[BRIEFING.COM] The stock market retreated as the AI trade faced renewed pressure, with yesterday's broader market rotational strength notably slimmer in today's trade. The DJIA (-0.5%) notched a record intraday high early in the session before retreating, while the S&P 500 (-1.1%) and Nasdaq Composite (-1.7%) faced wider losses. 

A double-digit loss in Broadcom (AVGO 359.90, -46.48, -11.44%), despite an earnings beat and upside guidance for the next quarter, highlighted the concerns that many of the mega-cap tech names are priced for perfection, making them susceptible to outsized downswings in the absence of an aggressive growth outlook.

Oracle (ORCL 189.59, -9.26, -4.66%) faced a similar sentiment-based retreat yesterday, which largely spurred the broader pullback across tech names this week. 

The information technology sector (-2.9%) ceded its week-to-date gains with today's loss. Broadcom, NVIDIA (NVDA 175.08, -5.85, -3.23%), and other chipmakers contributed to a 5.1% slide in the PHLX Semiconductor Index. 

While six sectors finished lower, the technology sector was the only sector with a loss of 1.0% or wider.

The communication services (-0.7%) was a laggard as a result of weakness in its own mega-cap components, Alphabet (GOOG 310.56, -3.14, -1.00%) and Meta Platforms (META 644.27, -8.44, -1.29%). The Vanguard Mega Growth ETF closed with a 1.5% loss.

As a result, the market-weighted S&P 500 lagged the equal-weight index (-0.7%), with both finishing below their baselines, even as the DJIA briefly hit another record high before tech-led losses broadened out.

While not as strong as yesterday's action, several sectors still managed gains as the tech sell-off has spurred some rotational action into cyclical and defensive sectors. 

The consumer staples sector (+0.9%) was the top advancer by a relatively wide margin. Walmart (WMT 116.65, +1.13, +0.98%) notched a record high, while Costco (COST 884.49, +0.01, +0.00%) finished flat after beating top-and-bottom line estimates. 

lululemon athletica (LULU 205.08, +18.08, +9.67%) was the top gainer in the S&P 500 today after a solid earnings report of its own. Notably, the company's CEO will step down effective January 31. 

Lulu's rally helped the consumer discretionary sector (+0.1%) scratch out a slight gain, while the health care (+0.3%), materials (+0.2%), and financials (+0.1%) sectors also finished modestly higher. 

Outside of the S&P 500, the smaller-cap Russell 2000 (-1.5%) and S&P Mid Cap 400 (-1.3%) finally ran into some resistance after outperforming this week, reflecting the overall weaker sentiment in today's trade. 

On the policy front, Chicago Fed President Austan Goolsbee and Kansas City Fed President Jeffrey Schmid offered insight into their decision to dissent from the FOMC's decision to deliver a 25-basis point rate cut at Wednesday's meeting in favor of keeping the Fed funds rate unchanged. Mr. Schmid cited inflationary risks, while Mr. Goolsbee stated he did not want to frontload too many cuts but has a dovish outlook for 2026, though neither will be a voting member next year. 

Looking ahead, investors will focus on Tuesday's jobs report and Thursday's CPI release, with both key readings likely to influence Fed expectations amid the market's rotational disposition.

U.S. Treasuries ended the week with losses in most tenors while the 2-year note resisted the pressure, locking in a modest gain for the week. The 2-year note yield finished unchanged at 3.53% (-3 basis points this week) and the 10-year note yield settled up five basis points to 4.19% (+5 basis points this week).

• Nasdaq Composite: +20.1% YTD
• S&P 500: +16.1% YTD
• Russell 2000: +14.4% YTD
• DJIA: +13.9% YTD
• S&P Mid Cap 400: +7.4% YTD

[BRIEFING.COM] The major averages are little changed from previous levels, with little time remaining for a turnaround effort. 

Investors will have several notable economic data points to look forward to in the coming week. The macro focal point of the week is unquestionably Tuesday's U.S. jobs report, which combines a partial October read with the full November figures. Expectations are already low, with consensus looking for roughly 50,000 jobs added, private payrolls around 45,000, and another modest decline in manufacturing employment. The importance of this report goes beyond the headline number. After weeks of softening labor indicators and rising talk of "normalization," investors will be watching wage growth, labor force participation, and revisions closely.

