[BRIEFING.COM] The major averages finished near their session lows as afternoon selling broadened across the market, overwhelming an earlier recovery in semiconductor stocks. The S&P 500 (-1.0%), Nasdaq Composite (-1.4%), and DJIA (-0.8%) all ended firmly lower, both for the session and the week.

Semiconductor stocks briefly erased nearly all of their early losses around midday before turning lower again into the close. The PHLX Semiconductor Index fell 1.6%, while the information technology sector declined 1.1%. Cadence Design (CDNS 330.11, -34.54, -9.47%) was among the group's weakest performers after Bloomberg reported that Moonshot AI's Kimi K3 model designed a functional semiconductor chip in just 48 hours using open-source tools rather than proprietary electronic-design-automation software. Synopsys (SNPS 384.28, -32.76, -7.85%) was another laggard, while memory-related stocks held up comparatively well after recovering from sharp opening losses.

Weakness remained especially pronounced across mega-cap growth stocks. The communication services sector (-2.3%) finished with the widest loss as Meta Platforms (META 646.01, -18.53, -2.79%) and Alphabet (GOOG 346.12, -7.69, -2.17%) saw an extension of yesterday's losses. Elsewhere in the sector, Netflix (NFLX 68.95, -5.40, -7.26%) plunged lower after a disappointing earnings report.

The Vanguard Mega Cap Growth ETF fell 1.5%, reflecting additional weakness across several of the market's largest technology-oriented names.

The consumer discretionary sector (-1.6%) also finished among the laggards. Its mega-cap components traded lower, while travel-related stocks and homebuilders faced additional pressure as oil prices surged. The iShares U.S. Home Construction ETF fell 2.9%.

The deterioration was not confined to growth stocks. Early gains of more than 1% across several defensive sectors were fully erased, with health care (-0.4%), utilities (-0.7%), and consumer staples (-0.8%) all finishing lower. Intuitive Surgical (ISRG 345.42, -56.91, -14.15%) was the worst-performing S&P 500 component despite topping second-quarter estimates, as investors focused on an unchanged outlook that implies slower da Vinci procedure growth during the second half of the year.

The energy sector (+0.8%) was the only S&P 500 sector to post a gain as crude oil futures settled $2.69 higher (+3.4%) at $81.67 per barrel. Oil extended its advance after Axios reported that President Trump could decide within days whether to escalate military action against Iran, with options reportedly including strikes on Iranian infrastructure, nuclear facilities, and the underground Pickaxe Mountain site.

Ultimately, the semiconductor group's midday recovery briefly offered some support, but it failed to alter the market's broader trajectory. Renewed weakness in chipmakers, sustained pressure on mega-cap growth stocks, and a sharp reversal across previously stronger defensive areas left the major averages at their lows as rising oil prices and mounting geopolitical uncertainty weighed on sentiment.

U.S. Treasuries finished the week with modest gains in the 5-year note and longer tenors while the short end ended slightly lower after backtracking from early highs. The 2-year note yield settled up one basis point to 4.17% (-4 bais points this week), and the 10-year note yield settled down three basis points to 4.54% (-3 basis points this week). 

• Russell 2000: +19.4% YTD
• S&P Mid Cap 400: +14.2% YTD
• Nasdaq Composite: +9.8% YTD
• S&P 500: +8.9% YTD
• DJIA: +8.5% YTD

Reviewing today's data:

