[BRIEFING.COM] Stocks finished mostly higher today as rotational buying across the broader market helped offset a pullback in tech names. The weakness across technology stocks kept the Nasdaq Composite (-0.1%) without a gain for the day, but broader support sent the DJIA (+1.8%) to fresh record highs while the S&P 500 (+0.4%) also notched a decent gain.

Tech stocks were poised for a lower session following decisive moves lower from Broadcom (AVGO 418.91, -60.32, -12.59%), Ciena (CIEN 535.63, -84.74, -13.66%), and CrowdStrike (CRWD 719.09, -28.52, -3.81%) following their earnings reports.

Broadcom in particular set the stage for a weaker showing across semiconductor names, with the PHLX Semiconductor Index retreating 2.2%. However, it is worth noting that the index finished much improved from the early weakness that saw it retreat nearly 6% this morning.

Meanwhile, the consumer staples sector (-0.1%) was the only other S&P 500 sector to close with a loss as nine sectors finished at or above their baselines.

The health care sector was the top mover today as nearly all of its components traded higher, with managed care names such as Humana (HUM 349.89, +22.35, +6.82%) and UnitedHealth (UNH 396.47, +19.47, +5.16%) leading the advance.

The financials sector (+2.6%) posted a similar gain, with major banking names notching solid gains while asset managers such as Blackstone (BX 118.55, +8.27, +7.50%) traded even higher following a manageable BCRED redemption update that reassured investors about private credit flows and demand.

Notably, the financials and health care sectors are the worst-performing S&P 500 sectors on a year-to-date basis, highlighting the rotational aspect of today's action.

Elsewhere, the communication services sector (+2.1%) outperformed as investors bought into the recent dip in Alphabet (GOOG 369.37, +13.69, +3.85%) that followed the announcement of an $84.75 billion equity capital raise to expand AI infrastructure and compute.

Outside of the S&P 500, the Russell 2000 (+1.5%) outperformed as Treasury yields moved lower, while the S&P Mid Cap 400 (+0.4%) captured a more modest gain.

Overall, today's session reflected a healthy broadening in market participation, with investors rotating into financials, health care, and other previously lagging groups as technology stocks took a breather. The ability of the S&P 500 and DJIA to advance despite a notable semiconductor pullback suggests underlying market sentiment remains constructive, particularly as investors continue to buy weakness rather than retreat from risk assets.

U.S. Treasuries traded with a positive bias in the overnight session before losing some strength in the cash session. Yields, however, were still lower across the board, with the front end to the intermediate end of the curve exhibiting relative strength in a bull-steepener trade. The 2-year note yield settled down four basis points to 4.05%, and the 10-year note yield settled down one basis point to 4.48%. 

• Russell 2000: +18.3% YTD
• Nasdaq Composite: +15.4% YTD
• S&P Mid Cap 400: +13.9% YTD
• S&P 500: + 10.8% YTD
• DJIA: +7.3% YTD

Reviewing today's data:

• Q1 Productivity-Rev. 0.3% (Briefing.com consensus 0.8%); Prior 0.8%, Q1 Unit Labor Costs-Rev. 1.8% (Briefing.com consensus 2.3%); Prior 2.3%
  • The key takeaway from the report is the understanding that productivity has picked up nicely from a year ago (+2.8%), while unit labor costs (+0.5%) have come down, tempering concerns about labor-based inflation pressures.
• Weekly Initial Claims 225K (Briefing.com consensus 216K); Prior was revised to 212K from 215K, Weekly Continuing Claims 1.777 mln; Prior was revised to 1.785 mln from 1.786 mln
  • The key takeaway from the report is that there isn't any concerning key takeaway. Granted, initial jobless claims-a leading indicator-were up from the prior week, but they remain at levels that are consistent with an otherwise solid labor market.

[BRIEFING.COM] The major averages continue to trade higher as the session draws to a close.

Quantinuum's (QNT 61.55, +1.55, +2.58%) IPO was highly successful, with the deal upsized from 21.05 million shares to 26.5 million shares, then priced at $60 per share, well above the $53-$55 projected range, before opening at $68 for a 13% opening gain.

