[BRIEFING.COM] The Nasdaq Composite (-0.26%) is down about 68 points this afternoon, the only major average in the red.

Gold futures settled $43.90 higher (+1.1%) at $4,082.40/oz, after weaker-than-expected U.S. labor data and dovish comments from Federal Reserve Chair Kevin Warsh boosted expectations for lower interest rates, pressuring Treasury yields and lifting demand for the precious metal. The gains also reflected a rebound following gold's steep quarterly decline, with investors returning to the safe-haven asset.

Meanwhile, the U.S. Dollar Index is now +0.2% higher to $101.39.

[BRIEFING.COM] The Dow Jones Industrial Average (+0.35%) is in first place this afternoon, up about 182 points.

A look inside the DJIA shows that Salesforce (CRM 164.40, +7.74, +4.94%), Microsoft (MSFT 387.90, +14.88, +3.99%), and IBM (IBM 290.70, +9.49, +3.37%) show solid gains.

Meanwhile, Caterpillar (CAT 1001.83, -63.07, -5.92%) is decently lower.

The DJIA is +1.21% higher week-to-date.

[BRIEFING.COM] The S&P 500 (+0.1%), Nasdaq Composite (-0.4%), and DJIA (+0.4%) are mostly higher just after midday as broadening participation across the market and strength in several mega-cap technology names offset a bout of profit-taking in semiconductor stocks. Compared to the relatively quiet news flow that characterized much of this week, today's session has featured a busier slate of corporate developments and earnings reports.

While chipmakers are taking a breather after leading the market higher over the past two sessions, weakness has remained largely contained. The PHLX Semiconductor Index is down 5.4%, with weakness across large chipmakers, memory names, and AI infrastructure stocks suggesting today's pullback is more mechanical in nature than driven by an industry-specific event. Corning (GLW 220.25, -35.18, -13.77%) and KLA Corporation (KLAC 270.16, -31.55, -10.46%) are the worst performing S&P 500 names.

Even so, the broader information technology sector (-1.4%) has recovered from a steeper opening decline. The resilience stems from strength elsewhere within the technology complex. Software stocks continue to outperform, lifting the iShares Expanded Tech-Software ETF (IGV) 3.9% higher. Palantir Technologies (PLTR 126.79, +10.12, +8.67%) is among the group's standout performers after President Trump's latest financial disclosure showed he purchased between $100,000 and $250,000 worth of the company's shares.

Apple (AAPL 294.20, +4.84, +1.67%) and Microsoft (MSFT 386.45, +13.43, +3.60%) are also posting solid gains, while Meta Platforms (META 616.79, +53.50, +9.50%) has surged after Bloomberg reported the company plans to build a cloud business that would sell access to AI computing infrastructure. Together, those gains have helped keep the Vanguard Mega Cap Growth ETF (+0.2%) in positive territory despite the retreat in semiconductor stocks.

The communication services sector (+3.2%) holds the widest gain thanks to Meta, while the consumer discretionary sector (+1.5%) is another leader. Amazon (AMZN 242.39, +4.05, +1.70%) and Tesla (TSLA 426.96, +6.37, +1.51%) are providing solid support, and NIKE (NKE 42.44, +1.39, +3.39%) is higher after reporting better-than-feared quarterly results. Although management offered cautious near-term guidance, investors appear encouraged by improving wholesale trends and early signs of stabilization in Greater China.

The financials sector(+2.7%) is also outperforming in broad fashion. FactSet (FDS 248.70, +18.62, +8.09%) is one of the S&P 500's top performers after topping earnings expectations, while Coinbase Global (COIN 163.14, +16.95, +11.59%) and Robinhood Markets (HOOD 107.83, +7.55, +7.53%) benefit from a rebound in Bitcoin prices.

Elsewhere, the tone is more mixed. The defensive consumer staples sector (-0.5%) is lower, though General Mills (GIS 37.56, +2.76, +7.95%) holds a solid gain after the company topped quarterly earnings expectations, returned to year-over-year revenue growth, and issued fiscal 2027 earnings guidance that was broadly in line with expectations.

