The midweek session unfolded in a similar fashion to yesterday's action, with significant losses across tech and mega-cap stocks pressuring the S&P 500 (-0.5%) and Nasdaq Composite (-1.5%) while the DJIA (+0.5%) benefited from rotational strength into other corners of the market. 

While the DJIA made a run towards fresh record highs this morning, the S&P 500 dipped below its 50-day moving average (6,878.02) as selling pressure increased in the early afternoon, though the index recovered and closed just above the key technical level. 

Meanwhile, the Nasdaq Composite remains below its own 50-day moving average (23,390.10), with today's losses moving the index into negative territory for the year. 

The top-weighted information technology sector (-1.9%) widened its year-to-date loss to 5.2%. While the sector lagged for the entirety of the session, it is worth noting that some support kicked in after an early afternoon slide that saw the sector's losses for the day expand past 3.0% amid a sharp retreat in bitcoin.

Still, the PHLX Semiconductor Index (-4.4%) faced a considerable retreat as shares of Advanced Micro Devices (AMD 200.19, -41.92, -17.31%) plummeted despite beating earnings expectations and delivering upside Q1 guidance. NVIDIA (NVDA 174.19, -6.15, -3.41%) had a poor showing, though the sector's other "magnificent seven" components, Apple (AAPL 276.49, +7.01, +2.60%) and Microsoft (MSFT 414.19, +2.98, +0.72%), fared better. 

Even with the modest gain in Microsoft, software stocks faced an extension of yesterday's pressure, sending the iShares GS Software ETF 1.8% lower. 

Pressure across mega-cap names elsewhere pushed the communication services (-1.7%) and consumer discretionary (-1.2%) sectors lower as well. Alphabet (GOOG 333.34, -7.36, -2.16%) was a laggard ahead of its earnings report after the close. 

The Vanguard Mega Cap Growth ETF finished 1.4% lower, widening its negative start to 2026. 

With the exception of a modest pullback in the utilities sector (-0.4%), which outperformed yesterday, the broader market saw another solid day of rotational interest. 

Seven S&P 500 sectors finished higher, with five boasting a gain of 1.0% or wider. As a result, the S&P 500 Equal Weighted Index 

The energy sector (+2.3%) once again captured the widest gain as crude oil futures settled today's session $1.97 higher (+3.1%) at $65.13 a barrel. Axios reported that diplomatic talks between the U.S. and Iran have hit a roadblock regarding nuclear negotiations. 

The materials sector (+1.8%) also saw an extension of yesterday's gains. Smurfit Westrock plc (SW 44.38, +3.48, +8.51%) led the advance after the company announced it will increase its quarterly dividend, while Amcor (AMCR 48.58, +3.66, +8.16%) finished similarly after topping EPS estimates and reaffirming its FY26 EPS guidance. 

Meanwhile, the health care sector (+1.2%) notched a solid gain after a lower finish yesterday, with Eli Lilly (LLY 1107.75, +104.29, +10.39%) and Amgen (AMGN 366.20, +27.61, +8.15%) among the top performers after beating earnings estimates. 

The real estate sector (+1.5%) advanced on broad strength, rounding out the top five, while the financials (+0.8%) and industrials (+0.2%) sectors captured more modest gains. 

Outside of the S&P 500, the Russell 2000 (-0.9%) and S&P Mid Cap 400 (+0.7%) finished mixed. 

Overall, the session reinforced the market's recent tug-of-war between persistent pressure on tech and the resulting rotational strength elsewhere. The market has more key mega-cap earinings on tap, which will likely be key in determining whether leadership stabilizes or the current rotation continues.

U.S. Treasuries had another steady showing on Wednesday, keeping yields near levels seen during Tuesday's sideways session. The 2-year note yield settled down one basis point to 3.56%, and the 10-year note yield finished unchanged at 4.28%. 