Demand was strong because Quantiniuum offers investors one of the clearest pure-play exposures to quantum computing, with a more established pedigree than many earlier quantum listings because it was formed through the combination of Honeywell Quantum Solutions and Cambridge Quantum and still benefits from Honeywell's (HON 217.68, -5.58, -2.50%) backing.

[BRIEFING.COM] The S&P 500 (+0.5%), Nasdaq Composite (+0.2%), and DJIA (+1.8%) now trade higher across the board as the market enters the final hour of the session. 

On the earnings front, lululemon athletica (LULU 124.72, -1.30, -1.04%) heads into tonight's report with a lot to prove. The stock has been under heavy pressure over the past year as North America demand has softened, markdowns have weighed on margins, and product execution has come under greater scrutiny. Shares have bounced modestly in recent weeks after LULU resolved its proxy fight with founder Chip Wilson and pointed to early signs of product traction, but tonight's report needs to show that those green shoots are becoming more meaningful. Investors will be looking for evidence that full-price selling is improving, markdown pressure is easing, and international strength remains strong enough to help support results despite a still-soft U.S. backdrop.

[BRIEFING.COM] The S&P 500 (+0.53%) is in second place on Thursday afternoon, up about 40 points.

Briefly, S&P 500 constituents Blackstone (BX 118.44, +8.16, +7.40%), Humana (HUM 349.50, +21.96, +6.70%), and Robinhood (HOOD 87.30, +4.45, +5.37%) pepper the top of the standings. BX rallies on renewed optimism around its AI infrastructure financing role highlighted by Broadcom's (AVGO 416.58, -62.65, -13.07%) comments, alongside a manageable BCRED redemption update that reassured investors about private credit flows and demand, while HOOD rises after announcing World Cup trading was now live on its prediction markets.

Meanwhile, Ciena (CIEN 532.98, -87.39, -14.09%) falls hard as investors likely took profits after a strong run and reacted to guidance and margin expectations that, while positive, may not have exceeded the market's already lofty expectations.

[BRIEFING.COM] The tech-heavy Nasdaq Composite (+0.12%) is in last place on Thursday afternoon, up now about 31 points after being down about 300 points at this morning's worst levels.

Gold futures settled $38.10 higher (+0.9%) at $4,505/oz, as a weaker U.S. dollar and lower Treasury yields increased demand for the precious metal ahead of Friday's jobs report. Investors also weighed expectations for potential Federal Reserve rate cuts if economic data continue to soften, providing additional support for gold prices.

Meanwhile, the U.S. Dollar Index is down about -0.2% to $99.38.

[BRIEFING.COM] The Dow Jones Industrial Average (+1.60%) is firmly in first place on Thursday afternoon, up about 810 points.

A look inside the DJIA shows that UnitedHealth (UNH 396.63, +19.63, +5.21%), Goldman Sachs (GS 1089.52, +48.50, +4.66%), and Merck (MRK 119.30, +4.60, +4.01%) are some of today's top gain getters.

Meanwhile, Verizon (VZ 45.17, -1.48, -3.17%) is underperforming.

The DJIA is up about +0.91% on the week.

[BRIEFING.COM] The stock market has shown a rather impressive display of resilience as the S&P 500 (+0.4%), Nasdaq Composite (-0.2%), and DJIA (+1.8%) sit mostly higher this afternoon despite considerable weakness across tech stocks.

Several components of the information technology sector (-1.5%) are sharply lower after reporting earnings yesterday after the close, with weakness spilling over to related names. Most notably, Broadcom (AVGO 415.13, -64.10, -13.38%) is leading semiconductor stocks lower after the company failed to impress with its next quarter guidance. The PHLX Semiconductor Index (-2.1%) is firmly lower, but investors have already stepped in on the weakness, as the index was down nearly 6% this morning.

In addition to tech stocks rising from their worst levels, the major averages are supported by exceptional participation in the broader market, suggesting some of the selling across tech has resulted in some rotational buying elsewhere.

