped the financials sector (+1.0%) outperform. Robinhood Markets (HOOD 108.13, +13.03, +13.70%) and Coinbase Global (COIN 186.49, +14.14, +8.20%) were among the S&P 500's strongest components as Bitcoin extended its surge this week, providing another source of support for a sector that also benefited from gains across several large banks.

Company-specific catalysts contributed to the consumer discretionary sector's (+0.9%) advance. Tesla (TSLA 362.86, +17.73, +5.14%) rallied after Nevada approved robotaxi services in Clark County, while Target (TGT 165.42, +7.17, +4.53%) extended its post-earnings momentum to a new multi-year high and Ross Stores (ROST 239.04, +10.05, +4.39%) advanced following its earnings report.

Mega-cap stocks generally participated in the rebound as well. Alphabet (GOOG 341.75, +3.55, +1.05%) and Meta Platforms (META 549.90, +4.07, +0.75%) helped lift the communication services sector (+0.9%), while the Vanguard Mega Cap Growth ETF gained 0.4%.

Semiconductors remained a relative weak spot, although the group improved from its midday levels. The PHLX Semiconductor Index finished 0.5% lower, capping a difficult week for chip stocks and keeping the information technology sector flat despite strength in software. Marvell (MRVL 237.04, -13.97, -5.57%) was a notable laggard as investors took profits following Wednesday's nearly 10% surge on news of its expanded custom-silicon agreement with Alphabet.

Crude oil finished little changed, removing one of the headwinds that contributed to Thursday's selloff and leaving the energy sector (-0.2%) with a modest loss. Treasury yields remained an important focus after this week's volatility at the long end, but neither rates nor oil prevented broader participation in Friday's rebound.

Friday's advance provided a constructive end to a volatile week, with strength in materials, financials, health care, consumer names, and small-cap stocks offsetting another softer showing from semiconductors. The broad participation helped the DJIA outperform and allowed the market to recover some of Thursday's decline, even as continued weakness in chip stocks kept the S&P 500 and Nasdaq's gains more modest. Attention will quickly turn to another busy week of potential catalysts. Wednesday's July Personal Income and Spending report will feature the Fed's preferred PCE Price Index, while the earnings calendar includes several retailers and high-profile software companies. NVIDIA's (NVDA 214.76, -2.09, -0.96%) report after Wednesday's close will be the centerpiece, particularly after the sharp swings across semiconductor and AI-related stocks this week.

U.S. Treasuries finished the week on a lower note with little to show for after a brief midweek boost, which followed news that the Treasury will increase the upper limit of its buybacks of longer tenors. The Friday session was a unidirectional affair, as the long bond opened with a slim loss while shorter tenors started near their flat lines before spending the remainder of the session in a steady retreat that lifted the 30-year yield toward its closing level from Tuesday while the 10-year yield finished just below its 2026 high from the end of July. The 2-year note yield settled up four basis points to 4.23% (+6 basis points this week), and the 10-year note yield settled up four basis points to 4.74% (+4 basis points this week). 

• Russell 2000: +21.6% YTD
• S&P Mid Cap 400: +15.9% YTD
• Nasdaq Composite: +12.6% YTD
• S&P 500: +12.1% YTD
• DJIA: +10.9% YTD

Reviewing today's data:

• Flash August S&P Global U.S. Services PMI checked in at 56.8, from the prior reading of 54.6.
• Flash August S&P Global U.S. Manufacturing PMI came in at 53.2, from the previous level of 53.9

[BRIEFING.COM] The major averages continue to home in on a decent finish to a somewhat disappointing week.

Next week will feature some important inflation data in the form of the July Personal Income and Spending Report on Wednesday, which features the PCE Price Index (Briefing.com consensus 0.1%), the Fed's preferred inflation gauge.

Earnings will be light in the number of reports but will feature more retailer names, several high-profile software names, and, most importantly, NVIDIA (NVDA 214.98, -1.87, -0.86%) after the close on Wednesday.

[BRIEFING.COM] The major averages continue holding modest gains heading into the final hour of today's session. The S&P 500 (+0.5%) has narrowed this week's loss to 1.4% while the Nasdaq (+0.4%) is on course to give up 2.1% for the week.

