[BRIEFING.COM] The S&P 500 (+0.3%), Nasdaq Composite (+0.9%), and DJIA (-0.2%) started the week on a mostly higher note as semiconductor names rebounded from Friday's selloff, though the major indices finished well off their session highs as participation narrowed throughout the day.

The top-weighted information technology sector (+1.5%) paced the gains, though it too finished with just over half of its earlier gain. Semiconductor stocks led the advance and the PHLX Semiconductor Index (+5.6%) finished with the bulk of its strength.

Gains across the group were relatively broad as investors bought into Friday's dip, with some perhaps following the advice of NVIDIA (NVDA 208.64, +3.54, +1.73%) CEO Jensen Huang, who said over the weekend that the pullback creates a buying opportunity.

In addition to the broader rebound effort, several stock-specific headlines contributed to the action. Intel (INTC 110.27, +11.10, +11.19%) was the top performing S&P 500 name after The Information reported that Alphabet (GOOG 361.17, -4.59, -1.25%) and NVIDIA (NVDA 208.64, +3.54, +1.73%) are considering using the company as a backup chip supplier, while Corning (GLW 187.54, +9.96, +5.61%) moved higher after announcing a multibillion-dollar data center infrastructure deal with Amazon (AMZN 245.22, -0.81, -0.33%).

Though not S&P 500 components, Cerebras Systems (CBRS 237.83, +36.82, +18.32%) surged following its quiet-period expiration after most Wall Street initiations came in with bullish ratings, while Marvell (MRVL 288.85, +25.38, +9.63%) rallied after news that it will join the S&P 500 before the market opens on June 22. Both stocks added to the enthusiasm across technology and AI-related names that supported today's advance.

Elsewhere in the technology sector, Apple (AAPL 301.54, -5.80, -1.89%) reversed a 3% gain after underwhelming investors at its World Wide Developers Conference, where it introduced Siri AI and other AI features for its products.

Participation in the broader market waned considerably throughout the session, leaving just three S&P 500 sectors in positive territory at the closing bell.

The energy sector (+1.1%) outperformed amid a modest bump in oil prices, with crude oil futures settled today's session $0.69 higher (+0.8%) at $91.26 per barrel. Oil finished well off its overnight highs as Israel and Iran, which had been exchanging fire, agreed to halt strikes for the time being.

The consumer discretionary sector (+0.5%) rounds out the three advancing sectors, which was largely due to a solid rebound effort in Tesla (TSLA 408.90, +17.90, +4.58%) after Friday's slide.

Meanwhile, the communication services sector (-1.1%) finished near the bottom of the leaderboard amid weak leadership from its mega-cap components. Alphabet (GOOG 361.17, -4.59, -1.25%) continues to move lower following last week's announcement of an $84.75 billion equity raise, while Meta Platforms (META 585.39, -7.61, -1.28%) finished with a similar loss.

The utilities sector (-1.9%) and real estate (-1.6%) sectors finished with the widest losses after outperforming on Friday, while the materials sector (-1.3%) was pressured by weakness in its construction materials components.

Outside of the S&P 500, the Russell 2000 (+0.8%) and S&P Mid Cap 400 (+0.2%) finished higher, but like the broader market, ceded much of their earlier gains.

Altogether, today's session was somewhat underwhelming, as a powerful rebound across semiconductor stocks translated into only modest gains at the index level. The market continued to face weakness across many of its largest non-semiconductor components, while participation in the broader market steadily narrowed throughout the session. Additionally, the market will face several notable tests throughout the remainder of the week, including key inflation readings, Oracle's (ORCL 211.80, -1.88, -0.88%)earnings release, and the eagerly anticipated mega-IPO of SpaceX on Friday.

There was no economic data of note. 

U.S. Treasuries had a mixed showing to begin the week, as 5s and shorter tenors finished flat while 10s and 30s settled modestly lower after outperforming last week. The 2-year note yield settled unchanged at 4.16%, and the 10-year note yield settled up two basis points to 4.55%. 