Ten S&P 500 sectors trade higher, and advancers outpace decliners by a nearly 2-to-1 ratio on both the NYSE and the Nasdaq.

The health care sector (+3.0%) currently holds the widest gain as nearly all of its components trade higher, including its largest constituent, Eli Lilly (LLY 1132.51, +53.73, +4.98%), and the Dow components UnitedHealth (UNH 396.80, +19.80, +5.25%) and Merck (MRK 119.24, +4.54, +3.96%).

The financials sector (+2.8%) holds a similar gain, with several outperforming Dow components of its own in Goldman Sachs (GS 1093.84, +52.82, +5.07%) and American Express (AXP 313.55, +12.98, +4.32%).

Additionally, asset manager names are sharply higher after the group lagged yesterday amid renewed fears of increased redemption requests.

The communication services sector (+2.1%) rounds out the top performers, supported by a solid gain in Alphabet (GOOG 368.09, +12.41, +3.49%) that follows two consecutive sessions of weakness after the company announced an $84.75 billion equity capital raise to expand AI infrastructure and compute.

For now, today's session highlights a healthy rotation beneath the surface rather than a deterioration in risk appetite. Strong participation across financials, health care, and other non-tech sectors has largely offset semiconductor weakness, resulting in a fresh record high for the DJIA and keeping the other major indices near their own record highs despite considerable pressure on one of the market's most important leadership groups.

Reviewing today's data:

• Q1 Productivity-Rev. 0.3% (Briefing.com consensus 0.8%); Prior 0.8%, Q1 Unit Labor Costs-Rev. 1.8% (Briefing.com consensus 2.3%); Prior 2.3%
  • The key takeaway from the report is the understanding that productivity has picked up nicely from a year ago (+2.8%), while unit labor costs (+0.5%) have come down, tempering concerns about labor-based inflation pressures.
• Weekly Initial Claims 225K (Briefing.com consensus 216K); Prior was revised to 212K from 215K, Weekly Continuing Claims 1.777 mln; Prior was revised to 1.785 mln from 1.786 mln
  • The key takeaway from the report is that there isn't any concerning key takeaway. Granted, initial jobless claims-a leading indicator-were up from the prior week, but they remain at levels that are consistent with an otherwise solid labor market.

[BRIEFING.COM] The major averages continue to trade in a stable range early in the afternoon.

The financials sector (+2.6%) is one of today's top-performing S&P 500 sectors, supported by broad strength and solid leadership from asset manager names such as Blackstone (BX 118.78, +8.50, +7.71%) and Ares Management (ARES 130.83, +7.73, +6.28%). The group moved lower yesterday amid fresh concerns of heightened withdrawals from top funds, but has rebounded nicely today.

Elsewhere in the sector, major banking names are posting solid gains, with Goldman Sachs (GS 1091.62, +50.60, +4.86%) among the top-performing Dow components.

[BRIEFING.COM] The major averages trade near session highs at midday.

Ciena (CIEN 504.98, -115.38, -18.60%) remains the worst-performing S&P 500 component despite another strong quarter, with the reaction appearing to reflect a high bar into the print and a weaker tape for high-beta tech more than any major issue with the results. The company beat Q2 EPS and revenue expectations, reporting EPS of $1.64 on revenue of $1.57 billion, and guided both Q3 and FY26 revenue above consensus. Management also remained highly constructive on demand, with backlog rising again in Q2, expected to grow through FY26, and providing strong visibility into 2027. Still, shares were already near multi-year highs ahead of the report, and broader pressure following Broadcom's reaction appears to be weighing on even strong AI-related reports like Ciena's.

[BRIEFING.COM] The S&P 500 (+0.2%), Nasdaq Composite (-0.3%), and DJIA (+1.7%) are mostly higher just before midday, with broad strength helping pare a sharp retreat across tech names at the index level.

The major averages were mostly lower for much of the morning as Broadcom (AVGO 414.13, -65.10, -13.58%), Ciena (CIEN 499.33, -121.04, -19.51%), and CrowdStrike (CRWD 696.32, -51.29, -6.86%) slid after reporting earnings, with the weakness prompting some selling across the broader tech space.