The top-weighted technology sector (-0.1%) is largely responsible for this week's headline losses thanks to renewed profit taking in chip-related names after they rallied strongly off July lows. The PHLX Semiconductor Index has given up 5.6% this week, but it is still up 3.6% for the month, while the broader tech sector is down 3.3% this week.

Treasuries are on track to end the week in the red with the 30-yr yield returning to levels seen before the Treasury's Wednesday announcement about increased buyback limits. The 30-yr yield is up four basis points at 5.28% today, and up two basis points for the week. Meanwhile, the 2-yr yield is up four basis points at 4.23% today, and also up two basis points for the week.

[BRIEFING.COM] The S&P 500 (+0.4%) continues hanging onto its modest gain while the Nasdaq (+0.4%) has caught up to the benchmark index after lagging in early trade.

Today's advance has taken place despite relative weakness in top-weighted technology (-0.1%), but other sectors have picked up the slack. Seven sectors trade in the green at this juncture with health care (+1.4%) padding this week's advance to 7.4% while the materials sector (+2.1%) is today's leader, extending its week-to-date gain to 7.0%.

Mining companies like Newmont Corporation (NEM 131.43, +3.79, +2.97%) and Freeport-McMoRan (FCX 76.65, +5.43, +7.62%) have contributed to the recent strength in materials, given the concurrent rally in precious metals. Gold futures (+$110.50, or 2.4%, to $4680.10/ozt) gained more than $100/ozt today, and are now up nearly $600/ozt for the month while silver (+$1.44, +2.1%, to $69.56/ozt) extended its August gain to nearly $12/ozt.

[BRIEFING.COM] The S&P 500 (+0.4%), Nasdaq Composite (+0.4%), and DJIA (+0.8%) hold decent gains this afternoon, though the indexes are still on pace for relatively steep week-to-date losses.

GC00-USA gold settled today's session $110.50 higher (+2.4%) at $4,680.10 per ozt, adding to strength in the materials sector (+2.3%) which is one of just three S&P 500 sectors that holds a week-to-date gain. FCX remains one of the best-performing S&P 500 components today.

[BRIEFING.COM] The major averages remain little changed from previous levels, maintaining decent gains as the market enters the afternoon hours.

Marvell (MRVL 235.67, -15.34, -6.11%) is displaying pronounced relative weakness today, falling roughly 6% compared with a less than 1% decline in the iShares semiconductor ETF, as investors take profits following Wednesday's nearly 10% surge on the expanded Alphabet (GOOG 342.19, +3.99, +1.18%) custom-silicon agreement. The reversal appears partly driven by a more careful assessment of the warrant issued to GOOG, which covers up to 58.97 million MRVL shares - roughly 7% of the current share base - at a $206.58 exercise price that sits below MRVL's current market price. Full exercise would provide MRVL with approximately $12.18 billion in proceeds, but it would also dilute existing shareholders and allow GOOG to capture a meaningful portion of the equity appreciation created by the commercial relationship.

Importantly, only about 1.36 million shares vest based on time, while the remainder vest incrementally through FY33 as GOOG generates custom-product purchases in $500 million tranches, meaning maximum dilution would correspond with approximately $120 billion of cumulative qualifying revenue. Today's weakness therefore looks more like a post-rally reassessment of dilution, customer concentration, and MRVL's elevated valuation ahead of next week's earnings report than a rejection of the GOOG partnership's substantial long-term revenue potential.

[BRIEFING.COM] Stocks are rebounding from Thursday's broad retreat, with the S&P 500 (+0.5%), Nasdaq Composite (+0.6%), and DJIA (+0.7%) holding solid gains shortly after midday. Participation is considerably stronger than the headline averages suggest, as all but one S&P 500 sector trades higher and strength extends to small- and mid-cap stocks.

The materials sector (+2.1%) leads by a wide margin as the continued surge in precious metals fuels strong gains across mining stocks, including Albemarle (ALB 143.50, +9.31, +6.94%), Freeport-McMoRan (FCX 76.19, +4.97, +6.98%), and Newmont Corporation (NEM 131.98, +4.34, +3.40%).

The health care sector (+1.5%) is another source of strength, with Moderna (MRNA 150.50, +17.18, +12.89%) rebounding after giving back a portion of Wednesday's massive cancer-vaccine-driven rally yesterday.