That labor report flows directly into Thursday's CPI release, which looms as the second major macro test of the week. Consensus is calling for headline inflation around 3.1% year over year and core inflation near 3.0%. Markets are already pricing a benign inflation path, so the risk is asymmetric. A clean print likely confirms the status quo, but any upside surprise-particularly in services-would complicate the narrative that inflation is safely gliding lower. With Fed expectations currently not pricing another cut until late April or June, CPI has the potential to shift timing more than direction.

[BRIEFING.COM] The S&P 500 (-1.0%), Nasdaq Composite (-1.6%), and DJIA (-0.4%) trade in a relatively tight range, with today's retreat leaving only the DJIA in positive territory for the week. 

Weakness in the top-weighted information technology sector (-2.7%) is at the core of today's losses, though the broader market is also mostly lower. 

While Broadcom's (AVGO 358.57, -47.80, -11.76%) post-earnings drop has captured much of today's attention, Sandisk (SNDK 206.74, -34.87, -14.43%) is actually the weakest performer in the S&P 500, giving back some ground after surging 86% this quarter.

Corning (GLW 88.88, -7.10, -7.39%), which is another component of the information technology sector, rounds out the three weakest S&P 500 names. 

[BRIEFING.COM] The S&P 500 (-1.09%) is in second place on Friday afternoon, down about 75 points.

Briefly, S&P 500 constituents Sandisk (SNDK 208.38, -33.23, -13.75%), Corning (GLW 88.58, -7.39, -7.70%), and Amphenol (APH 130.17, -8.92, -6.41%) dot the bottom of the standings. SNDK, GLW, and APH slide alongside broader losses in technology and technology peripheral stocks. Losses in tech stem from declines in bellwether Broadcom (AVGO 359.68, -46.69, -11.49%) following its quarterly earnings report.

Meanwhile, Chipotle Mexican Grill (CMG 36.25, +1.38, +3.96%) is near the top of the average, continuing to rally higher off late-October earnings-related losses.

[BRIEFING.COM] The tech-heavy Nasdaq Composite (-1.31%) is in last place on Friday afternoon, down more than 308 points.

Gold futures settled $15.30 higher (+0.4%) at $4,328.30/oz, up then +2.0% on the week, as investors leaned into expectations for additional Fed rate cuts and a softer dollar, boosting demand for non-yielding safe-haven assets. The move caps a solid week, with bullion supported by easing-policy bets, cooler data, and steady haven flows near the $4,300 level.

Meanwhile, the U.S. Dollar Index is flat at $98.35.

[BRIEFING.COM] The Dow Jones Industrial Average (-0.30%) is in "first" place on Friday afternoon, down just 145 points with more aggressive losses being had elsewhere.

A look inside the DJIA shows that Caterpillar (CAT 613.05, -12.56, -2.01%), NVIDIA (NVDA 177.38, -3.55, -1.96%), and Goldman Sachs (GS 897.40, -13.63, -1.50%) are underperforming.

Meanwhile, Boeing (BA 205.24, +4.53, +2.26%) is atop the standings.

The DJIA is poised to end the week +1.26% higher.

Also, at the top of the hour, Baker Hughes (BKR 46.85, -0.61, -1.29%) announced a weekly U.S. rotary rig count of 548, -1 w/w and -41 yr/yr.

[BRIEFING.COM] The S&P 500 (-0.9%), Nasdaq Composite (-1.4%), and DJIA (-0.3%) are firmly lower as yesterday's AI-trade retreat has intensified and expanded into a broader-market pullback. 

The information technology sector (-2.4%) holds a considerable loss, with Broadcom's (AVGO 362.28, -44.09, -10.85%) post-earnings slide a catalyst of the sell-off. The company beat expectations and issued upside guidance for the next quarter, suggesting that the double-digit move lower is sentiment-based, with investors looking for a more aggressive outlook. 

In turn, chipmakers and related plays are mostly lower. NVIDIA (NVDA 177.25, -3.68, -2.03%) holds a loss, and the PHLX Semiconductor Index is down 4.0%. 