Walmart (WMT 108.07, -5.19, -4.58%), however, is under pressure after CNBC's David Faber reported that Cleveland Research issued a negative report citing slowing comparable sales and warning the retailer may need to lower prices to clear excess inventory. Constellation Brands (STZ 134.88, -4.21, -3.03%) is also lower despite beating earnings expectations and reaffirming its fiscal 2027 earnings and organic sales outlook.

The utilities sector (-1.1%) continues to lag.

Outside the S&P 500, the Russell 2000 (+0.5%) has climbed to another all-time high, while the S&P Mid Cap 400 (-0.1%) trades modestly lower.

On the policy front, Fed Chair Kevin Warsh reiterated his commitment to price stability during the ECB Forum while also emphasizing his desire to continue shrinking the Federal Reserve's balance sheet.

So far, today's action suggests investors remain willing to rotate within technology rather than away from it altogether. Semiconductor stocks are pausing after a powerful two-day advance, but continued strength across software, mega-cap growth stocks, financials, and consumer-oriented names has kept the broader market on solid footing.

Reviewing today's data:

• Weekly MBA Mortgage Applications Index 0.0%; Prior 1.0%
• June ADP Employment Change 98K (Briefing.com consensus 112K); Prior 122K
• June S&P Global U.S. Manufacturing PMI - Final 53.9; Prior 55.7
• May Construction Spending 0.1% (Briefing.com consensus 0.5%); Prior was revised to 0.3% from 0.4%
  • The key takeaway from the report is that public construction spending was the driver of the modest growth in total construction spending in June. Private construction spending activity was disappointing.
• June ISM Manufacturing Index 53.3% (Briefing.com consensus 53.8%); Prior 54.0%
  • The key takeaway from the report is that there was a general slowdown indicated versus May across most components of the report, yet the slowdown that will matter most is the one seen in the prices index, which is still quite high but nonetheless moving in the preferred direction.

[BRIEFING.COM] The S&P 500 (+0.3%), Nasdaq Composite (-0.2%), and DJIA (+0.7%) now trade in a relatively stable range.

General Mills (GIS 37.42, +2.62, +7.51%)  is trading higher after reporting its Q4 (May) results this morning. General Mills bounced back from a rare EPS miss last quarter, with adjusted EPS of $0.95 nicely above expectations. Revenue increased 1.2% year-over-year to $4.6 billion, marking a return to growth and coming in line with consensus. The results showed clear sequential improvement, particularly on profitability, though the 53rd week and favorable timing provided meaningful support. GIS also guided FY27 adjusted EPS to $3.00-3.20, in line with expectations, and expects organic sales to range from down 1.5% to up 0.5%.

[BRIEFING.COM] The major averages continue to trade in a mostly higher fashion at midday.

The consumer staples sector (-0.5%) is among today's worst performers, with Walmart (WMT 107.73, -5.53, -4.88%) facing pressure after CNBC's David Faber reported that Cleveland Research issued a negative report citing slowing comparable sales and warning that the company may need to lower prices to clear excess inventory.

Meanwhile, Constellation Brands (STZ 136.94, -2.16, -1.55%) trades lower after topping earnings estimates and maintaining its FY27 earnings and organic sales outlook.

[BRIEFING.COM] The S&P 500 (+0.2%), Nasdaq Composite (flat), and DJIA (+0.4%) are mostly higher just before midday as a sharp pullback across chipmaker names is outweighed by strength in the broader market and impressive gains across several other mega-cap tech stocks.

Chipmaker and other AI-infrastructure stocks are retreating after two consecutive days of strength, with nrecent leaders such as Corning (GLW 223.20, -32.23, -12.62%) and Sandisk (SNDK 2072.27, -201.46, -8.86%) facing double-digit losses. The PHLX Semiconductor Index is down 4.6%, though the broader information technology sector (-1.0%) has cut its earlier loss in half as software names soar higher (the iShares Expanded Tech-Software ETF is up 3.1%) while Apple (AAPL 295.15, +5.79, +2.00%) and Microsoft (MSFT 385.84, +12.82, +3.44%) both hold solid gains.