Meanwhile, the financials sector (+0.9%) is benefiting from strength across banking names and another surge in crypto-related stocks. Robinhood Markets (HOOD 107.80, +12.70, +13.35%) and Coinbase Global (COIN 186.90, +14.55, +8.44%) rank among the best-performing S&P 500 components as Bitcoin extends its strong run this week.

Several company-specific catalysts are adding support within the consumer discretionary sector (+0.9%). Tesla (TSLA 364.58, +19.45, +5.64%) is a standout after Nevada approved robotaxi services in Clark County, while Target (TGT 163.64, +5.38, +3.40%) has extended its post-earnings rally to a new multi-year high. Ross Stores (ROST 242.16, +13.17, +5.75%) is also moving firmly higher following its earnings report.

Mega-cap stocks are generally participating in the rebound as well. Alphabet (GOOG 343.20, +5.00, +1.48%) and Meta Platforms (META 552.43, +6.60, +1.21%) are helping lift the communication services sector (+1.1%), while the Vanguard Mega Cap Growth ETF is up 0.4%.

Semiconductors remain the main exception to the broader strength. The PHLX Semiconductor Index (-1.0%) is near its lowest level in almost three weeks and has fallen 5.9% this week, leaving the information technology sector near unchanged despite a better showing from software stocks. The iShares Expanded Tech-Software Sector ETF is up roughly 1.6%, reflecting some improvement in another area of technology that came under pressure earlier this week.

The DJIA's relatively limited semiconductor exposure is helping it outperform, particularly as several of its financial and other cyclical components participate in today's rebound. The utilities sector (-1.5%) is the only S&P 500 sector trading lower, while the Russell 2000 (+0.7%) and S&P MidCap 400 (+0.4%) are also higher.

Crude oil is little changed following yesterday's sharp increase, while Treasury yields are slightly higher across the curve. Neither has presented a significant obstacle so far, allowing a broad mix of financial, commodity-linked, consumer, and mega-cap stocks to recover some of Thursday's losses even as semiconductor weakness continues to restrain the technology-heavy averages.

Reviewing today's data:

• Flash August S&P Global U.S. Services PMI checked in at 56.8, from the prior reading of 54.6.
• Flash August S&P Global U.S. Manufacturing PMI came in at 53.2, from the previous level of 53.9.

[BRIEFING.COM] The S&P 500 (+0.5%), Nasdaq Composite (+0.5%) and DJIA (+0.7%) are trading in a relatively stable range just after midday.

The consumer discretionary sector (+0.9%) is one of today's top performers, with several of its largest components trading firmly higher.

Tesla (TSLA 363.61, +18.48, +5.35%) is a mega-cap standout after Nevada approved robotaxi services in Clark County, Nevada (Las Vegas).

Meanwhile, Target (TGT 163.85, +5.60, +3.54%) trades to a new multi-year high today, extending its post-earnings momentum.

[BRIEFING.COM] The major averages continue to chart session highs at midday.

Ross Stores (ROST 239.95, +10.96, +4.79%) is trading nicely higher after a strong Q2 (Jul) report last night, marking another strong quarter, with a second consecutive double-digit comp that was again primarily transaction-driven and supported by broad customer gains across income and age groups. Although the outsized EPS beat and increase to full-year guidance include the roughly $0.60 tariff-refund benefit, results still came in above expectations and prior guidance excluding that benefit, supported by solid underlying margin expansion. The raised back-half comp outlook is also encouraging, especially as ROST faces increasingly difficult comparisons following several quarters of strong growth. Peer TJX (TJX 140.66, -0.04, -0.02%) confirmed a favorable off-price backdrop earlier this week, although ROST's broad-based strength stands in contrast to the merchandise-mix and planning issues that weighed on Marmaxx.

[BRIEFING.COM] Stocks are reclaiming a chunk of yesterday's weakness, with the S&P 500 (+0.5%), Nasdaq Composite (+0.4%), and DJIA (+0.8%) charting session highs just before midday.

The DJIA's outperformance is partly due to its limited exposure to the semiconductor trade, which is under pressure after a higher opening. The PHLX Semiconductor index is down 1.1%, keeping the top-weighted information technology sector (-0.1%) below its baseline.