• June Housing Starts 1.427 mln (Briefing.com consensus 1.328 mln); Prior was revised to 1.199 mln from 1.177 mln, June Building Permits 1.367 mln (Briefing.com consensus 1.403 mln); Prior was revised to 1.410 mln from 1.413 mln
  • The key takeaway from the report is that there wasn't any growth in single-unit starts or permits, which isn't a positive read for a housing market pinched by affordability issues.
• June Import Prices 0.3%; Prior was revised to 1.7% from 1.9%
• June Import Prices ex-oil 0.4%; Prior was revised to 0.7% from 0.8%
• June Export Prices -0.6%; Prior was revised to 1.2% from 1.3%
• June Export Price ex-ag -0.7%; Prior 1.2%
• June Industrial Production 0.1% (Briefing.com consensus 0.3%); Prior 0.1%, June Capacity Utilization 76.1% (Briefing.com consensus 76.2%); Prior was revised to 76.1% from 76.2%
  • The key takeaway from the report is that there was no increase in manufacturing output, something that hasn't happened since January.
• July Univ. of Michigan Consumer Sentiment - Prelim 54.4 (Briefing.com consensus 50.7); Prior 49.5
  • The key takeaway from the report was the correlation between lower gas prices and higher sentiment, the latter of which was pervasive across groups by age, wealth, income, and political party. Gas prices, though, have started to increase again with the military action between the U.S. and Iran, so it remains to be seen if this improved sentiment can be sustained.

[BRIEFING.COM] The major averages are at session lows, putting them on pace for a firmly lower week-to-date finish.

The Wall Street Journal reports that SpaceX (SPCX 123.80, -7.30, -5.57%) is in discussions to provide computing power to the Pentagon for AI uses, though the headline has had little effect on the stock, which has suffered today after the company delayed an upcoming launch.

[BRIEFING.COM] The S&P 500 (-0.8%), Nasdaq Composite (-1.2%), and DJIA (-0.6%) are firmly lower across the board as the market enters the final hour of the session.

Semiconductor stocks have given back some of their intraday improvements that had the PHLX Semiconductor back near its flat line at midday, with the index now down 1.2%.

Meanwhile, strength in the broader market has continued to deteriorate, leaving just the energy sector (+1.1%) in positive territory. Crude oil futures today's session $2.69 higher (+3.4%) at $81.67 per barrel.

[BRIEFING.COM] The S&P 500 (-0.96%) is in second place on Friday afternoon, down about 73 points.

Briefly, S&P 500 constituents Intuitive Surgical (ISRG 350.08, -52.25, -12.99%), Cadence Design (CDNS 328.25, -36.40, -9.98%), and Builders FirstSource (BLDR 74.01, -4.19, -5.36%) dot the bottom of the standings. ISRG slides as investors focused on signs of moderating U.S. procedure growth, softer elective surgery demand, ongoing China challenges, and tariff uncertainty despite a strong Q2 beat and reaffirmed outlook, CDNS falls on worries that AI-powered chip design tools could disrupt the EDA market after Moonshot's Kimi K3 chip design headlines, though analysts argued AI is more likely to expand demand for EDA software rather than replace it.

Meanwhile, HP Inc. (HPQ 24.99, +0.85, +3.52%) is near the top of the standings, posting back-to-back gains totaling +5.2%.

[BRIEFING.COM] With about two hours to go on Friday the tech-heavy Nasdaq Composite (-0.96%) is in last place, down about 250 points.

Gold futures settled $26.70 higher (+0.7%) at $4,018.80/oz, down then about -2.3% on the week, as investors returned to safe-haven assets amid renewed geopolitical tensions and easing Treasury yields, helping prices recover above the $4,000 level. Despite Friday's rebound, gold remained down for the week as expectations for higher U.S. interest rates, a stronger dollar, and persistent inflation concerns continued to weigh on bullion.

Meanwhile, the U.S. Dollar Index is up less than +0.1% to $100.78.

[BRIEFING.COM] The Dow Jones Industrial Average (-0.43%) is down about 224 points this afternoon, hosting the shallowest losses among the major averages.

A look inside the DJIA shows that Coca-Cola (KO 81.55, -3.37, -3.97%), IBM (IBM 213.79, -5.26, -2.40%), and Alphabet (GOOGL 346.15, -8.31, -2.34%) are underperforming.

Meanwhile, Travelers (TRV 366.00, +28.18, +8.34%) is solidly higher.