• S&P Mid Cap 400: +5.8% YTD
• Russell 2000: +5.8% YTD
• DJIA: +3.0% YTD
• S&P 500: +0.5% YTD
• Nasdaq Composite: -1.5% YTD

Reviewing today's data:

• Weekly MBA Mortgage Applications Index -8.9%; Prior -8.5%
• January ADP Employment Change 22K (Briefing.com consensus 43K); Prior was revised to 37K from 41K
• January S&P Global U.S. Services PMI - Final 52.7; Prior 52.5
• January ISM Non-Manufacturing Index 53.8% (Briefing.com consensus 53.7%); Prior was revised to 53.8% from 54.4%
  • The key takeaway from the report is that activity in the services sector grew at a steady pace in January at the same time prices paid for materials and services increased.

[BRIEFING.COM] The S&P 500 (-0.2%), Nasdaq Composite (-1.2%), and DJIA (+0.8%) continue to sit mixed with just half an hour left in today's session. 

Market participants will receive another batch of earnings reports after the close that will include Alphabet's (GOOG 334.64, -6.06, -1.78%) earnings release. 

Shares have been exceptionally strong, reaching new record highs this week before a minor pullback in a broader tech sell-off. On a year-over-year basis, the stock is up more than 60%, reflecting intense optimism around its AI integration and cloud acceleration.

The stock's recent run to record highs means there is little room for error, placing the spotlight on whether the Google Cloud acceleration and Search's AI-driven evolution can sustain mid-teens revenue growth.

While Meta Platforms' (META 673.32, -18.38, -2.66%) robust results provided a favorable backdrop for digital ads, the core tension for GOOG remains the massive CapEx required to lead the AI race. Management needs to convince investors that the $100 billion+ annual spend is yielding a clear "AI ROI" via Gemini enterprise adoption and infrastructure efficiency through its custom TPU silicon. A clean beat on Cloud revenue paired with a disciplined but aggressive FY26 CapEx guide could act as the next catalyst for the stock, while any signs of Search disruption or slowing Cloud backlog conversion could spark a near-term consolidation.

[BRIEFING.COM] The S&P 500 (-0.3%), Nasdaq Composite (-1.2%), and DJIA (+0.6%) are off their worst sessions of the afternoon with an hour left in today's session. 

The rebound effort has been led by some buying efforts in the information technology sector (-1.4%). The sector is still the day's worst performer, though it has shed half of its previous losses. Similarily, the PHLX Semiconductor Index (-3.3%) has narrowed its loss that exceeded 6.0%. 

The broader market continues to tilt higher, with seven S&P 500 sectors in positive territory. 

Elsewhere, Bitcoin seems to be bouncing off of its intraday lows, reapproaching the $74,000 mark. 

[BRIEFING.COM] The S&P 500 (-0.68%) is in second place on Wednesday afternoon, down about 47 points.

Briefly, S&P 500 constituents AppLovin (APP 384.45, -77.34, -16.75%), Boston Scientific (BSX 78.15, -13.47, -14.70%), and Amphenol (APH 130.47, -16.59, -11.28%) dot the bottom of the average. APP leads losses as investors fear credible AI-driven disruption to the mobile ad stack could erode AppLovin's core monetization moat, with the selloff amplified by crowded positioning and a broader software risk-off move, with BSX sliding despite beating Q4 EPS and revenue, as investors reacted to cautious FY26 guidance that slightly misses consensus and signals slower-than-expected near-term growth.

Meanwhile, Fortive (FTV 60.84, +6.49, +11.94%) is atop the standings after beating Q4 EPS and revenue expectations and issuing FY26 guidance above consensus, with strong execution, accelerating growth, and significant share buybacks boosting investor confidence.

.

[BRIEFING.COM] With about two hours to go on Wednesday the tech-heavy Nasdaq Composite (-1.85%) is in last place among the major averages.

Gold futures settled $15.80 higher (+0.3%) at $4,950.80/oz, as investors stepped back in after last week's sharp pullback, with dip buying and technical stabilization helping prices recover from recent volatility. Ongoing geopolitical uncertainty and steady central-bank demand continue to support bullion, even as dollar strength and profit-taking cap near-term gains.

Meanwhile, the U.S. Dollar Index is up about +0.3% to $97.69.

[BRIEFING.COM] The Dow Jones Industrial Average (-0.19%) is down now about 92 points, firmly off highs of the session which had the average up more than 408 points.