• Russell 2000: +15.1% YTD
• S&P Mid Cap 400: +11.9% YTD
• Nasdaq Composite: +11.6% YTD
• S&P 500: +8.2% YTD
• DJIA: +5.7% YTD

[BRIEFING.COM] The S&P 500 (+0.2%) has seen the bulk of its early gains whittled away, sitting just modestly above its flatline in the last half hour of today's action.

The top-weighted information technology sector (+1.2%) remains firmly higher but has given back roughly half of its gain today, with Apple (AAPL 302.58, -4.76, -1.55%) reversing a 3% gain after developments at the company's WWDC seemingly disappointed investors.

The market will receive just a small batch of earnings reports after the close and before tomorrow's open tomorrow, none of which are expected to have market-moving potential.

[BRIEFING.COM] The S&P 500 (+0.5%), Nasdaq Composite (+1.1%), and DJIA (unch) are little changed from previous levels as the market enters the final hour of the session.

Advancers continue to outpace decliners by a modest ratio on both the NYSE and Nasdaq, though sector strength skews towards the negative, with eight S&P 500 sectors trading lower.

Mega-cap stocks remain among the outperformers, with the Vanguard Mega Cap Growth ETF up 0.7%, contributing to the outperformance of the market-weighted S&P 500 (+0.5%) compared to the S&P 500 Equal Weighted Index (+0.2%).

[BRIEFING.COM] Today's primary trading trends remain intact, with strength in the rebound effort concentrated in the tech sector just as Friday's sell-off was.

Notably, Apple (AAPL 304.80, -2.54, -0.82%) kicked off its Worldwide Developers Conference today, where it introduced Siri AI and other AI features for its products. Investors seemed to be underwhelmed, as shares of Apple retreated during the presentation, which ended a short time ago.

AAPL had been up as much as 3.3% earlier today but has turned negative for the session. That has curtailed some of the information technology sector's (+1.9%) strength, but it hasn't derailed its position as a relative and absolute strength leader thanks to the heady gains seen in many of the semiconductor stocks.

[BRIEFING.COM] Micro-cap stocks, small-cap stocks, high-beta stocks, the information technology sector (+2.1%), and the semiconductor space (SOX Index +6.8%) are among the standouts in today's session, as they have received a renewed boost from buy-the-dip action.

The rest of the market, so to speak, has been underwhelming with rate-hike concerns-or, at least, concern about higher rates for longer-helping to keep a lid on things.

The latter point notwithstanding, it is clear that some of the edge has been taken off from Friday's broad-based and deep pullback, as seen in the CBOE Volatility Index. The VIX Index, or so-called "fear gauge," surged as high as 21.57 on Friday (up from 15.40 last Thursday) but has backed down 12.9% today to 18.73.

[BRIEFING.COM] The major averages continue to trade in a mixed fashion shortly after midday.

Apple's (AAPL 312.92, +5.58, +1.82%) stock has come down modestly from its session highs after initial announcements at the company's World Wide Developer Conference were met with a muted response. The company is largely focusing on a variety of performance improvements, while also announcing some developments around child safety features and liquid glass.

[BRIEFING.COM] The major averages are supported by a strong rebound across semiconductor stocks today, sending the S&P 500 (+0.6%) and Nasdaq Composite (+1.2%) firmly higher while the DJIA (-0.1%) holds a modest loss as broader market participation softens.

Over the weekend, NVIDIA (NVDA 208.67, +3.57, +1.74%) CEO Jensen Huang told reporters that last week's selloff across tech stocks presented a buying opportunity. The commentary added to sentiment in a market that has been quick to embrace any buy-the-dip impulse across semiconductor and AI-related names.

So far, investors are following through, with the PHLX Semiconductor Index (+6.7%) reclaiming roughly two-thirds of Friday's losses. Intel (INTC 110.79, +11.62, +11.72%) is a top mover after The Information reported that Alphabet (GOOG 359.29, -6.47, -1.77%) and NVIDIA (NVDA 208.67, +3.57, +1.74%) are considering using the company as a backup chip supplier, while Micron (MU 954.00, +89.99, +10.42%) holds a similar gain.