Additionally, many of the DJIA's banking and financial names are outperforming today. Elsewhere in the financials sector (+0.9%), Robinhood Markets (HOOD 106.15, +11.05, +11.62%) and Coinbase Global (COIN 187.99, +15.64, +9.07%) are among the top-performing S&P 500 components as Bitcoin continues to surge this week.

Meanwhile, the materials sector (+2.3%) leads all sectors as precious metal prices continue to climb, while Moderna (MRNA 147.35, +14.03, +10.52%) leads the health care sector (+1.7%) higher after giving back some of Wednesday's monstrous gain yesterday.

Crude oil is modestly lower for the day, while Treasury yields are slightly higher across the curve.

[BRIEFING.COM] The major averages continue to tick modestly higher despite widening losses in the information technology sector (-0.3%).

After opening higher, the PHLX Semiconductor Index is now down 1.2%. Broadcom (AVGO 367.47, +3.44, +0.95%) has given up the bulk of its opening gain but remains higher after Bloomberg reported that the company is in talks with lenders to raise more than $60 billion through a special-purpose vehicle for an AI chip financing deal, with a possible $60-$70 billion senior-secured tranche and roughly $30 bln of junior debt potentially lifting the total package toward $100 billion. Investors appear to be treating the preliminary proposal - reportedly benefiting Anthropic and potentially other AI customers - as evidence of a much larger deployment pipeline, consistent with management's description of AI demand as "simply insatiable," Q2 AI semiconductor bookings above $30 billion against $10.8 billion shipped, and Q3 AI semiconductor revenue guidance of $16 billion.

[BRIEFING.COM] The S&P 500 (+0.3%), Nasdaq Composite (+0.1%), and DJIA (+0.7%) are maintaining their opening gains.

Crude oil is moving modestly lower this morning after Bloomberg reported that Iranian President Masoud Pezeshkian called for an end to the war with the U.S., pushing back against hardliners in the country.

However, Treasury yields remain modestly higher across the curve.

[BRIEFING.COM] The S&P 500 (+0.3%), Nasdaq Composite (+0.1%), and DJIA (+0.6%) are modestly higher just after the open as the market responds to yesterday's selloff with broad opening gains.

Nine S&P 500 sectors trade higher, with the materials sector (+2.1%) out in front as precious metal prices rise again this week, helping Freeport-McMoRan (FCX 76.91, +5.69, +7.99%) become one of the best-performing S&P 50 components this morning.

Robinhood Markets (HOOD 107.59, +12.49, +13.13%) and Coinbase Global (COIN 188.70, +16.35, +9.48%) occupy the top spots on the S&P 500's leaderboard, with crypto-related stocks making another run higher as Bitcoin continues to rise following President Trump's push for Congress to pass the CLARITY Act.

Meanwhile, a handful of software names such as AppLovin (APP 303.11, -5.66, -1.83%) and select semiconductor names such as Teradyne (TER 370.44, -12.71, -3.32%) are the worst-performing S&P 500 components this morning, keeping the information technology sector (-0.1%) below its baseline and limiting gains at the index level.

On the data front, the flash August S&P Global U.S. Services PMI checked in at 56.8, from the prior reading of 54.6. The flash August S&P Global U.S. Manufacturing PMI came in at 53.2, from the previous level of 53.9.

The stock market remains on track for a higher opening as stocks look to trim some of this week's losses.

The market will be paying close attention to Treasury yields today, particularly at the long end, as investors assess whether this week's expanded buyback plans can provide lasting relief after the initial decline in yields proved short-lived.

Equity indices in the Asia-Pacific region ended the week on a mostly higher note. South Korea's exports through the first 20 days of August were up 56% yr/yr with chip exports almost tripling. South Korea's finance ministry said that it is keeping a close watch on rising global bond yields. Japan's flash Manufacturing PMI for August (55.1) remained in expansion for the eighth consecutive month. Japan's Prime Minister Takaichi is planning to make some changes to her cabinet in the second half of September. China will expand its joint military exercises with Indonesia. China is reportedly planning another round of economic discussions with Canada.