A look inside the DJIA shows that Goldman Sachs (GS 896.32, -42.67, -4.54%), NVIDIA (NVDA 172.90, -7.44, -4.13%), and Caterpillar (CAT 676.08, -26.81, -3.81%) are some of today's worst laggards.

Meanwhile, Amgen (AMGN 366.27, +27.68, +8.18%) is atop the standings.

The DJIA is now +0.52% higher week-to-date.

[BRIEFING.COM ]Another day of considerable weakness in tech and mega-cap names has the S&P 500 (-1.0%), Nasdaq Composite (-2.2%), and DJIA (-0.1%) moving lower despite mixed strength in the broader market.

Notably, the S&P 500 has slipped below its 50-day moving average (6,878.02) after finding support above it for most of the session. Similar to yesterday's action, losses have widened across tech names and have begun to permeate into other pockets of the market, eroding the solid early gain of the DJIA that saw it test yesterday's all-time high level. 

[BRIEFING.COM] Additionally, a sharp move lower in Bitcoin below $73,000 shortly after midday coincides with a recent uptick in selling pressure across stocks. 

The information technology sector (-2.9%) is down sharply, once again facing pressure on multiple fronts. 

Advanced Micro Devices (AMD 200.50, -41.61, -17.19%) is the worst-performing S&P 500 name despite topping earnings estimates and issuing upside guidance. 

Memory storage names such as Micron (MU 367.42, -52.02, -12.40%) and Sandisk (SNDK 600.33, -95.18, -13.68%) also face sharp retreats, while NVIDIA (NVDA 172.20, -8.14, -4.51%) is a mega-cap laggard. All told, the PHLX Semiconductor Index is down 6.1%, cutting its year-to-date gain roughly in half. 

Microsoft (MSFT 413.48, +2.27, +0.55%) has managed a modest gain, but pressure across software names keeps the iShares GS Software ETF (IGV 82.63, -2.76, -3.23%) firmly lower. 

Weakness across other mega-cap names has the communication services (-2.2%) and consumer discretionary (-1.6%) now moving sharply lower as well. The Vanguard Mega Cap Growth ETF is down 2.2%. 

However, like yesterday's action, there are some clear beneficiaries from the rotation out of tech, with solid gains in other pockets of the market pushing the S&P 500 Equal Weight Index (+0.5%) past the market-weighted S&P 500 (-1.0%). 

The energy sector (+1.8%) holds the widest gain amid a notable intraday increase in oil prices. Axios reported that the U.S. has rejected Iran's demand to shift nuclear talks, with the diplomatic path now hitting a deadlock. 

The consumer staples (+1.4%) and materials (+1.1%) are also once again near the top of the leaderboard, expanding upon solid gains yesterday. 

Meanwhile, the health care sector (+1.3%) also sports a solid gain, with Eli Lilly (LLY 1094.58, +91.12, +9.08%) and Amgen (AMGN 367.59, +29.00, +8.56%) soaring following earnings beats. 

Outside of the S&P 500, the Russell 2000 (-1.9%) and S&P Mid Cap 400 (-0.1%) now both sit lower after spending the morning mixed. 

Overall, the early afternoon trade continues to reflect a pronounced rotation away from growth and momentum, with strength in select defensive and cyclical pockets failing to fully offset the drag from tech and mega-cap weakness. As selling pressure broadens and key technical levels come into focus, the market remains on fragile footing into the next round of mega-cap earnings. 

Reviewing today's data:

• Weekly MBA Mortgage Applications Index -8.9%; Prior -8.5%
• January ADP Employment Change 22K (Briefing.com consensus 43K); Prior was revised to 37K from 41K
• January S&P Global U.S. Services PMI - Final 52.7; Prior 52.5
• January ISM Non-Manufacturing Index 53.8% (Briefing.com consensus 53.7%); Prior was revised to 53.8% from 54.4%
  • The key takeaway from the report is that activity in the services sector grew at a steady pace in January at the same time prices paid for materials and services increased.

[BRIEFING.COM] The S&P 500 (-0.8%), Nasdaq Composite (-1.3%), and DJIA (+0.3%) are heading toward session lows just after midday. 