The information technology sector (-1.8%) remains the weakest S&P 500 sector, but it has taken back a decent chunk of its early loss. The PHLX Semiconductor Index (-2.8%) is a focal point of the profit-taking, but it too has considerably improved after holding a loss that approached 6%.

Meanwhile, broader participation is stellar as investors rotate into other pockets of the market. Nine S&P 500 sectors trade higher, and advancers outpace decliners by a greater than 2-to-1 ratio on both the NYSE and the Nasdaq.

Outside of the S&P 500, the Russell 2000 (+1.4%) and S&P Mid Cap 400 (+0.6%) also garner some rotational interest, with lower Treasury yields providing additional support.

[BRIEFING.COM] The major averages continue to chart session highs as the market is showing signs of resilience after opening weakness.

Six "magnificent seven" names trade higher today, helping limit losses in the Vanguard Mega Cap Growth ETF (-0.2%) despite a host of large chipmakers trading lower.

Alphabet (GOOG 364.64, +8.96, +2.52%) is a notable standout, reclaiming a the bulk of its recent weakness after the company announced an $84.75 billion equity capital raise to expand AI infrastructure and compute.

[BRIEFING.COM] Action remains mixed across the major averages as the S&P 500 returns to its flatline while the Nasdaq Composite (-0.7%) lags and the DJIA (+1.4%) outperforms.

Broadcom (AVGO 407.12, -72.11, -15.05%) is trading sharply lower despite its typical upside for EPS and revenue in Q2 (Apr). Revenue rose a healthy 47.9% year-over-year to a record $22.19 billion, fueled by strength in AI semiconductors. This top-line strength translated into exceptional profitability with Q2 posting a record operating margin at 67%, and adjusted EBITDA margin was a record 69%, which was above prior guidance.

Management's tone remained highly confident, highlighting "insatiable" AI demand, bookings above shipments, and visibility into 2027-2028, but investors appear to be focusing on the gap between strong fundamentals and an even stronger setup embedded in the stock after its run into earnings. The expected Q3 gross margin step-down to about 74%, even if management framed it as a mix issue tied to faster semiconductor growth, likely added to the reset.

[BRIEFING.COM] The stock market remains poised for a mostly lower opening as prominent tech names retreat after the latest batch of earnings reports. The S&P 500 (-0.2%), Nasdaq Composite (-1.0%), and DJIA (+1.5%) are mixed shortly after the open as the latest round of earnings reports acts as a catalyst for selling across tech names, while the broader market garners some rotational buying interest.

The top-weighted information technology sector (-2.7%) is sharply lower this morning, with a 5.6% slide in the PHLX Semiconductor Index following Broadcom's (AVGO 405.87, -73.36, -15.31%) earnings release.

The energy sector (-0.4%) is the only other S&P 500 sector that trades lower this morning as crude oil steepens its retreat.

Meanwhile, nine S&P 500 sectors trade higher, with six holding gains of 1.0% or wider.

The health care (+3.2%) and financials (+2.4%) sectors are among the early standouts, with names such as UnitedHealth (UNH 398.41, +21.41, +5.68%), Merck (MRK 119.78, +5.08, +4.43%), and American Express (AXP 313.26, +12.69, +4.22%) contributing to the Dow's outperformance.

The stock market remains poised for a mostly lower opening as prominent tech names retreat after the latest batch of earnings reports.

Initial jobless claims for the week ending May 30 increased by 13,000 to 225,000 (Briefing.com consensus: 216,000). Continuing jobless claims for the week ending May 23 decreased by 8,000 to 1.777 million.

The key takeaway from the report is that there isn't any concerning key takeaway. Granted, initial jobless claims-a leading indicator-were up from the prior week, but they remain at levels that are consistent with an otherwise solid labor market.

First quarter productivity was revised down to 0.3% (Briefing.com consensus: 0.8%) from the preliminary estimate of 0.8%. Unit labor costs were revised down to 1.8% (Briefing.com consensus: 2.3%) from the preliminary estimate of 2.3%.