The DJIA is poised to end the week -0.59% lower.

Also, at the top of the hour, Baker Hughes (BKR 56.02, -0.52, -0.92%) announced a weekly U.S. rotary rig count of 588, +7 w/w and +44 yr/yr.

[BRIEFING.COM] The major averages remain under pressure at midday, though the market's leadership has shifted as the session has progressed. The S&P 500 (-0.5%), Nasdaq Composite (-0.7%), and DJIA (-0.3%) continue to trade lower, but a sharp rebound across semiconductor stocks has helped pare losses in the technology sector after a weak start. Instead, selling has broadened elsewhere in the market, leaving the energy sector (+0.8%) as the only S&P 500 sector posting a meaningful gain.

Semiconductor stocks have staged a notable recovery after opening under heavy pressure. The PHLX Semiconductor Index, which briefly fell more than 4% has trimmed nearly all of those losses and is down just 0.3% at midday. The group's early weakness followed Bloomberg reporting that investors were reassessing AI infrastructure spending after Chinese startup Moonshot AI unveiled its Kimi K3 model, fueling concerns that lower-cost AI models could temper future capital expenditures across the sector. As chipmakers recovered, the information technology sector also rebounded from a loss of nearly 2% to just 0.4%, while several memory-related names, including Seagate Tech (STX 787.40, +41.91, +5.62%), turned sharply higher after opening lower.

Despite the improvement in chipmakers, weakness across several other mega-cap technology stocks continues to weigh on the broader market. The communication services sector (-2.3%) remains the weakest-performing S&P 500 sector as Meta Platforms (META 650.08, -14.46, -2.18%), Alphabet (GOOG 346.77, -7.04, -1.99%) lag, with a post-earnings slide from Netflix (NFLX 69.13, -5.22, -7.02%) compounding the weakness.

The Vanguard Mega Cap Growth ETF is down 1.0%, although it has recovered meaningfully from its session lows.

Elsewhere, leadership has narrowed considerably as the day has progressed. The energy sector (+0.8%) is now the only S&P 500 sector posting a gain of more than 0.1% as WTI crude rises $3.13 (+4.0%) to $81.41 per barrel following reports of additional exchanges of fire between the U.S. and Iran, including Iranian strikes targeting U.S. forces in neighboring countries.

Although semiconductor stocks have recovered sharply from their morning lows, that improvement has done little to change the broader tone of the market. Selling has broadened beyond technology as the session has progressed, leaving the major averages firmly lower while renewed geopolitical tensions and higher oil prices continue to pressure the broader market.

Reviewing today's data:

• June Housing Starts 1.427 mln (Briefing.com consensus 1.328 mln); Prior was revised to 1.199 mln from 1.177 mln, June Building Permits 1.367 mln (Briefing.com consensus 1.403 mln); Prior was revised to 1.410 mln from 1.413 mln
  • The key takeaway from the report is that there wasn't any growth in single-unit starts or permits, which isn't a positive read for a housing market pinched by affordability issues.
• June Import Prices 0.3%; Prior was revised to 1.7% from 1.9%
• June Import Prices ex-oil 0.4%; Prior was revised to 0.7% from 0.8%
• June Export Prices -0.6%; Prior was revised to 1.2% from 1.3%
• June Export Price ex-ag -0.7%; Prior 1.2%
• June Industrial Production 0.1% (Briefing.com consensus 0.3%); Prior 0.1%, June Capacity Utilization 76.1% (Briefing.com consensus 76.2%); Prior was revised to 76.1% from 76.2%
  • The key takeaway from the report is that there was no increase in manufacturing output, something that hasn't happened since January.
• July Univ. of Michigan Consumer Sentiment - Prelim 54.4 (Briefing.com consensus 50.7); Prior 49.5
  • The key takeaway from the report was the correlation between lower gas prices and higher sentiment, the latter of which was pervasive across groups by age, wealth, income, and political party. Gas prices, though, have started to increase again with the military action between the U.S. and Iran, so it remains to be seen if this improved sentiment can be sustained.