While the iShares GS Software ETF (-2.5%) is a laggard again today, it is off of its worst levels of the session.  Microsoft (MSFT 414.24, +3.03, +0.74%) has finally found some modest buying interest after a sharp post-earnings slide that leaves it down 14.4% for the year. 

Elsewhere in the information technology sector (-2.6%), Apple (AAPL 275.12, +5.64, +2.09%) holds a solid gain, expanding on recent strength after its earnings release last week. 

[BRIEFING.COM] The major averages remain mixed at midday. 

The consumer discretionary sector (-0.9%) has sunk to its worst levels of the session. 

Tesla (TSLA 404.70, -17.26, -4.09%) is a "magnificent seven" laggard amid a weak day for the group, while Amazon (AMZN 234.37, -4.25, -1.78%) also trades lower ahead of its earnings release tomorrow morning.

Meanwhile, MGM Resorts (MGM 38.29, +4.12, +12.06%) is the best-performing stock in the sector after providing a robust FY 2025 business update, bringing other casino names such as Wynn Resorts (WYNN 114.54, +5.28, +4.83%) higher. 

On the earnings front, Chipotle Mexican Grill (CMG 39.09, -0.08, -0.20%) is flattish following its Q4 earnings report, as investors weigh mixed fundamentals against already-muted expectations. The burrito chain continues to face demand headwinds, as a modest EPS beat and in-line revenue were overshadowed by a return to negative comparable sales and a disappointing initial comp outlook for FY26.

[BRIEFING.COM] The S&P 500 (-0.2%), Nasdaq Composite (-1.0%), and DJIA (+0.7%) sit mostly lower amid another day of considerable rotation out of mega-cap and tech names. 

From a technical perspective, today's session resembles much of what unfolded yesterday. Strength in the broader market has the DJIA testing yesterday's record high level, while the S&P 500 once again tests its 50-day moving average, where buying support has kicked in. The tech-heavy Nasdaq Composite finds itself a laggard, remaining below its own 50-day moving average. 

The information technology sector (-1.7%) is once again the worst-performing S&P 500 sector. Advanced Micro Devices (AMD 203.79, -38.32, -15.83%) is the latest big tech company to move sharply lower despite topping earnings estimates and delivering upside guidance, while NVIDIA (NVDA 174.59, -5.75, -3.19%) contributes to weakness in the PHLX Semiconductor Index (-4.2%). 

Weakness across other mega-cap stocks also sends the communication services (-1.4%) and consumer discretionary (-0.5%) sectors lower. The Vanguard Mega Cap Growth ETF is down 1.3%. 

Meanwhile, the eight other S&P 500 sectors trade higher, helping the S&P 500 Equal Weighted Index (+0.8%) distance itself from the market-weighted S&P 500 (-0.2%). 

The energy (+1.4%) and materials (+1.4%) sectors expand upon yesterday's strength, while the health care sector (+1.3%) receives a nice boost from Eli Lilly (LLY 1100.72, +97.26, +9.69%) after the company beat earnings estimates and delivered robust guidance. 

Outside of the S&P 500, the Russell 2000 (-1.0%) and S&P Mid Cap 400 (+0.4%) sit mixed. 

[BRIEFING.COM] The major averages continue to sit mixed, though the S&P 500 (-0.4%) has slumped back toward session lows. 

Advanced Micro Devices (AMD 206.06, -36.05, -14.89%) is sharply lower despite beating Q4 expectations and issuing upside Q1 guidance last night. The company beat EPS expectations by its widest margin in over three years, while revenue increased 34.1% year-over-year to a record $10.27 billion. AMD expects Q1 revenue between $9.50-10.10, which includes about $100 mln of instinct sales to China. 

Fundamentals remain strong as AMD continues to take share in server and client while Data Center growth accelerates. That said, some investors may view the beat as a bit less clean since Q4 included some China Instinct revenue that was not widely expected, while the Q1 outlook still points to a sequential decline even as Data Center is expected to grow. More notably, a lot of optimism is already embedded in the stock around the MI450 and Helios opportunity.