Elsewhere in the information technology sector (+2.2%), Apple (AAPL 313.55, +6.21, +2.02%) trades higher as investors await the start of its World Wide Developers Conference.

Though not S&P 500 components, Cerebras Systems (CBRS 246.80, +45.79, +22.78%) trades higher following its quiet-period expiration day after the majority of Wall Street initiations skewed bullish, while Marvell (MRVL 298.60, +35.13, +13.33%) moves higher after news that it will join the S&P 500 before the market opens on June 22.

Outside of tech, strength has waned since this morning, with just three S&P 500 sectors currently holding gains. The energy sector (+1.1%) outperforms as crude oil holds a modest gain for the day, currently up $0.60 (+0.7%) to $91.14 per barrel. Oil is well off its overnight highs as Israel and Iran have announced a halt in strikes after exchanging fire over the weekend.

The consumer discretionary sector (+0.7%) rounds out the gainers, with Tesla (TSLA 406.92, +15.92, +4.07%) providing solid mega-cap leadership. Meanwhile, Alphabet (GOOG 359.29, -6.47, -1.77%) and Meta Platforms (META 586.41, -6.59, -1.11%) extend recent weakness, keeping the communication services sector (-1.1%) firmly lower.

The utilities sector (+1.6%) holds the widest loss as defensive areas lag amid the tech rally, while the real estate (-1.4%) and materials (-1.2%) sectors also decline.

Outside of the S&P 500, the Russell 2000 (+1.3%) and S&P Mid Cap 400 (+0.6%) are off their best levels but remain firmly higher.

Overall, the session reflects a powerful semiconductor-led rebound as investors continue to aggressively buy the dip in AI and chip-related names. Looking ahead, markets will be watching Apple's WWDC, key inflation readings this week, and ongoing buzz around potential IPO pipelines, including SpaceX, but for now, sentiment remains anchored by persistent dip-buying and strong momentum in tech leadership.

There is no economic data of note today.

[BRIEFING.COM] The major averages continue to trade higher just after midday as solid tech gains outweigh some volatility elsewhere.

Several of today's top movers in tech are not S&P 500 components, though Marvell's (MRVL 300.18, +36.71, +13.93%) sharp gain follows news that the stock will join the index prior to the market open on June 22.

Meanwhile, Cerebras Systems (CBRS 239.07, +38.06, +18.93%) is launching higher on quiet-period expiration day after the majority of Wall Street initiations landed on the bullish side, helping revive momentum in a stock that had been in freefall since its remarkable May 14 debut. Highlights included Morgan Stanley initiating at Overweight with a $250 price target and Citi starting at Buy with a $340 target, roughly 45% above current levels, reinforcing the view that analysts still see meaningful upside despite the stock trading 43% below its $350 IPO opening price prior to today's move.

[BRIEFING.COM] The S&P 500 (+0.7%) and Nasdaq Composite (+1.3%) remain firmly higher amid the rally across tech, but some choppiness in the broader market has the DJIA (+0.3%) holding a more modest gain.

Microsoft (MSFT 410.99, -5.68, -1.36%) and Salesforce (CRM 182.21, -3.45, -1.86%) weigh on the index as software names put up mixed performances today, while Travelers (TRV 298.37, -4.88, -1.61%) and Visa (V 320.71, -2.86, -0.88%) reflect modest weakness shown across the financials sector (-0.1%) today, though there is relative strength across major banking names such as Goldman Sachs (GS 1056.81, +18.13, +1.75%).

[BRIEFING.COM] The S&P 500 (+1.1%), Nasdaq Composite (+1.7%), and DJIA (+0.5%) are bouncing back from Friday's selloff as investors buy into the most recent dip across semiconductor stocks.

The PHLX Semiconductor Index (+6.8%) has reclaimed around two-thirds of Friday's losses, pushing the information technology sector (+2.6%) to the top of today's sector leaderboard. In addition to the technical rebound, there are a few notable stock-specific headlines across the group. Intel (INTC 111.33, +12.16, +12.26%) trades sharply higher after The Information reported Alphabet (GOOG 360.94, -4.82, -1.32%) and NVIDIA (NVDA 207.88, +2.78, +1.36%) are considering using the company as a backup chip manufacturer, while Corning (GLW 189.00, +11.42, +6.43%) surges after announcing a multibillion-dollar data center infrastructure deal with Amazon (AMZN 246.92, +0.89, +0.36%).