[BRIEFING.COM] The S&P 500 (-0.7%), Nasdaq Composite (-1.2%), and DJIA (-0.3%) are little changed from previous levels.

Strength in the broader market continues to deteriorate, leaving only the energy sector (+1.0%) with a gain wider than 0.1%.

Crude oil is currently up $3.13 (+4.0%) to $81.41 per barrel amid reports of more exchange of fire between the U.S. and Iran, with Iran targeting U.S. forces in neighboring countries in the region.

[BRIEFING.COM] The major averages remain lower across the board at midday, settling into a relatively stable range.

Interestingly, semiconductor stocks are seeing considerable improvements from their earlier levels, with the PHLX Semiconductor Index now down just 0.8% after being down over 4%. The information technology sector (-0.8%) has benefited as a result. However, not much has changed at the index level, as investors are now rotating out of the broader market. Only five S&P 500 sectors now trade higher, with the energy sector (+0.7%) now the only sector with a gain wider than 0.5%.

[BRIEFING.COM] The stock market is facing another session of concentrated pressure across semiconductor stocks and other large tech names today. Those losses are most evident in the tech-heavy Nasdaq Composite (-1.5%), while the S&P 500 (-0.8%) also trades firmly lower.

The PHLX Semiconductor Index is down 2.5%, extending this week's losses past 10%. The information technology sector (-1.3%) is firmly lower, though select cybersecurity names and continued resilience in Apple (AAPL 333.61, +0.35, +0.11%) somewhat cushion the losses.

Similar to yesterday's action, the communication services sector (-2.6%) holds the widest loss, with continued pressure across Meta Platforms (META 628.86, -35.68, -5.37%) and Alphabet (GOOG 346.57, -7.24, -2.05%) combining with a post-earnings slide from Netflix (NFLX 68.78, -5.56, -7.48%). The Vanguard Mega Cap Growth ETF is down 1.6%.

The broader market continues to see some rotational buying, with seven S&P 500 sectors trading higher. However, that action is not as strong as it was in previous sessions this week, as the S&P 500 Equal Weighted Index (-0.3%) moves lower today. The DJIA (-0.2%) is modestly lower, but it remains the best-performing major index both for the day and the week by a considerable margin.

[BRIEFING.COM] The major averages continue to trade lower.

Netflix (NFLX 68.71, -5.64, -7.59%)  reported a modest Q2 EPS beat and in-line revenue, but shares are trading sharply lower after investors focused on softer-than-expected Q3 guidance and signs that the company's revenue growth is continuing to moderate. Revenue increased 13.4% year-over-year(+12% in constant currency) to a record $12.56 billion, driven by membership growth, price increases, and higher advertising revenue, although growth slowed from +16.2% (+14% CC) in Q1.

Netflix continues to benefit from its unmatched scale, pricing power, and expanding advertising business, but investors are increasingly focused on whether its period of outsized growth is beginning to normalize. While Netflix delivered another solid quarter operationally, the sequential slowdown in CC revenue growth-from +14% in Q1 to +12% in Q2 and guided to +11% in Q3-was enough to overshadow otherwise healthy engagement and better-than-expected margins. Investors appear to be demanding evidence that the company's advertising business, live programming initiatives, and content slate can reaccelerate growth. Shares had already fallen roughly 40% over the past year heading into earnings, reflecting growing skepticism about Netflix's ability to sustain its premium growth profile. This quarter is unlikely to ease those concerns.

[BRIEFING.COM] The S&P 500 (-0.6%), Nasdaq Composite (-1.3%), and DJIA (flat) are off their worst opening levels, though mega-cap tech and semiconductor stocks remain under pressure.