• In economic data:
  • China's July FDI -6.2% YTD (last -5.0%)
  • Japan's July National CPI 0.4% m/m (last 0.3%); 1.9% yr/yr (last 1.6%). July National Core CPI 1.8% yr/yr, as expected (last 1.6%). Flash August Manufacturing PMI 55.1, as expected (last 54.5) and flash August Services PMI 52.3 (last 51.2)
  • South Korea's July PPI -0.4% m/m (last 0.0%); 7.7% yr/yr (last 8.5%)
  • Australia's flash August Manufacturing PMI 52.0 (last 52.0) and flash Services PMI 52.9 (last 53.6)
  • New Zealand's July trade deficit NZD1.949 bln (expected deficit of NZD175 mln; prior deficit of NZD237 mln). July Credit Card Spending 5.3% yr/yr (last 3.2%)
  • India's flash August Manufacturing PMI 52.9 (expected 54.0; last 53.5) and flash Services PMI 54.5 (expected 53.8; last 53.3)

---Equity Markets---

• Japan's Nikkei: -0.3% 
• Hong Kong's Hang Seng: +1.2% 
• China's Shanghai Composite: UNCH 
• India's Sensex: UNCH 
• South Korea's Kospi: +0.9% 
• Australia's ASX All Ordinaries: -0.3%

Major European indices are on track for a largely quiet finish to the week with Spain's IBEX (+0.9%) showing relative strength. European Central Bank policymaker Kazaks reiterated that the ECB's September decision will be guided by data. Meanwhile, the latest consumer expectations survey for the eurozone showed a dip in year-ahead CPI expectations to 2.9% from 3.0% while the three-year outlook eased to 2.7% from 2.8%. The French government is reportedly looking to renew a tax on large corporate profits that brought in about EUR7.5 bln of revenue in 2025.

• In economic data:
  • Eurozone's flash August Manufacturing PMI 52.8 (expected 51.8; last 51.9) and flash Services PMI 51.7 (expected 51.5; last 51.7)
  • Germany's flash August Manufacturing PMI 54.1 (expected 52.1; last 52.2) and flash Services PMI 48.5 (expected 50.1; last 49.8)
  • U.K.'s July Retail Sales -0.5% m/m (expected -0.4%; last 0.7%); 1.6% yr/yr (expected 2.2%; last 3.8%). July Core Retail Sales -0.9% m/m (expected -0.5%; last 0.9%); 2.3% yr/yr (expected 3.3%; last 5.0%). August flash Manufacturing PMI 51.5 (expected 51.6; last 51.9) and flash Services PMI 52.8 (expected 51.8; last 52.1)
  • France's flash August Manufacturing PMI 51.5 (expected 50.1; last 49.8) and flash Services PMI 48.4 (expected 49.4; last 49.6). August Business Survey 103 (expected 101; last 101)

---Equity Markets---

• STOXX Europe 600: +0.3% 
• Germany's DAX: +0.3% 
• U.K.'s FTSE 100: +0.3%
• France's CAC 40: +0.3% 
• Italy's FTSE MIB: +0.1% 
• Spain's IBEX 35: +0.9% 

The S&P 500 futures currently trade 36 points above fair value. 

Crypto-related stocks such as Coinbase Global (COIN 179.99, +7.64, +4.4%) and Robinhood Markets (HOOD 96.61, +4.51, +4.7%) are extending yesterday's sharp gains after President Trump's push for Congress to pass the CLARITY Act helped fuel a rally across crypto-linked stocks yesterday. Bitcoin is up another 5% today, heading toward the $77,000 mark.

Equity futures point to a higher opening this morning after stocks faced a sharp retreat yesterday that left each major index down over 1%. Yesterday's weakness coincided with another rise in Treasury yields and oil prices, with U.S. Treasuries giving back most of their gains from Wednesday following news that the Treasury will increase its long-term liquidity buyback program.

Yields and oil prices are both stable this morning after rising in the previous session, though investors will continue to monitor developments on the geopolitical front. Reuters reports that Iran threatened a "devastating response" after the U.S. pledged to impose more economic sanctions.

Elsewhere, corporate news flow is on the lighter side this morning, while Flash August PMI's are the sole economic data release this morning.

The major averages enter today's session with week-to-date losses of 1.8% or wider.