The key takeaway from the report is the understanding that productivity has picked up nicely from a year ago (+2.8%), while unit labor costs (+0.5%) have come down, tempering concerns about labor-based inflation pressures.

The S&P 500 futures currently trade 15 points below fair value.

Equity indices in the Asia-Pacific region came under selling pressure Thursday, mirroring the weakness seen in the U.S. market on Wednesday that was led by the mega-cap stocks and technology sector. Markets in Japan and South Korea saw weakness in the tech stocks act as a primary drag, while regional weakness was also an offshoot of concerns about stubbornly high oil prices and the USTR proposal to increase tariffs due to forced labor. Japan and South Korea were also digesting chatter about potential intervention to support weakening currencies. BOJ Governor Ueda, in a speech, spoke of inflation risks, which in turn increased speculation that the central bank will increase its policy rate this month.

• In economic data:
  • Australia's April Trade Balance A$1.791 bln (expected (A$1.230 bln; last A$-1.024 bln); Exports 7.2% m/m (last -2.5%) and Imports 0.8% (last 12.2%)
  • Hong Kong's May CPI 0.2% m/m (expected 0.3%; last 0.3%) and 0.6% yr/yr (expected 0.8%; last 0.6%); May Unemployment Rate 3.0% (expected 3.0%; last 3.0%)

---Equity Markets---

• Japan's Nikkei: -1.4%
• Hong Kong's Hang Seng: -1.5%
• China's Shanghai Composite: -0.6%
• India's Sensex: flat
• South Korea's KOSPI: -1.8%
• Australia's All Ordinaries: -1.1%

Major European bourses have traded in mixed fashion on Thursday, handcuffed somewhat by the ongoing conflict between the U.S. and Iran that has kept oil prices and inflation risks elevated. Markets are also feeling some carryover selling pressure within the technology space, as investors look to take some money off the table following a big run. Not much in the way of notable economic news to move the market. Construction PMI readings for May were improved from last month but still below 50.0, which is the demarcation line between expansion and contraction.

• In economic data:
  • Eurozone's May HCOB Construction PMI 43.7 (last 41.7); April Retail Sales -0.4% m/m (expected -0.3%; last 0.8%) and 1.0% yr/yr (expected 0.3%; last 2.1%)
  • Germany's May HCOB Construction PMI 42.4 (last 42.1)
  • France's May HCOB Construction PMI 39.6 (last 38.1)
  • Italy's May HCOB Construction PMI 49.4 (last 44.8)
  • U.K.'s May S&P Global Construction PMI 38.2 (expected 40.4; last 39.7)
  • Spain's April Industrial Production 2.0% yr/yr (expected 2.0%; last 1.9%)

---Equity Markets---

• STOXX Europe 600: +0.3%
• Germany's DAX Index: +0.6%
• U.K.'s FTSE 100: -0.1%
• France's CAC 40: +1.2%
• Italy's FTSE MIB: +0.1%
• Spain's IBEX 35: +0.8%

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

The revised reading of the Q1 Nonfarm business sector saw labor productivity increase 0.3% in the first quarter (Briefing.com consensus: 0.8%%) from the prior reading of 0.8%.

Q1 Unit labor costs were revised down to a 1.8% increase (Briefing.com consensus: 2.3%) from the prior reading of 2.3%.

Initial jobless claims for the week ending May 30 increased by 13,000 to 225,000 (Briefing.com consensus 216,000) from last week's revised reading of 212,000 (from 215,000).

Continuing jobless claims for the week ending May 23 fell to 1.777 million from a revised 1.785 million (from 1.786 million) in the prior week.

Equity futures point to a mostly lower opening as disappointing earnings results from several key tech names set the stage for broader weakness across tech names.

The information technology sector lagged yesterday, with weakness across software names and a poor showing from mega-cap stocks in general denying the S&P 500 a ten-day win streak.

Sotware names are poised for a lower opening as CrowdStrike Holdings (CRWD 675.99, -71.62, -9.6%) provided disappointing guidance with its earnings release yesterday after the close.