Strength is mixed in the broader market, though the energy sector (+1.3%) is another top mover, with WTI crude up $1.39 (+1.5%) to $91.93 per barrel. Oil is well off its overnight highs as Israel and Iran halt strikes against each other for the time being.

Outside of the S&P 500, the Russell 2000 (+1.7%) and S&P Mid Cap 400 (+0.9%) hold solid gains, supported by a relatively stable showing from U.S. Treasuries today.

[BRIEFING.COM] The S&P 500 (+0.9%), Nasdaq Composite (+1.5%), and DJIA (+0.3%) are maintaining their early gains.

With tech stocks back in the driver's seat today, it is not surprising that the defensive utilities (-0.9%) and consumer staples (-0.2%) sectors are underperforming today, especially given the fact that the sectors notched solid gains during Friday's tech-driven selloff.

Meanwhile, the health care sector (+0.4%) trades higher, with its largest component, Eli Lilly (LLY 1162.84, +31.42, +2.78%), trading higher after weekend data strengthened the case that its obesity franchise is becoming a multi-asset platform rather than a single injectable-product story. The biggest driver appears to be new retatrutide data showing substantial weight loss and meaningful improvements across obesity-related comorbidities, alongside fresh support for LLY's recently launched oral GLP-1, Foundayo/orforglipron.

[BRIEFING.COM] The major averages trade in a relatively stable range this morning as tech stocks continue to pace the advance.

Semiconductor names are doing the bulk of the lifting this morning, as the iShares GS Software ETF (+0.3%) holds just a modest gain amid mixed strength across software names. Oracle (ORCL 212.05, -1.63, -0.76%) is a laggard ahead of its earnings release Wednesday after the close.

Elsewhere on the earnings front, The Campbell's Company (CPB 21.38, -0.30, -1.38%) is trading lower despite reporting Q3 adjusted EPS of $0.50, ahead of the FactSet $0.48 consensus, while revenue of $2.37 billion was essentially in line with expectations and FY26 adjusted EPS guidance was reaffirmed at $2.15-$2.25. The negative reaction suggests investors are looking past the EPS beat and guidance hold, focusing instead on another soft quarter marked by a 4% organic sales decline, 4% sales declines in both Meals & Beverages and Snacks, negative volume/mix, and continued pressure from tariffs, inflation, and supply chain costs.

[BRIEFING.COM] The S&P 500 (+0.5%), Nasdaq Composite (+0.8%), and DJIA (+0.2%) trade higher as semiconductor stocks take back a nice chunk of Friday's weakness against a backdrop of mixed strength in the broader market.

The top-weighted information technology sector (+2.0%) leads the advance, with the PHLX Semiconductor Index (+4.0%) reclaiming a little under half of Friday's loss. Intel (INTC 107.13, +7.96, +8.03%) is an early outperformer after The Information reported that Alphabet (GOOG 360.18, -5.58, -1.53%) and NVIDIA (NVDA 206.32, +1.22, +0.60%) are considering using the company as a backup chip manufacturer, while Micron (MU 926.86, +62.85, +7.27%) holds a similar gain.

The energy sector (+1.6%) is another top mover this morning despite oil prices slipping from their overnight highs as Israel and Iran halt strikes against each other. WTI crude oil is currently up $0.60 (+0.7%) to $91.14 per barrel after nearing $96.00 per barrel overnight.

Gains are more modest elsewhere, though solid mega-cap leadership from Tesla (TSLA 401.32, +10.32, +2.64%) is pushing the consumer discretionary sector (+0.9%) to its best levels.

Meanwhile, five S&P 500 sectors trade lower. The losses are generally modest in nature, though the communication services sector (-1.0%) continues to struggle as Alphabet (GOOG 360.18, -5.58, -1.53%) and Meta Platforms (META 588.62, -4.38, -0.74%) extend their recent bout of underperformance, with Meta moving further below its 50-day moving average.