Elsewhere, Eli Lilly (LLY 1106.65, +103.19, +10.28%) delivered a powerhouse performance for 4Q25, sending the stock trading sharply higher as the company continues to dominate the high-demand obesity and diabetes treatment markets. While its primary competitor, Novo Nordisk A/S (NVO 47.95, -2.35, -4.67%), issued a cautious outlook yesterday, LLY crushed 4Q25 estimates and provided upside FY26 guidance, reinforcing its position as a global leader in cardiometabolic health. Where NVO sees "unprecedented pricing pressure," LLY sees a "volume response" enabled by its massive internal investments in supply chain resilience. By committing $55 bln to manufacturing since 2020, LLY has effectively engineered its own growth trajectory, allowing it to meet overwhelming demand that competitors simply cannot.

[BRIEFING.COM] The S&P 500 (flat), Nasdaq Composite (-0.6%), and DJIA (+0.7%) have bounced off of their session lows as the information technology sector (-0.8%) has pared losses while the broader market trades mostly higher. 

The ISM Services PMI checked in at 53.8% in January (Briefing.com consensus: 53.7%), unchanged from a downwardly revised 53.8% (from 54.4%) in December. The dividing line between expansion and contraction is 50.0%, so the January reading reflects services sector activity growing at the same pace as the prior month.

The key takeaway from the report is that activity in the services sector grew at a steady pace in January at the same time prices paid for materials and services increased.

[BRIEFING.COM] The S&P 500 (-0.4%), Nasdaq Composite (-1.1%), and DJIA (+0.1%) sit mostly lower as lingering weakness across tech names weighs against a relatively strong broader market. 

Only four S&P 500 sectors trade lower, though the top-weighted information technology sector (-1.3%) is down sharply again today. Advanced Micro Devices (AMD 211.26, -30.85, -12.74%) trades sharply lower despite topping earnings estimates, pressuring the PHLX Semiconductor Index (-2.0%), while the iShares GS Software ETF (-4.0%) continues to plummet. 

The communication services sector (-1.0%) is also under pressure as Meta Platforms (META 669.90, -21.80, -3.15%) and Alphabet (GOOG 339.10, -1.60, -0.47%) provide weak mega-cap leadership. 

Elsewhere, yesterday's winners are continuing to perform well today. The materials (+1.6%) and energy (+1.3%) sectors both trade higher again as oil and precious metals prices continue to rebound from recent weakness, while the consumer staples sector (+1.2%) is off to another hot start with the vast majority of its components trading higher. 

The final January S&P Global U.S. Services PMI registered at 52.7, up from the prior reading of 52.5. 

Just released, the ISM Services PMI increased to 53.8% in January (Briefing.com consensus 53.7%) from the downwardly revised prior level of 53.7% (from 54.4%) in December.

The stock market is on track for a mixed opening this morning as stocks look to rebound from yesterday's retreat. 

The technology sector, which was a laggard yesterday, will have to overcome weakness in Advanced Micro Devices (AMD 218.50, -23.96, -9.8%) that comes after the company's earnings report. 

Additionally, mega-cap stocks, which weighed heavily on the major averages yesterday, are mostly lower in the premarket ahead of the next batch of mega-cap earnings this week. 

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

Most equity indices in the Asia-Pacific climbed on Wednesday with South Korea's Kospi (+1.6%) extending its record run. January Services PMI readings from the region were largely better-than-expected, showing accelerating activity. India's trade minister said that the deal with the U.S., which will remove tariffs on most industrial goods imports from the U.S., is nearly finalized. Vietnam's trade minister said that his country is willing to increase purchases of machinery and high-tech products from the U.S.