In corporate news:

• President Trump says he concluded a deal to substantially lower the price of ground beef; says "for the next 90 days, the United States will allow up to 300,000 metric tons of product for ground beef to be imported with no out-of-quota tariff.
• Broadcom (AVGO 368.90, +4.87, +1.3%) is seeking more than $60 billion in funding for an AI chip financing deal, according to Bloomberg.
• Ross Stores (ROST 247.25, +18.26, +8.0%) beat EPS expectations by $0.71, beat revenue expectations, reported a 10% increase in comparable sales, guided Q3 EPS above consensus, guided Q4 EPS above consensus, and raised its FY27 EPS above consensus.Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended the week on a mostly higher note. Japan's Nikkei: -0.3%, Hong Kong's Hang Seng: +1.2%, China's Shanghai Composite: UNCH, India's Sensex: UNCH, South Korea's Kospi: +0.9%, Australia's ASX All Ordinaries: -0.3%.

In news:

• South Korea's exports through the first 20 days of August were up 56% yr/yr with chip exports almost tripling.
• South Korea's finance ministry said that it is keeping a close watch on rising global bond yields.
• Japan's flash Manufacturing PMI for August (55.1) remained in expansion for the eighth consecutive month.
• Japan's Prime Minister Takaichi is planning to make some changes to her cabinet in the second half of September.
• China will expand its joint military exercises with Indonesia. China is reportedly planning another round of economic discussions with Canada.

In economic data:

• China's July FDI -6.2% YTD (last -5.0%)
• Japan's July National CPI 0.4% m/m (last 0.3%); 1.9% yr/yr (last 1.6%). July National Core CPI 1.8% yr/yr, as expected (last 1.6%). Flash August Manufacturing PMI 55.1, as expected (last 54.5) and flash August Services PMI 52.3 (last 51.2)
• South Korea's July PPI -0.4% m/m (last 0.0%); 7.7% yr/yr (last 8.5%)
• Australia's flash August Manufacturing PMI 52.0 (last 52.0) and flash Services PMI 52.9 (last 53.6)
• New Zealand's July trade deficit NZD1.949 bln (expected deficit of NZD175 mln; prior deficit of NZD237 mln). July Credit Card Spending 5.3% yr/yr (last 3.2%)
• India's flash August Manufacturing PMI 52.9 (expected 54.0; last 53.5) and flash Services PMI 54.5 (expected 53.8; last 53.3)

Major European indices are on track for a largely quiet finish to the week with Spain's IBEX (+0.8%) showing relative strength. 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: +0.8%.

In news:

• European Central Bank policymaker Kazaks reiterated that the ECB's September decision will be guided by data.
• Meanwhile, the latest consumer expectations survey for the eurozone showed a dip in year-ahead CPI expectations to 2.9% from 3.0% while the three-year outlook eased to 2.7% from 2.8%.
• The French government is reportedly looking to renew a tax on large corporate profits that brought in about EUR7.5 bln of revenue in 2025.

In economic data:

• Eurozone's flash August Manufacturing PMI 52.8 (expected 51.8; last 51.9) and flash Services PMI 51.7 (expected 51.5; last 51.7)
• Germany's flash August Manufacturing PMI 54.1 (expected 52.1; last 52.2) and flash Services PMI 48.5 (expected 50.1; last 49.8)
• U.K.'s July Retail Sales -0.5% m/m (expected -0.4%; last 0.7%); 1.6% yr/yr (expected 2.2%; last 3.8%). July Core Retail Sales -0.9% m/m (expected -0.5%; last 0.9%); 2.3% yr/yr (expected 3.3%; last 5.0%). August flash Manufacturing PMI 51.5 (expected 51.6; last 51.9) and flash Services PMI 52.8 (expected 51.8; last 52.1)
• France's flash August Manufacturing PMI 51.5 (expected 50.1; last 49.8) and flash Services PMI 48.4 (expected 49.4; last 49.6). August Business Survey 103 (expected 101; last 101)

[BRIEFING.COM] Stocks steadily lost ground throughout Thursday's session, leaving the S&P 500 (-0.9%), Nasdaq Composite (-1.0%), and DJIA (-1.3%) at their session lows as rising oil prices, higher interest rates, and weakness across retail and mega-cap stocks weighed on the market.

The session represented a reversal of some of Wednesday's rate-relief trade. Yesterday's announcement that the Treasury Department will increase the size of its liquidity-support buybacks had helped push yields lower and supported a broad advance in equities, but some of that relief faded today as rates moved higher again.