Similarly, mega-cap stocks outside of the technology sector trend mostly higher, with Meta Platforms (META 625.66, +62.37, +11.07%) a notable standout after Bloomberg reported the company will build a cloud business to sell access to AI compute. The communication services (+3.2%) and consumer discretionary (+1.5%) sectors both trade firmly higher, helping offset losses in the information technology sector. The Vanguard Mega Cap Growth ETF is up 0.6% despite the weakness across semiconductor names.

Elsewhere, the defensive utilities (-1.2%) and consumer staples (-0.6%) sectors continue to lag while the financials sector (+2.1%) outperforms, with Coinbase Global (COIN 161.44, +15.25, +10.43%) and Robinhood Markets (HOOD 107.71, +7.43, +7.41%) leading the way amid a bounce in the price of Bitcoin.

Outside of the S&P 500, the Russell 2000 (+0.5%) has notched another all-time high, while the S&P Mid Cap 400 (-0.2%) trades modestly lower.

[BRIEFING.COM] The major averages remain near their flatlines as chipmakers continue to move lower while the broader market steadily improves.

The consumer discretionary sector (+1.5%) holds a solid gain, supported by broad strength and a nice post-earnings move from NIKE (NKE 42.74, +1.68, +4.10%). The company delivered a Q4 beat on EPS and revenue, but the reaction was initially restrained because management paired that upside with a more cautious near-term demand outlook. Management now expects Q1 (Aug) revenue to decline low to mid-single digits and said Q2 (Nov) should decelerate further. Revenue declined 1.1% year-over-year to $10.97 billion, topping expectations as strength in North America and wholesale helped offset continued weakness in Greater China, EMEA, and Converse.

Nike delivered a better quarter than many investors feared, but management's cautious outlook underscored that its turnaround remains a work in progress. Nike is still working to rebuild momentum in its lifestyle business while leaning on strength in performance categories. Encouragingly, wholesale trends improved and Greater China showed early signs of stabilization, but persistent weakness in Sportswear and Jordan products suggests the company's brand reset is not yet complete. After a difficult year for the stock, investor sentiment had begun improving on hopes that the worst of Nike's inventory and product-cycle challenges were behind it. However, the cautious Q1 guidance and management's comments about slowing consumer demand indicate investors are likely to remain patient as they wait for clearer evidence that revenue growth can sustainably return.

[BRIEFING.COM] The S&P 500 (flat), Nasdaq Composite (-0.3%), and DJIA (+0.2%) have steadily improved from their opening lows as strength in the broader market begins to outweigh weakness across semiconductor stocks.

The ISM Manufacturing Index dipped to 53.3% in June (Briefing.com consensus 53.8%) from 54.0% in May. The dividing line between expansion and contraction is 50.0%, so the June figure suggests manufacturing activity expanded in June but at a slightly slower pace than the prior month.

The key takeaway from the report is that there was a general slowdown indicated versus May across most components of the report, yet the slowdown that will matter most is the one seen in the prices index, which is still quite high but nonetheless moving in the preferred direction.

Construction spending increased 0.1% month-over-month in May (Briefing.com consensus: 0.5%) after increasing a downwardly revised 0.3% (from 0.4%) in April. On a year-over-year basis, construction spending was down 1.5%.

The key takeaway from the report is that public construction spending was the driver of the modest growth in total construction spending in June. Private construction spending activity was disappointing.

Meanwhile on the policy front, Fed Chairman Kevin Warsh reiterated his commitment to price stability while also noting that he wants to shrink the Fed's balance sheet at the ECB forum.

[BRIEFING.COM] The S&P 500 (-0.2%), Nasdaq Composite (-0.5%), and DJIA (-0.1%) are modestly lower this morning as chipmaker stocks give back some of their previous strength while the broader market is mixed.

The PHLX Semiconductor Index (-3.6%) has effectively cut this week's gain in half with its opening weakness, weighing on the information technology sector (-1.3%). Some of yesterday's standouts, including Corning (GLW 227.28, -28.15, -11.02%) and Sandisk (SNDK 2085.94, -187.79, -8.26%) are among the laggards, though the sector's non-chipmaker "magnificent seven" components, Apple (AAPL 292.22, +2.86, +0.99%) and Microsoft (MSFT 378.18, +5.16, +1.38%), hold solid gains.