• In economic data:
  • China's January RatingDog Services PMI 52.3 (expected 52.0; last 52.0)
  • Japan's January Services PMI 53.7 (expected 53.4; last 51.6)
  • Hong Kong's January Manufacturing PMI 52.3 (last 51.9)
  • India's January Services PMI 58.5 (expected 59.3; last 58.0)
  • Australia's January Services PMI 56.3 (expected 56.0; last 51.1)
  • New Zealand's Q4 Employment Change 0.5% qtr/qtr (expected 0.3%; last 0.0%), Q4 Unemployment Rate 5.4% (expected 5.3%; last 5.3%), Q4 Participation Rate 70.5% (expected 70.3%; last 70.3%). Q4 Labor Cost Index 0.4% qtr/qtr (expected 0.5%; last 0.5%); 2.0% yr/yr, as expected (last 2.1%)

---Equity Markets---

• Japan's Nikkei: -0.8%
• Hong Kong's Hang Seng: +0.1%
• China's Shanghai Composite: +0.9%
• India's Sensex: +0.1%
• South Korea's Kospi: +1.6%
• Australia's ASX All Ordinaries: +0.6%

Major European indices trade on a mostly higher note while Germany's DAX (-0.1%) has failed to keep pace with losses in Deutsche Bank, Siemens, SAP, and Infineon weighing the market down. Elsewhere, UBS beat quarterly expectations while Credit Agricole reported a drop in profit. The Times Shadow Committee unanimously recommended that the Bank of England keeps its bank rate at 3.75% tomorrow. Similarly, the European Central Bank is also expected to leave its policy unchanged tomorrow.

• In economic data:
  • Eurozone's January Services PMI 51.6 (expected 51.9; last 52.4). Flash January CPI -0.5% m/m (last 0.2%); 1.7% yr/yr, as expected (last 2.3%). January Core CPI 2.2% yr/yr (expected 2.3%; last 2.3%)
  • Germany's January Services PMI 52.4 (expected 53.3; last 52.7)
  • U.K.'s January Services PMI 54.0 (expected 54.3; last 51.4)
  • France's January Services PMI 48.4 (expected 47.9; last 50.1)
  • Italy's January Services PMI 52.9 (expected 51.3; last 51.5). Flash January CPI 0.4% m/m, as expected (last 0.2%); 1.0% yr/yr, as expected (last 1.2%)
  • Spain's January Services PMI 53.5 (expected 56.6; last 57.1)

---Equity Markets---

• STOXX Europe 600: +0.5%
• Germany's DAX: -0.3%
• U.K.'s FTSE 100: +1.4%
• France's CAC 40: +1.0%
• Italy's FTSE MIB: +1.0%
• Spain's IBEX 35: +0.6%

The S&P 500 futures currently trade 10 points above fair value. 

Just released, the ADP Employment Change Index showed Private sector employment increased by 22,000 jobs in January (Briefing.com consensus 43,000) and pay was up 4.5 percent year-over-year according to the January ADP National Employment Report produced by ADP Research in collaboration with the Stanford Digital Economy Lab. 

The prior month's reading was downwardly revised to 37,000 from 41,000.

Equity futures point to a mixed opening this morning after the major averages took a step back yesterday amid a poor day for tech and mega-cap stocks. 

Software, semiconductors, and other tech names faced a retreat that bled into other growth areas and saw the S&P 500 dip below its 50-day moving average before finding some support, while the Nasdaq Composite closed below its own 50-day moving average. 

Headlines are fairly quiet this morning, though investors are currently receiving another sizable batch of earnings reports. Alphabet (GOOG 344.71, +4.01, +1.2%) reports after the close today, while Amazon (AMZN 239.30, +0.68, -0.3%) reports tomorrow, amid what has been a tough week so far for the mega-caps. 

The market will also receive several economic data releases this morning, including the January ADP Employment Change Report (Briefing.com consensus 43k) at 8:15 a.m. and the January ISM Non-Manufacturing Index (Briefing.com consensus 53.7%) at 10:00 a.m. The MBA Mortgage Applications Index for the week ended January 31 decreased 8.9% from a prior decrease of 8.5%. 

In corporate news:

• Advanced Micro Devices (AMD 220.10, -22.01, -9.1%) beat EPS expectations by $0.21, beat revenue expectations, and guided Q1 revenues above consensus. 
• Amgen (AMGN 334.00, -4.59, -1.4%) beat EPS expectations by $0.56, beat revenue expectations, and guided FY26 EPS in line, with revenues in-line. 
• Eli Lilly (LLY 1,088.62, +85.16, +8.5%) beat EPS expectations by $0.63, beat revenue expectations, and guided FY26 EPS above consensus with revenues above consensus. 
• NVIDIA (NVDA 180.63, +0.29, +0.2%) is close to a deal to invest $20 billion in OpenAI, according to Bloomberg. 
• Texas Instruments (TXN 217.58, -7.63, -3.4%) has entered an agreement to acquire Silicon Laboratories (SLAB 206.00, +69.38, +50.78%) for $231 per share in an all-cash transaction. 