The stock market remains poised to kick off a busy week on a higher note as investors buy into Friday's selloff.

Intel (INTC 112.04, +12.87, +13.0%) is among the mega-cap tech names that are positioned for sharp opening gains, rising on a report from The Information that Alphabet (GOOG 366.47, +0.71, +0.2%) and NVIDIA (NVDA 210.59, +5.49, +2.7%) are considering the considering the company as a backup for chip manufacturing.

The S&P 500 futures currently trade 69 points above fair value. 

Equity indices in the Asia-Pacific region began the week on a broadly lower note with South Korea's Kospi (-8.3%) deepening last week's reversal from a record high. There were some renewed concerns about the direction of the conflict between Iran and the U.S., reflected by a rebounding price of oil. China's President Xi made a State visit to North Korea. Japan's Q1 GDP was left unrevised at the headline level (0.5% qtr/qtr) while GDP Deflator was revised down to 3.2% from 3.4%.

• In economic data:
  • Japan's Q1 GDP 0.5% qtr/qtr, as expected (last 0.3%), Q1 GDP Annualized 1.8% qtr/qtr (expected 2.1%; last 0.7%). Q1 GDP Price Index 3.2% yr/yr (expected 3.4%; last 3.4%), Q1 GDP Capital Expenditure -0.7% qtr/qtr (expected 0.3%; last 0.1%), Q1 GDP Private Consumption 0.3% qtr/qtr, as expected (last 0.1%), Q1 GDP External Demand 0.3% qtr/qtr, as expected (last 0.0%). April Current Account surplus JPY4.21 trln (expected JPY3.26 trln; last JPY3.90 trln), May Bank Lending 5.7% yr/yr (expected 5.6%; last 5.4%), and May Economy Watchers Current Index 43.6 (expected 41.9; last 40.8)

---Equity Markets---

• Japan's Nikkei: -3.9%
• Hong Kong's Hang Seng: -1.3%
• China's Shanghai Composite: -1.7%
• India's Sensex: -1.0%
• South Korea's Kospi: -8.3%
• Australia's ASX All Ordinaries: HOLIDAY

Major European indices trade on a mostly lower note while Italy's MIB (+0.7%) outperforms, holding a modest gain. Germany reported a sharper-than-expected drop in April Factory Orders (-3.8%; expected -2.2%), though the market still expects a 25-basis point rate hike from the European Central Bank on Thursday. Italy's Intesa Sanpaolo offered EUR30.6 bln to purchase Monte dei Pachi di Siena, looking to form the second-largest lender in the eurozone.

• In economic data:
  • Eurozone's June Sentix Investor Confidence -13.4 (expected -13.8; last -16.4)
  • Germany's April Factory Orders -3.8% m/m (expected -2.2%; last 4.5%)

---Equity Markets---

• STOXX Europe 600: -0.3%
• Germany's DAX: -0.5%
• U.K.'s FTSE 100: +0.1%
• France's CAC 40: -0.3%
• Italy's FTSE MIB: +0.7%
• Spain's IBEX 35: -0.1%

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

On the earnings front, The Campbell's Company (CPB 22.15, +0.47, +2.2%) beat EPS expectations by $0.02, reported revenues in-line, and reaffirmed its FY26 EPS guidance. The stock is set to be removed from the S&P 500 on June 22.

Equity futures point to a higher opening this morning after a tech-driven selloff on Friday that snapped a nine-week win streak for the S&P 500.

Investors are stepping in to Friday's weakness this morning, with many of the largest chipmaker names poised for solid opening gains.

On the geopolitical front, Israel and Iran exchanged strikes over the weekend, which sent oil prices higher, but they are now retreating after Iran's state media said Iran's armed forces will end military operations against Israel.

There is no economic data of note on the calendar today, but this week will feature the May CPI report (Breifing.com consensus 0.5%) on Wednesday, with PPI (Briefing.com consensus 0.7%) to follow on Thursday. The inflation readings will be of particular interest given that newly minted Fed Chairman Kevin Warsh will head his first FOMC meeting later this month.