Meta Platforms (META 615.23, +51.94, +9.22%) is a standout among the group after Bloomberg reported the company is building a cloud business to sell access to AI compute, pushing the communication services sector (+2.3%) firmly higher.

Gains and losses are both relatively modest as breadth figures remain narrow, similar to yesterday's session.

The final reading of the June S&P Global U.S. Manufacturing PMI came in at 53.9, down from the prior reading of 55.7.

Construction spending increased 0.1% month-over-month in May (Briefing.com consensus 0.5%) after increasing a revised 0.3% (from 0.4%) in April.

The ISM Manufacturing Index hit 53.3% in June (Briefing.com consensus 53.8%), down from 54.0% in May.

The stock market remains on track for a lower open this morning, as semiconductor names retreat in the premarket after two solid sessions to start the week.

Elsewhere in the tech space, Meta Platforms (META 605.50, +43.21, +7.7%) is sharply higher after Bloomberg reported that the company is building a cloud business to sell access to artificial-intelligence compute.

The S&P 500 futures currently trade 18 points below fair value.

Equity indices in the Asia-Pacific region ended the midweek session on a mixed note while Hong Kong's Hang Seng was closed for a holiday. Japan's Q2 Tankan survey was strong in general even though responses were collected before the U.S.-Iran peace deal was announced. World Bank will reportedly stop lending to China by 2031. Japan's Economy Minister Kiuchi said that he hopes that the Bank of Japan works closely with the government to achieve its target amid recent speculation that the Japanese government is pressuring the BoJ to slow the pace of tightening.

• In economic data:
  • China's June RatingDog Manufacturing PMI 51.7 (expected 51.9; last 51.8)
  • Japan's June Manufacturing PMI 54.8 (expected 54.9; last 54.5). Q2 All Big Industry CAPEX 11.5% (last 3.3%) and All Small Industry CAPEX -8.3% (last -8.1%). Q2 Tankan Large Manufacturers Index 22 (expected 16; last 17) and Large Non-Manufacturers Index 17 (expected 13; last 14). June Household Confidence 33.8 (expected 34.1; last 33.6)
  • South Korea's June Manufacturing PMI 52.1 (last 54.8). June trade surplus $36.15 bln (last surplus of $27.04 bln). June Imports 30.1% yr/yr (last 20.7%) and June Exports 70.9% yr/yr (last 53.4%)
  • Australia's June Manufacturing PMI 51.5 (expected 51.2; last 50.7). June AIG Construction Index -38.1 (last -11.2) and AIG Manufacturing Index -16.8 (last -21.3). May Building Approvals -1.1% m/m (expected 0.5%; last -0.2%); 5.3% yr/yr (last 10.9%). May Private House Approvals 2.8% m/m (last -1.0%). June Commodity Prices 16.9% yr/yr (last 16.8%)
  • India's June Manufacturing PMI 54.2 (expected 54.5; last 55.0)
  • Singapore's May Bank Lending SGD917.7 bln (last SGD908.4 bln)

---Equity Markets---

• Japan's Nikkei: +0.6%
• Hong Kong's Hang Seng: CLOSED
• China's Shanghai Composite: +0.4%
• India's Sensex: +0.6% 
• South Korea's Kospi: -2.0%
• Australia's ASX All Ordinaries: -0.6%

Major European indices trade on a mostly lower note while Germany's DAX (+0.3%) outperforms with Rheinmetall leading the advance after Ukraine ordered artillery shells. Fed Chairman Warsh will appear at the European Central Bank's policy forum in Portugal alongside European Central Bank President Lagarde later this morning. The eurozone's final Manufacturing PMI for June (51.4; expected 51.3) was just above expectations thanks to upside surprises from France and Germany. The European Central Bank could double minimum reserve requirements for banks to 2% later this year.