Reviewing overnight developments:

Most equity indices in the Asia-Pacific climbed on Wednesday with South Korea's Kospi (+1.6%) extending its record run. Japan's Nikkei: -0.8%, Hong Kong's Hang Seng: +0.1%, China's Shanghai Composite: +0.9%, India's Sensex: +0.1%, South Korea's Kospi: +1.6%, Australia's ASX All Ordinaries: +0.6%.

In news:

• January Services PMI readings from the region were largely better-than-expected, showing accelerating activity.
• India's trade minister said that the deal with the U.S., which will remove tariffs on most industrial goods imports from the U.S., is nearly finalized.
• Vietnam's trade minister said that his country is willing to increase purchases of machinery and high-tech products from the U.S.

In economic data:

• China's January RatingDog Services PMI 52.3 (expected 52.0; last 52.0)
• Japan's January Services PMI 53.7 (expected 53.4; last 51.6)
• Hong Kong's January Manufacturing PMI 52.3 (last 51.9)
• India's January Services PMI 58.5 (expected 59.3; last 58.0)
• Australia's January Services PMI 56.3 (expected 56.0; last 51.1)
• New Zealand's Q4 Employment Change 0.5% qtr/qtr (expected 0.3%; last 0.0%), Q4 Unemployment Rate 5.4% (expected 5.3%; last 5.3%), Q4 Participation Rate 70.5% (expected 70.3%; last 70.3%). Q4 Labor Cost Index 0.4% qtr/qtr (expected 0.5%; last 0.5%); 2.0% yr/yr, as expected (last 2.1%)

Major European indices trade on a mostly higher note while Germany's DAX (-0.3%) has failed to keep pace with losses in Deutsche Bank, Siemens, SAP, and Infineon weighing the market down. STOXX Europe 600: +0.4%, Germany's DAX: -0.3%, U.K.'s FTSE 100: +1.4%, France's CAC 40: +0.9%, Italy's FTSE MIB: +0.9%, Spain's IBEX 35: +0.4%.

In news:

• Elsewhere, UBS beat quarterly expectations while Credit Agricole reported a drop in profit.
• The Times Shadow Committee unanimously recommended that the Bank of England keeps its bank rate at 3.75% tomorrow.
• Similarly, the European Central Bank is also expected to leave its policy unchanged tomorrow.

In economic data:

• Eurozone's January Services PMI 51.6 (expected 51.9; last 52.4). Flash January CPI -0.5% m/m (last 0.2%); 1.7% yr/yr, as expected (last 2.3%). January Core CPI 2.2% yr/yr (expected 2.3%; last 2.3%)
• Germany's January Services PMI 52.4 (expected 53.3; last 52.7)
• U.K.'s January Services PMI 54.0 (expected 54.3; last 51.4)
• France's January Services PMI 48.4 (expected 47.9; last 50.1)
• Italy's January Services PMI 52.9 (expected 51.3; last 51.5). Flash January CPI 0.4% m/m, as expected (last 0.2%); 1.0% yr/yr, as expected (last 1.2%)
• Spain's January Services PMI 53.5 (expected 56.6; last 57.1)

[BRIEFING.COM] After a solid start to the week, stocks faced a considerable pullback today. Weakness across mega-cap and tech names saw the Nasdaq Composite (-1.4%) underperform, closing beneath its 50-day moving average of 23,374.58. The S&P 500 (-0.8%) also briefly dipped below its own 50-day moving average (6,871.53) before garnering some support. 

Early in the session, losses were relatively limited to tech names, and the DJIA (-0.3%) actually notched an all-time intraday high. The Russell 2000 (+0.3%) and S&P Mid Cap 400 (+0.2%) also traded higher before the market's losses began to widen in both size and scope, though a late-session uptick saw them notch slight gains. 