Oil provided another source of pressure after President Trump threatened renewed economic measures against Iran. Treasury Secretary Scott Bessent later added that he will hold a press conference Monday to discuss additional actions against the country, which he described as potentially the "greatest coordinated economic isolation in the history of the world." WTI crude continued its recent climb, settling $2.47 higher (+2.9%) at $88.15 per barrel.

The combination of higher rates and oil prices weighed particularly heavily on the consumer discretionary sector (-1.8%). Cruise lines, homebuilders, and apparel stocks were among the laggards, with the iShares U.S. Home Construction ETF falling 2.5% as some of Wednesday's rate relief reversed. Advance Auto (AAP 42.39, -13.79, -24.55%) plunged following its earnings report and weighed on other auto-parts stocks.

Retail weakness extended to the consumer staples sector (-1.9%), which finished with one of the day's widest losses as Walmart (WMT 103.84, -10.46, -9.15%) sank following its earnings report, which featured a disappointing Q3 outlook.

Higher oil prices also contributed to weakness in the industrials sector (-1.2%), with airlines retreating as the jump in crude raised concerns about fuel costs. Defense stocks were another source of weakness as the U.S. emphasized economic measures against Iran, sending the iShares U.S. Aerospace & Defense ETF down 3.6%. Still, Deere (DE 620.94, +40.31, +6.94%) and Nordson (NDSN 334.70, +24.78, +8.00%) provided notable pockets of post-earnings strength within the sector.

Selling was also pronounced in the health care sector (-1.9%). Moderna (MRNA 133.32, -41.06, -23.55%) gave back another portion of yesterday's massive rally following the positive cancer-vaccine results, while Intuitive Surgical (ISRG 374.48, -23.24, -5.84%) was another notable laggard.

Technology stocks held up considerably better. The information technology sector (-0.4%) posted one of the narrowest losses, while the PHLX Semiconductor Index gained 0.5% after two sessions of sharp declines. Memory stocks and several other chip names rebounded amid the pronounced swings that have characterized the group this week.

That semiconductor resilience did not extend to mega-cap growth stocks more broadly, however. The Vanguard Mega Cap Growth ETF fell 0.9%, adding pressure to the major averages as the session progressed.

By the close, the energy (+0.4%) and real estate (+0.2%) sectors were the only S&P 500 sectors to escape with gains.

Crypto-related stocks were also a bright spot, with Coinbase Global (COIN 172.35, +12.15, +7.58%) ranking among the S&P 500's best performers as President Trump's push for Congress to pass the CLARITY Act helped fuel a rally across crypto-linked stocks.

Weakness also extended beyond the large-cap benchmarks. The Russell 2000 (-1.3%) and S&P MidCap 400 (-0.9%) finished near their session lows as higher rates and oil prices weighed on the broader market.

Thursday's steady deterioration reflected a combination of macro and company-specific pressures. The reversal of some of Wednesday's rate relief and a nearly 3% jump in oil prices created a difficult backdrop, while weakness following several retail earnings reports added to the selling. Semiconductor stocks provided a rare pocket of strength, but that was not enough to offset weakness across mega-cap stocks and an increasingly broad retreat that left the major averages at their worst levels of the day.

U.S. Treasuries retreated on Thursday with the long bond giving back the bulk of its gain that was recorded after the U.S. Treasury announced an increase to its maximum buybacks of longer tenors. The 2-year note yield settled up one basis point to 4.19%, and the 10-year note yield settled up four basis points to 4.70%. 

• Russell 2000: +20.6% YTD
• S&P Mid Cap 400: +15.3% YTD
• Nasdaq Composite: +12.2% YTD
• S&P 500: +11.6% YTD
• DJIA: +9.8% YTD

Reviewing today's data:

• August Philadelphia Fed Index 47.4 (Briefing.com consensus 25.0); Prior 41.4
• Weekly Initial Claims 206K (Briefing.com consensus 206K); Prior was revised to 212K from 209K, Weekly Continuing Claims 1.799 mln; Prior was revised to 1.781 mln from 1.777 mln
  • The key takeaway from the report is that even with the increase in four-week moving averages for initial and continuing claims, overall levels are not setting off alarm bells concerning increased layoff activity.
• July Leading Economic Index 0.2% (Briefing.com consensus -0.1%); Prior was revised to -0.1% from -0.2%