Semiconductor stocks, which outperformed yesterday despite the broader tech weakness, are also facing some earnings-driven pressure in the premarket after Broadcom (AVGO 407.13, -72.10, -15.0%) beat EPS expectations on in-line revenues.

On a more positive note, crude oil is moving lower this morning after President Trump told advisors he will not resume all-out war with Iran unless additional U.S. troops are killed, according to The Wall Street Journal.

Today will be another relatively light day on the economic data front, with the market set to receive the weekly initial jobless claims report (Briefing.com consensus 216K) at 8:30 a.m. ET.

In corporate news:

• Broadcom (AVGO 407.13, -72.10, -15.0%) beat EPS expectations by $0.04, reported revenues in-line, and guided Q3 revenues above consensus.
• CrowdStrike Holdings (CRWD 675.99, -71.62, -9.6%) beat EPS and revenue expectations, guided Q2 EPS in-line with revenues above consensus, raised its FY27 EPS and revenue guidance above consensus, and announced a four-for-one stock split.
• JP Morgan (JPM 303.90, +3.05, +1.0%) CEO Jamie Dimon will discuss SpaceX (SPCX) IPO with high-net-worth clients, according to Bloomberg.

Reviewing overnight developments: 

Equity indices in the Asia-Pacific region came under selling pressure Thursday, mirroring the weakness seen in the U.S. market on Wednesday that was led by the mega-cap stocks and technology sector. Japan's Nikkei: -1.4%, Hong Kong's Hang Seng: -1.5%, China's Shanghai Composite: -0.6%, India's Sensex: flat, South Korea's KOSPI: -1.8%, Australia's All Ordinaries: -1.1%.

In news:

• Markets in Japan and South Korea saw weakness in the tech stocks act as a primary drag, while regional weakness was also an offshoot of concerns about stubbornly high oil prices and the USTR proposal to increase tariffs due to forced labor.
• Japan and South Korea were also digesting chatter about potential intervention to support weakening currencies.
• BOJ Governor Ueda, in a speech, spoke of inflation risks, which in turn increased speculation that the central bank will increase its policy rate this month.

In economic data:

• Australia's April Trade Balance A$1.791 bln (expected (A$1.230 bln; last A$-1.024 bln); Exports 7.2% m/m (last -2.5%) and Imports 0.8% (last 12.2%)
• Hong Kong's May CPI 0.2% m/m (expected 0.3%; last 0.3%) and 0.6% yr/yr (expected 0.8%; last 0.6%); May Unemployment Rate 3.0% (expected 3.0%; last 3.0%)

Major European bourses have traded in mixed fashion on Thursday, handcuffed somewhat by the ongoing conflict between the U.S. and Iran that has kept oil prices and inflation risks elevated. STOXX Europe 600: -0.2%, Germany's DAX Index: +0.5%, U.K.'s FTSE 100: -0.7%, France's CAC 40: +0.8%, Italy's FTSE MIB: -0.2%, Spain's IBEX 35: +0.6%.

In news:

• Markets are also feeling some carryover selling pressure within the technology space, as investors look to take some money off the table following a big run.
• Not much in the way of notable economic news to move the market.
• Construction PMI readings for May were improved from last month but still below 50.0, which is the demarcation line between expansion and contraction.

In economic data:

• Eurozone's May HCOB Construction PMI 43.7 (last 41.7); April Retail Sales -0.4% m/m (expected -0.3%; last 0.8%) and 1.0% yr/yr (expected 0.3%; last 2.1%)
• Germany's May HCOB Construction PMI 42.4 (last 42.1)
• France's May HCOB Construction PMI 39.6 (last 38.1)
• Italy's May HCOB Construction PMI 49.4 (last 44.8)
• U.K.'s May S&P Global Construction PMI 38.2 (expected 40.4; last 39.7)
• Spain's April Industrial Production 2.0% yr/yr (expected 2.0%; last 1.9%)

[BRIEFING.COM] The major averages saw their push into record territory halted today, with the S&P 500 (-0.7%), Nasdaq Composite (-0.9%), and DJIA (-1.2%) all retreating from yesterday's record highs. The market faced a combination of pressures today, with mega-cap and select tech names facing some profit-taking after a strong stretch of leadership, while oil prices and Treasury yields rose in response to escalating geopolitical tensions.