In an interview with NBC News, President Trump said he doesn't want to have a big influence on Fed Chairman Kevin Warsh, though he added there is "no reason" to increase interest rates and says rates should be lowered.

In corporate news:

• Apple (AAPL 308.70, +1.36, +0.4%) will introduce a new artificial intelligence strategy today, according to Bloomberg.
• Marvell Technology (MRVL 286.11, +22.64, +8.6%) trades higher in the premarket following news it will join the S&P 500.
• NVIDIA (NVDA 209.29, +4.19, +2.1%) CEO Jensen Huang said the recent selloff in tech is a good buying opportunity, according to Bloomberg

Reviewing overnight developments:

Equity indices in the Asia-Pacific region began the week on a broadly lower note with South Korea's Kospi (-8.3%) deepening last week's reversal from a record high. Japan's Nikkei: -3.9%, Hong Kong's Hang Seng: -1.3%, China's Shanghai Composite: -1.7%, India's Sensex: -1.0%, South Korea's Kospi: -8.3%, Australia's ASX All Ordinaries: HOLIDAY.

In news:

• There were some renewed concerns about the direction of the conflict between Iran and the U.S., reflected by a rebounding price of oil.
• China's President Xi made a State visit to North Korea.
• Japan's Q1 GDP was left unrevised at the headline level (0.5% qtr/qtr) while GDP Deflator was revised down to 3.2% from 3.4%.

In economic data:

• Japan's Q1 GDP 0.5% qtr/qtr, as expected (last 0.3%), Q1 GDP Annualized 1.8% qtr/qtr (expected 2.1%; last 0.7%). Q1 GDP Price Index 3.2% yr/yr (expected 3.4%; last 3.4%), Q1 GDP Capital Expenditure -0.7% qtr/qtr (expected 0.3%; last 0.1%), Q1 GDP Private Consumption 0.3% qtr/qtr, as expected (last 0.1%), Q1 GDP External Demand 0.3% qtr/qtr, as expected (last 0.0%). April Current Account surplus JPY4.21 trln (expected JPY3.26 trln; last JPY3.90 trln), May Bank Lending 5.7% yr/yr (expected 5.6%; last 5.4%), and May Economy Watchers Current Index 43.6 (expected 41.9; last 40.8)

Major European indices trade on a mostly lower note while Italy's MIB (+0.6%) outperforms, holding a modest gain. STOXX Europe 600: -0.3%, Germany's DAX: -0.3%, U.K.'s FTSE 100: +0.1%, France's CAC 40: UNCH, Italy's FTSE MIB: +0.6%, Spain's IBEX 35: +0.2%.

In news:

• Germany reported a sharper-than-expected drop in April Factory Orders (-3.8%; expected -2.2%), though the market still expects a 25-basis point rate hike from the European Central Bank on Thursday.
• Italy's Intesa Sanpaolo offered EUR30.6 bln to purchase Monte dei Pachi di Siena, looking to form the second-largest lender in the eurozone.

In economic data:

• Eurozone's June Sentix Investor Confidence -13.4 (expected -13.8; last -16.4)
• Germany's April Factory Orders -3.8% m/m (expected -2.2%; last 4.5%)

[BRIEFING.COM] The stock market faced a considerable retreat today, with losses across the S&P 500 (-2.6%), Nasdaq Composite (-4.2%), and DJIA (-1.4%), resulting in lower weekly finishes for each index. For the S&P 500, this week's lower finish ends an impressive win streak at nine weeks.

The major averages faced a combination of pressures today as tech stocks extended yesterday's slide, while the Employment Situation report for May (172,000; Briefing.com consensus 96,000) beat headline expectations by a wide margin, placing upward pressure on Treasury yields amid rising expectations for a rate hike. The CME FedWatch Tool now assigns roughly a 71% probability to a rate hike at the December FOMC meeting, up from around 50% yesterday.

Growth-oriented pockets of the market generally lagged as a result, which compounded with yesterday's selloff across semiconductor stocks. The PHLX Semiconductor Index finished 10.3% lower, weighing heavily on the information technology sector (-5.3%).