The preliminary reading for the University of Michigan Consumer Sentiment Index for July increased to 54.4 (Briefing.com consensus: 50.7) from the final reading of 49.5 for June. In the same period a year ago, the index stood at 61.7.

The key takeaway from the report was the correlation between lower gas prices and higher sentiment, the latter of which was pervasive across groups by age, wealth, income, and political party. Gas prices, though, have started to increase again with the military action between the U.S. and Iran, so it remains to be seen if this improved sentiment can be sustained.

[BRIEFING.COM] The S&P 500 (-0.7%), Nasdaq Composite (-1.4%), and DJIA (-0.2%) are lower across the board as mega-cap tech stocks opened to heavy selling pressure, while the broader market garners some rotational gains.

Semiconductors are once again at the center of the losses, with the PHLX Semiconductor Index down 2.3% and the information technology sector down 1.7%. CNBC reports that with NVIDIA's (NVDA 202.76, -4.64, -2.23%) opening loss, Apple (AAPL 330.29, -2.97, -0.89%) has reclaimed its title as the world's most valuable company by market capitalization.

Weakness across other mega-cap names keeps the communication services (-2.5%) and consumer discretionary (-0.7%) sectors lower as well, with Netflix (NFLX 67.42, -6.93, -9.32%) a considerable laggard after a disappointing earnings report.

Meanwhile, the defensive consumer staples (+1.3%), utilities (+1.1%), and health care (+0.8%) sectors benefit from some rotational buying, while the energy sector (+1.6%) advances as crude oil surges past the $81 per barrel mark.

Just released, the preliminary July University of Michigan Consumer Sentiment Index checked in at 54.4 (Briefing.com consensus 50.7), up from the final June reading of 49.5.

Elsewhere on the data front, Industrial production increased just 0.1% month-over-month in June (Briefing.com consensus: 0.3%) following an unrevised 0.1% increase in May. The capacity utilization rate was 76.1% (Briefing.com consensus: 76.2%), unchanged from a downwardly revised 76.1% (from 76.2%) in May. Total industrial production was up 1.1% year-over-year. The capacity utilization rate is 3.3 percentage points below its long-run average.

The key takeaway from the report is that there was no increase in manufacturing output, something that hasn't happened since January.

The stock market remains on track for a firmly lower open this morning as this week's momentum unwind continues, exacerbated by a Bloomberg report that cheaper Chinese AI models could reduce capex spend on the AI buildout.

On the data front, housing starts increased 19.0% month-over-month in June to a seasonally adjusted annual rate of 1.427 million units (Briefing.com consensus: 1.328 million), paced by a 76% increase in multi-unit starts. Building permits--aleading indicator--declined 3.0% month-over-month to a seasonally adjusted annual rate of 1.367 million (Briefing.com consensus: 1.403 million), with single-unit permits down 2.4%.

The key takeaway from the report is that there wasn't any growth in single-unit starts or permits, which isn't a positive read for a housing market pinched by affordability issues.

Separately, import prices were up 0.3% month-over-month in June and up 7.1% year-over-year. Excluding fuel, they were up 0.4% month-over-month and up 4.2% year-over-year. Export prices fell 0.6% month-over-month but were up 10.2% year-over-year. Excluding agricultural products, export prices were down 0.7% month-over-month and were up 10.6% year-over-year.

The key takeaway is that the outsized year-over-year increases for import and export prices goes to show that there is ample inflation still to contend with here and abroad.

The S&P 500 futures currently trade 88 points below fair value. 

Equity indices in the Asia-Pacific region ended the week on a mostly lower note with Japan's Nikkei (-4.0%) falling to its lowest level since early June while South Korea's Kospi was closed for a holiday. Korea Financial Services Commission banned the issuance of single-stock leveraged products. There were growing concerns about China's cheaper AI technology flooding the Western market. Taiwan Semiconductor Manufacturing Co reported record results for Q2.