• In economic data:
  • Eurozone's flash June CPI -0.1% m/m (last 0.1%); 2.8% yr/yr (expected 3.0%; last 3.2%). Flash June Core CPI 0.2% m/m (last 0.3%); 2.4% yr/yr (expected 2.5%; last 2.6%). June Manufacturing PMI 51.4 (expected 51.3; last 51.6)
  • Germany's June Manufacturing PMI 50.3 (expected 50.0; last 50.1)
  • U.K.'s June Nationwide HPI 0.0% m/m (expected 0.1%; last -0.6%); 2.2% yr/yr (expected 2.4%; last 1.7%). June Manufacturing PMI 52.5 (expected 53.1; last 53.9)
  • France's June Manufacturing PMI 51.2 (expected 50.7; last 49.7)
  • Italy's June Manufacturing PMI 52.2 (expected 52.4; last 52.9). Q1 Public Deficit 7.8% (last -1.4%)
  • Spain's June Manufacturing PMI 49.7 (expected 51.0; last 51.2)
  • Swiss May Retail Sales 3.5% yr/yr (expected 1.8%; last 1.7%). June Manufacturing PMI 54.3 (expected 56.4; last 57.3)

---Equity Markets--- 

• STOXX Europe 600: -0.5%
• Germany's DAX: -0.2%
• U.K.'s FTSE 100: -0.5%
• France's CAC 40: -0.9%
• Italy's FTSE MIB: -0.4%
• Spain's IBEX 35: -0.6%

The S&P 500 futures currently trade 14 points below fair value.

Private sector employment increased by 98,000 jobs in June (Briefing.com consensus: 112,000 Prior: 122,000) and pay was up 4.4 percent year-over-year according to the June ADP National Employment Report produced by ADP Research in collaboration with the Stanford Digital Economy Lab.

The ADP National Employment Report is an independent measure of the labor market based on the anonymized weekly payroll data of more than 26 million private-sector employees in the United States. ADP's Pay Insights captures over 15 million individual pay change observations each month. Together, the jobs report and pay insights use ADP's fine-grained data to provide a representative and high-frequency picture of the private-sector labor market.

Equity futures point to a lower opening this morning to kick off the second half of 2026. Yesterday's action saw the second quarter end in a fitting way as strong gains across semiconductor names drove the major averages higher. Monday's action progressed in a similar fashion, and the S&P 500 and Nasdaq Composite have now reclaimed almost all of last week's losses.

After a strong start to the week, this morning's weakness appears to be more tied to mechanics than a specific catalyst.

Oil prices remain stable around the $70 per barrel mark as reports suggest the U.S. and Iran remain on a diplomatic course.

On the policy front, the market will hear from Fed Chair Kevin Warsh today as he speaks at the European Central Bank Forum on Central Banking in Sintra, Portugal. Mr. Warsh's address comes after Cleveland Fed President Beth Hammack told CNBC yesterday that higher rates may be needed if inflation continues to move higher.

Investors will have a few economic data releases to assess this morning, including the ISM Manufacturing Index for June (Briefing.com consensus 53.8%).

The MBA Mortgage Applications Index for the week ended June 27 was flat, from a previous increase of 1.0%.

In corporate news:

• General Mills (GIS 36.32, +1.52, +4.4%) beat EPS expectations by $0.15, reported revenues in-line, and guided FY27 EPS in-line. The company is targeting $3 billion in cost savings by FY30.
• Microsoft (MSFT 379.42, +6.40, +1.7%) is planning to eliminate additional jobs, according to Business Insider.
• Nike (NKE 40.00, -1.05, -2.6%) beat EPS expectations by $0.08 and beat revenue expectations.

Equity indices in the Asia-Pacific region ended the midweek session on a mixed note while Hong Kong's Hang Seng was closed for a holiday. Japan's Nikkei: +0.6%, Hong Kong's Hang Seng: CLOSED, China's Shanghai Composite: +0.4%, India's Sensex: +0.6%, South Korea's Kospi: -2.0%, Australia's ASX All Ordinaries: -0.6%.