Weakness was broad across the semiconductor group, with Broadcom (AVGO 385.74, -33.17, -7.92%) extending its post-earnings skid, memory names such as Micron (MU 864.01, -131.99, -13.25%) facing double-digit retreats, and other large chipmakers, including Intel (INTC 99.17, -12.61, -11.28%) and NVIDIA (NVDA 205.11, -13.55, -6.20%), moving sharply lower.

Software stocks also lagged, with Oracle (ORCL 213.41, -22.93, -9.70%) a notable decliner ahead of its earnings report next week. The iShares GS Software ETF finished 4.2% lower.

The consumer discretionary (-2.4%) and communication services (-1.7%) sectors also lagged as their mega-cap components, including Tesla (TSLA 391.00, -27.45, -6.56%) and Meta Platforms (META 593.00, -34.57, -5.51%) faced sharp retreats of their own.

The Vanguard Mega Cap Growth ETF finished 3.7% lower, contributing to the underperformance of the market-weighted S&P 500 (-2.6%) compared to the S&P 500 Equal Weighted Index (-1.5%).

On the earnings front, lululemon athletica (LULU 114.23, -10.69, -8.56%) was a notable laggard in the consumer discretionary sector after cutting its full-year outlook.

More defensive-oriented pockets of the market did garner some rotational interest today, but it was nowhere near enough support to keep the major averages from a lower finish. The consumer staples sector (+1.6%) led the way, while the utilities (+0.8%) and health care (+0.7%) sectors also posted gains.

Elsewhere, the real estate sector (+0.7%) notched a similar gain, while the financials sector (+0.1%) finished slightly higher.

Outside of the S&P 500, the Russell 2000 (-3.5%) underperformed amid the spike in Treasury yields.

Overall, today's selloff reflected the combination of an ongoing unwind across semiconductor stocks and a sharp repricing of Fed expectations following the stronger-than-expected employment report. Rising Treasury yields amplified pressure on growth-oriented areas of the market, while the limited rotation into defensive sectors was not nearly enough to offset the broad weakness across technology and mega-cap stocks.

U.S. Treasuries finished the week with sharp losses in most tenors, sending the 2-yr yield to a fresh closing high for the year while yields in the belly finished at two-week highs. The 2-year note yield settled up 11 basis points to 4.16% (+4 basis points this week) and the 10-year note yield settled up six basis points to 4.54% (-2 basis points this week). 

• Russell 2000: +14.2% YTD
• S&P Mid Cap 400: +11.8% YTD
• Nasdaq Composite: +10.6% YTD
• S&P 500: +7.8% YTD
• DJIA: +5.8% YTD

Reviewing today's data:

• May Nonfarm Payrolls 172K (Briefing.com consensus 96K); Prior was revised to 179K from 115KMay Nonfarm Private Payrolls 120K , (Briefing.com consensus 89K); Prior was revised to 177K from 123K, May Unemployment Rate 4.3% (Briefing.com consensus 4.3%); Prior 4.3%, May Average Hourly Earnings 0.3% (Briefing.com consensus 0.3%); Prior 0.2%, May Average Workweek 34.3 (Briefing.com consensus 34.3); Prior 34.3
  • The key takeaway from the report is that it is manna for headline writers but still lacks some important sustenance to suggest it is a marker of an economy running on a full stomach. To wit: real average hourly earnings on a year-over-year basis are down 0.4%; there were job losses in the retail trade (-1,100), information (-2,000), and financial (-22,000) industries; and the percentage of unemployed workers for 27 weeks or more increased to 27.5% from 25.3%, which we will assume speaks to the difficulty of finding a new job with comparable compensation to the prior one.
• Consumer credit increased by $20.7 billion in April (Briefing.com consensus: $17.5 billion) following a downwardly revised $22.3 billion increase (from $24.9 billion) in March.
  
  • The key takeaway from the report is that revolving credit growth outpaced nonrevolving credit growth in April, suggesting households may be using short-term borrowing to offset pressure from slowing real income growth and depleted savings. If this trend persists, it could support spending in the near term but raise concerns about household balance-sheet stress later.