• In economic data:
  • Hong Kong's June Unemployment Rate 3.7% (last 3.7%)
  • New Zealand's June FPI 0.6% m/m (last 1.0%)
  • Singapore's June trade surplus SGD13.817 bln (last surplus of SGD5.556 bln). June non-oil exports -8.9% (last 7.7%); 20.7% yr/yr (expected 30.2%; last 38.4%)

---Equity Markets--- 

• Japan's Nikkei: -4.0%
• Hong Kong's Hang Seng: -1.8% 
• China's Shanghai Composite: -3.1%
• India's Sensex: +1.3%
• South Korea's Kospi: CLOSED
• Australia's ASX All Ordinaries: -0.6%

Major European indices trade in the red. Andy Burnham takes leadership of the British Labour party today and is set to become prime minister on Monday. The IMF has reportedly warned Mr. Burnham that there is little room for increasing public spending. Germany's Commerzbank is reportedly preparing its demands ahead of likely merger talks with UniCredit.

• In economic data:
  • Eurozone's June CPI -0.1% m/m, as expected (last 0.1%); 2.8% yr/yr, as expected (last 3.2%). June Core CPI 0.2% m/m, as expected (last 0.2%); 2.4% yr/yr, as expected (last 2.6%). May Current Account surplus EUR25.1 bln (expected surplus of EUR18.1 bln; last surplus of EUR15.7 bln)

---Equity Markets---

• STOXX Europe 600: -0.7%
• Germany's DAX: -0.5%
• U.K.'s FTSE 100: -0.1%
• France's CAC 40: -0.7%
• Italy's FTSE MIB: -0.9%
• Spain's IBEX 35: -0.3% 

The S&P 500 futures currently trade 80 points below fair value.

Housing starts increased 19% month-over-month in June to a seasonally adjusted annual rate of 1.427 million units (Briefing.com consensus: 1.328 million).

Building permits were down 3.0% month-over-month to a seasonally adjusted annual rate of 1.367 million (Briefing.com consensus: 1.403 million).

Import prices increased 0.3% in June following a downwardly revised 1.7% prior increase (from 1.9%).

Excluding oil, import prices increased 0.4%, from a downwardly revised prior increase of 0.7% (from 0.8%).

Export Prices decreased 0.6% in June, from a downwardly revised prior increase of 1.2% (from 1.3%).

Excluding agriculture, export prices decreased 0.7%, from a prior increase of 1.2%.

Equity futures point to a firmly lower open this morning as semiconductor stocks face an extension of their recent weakness, while the broader market begins to slip.

The major averages finished lower in yesterday's session as pronounced weakness across mega-cap tech stocks outweighed a solid showing from the broader market that saw the S&P 500 Equal Weighted Index close higher.

The U.S. continues to strike Iran, with the ramp in tensions sending WTI crude oil firmly higher, above the $80 per barrel mark.

The major averages enter today's session lower for the week, with the Nasdaq facing the widest loss as the global chip selloff continues.

In corporate news:

• Meta (META 654.00, -10.54, -1.6%) will hire Amazon (AMZN 246.36, -3.53, -1.3%) executive Dave Brown in the coming weeks, according to The Wall Street Journal.
• Netflix (NFLX 66.18, -8.13, -10.9%) beat EPS expectations by $0.01, reported revenues in-line, guided Q3 EPS and revenues below consensus, and narrowed FY26 revenue guidance.
• SpaceX (SPCX 125.41, -5.66, -4.3%) postponed a rocket launch due to an engine failure.
• Travelers (TRV 342.00, +4.18, +1.2%) beat EPS expectations by $4.68 and beat revenue expectations.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended the week on a mostly lower note with Japan's Nikkei (-4.0%) falling to its lowest level since early June while South Korea's Kospi was closed for a holiday. Japan's Nikkei: -4.0%, Hong Kong's Hang Seng: -1.8%, China's Shanghai Composite: -3.1%, India's Sensex: +1.3%, South Korea's Kospi: CLOSED, Australia's ASX All Ordinaries: -0.6%.