Oracle (ORCL 190.20, -8.65, -4.35%), which posted a double-digit loss yesterday in reaction to a solid earnings report of its own, furthers its slide today. 

While tech names faced pressure yesterday, the move reflected more of a rotation out of the AI trade and into cyclical and defensive sectors. That trend is still somewhat evident today, though only a handful of sectors hold increasingly modest gains after the broader market retreated this morning, pushing the DJIA lower after it notched a record intraday high for the second consecutive session shortly after the open.

The materials sector (+0.3%) holds the widest gain, adding to yesterday's 2.3% advance, while the consumer staples sector (+0.2%) is also modestly positive. 

Costco (COST 870.59, -13.89, -1.57%) trades lower after beating EPS estimates and reporting revenues in line with expectations, while Walmart's (WMT 115.89, +0.37, +0.32%) modest gain saw it notch an all-time high.

Meanwhile, the consumer discretionary sector (-0.2%), which also outperformed yesterday, trades lower despite a higher start this morning. lululemon athletica (LULU 205.86, +18.85, +10.08%) is the top-performing S&P 500 name today following the company's Q3 earnings report. The company beat top-and-bottom-line expectations and announced that CEO Calvin McDonald will step down on January 31. 

Seven S&P 500 sectors trade lower, though all things considered, losses are modest with the exception of the technology sector. 

A 1.3% retreat in the Vanguard Mega Cap Growth ETF certainly weighs on the market-weighted S&P 500 (-0.9%), though broader weakness seats the S&P 500 Equal Weighted Index (-0.5%) with a loss as well.

The smaller-cap Russell 2000 (-1.1%) and S&P Mid Cap 400 (-1.1%) finally trade lower after a run of outperformance leading up to and directly after Wednesday's FOMC meeting, which resulted in a 25-basis point rate cut. 

There were no economic data releases of note today. 

[BRIEFING.COM] The S&P 500 (-0.9%), Nasdaq Composite (-1.5%), and DJIA (-0.4%) have at least temporarily stabilized from their early retreat. 

Four S&P 500 sectors are now back in modestly positive territory, including the health care sector (+0.1%). 

Managed care names such as Centene (CNC 41.23, +0.77, +1.90%) and UnitedHealth (UNH 342.55, +5.82, +1.73%) outperform as Politico reports that moderate House Republicans and Republican leadership are discussing adding an amendment vote to the healthcare bill that will extend Affordable Care Act subsidies, with a vote expected next week. 

[BRIEFING.COM] The major averages continue to chart session lows as today's weakness widens and expands, leaving just the consumer staples sector (+0.3%) in positive territory. 

A majority of the sector's components trade higher. Costco (COST 873.12, -11.36, -1.28%), however, is not one of those names, despite delivering solid 1Q26 results, edging past EPS and revenue expectations, powered by strong traffic, a record-setting Black Friday in U.S. e-commerce, and a 14% jump in high-margin membership fee income. The company reiterated broad-based strength across food and non-food categories heading into the holiday season, while digitally enabled sales remained a standout performer.

The company's results highlight impressive consistency, with comparable sales holding near 6-7% despite tariff noise, port disruptions, and uneven monthly trends. Strength in membership income, up 14%, remains central to the Costco story, supported by growing executive penetration and expanding digital engagement.

[BRIEFING.COM] The S&P 500 (-1.2%), Nasdaq Composite (-1.9%), and DJIA (-0.5%) are firmly lower just before midday as an early slide in tech names has expanded into a broader retreat. 

The information technology sector (-2.7%) faced early pressure as shares of Broadcom (AVGO 361.83, -44.54, -10.96%) traded sharply lower in reaction to the company's earnings report. That report was largely devoid of any flaws that would warrant a double-digit retreat, but a sharp rally in the stock this year left investors looking for a more aggressive growth outlook. 

A double-digit slide in Oracle (ORCL 187.85, -11.00, -5.53%) just yesterday in reaction to its own earnings report set an ominous tone for the AI trade today. The PHLX Semiconductor Index is down 4.8%.