The information technology sector (-2.2%) managed a modest bump off of session lows but still finished as the worst-performing S&P 500 sector by a considerable margin. 

Leadership was poor, with Microsoft (MSFT 411.21, -12.16, -2.87%) continuing its post-earnings slide and pressuring software stocks. Gartner (IT 160.16, -42.24, -20.87%) was the worst-performing S&P 500 name today, and the iShares GS Software EFT finished 4.6% lower. 

Though software names have had a rough start to the year, the weakness has largely been offset by strength in semiconductor stocks. That was certainly not the case today, with a 2.1% slide in the PHLX Semiconductor Index suggesting some concerns around the broader AI trade. 

NVIDIA (NVDA 180.32, -5.29, -2.85%) was another notable laggard, with the company garnering plenty of headline coverage surrounding its relationship with OpenAI. Reuters reported that OpenAI is exploring alternatives to NVIDIA's chips, causing executives from both companies to downplay the headline throughout the day. 

Palantir Technologies (PLTR 157.88, +10.10, +6.84%) and Teradyne (TER 282.99, +33.46, +13.41%) traded higher after their earnings reports but finished well off their best pre-market levels.

With the AI trade facing a downturn in sentiment, it comes as no surprise that other mega-cap stocks began to lag as well. 

Alphabet (GOOG 340.70, -4.20, -1.22%), Meta Platforms (META 691.70, -14.71, -2.08%), and Amazon (AMZN 238.62, -4.34, -1.79%) all finished with similar losses, sending the communication services (-1.3%) and consumer discretionary (-1.0%) sectors lower. 

The Vanguard Mega Cap Growth ETF finished 2.0% lower, and the market-weighted S&P 500 (-0.8%) underperformed the S&P 500 Equal Weighted Index (-0.2%).

Elsewhere in the consumer discretionary sector, travel-related names such as Expedia Group (EXPE 234.46, -42.21, -15.26%) and Booking Holdings (BKNG 4644.64, -477.61, -9.32%) faced considerable retreats, while homebuilder names outperformed following a Politico report that the House is planning a vote next week on legislation to increase housing supply. 

The health care sector (-1.0%) also faced a sizable loss as Eli Lilly (LLY 1002.98, -41.15, -3.94%) traded lower ahead of its earnings tomorrow morning, while the financial sector (-0.9%) finished with a similar loss as PayPal (PYPL 41.70, -10.63, -20.31%) plummeted after missing earnings estimates. 

Meanwhile, five S&P 500 sectors put together solid performances, though it was not enough to offset weakness elsewhere. 

The energy sector (+3.3%) expanded its lead for the year as oil prices rebounded from yesterday's lows, with crude oil futures settling today's session $0.97 higher (+1.6%) at $63.16 per barrel. 

In a similar fashion, the materials sector (+2.0%) notched a solid gain as gold prices recovered from a sharp retreat, with gold futures settling $282.40 higher (+6%) at $4,935.00 per oz, marking their largest one-day gain since 2008. Ball Corp (BALL 61.77, +5.08, +8.96%) made a nice move higher after topping earnings estimates.

The more defensive consumer staples (+1.7%) and utilities sector (+1.5%) also performed well, garnering some rotational interest amid the weakness in tech and other growth pockets.  PepsiCo (PEP 162.85, +7.65, +4.93%) made a nice move higher after beating earnings expectations, while Walmart (WMT 127.71, +3.65, +2.94%) continues an impressive surge that seats it with a 14.6% year-to-date gain. 

Overall, today's action reflected a clear rotation away from growth and momentum areas toward more defensive and value-oriented sectors, leaving the major averages under broad pressure by the close. With sentiment around AI and mega-cap leadership wobbling, traders appear increasingly cautious as the market heads into another high-profile batch of earnings reports.

There was no economic data of note today, as the December Job Openings and Labor Turnover Report was delayed by the brief government shutdown, which will end after the House narrowly passed a funding bill this afternoon.

U.S. Treasuries finished Tuesday on a flat note after recovering from a slightly lower start. The 2-year note yield finished unchanged at 3.57%, and the 10-year note yield also finished unchanged at 4.27%. 

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