In news:

• Korea Financial Services Commission banned the issuance of single-stock leveraged products.
• There were growing concerns about China's cheaper AI technology flooding the Western market.
• Taiwan Semiconductor Manufacturing Co reported record results for Q2.

In economic data:

• Hong Kong's June Unemployment Rate 3.7% (last 3.7%)
• New Zealand's June FPI 0.6% m/m (last 1.0%)
• Singapore's June trade surplus SGD13.817 bln (last surplus of SGD5.556 bln). June non-oil exports -8.9% (last 7.7%); 20.7% yr/yr (expected 30.2%; last 38.4%)

Major European indices trade in the red while Spain's IBEX (+0.1%) outperforms slightly with help from some countercyclical names. STOXX Europe 600: -0.5%, Germany's DAX: -0.5%, U.K.'s FTSE 100: -0.2%, France's CAC 40: -0.8%, Italy's FTSE MIB: -0.9%, Spain's IBEX 35: +0.1%.

In news:

• Andy Burnham takes leadership of the British Labour party today and is set to become prime minister on Monday.
• The IMF has reportedly warned Mr. Burnham that there is little room for increasing public spending.
• Germany's Commerzbank is reportedly preparing its demands ahead of likely merger talks with UniCredit.

In economic data:

• Eurozone's June CPI -0.1% m/m, as expected (last 0.1%); 2.8% yr/yr, as expected (last 3.2%). June Core CPI 0.2% m/m, as expected (last 0.2%); 2.4% yr/yr, as expected (last 2.6%). May Current Account surplus EUR25.1 bln (expected surplus of EUR18.1 bln; last surplus of EUR15.7 bln)

[BRIEFING.COM] The major averages finished lower today, with the S&P 500 (-0.5%), Nasdaq Composite (-1.5%), and DJIA (-0.2%) retreating as another bout of weakness across semiconductor stocks, coupled with late selling in several other mega-cap technology names, outweighed continued rotational strength elsewhere in the market. While underlying participation remained relatively constructive, concentrated weakness across growth-oriented stocks ultimately dictated the direction of the major averages.

Semiconductor stocks remained the primary source of weakness throughout the session, with the PHLX Semiconductor Index falling 4.3%. Today's selling followed another double-digit overnight decline in SK hynix Inc.'s (SKHY 152.31, -24.15, -13.69%) Korean-listed shares, while Taiwan Semiconductor Manufacturing (TSM 410.06, -9.42, -2.25%) faced sell-the-news pressure despite delivering a beat-and-raise earnings report.

Memory stocks again bore the brunt of the weakness, with Sandisk (SNDK 1411.08, -203.92, -12.63%) and Seagate Tech (STX 745.49, -82.81, -10.00%) ranking among the worst-performing S&P 500 components.

Apple (AAPL 333.26, +5.76, +1.76%) and Microsoft (MSFT 401.10, +5.47, +1.38%) posted solid gains that helped cushion some of the pressure on the information technology sector (-1.8%), though they were not enough to offset the broader weakness across chipmakers.

Selling broadened across other mega-cap growth stocks as the afternoon progressed. The communication services sector (-3.0%) finished as the worst-performing S&P 500 sector after Alphabet (GOOG 353.81, -16.40, -4.43%) moved sharply lower on a Bloomberg report that the launch of its Gemini 3.5 Pro model has been delayed after missing internal performance targets. Meta Platforms (META 664.54, -16.77, -2.46%) also finished lower, while Netflix (NFLX 74.35, +0.67, +0.91%)edged higher ahead of its earnings report after the close.

Amazon (AMZN 249.89, -5.07, -1.99%) added to the weakness in the consumer discretionary sector (-0.3%), and the Vanguard Mega Cap Growth ETF fell 1.4%.