In news:

• Japan's Q2 Tankan survey was strong in general even though responses were collected before the U.S.-Iran peace deal was announced.
• World Bank will reportedly stop lending to China by 2031.
• Japan's Economy Minister Kiuchi said that he hopes that the Bank of Japan works closely with the government to achieve its target amid recent speculation that the Japanese government is pressuring the BoJ to slow the pace of tightening.

In economic data:

• China's June RatingDog Manufacturing PMI 51.7 (expected 51.9; last 51.8)
• Japan's June Manufacturing PMI 54.8 (expected 54.9; last 54.5). Q2 All Big Industry CAPEX 11.5% (last 3.3%) and All Small Industry CAPEX -8.3% (last -8.1%). Q2 Tankan Large Manufacturers Index 22 (expected 16; last 17) and Large Non-Manufacturers Index 17 (expected 13; last 14). June Household Confidence 33.8 (expected 34.1; last 33.6)
• South Korea's June Manufacturing PMI 52.1 (last 54.8). June trade surplus $36.15 bln (last surplus of $27.04 bln). June Imports 30.1% yr/yr (last 20.7%) and June Exports 70.9% yr/yr (last 53.4%)
• Australia's June Manufacturing PMI 51.5 (expected 51.2; last 50.7). June AIG Construction Index -38.1 (last -11.2) and AIG Manufacturing Index -16.8 (last -21.3). May Building Approvals -1.1% m/m (expected 0.5%; last -0.2%); 5.3% yr/yr (last 10.9%). May Private House Approvals 2.8% m/m (last -1.0%). June Commodity Prices 16.9% yr/yr (last 16.8%)
• India's June Manufacturing PMI 54.2 (expected 54.5; last 55.0)
• Singapore's May Bank Lending SGD917.7 bln (last SGD908.4 bln)

Major European indices trade on a mostly lower note while Germany's DAX (+0.3%) outperforms with Rheinmetall leading the advance after Ukraine ordered artillery shells. STOXX Europe 600: -0.3%, Germany's DAX: +0.3%, U.K.'s FTSE 100: -0.3%, France's CAC 40: -0.7%, Italy's FTSE MIB: -0.3%, Spain's IBEX 35: -0.7%.

In news:

• Fed Chairman Warsh will appear at the European Central Bank's policy forum in Portugal alongside European Central Bank President Lagarde later this morning.
• The eurozone's final Manufacturing PMI for June (51.4; expected 51.3) was just above expectations thanks to upside surprises from France and Germany.
• The European Central Bank could double minimum reserve requirements for banks to 2% later this year.

In economic data:

• Eurozone's flash June CPI -0.1% m/m (last 0.1%); 2.8% yr/yr (expected 3.0%; last 3.2%). Flash June Core CPI 0.2% m/m (last 0.3%); 2.4% yr/yr (expected 2.5%; last 2.6%). June Manufacturing PMI 51.4 (expected 51.3; last 51.6)
• Germany's June Manufacturing PMI 50.3 (expected 50.0; last 50.1)
• U.K.'s June Nationwide HPI 0.0% m/m (expected 0.1%; last -0.6%); 2.2% yr/yr (expected 2.4%; last 1.7%). June Manufacturing PMI 52.5 (expected 53.1; last 53.9)
• France's June Manufacturing PMI 51.2 (expected 50.7; last 49.7)
• Italy's June Manufacturing PMI 52.2 (expected 52.4; last 52.9). Q1 Public Deficit 7.8% (last -1.4%)
• Spain's June Manufacturing PMI 49.7 (expected 51.0; last 51.2)
• Swiss May Retail Sales 3.5% yr/yr (expected 1.8%; last 1.7%). June Manufacturing PMI 54.3 (expected 56.4; last 57.3)

[BRIEFING.COM] Stocks finished the second quarter on a strong note as another solid session across semiconductor names helped lift the S&P 500 (+0.8%), Nasdaq Composite (+1.5%), and DJIA (+0.3%). The DJIA notched another record closing high, capping off the strongest first half of the year for the Dow since 2021 and the best quarterly performance for the S&P 500 and Nasdaq Composite since 2020. Additionally, the S&P 500 and Nasdaq have now recovered nearly all of last week's pullback.