Sector strength waned throughout the session, with six S&P 500 sectors finishing lower, three of which retreated by more than 1%.

The top-weighted information technology sector (-1.5%) was the worst-performing sector, making it difficult for the major averages to notch gains today. Semiconductor stocks faced some choppiness but turned in another relatively strong finish, with the PHLX Semiconductor Index gaining 1.4%. However, NVIDIA (NVDA 214.90, -7.92, -3.55%) lagged amid a weak showing from "magnificent seven" names today.

Microsoft (MSFT 427.59, -13.72, -3.11%) finished with a similar loss, though the broader software space was also under pressure today, with the iShares GS Software ETF (IGV 100.20, -4.53, -4.33%) extending yesterday's slide. Palo Alto Networks (PANW 280.43, -16.75, -5.64%) moved sharply lower despite turning in a strong earnings report.

Amazon (AMZN 250.02, -6.50, -2.53%) provided poor mega-cap leadership for the consumer discretionary sector (-1.1%), which also faced broad pressure from rising yields and a retreat in Ulta Beauty (ULTA 471.21, -23.66, -4.78%) despite a strong earnings report of its own.

All told, the Vanguard Mega Cap Growth ETF finished 1.1% lower, with some analyst commentary suggesting that mega-cap stocks could face some profit-taking as investors look for a source of funds for SpaceX (SPCX) and other upcoming high-profile IPOs.

Outside of the mega-cap space, the financials sector (-1.2%) also lagged, with festering private credit concerns weighing on asset manager names.

Meanwhile, the energy sector (+1.4%) captured the widest gain as crude oil futures settled today's session $2.25 higher (+2.4%) at $96.08 per barrel as the state of U.S.-Iran negotiations remains muddy, with reports of fresh strikes this morning testing the limits of the already tenuous ceasefire.

The consumer staples (+0.8%) and health care (+0.7%) sectors also notched solid gains as investors sought more defensive holdings today. Outside of the S&P 500, the Russell 2000 (-1.3%) lagged amid the step back in risk sentiment and rise across yields today.

The combination of oil-driven pressure, and pronounced weakness across the market's weightiest components, proved to be too much for the major averages to extend their record streak. However, with the S&P 500 still up in nine out of the last ten sessions, and the market demonstrating a propensity to buy any dips across growth-related names, sentiment remains largely intact in the near term.

U.S. Treasuries were under selling pressure today, as rising oil prices, new tariff proposals, and some solid economic data all converged to drive the view that the Fed won't be cutting the target range for the fed funds rate anytime soon. The 2-year note yield settled up four basis points to 4.09%, and the 10-year note yield settled up four basis points to 4.49%. 

• Russell 2000: +16.6% YTD
• Nasdaq Composite: +15.5% YTD
• S&P Mid Cap 400: +13.5% YTD
• S&P 500: +10.4% YTD
• DJIA: +5.5% YTD

Reviewing today's data:

• Weekly MBA Mortgage Applications Index -2.5%; Prior -8.5%
• May ADP Employment Change 122K (Briefing.com consensus 110K); Prior was revised to 105K from 109K
• May S&P Global U.S. Services PMI - Final 50.7; Prior 50.9
• April Factory Orders 4.8% (Briefing.com consensus 3.5%); Prior was revised to 1.8% from 1.5%
  • The key takeaway from the report is that the headline numbers masked a weak month for business spending, evidenced by the 1.0% decline in nondefense capital goods orders, excluding aircraft. To be fair, that decline followed a very strong 3.8% increase in March, so it could just be a natural pullback after a large increase.
• May ISM Non-Manufacturing Index 54.5% (Briefing.com consensus 53.6%); Prior 53.6%
  • The key takeaway from the report is the understanding that activity for the country's largest business sector picked up pace in May, notwithstanding higher prices that were reflected in the highest average 12-month reading (68%) since April 2023.