Even so, underlying participation remained stronger than the major averages suggested. The consumer staples sector (+2.9%) finished with the widest gain as broad-based strength, including solid advances in Coca-Cola (KO 84.92, +2.47, +3.00%) and Walmart (WMT 114.95, +2.42, +2.15%), helped cushion losses in the DJIA.

The health care sector (+2.2%) was another standout, supported by strong post-earnings gains in UnitedHealth (UNH 423.38, +4.86, +1.16%) and Abbott Labs (ABT 98.82, +9.55, +10.70%).

The real estate sector (+2.1%) also outperformed, while the S&P 500 Equal Weight Index (+1.0%) substantially outpaced the market-weighted S&P 500 (-0.5%).

The industrials sector finished little changed after a mixed slate of earnings reactions. GE Aerospace (GE 345.73, -14.62, -4.06%) traded lower despite delivering a beat-and-raise earnings report, while United Airlines (UAL 118.84, -2.13, -1.76%)declined after third-quarter guidance came in just below consensus despite a second-quarter earnings beat. Offsetting some of that weakness, J.B. Hunt Transport (JBHT 298.41, +22.13, +8.01%) rallied to a fresh record high after delivering a sizable earnings beat and offering encouraging commentary on its earnings call.

Meanwhile, the energy sector (+1.0%) extended this week's relative outperformance even as crude oil settled modestly lower following a comparatively quiet day of geopolitical headlines surrounding the U.S. and Iran.

Outside the S&P 500, the Russell 2000 (-0.3%) gave back its earlier gains, while the S&P Mid Cap 400 (+0.4%) managed to finish modestly higher.

Although today's session initially featured encouraging rotational strength outside of technology, renewed weakness across semiconductor stocks and late selling in several other mega-cap growth names ultimately overwhelmed that trend. Defensive sectors and the equal-weighted S&P 500 continued to demonstrate healthy underlying participation, but persistent pressure on the market's largest growth stocks remained the dominant influence on index-level performance.

U.S. Treasuries had a soft overnight session that was driven by selling across the curve that was mirrored by losses in other sovereign bond markets. The losses for the Treasury market dissipated as the cash session progressed, aided by a faltering stock market, a retreat in oil prices despite more saber rattling by Iran, and some technical resistance as the 10-yr note yield challenged the 4.60% level. The 2-year note yield settled up three basis points to 4.16%, and the 10-year note yield settled up two basis points to 4.57%. 

• Russell 2000: +19.9% YTD
• S&P Mid Cap 400: +14.9% YTD
• Nasdaq Composite: +11.4% YTD
• S&P 500: +10.1% YTD
• DJIA: +9.3% YTD

Reviewing today's data:

• July Philadelphia Fed Index 41.4 (Briefing.com consensus 11.0); Prior 10.3
• June Retail Sales 0.2% (Briefing.com consensus 0.3%); Prior was revised to 1.0% from 0.9%, June Retail Sales, ex-auto -0.2% (Briefing.com consensus 0.1%); Prior was revised to 1.0% from 0.8%
  • The key takeaway from the report is that the headline disappointments are misleading, as they were driven primarily by gasoline station sales (-5.3%). Excluding gasoline stations, retail sales were up a solid 0.7% in June on the heels of a 0.9% increase in May.
• Weekly Initial Claims 208K (Briefing.com consensus 219K); Prior was revised to 216K from 215K, Weekly Continuing Claims 1.805 mln; Prior was revised to 1.821 mln from 1.814 mln
  • The key takeaway from the report is that initial jobless claims remain historically low and a signpost for a labor market that is still light overall on layoff activity.
• May Business Inventories 0.3% (Briefing.com consensus 0.3%); Prior was revised to 0.6% from 0.5%
• July NAHB Housing Market 34 (Briefing.com consensus 37); Prior was revised to 36 from 35
• June Pending Home Sales -5.4% (Briefing.com consensus 0.4%); Prior was revised to 3.5% from 3.8%