Semiconductor stocks once again led the market, with the PHLX Semiconductor Index climbing 3.9% to build on yesterday's rebound. Firm gains across major chipmakers such as Advanced Micro Devices (AMD 580.91, +41.42, +7.68%) and Intel (INTC 139.63, +7.91, +6.01%) were notched, while Sandisk (SNDK 2273.73, +223.34, +10.89%) led memory names higher, lifting the information technology sector (+2.6%) and reinforcing the return to mega-cap technology leadership that began earlier this week.

Technology leadership extended beyond semiconductors, though gains elsewhere were more selective. The Vanguard Mega Cap Growth ETF (+1.7%) posted another solid advance, with Apple (AAPL 289.36, +7.62, +2.70%) and Microsoft (MSFT 373.02, +4.45, +1.21%) adding to this week's gains.

The consumer discretionary sector (+0.1%) finished little changed as strength in Tesla (TSLA 420.60, +8.76, +2.13%) was offset by weakness elsewhere, while the communication services sector finished on its flat line despite another solid session from Alphabet (GOOG 353.33, +2.05, +0.58%).

Continued weakness in broadband and wireless providers, including Verizon (VZ 42.34, -1.76, -3.99%) and AT&T (T 20.69, -1.13, -5.18%), limited the sector's advance following Comcast's (CMCSA 24.55, +0.33, +1.36%) restructuring announcement earlier this week.

Outside of technology, participation was more narrow as momentum shifts back toward growth stocks. The industrials sector (+1.4%) finished as one of the day's top performers, supported by another strong session for electrical equipment companies that continued to move in tandem with semiconductor stocks. Caterpillar (CAT 1064.90, +31.71, +3.07%) also stood out among the Dow components.

Market breadth was relatively balanced, with advancers and decliners finishing nearly even on both the NYSE and Nasdaq. Even so, the Russell 2000 (+0.5%) and S&P Mid Cap 400 (+0.6%) both posted respectable gains, suggesting the broader market continued to participate despite the renewed leadership from mega-cap technology.

Elsewhere, the real estate sector (-2.2%) finished lower for a second consecutive session, pressured by a sharp decline in Digital Realty Trust (DLR 179.58, -11.00, -5.77%) following its announced data center acquisition.

The defensive consumer staples (-1.5%), utilities (-1.5%), and health care (-1.3%) sectors also lagged as investors favored growth-oriented areas of the market.

The energy sector (-0.8%) finished lower as crude oil prices eased while investors continued monitoring developments surrounding the latest round of U.S.-Iran negotiations.

Overall, today's session reinforced that mega-cap technology has reclaimed market leadership after briefly taking a back seat last week. At the same time, respectable gains across small- and mid-cap stocks suggest the recent improvement in market participation remains intact, allowing the major averages to recover nearly all of last week's decline without a meaningful deterioration in underlying breadth.

U.S. Treasuries retreated on Tuesday, with yields finishing June and Q2 just above last week's lows. The 2-year note yield settled up three basis points to 4.14%, and the 10-year note yield settled up four basis points to 4.42%.

• Russell 2000: +21.9% YTD
• S&P Mid Cap 400: +16.6% YTD
• Nasdaq Composite: +12.8% YTD
• S&P 500: +9.6% YTD
• DJIA: +8.9% YTD

Reviewing today's data:

• April FHFA Housing Price Index -0.1% (Briefing.com consensus 0.2%); Prior was revised to 0.2% from 0.1%
• April S&P Case-Shiller Home Price Index 1.1% (Briefing.com consensus 0.9%); Prior was revised to 0.9% from 0.8%
• June Chicago PMI 56.7 (Briefing.com consensus 60.0); Prior 62.7
• June Consumer Confidence 91.2 (Briefing.com consensus 94.2); Prior was revised to 90.6 from 93.1
  • The key takeaway from the report is that the June increase followed a downward revision to May's reading, so there is some persistent caution in confidence as the expectations index remains below a level that has traditionally signaled an upcoming recession.
• May JOLTS - Job Opening 7.594 mln; Prior was revised to 7.585 mln from 7.618 mln