Several cyclical sectors traded higher at the open but have since retreated, leaving just the defensive health care (+0.4%) and consumer staples (+0.3%) sectors in positive territory. 

Outside of the S&P 500, the small-cap Russell 2000 (-1.2%) and S&P Mid Cap 400 (-1.3%) trade lower in accordance with the broader market. 

[BRIEFING.COM] The S&P 500 (-1.2%), Nasdaq Composite (-1.8%), and DJIA (-0.4%) remain below their flatlines as losses in tech names widen and broaden to other sectors.

Broadcom (AVGO 361.76, -44.61, -10.98%) is  one of the worst-performing S&P 500 names today despite posting an impressive finish to FY25. The semiconductor and infrastructure software giant delivered upside Q4 (Oct) results, issued Q1 (Jan) revenue guidance above consensus, and even raised its dividend by 10%. However, expectations were sky-high, with the stock up over +180% since April, leaving little room for merely "strong" results. 

While results and commentary were solid, the FY26 tone wasn't quite as hyper-bullish as the market hoped, particularly given the massive AI backlog and recent enthusiasm around AI accelerators and networking.

Meanwhile, lululemon athletica (LULU 204.94, +17.93, +9.59%) is the top-performing S&P 500 name, also after posting its earnings results last night. The company beat expectations on the top and bottom line, with revenue increasing 7.1% to $2.57 billion. The company also guided Q4 EPS to $4.66-4.76, which was below expectations, and revenue to $3.50-3.59 billion, which was in line. Perhaps the biggest news was that CEO Calvin McDonald plans to step down from the role, effective January 31.

[BRIEFING.COM] Stocks have moved lower since the open, with the DJIA (-0.1%) retreating beneath its flatline after its modest opening gain notched it a record intraday high for the second consecutive day. The S&P 500 (-0.7%) and Nasdaq Composite (-1.2%) remain firmly lower amid underperformance in tech names. 

The majority of the sector's components trade lower, with Broadcom (AVGO 364.23, -42.14, -10.37%) extending its losses to double digits, while Oracle (ORCL 191.82, -7.02, -3.53%) moves lower again today after a double-digit retreat yesterday. 

The communication services sector (-0.8%) also faces a widening loss after a flattish open, with Alphabet (GOOG 309.37, -4.33, -1.38%) and Meta Platforms (META 644.00, -8.71, -1.33%) providing weak mega-cap leadership. 

The Vanguard Mega Cap Growth ETF is  now down 1.2%.

[BRIEFING.COM] The S&P 500 (-0.2), Nasdaq Composite (-0.5%), and DJIA (+0.2%) are mixed shortly after the open, with tech weakness once again weighing against broader-market strength. 

Broadcom (AVGO 370.87, -35.50, -8.74%) is down sharply following its earnings report yesterday, pressuring the top-weighted information technology sector (-1.3%) and the PHLX Semiconductor Index (-1.7%). 

The energy sector (-0.2%) holds a modest loss, while nine S&P 500 sectors trade higher. 

Similar to recent sessions, cyclical sectors are outperforming again today. The materials sector (+0.8%) tops the leaderboard after a 2.3% advance yesterday. 

Meanwhile, the consumer discretionary sector (+0.7%) holds a similar gain. lululemon athletica (LULU 210.68, +23.66, +12.65%) trades sharply higher after its own earnings report, while Tesla (TSLA 461.98, +15.09, +3.38%) holds a solid gain despite a report from Reuters that the company's U.S. sales have fallen to a four-year low. 

The stock market is on track for a mixed open this morning as tech names lag while the broader market continues to trend mostly higher in the wake of Wednesday's FOMC meeting. 

Chicago Fed President Austan Goolsbee, who dissented against Wednesday's rate cut in favor of keeping the Fed funds rate unchanged, told CNBC that he is optimistic Fed funds rates will be lower in 2026.

Mr. Goolsbee felt uncomfortable frontloading too many rate cuts but noted his "dot" is more dovish than the median for 2026, though he will not be a voting member next year. 

The S&P 500 futures currently trade in line with fair value.

Equity indices in the Asia-Pacific region had a higher finish to the week. China held its Central Economic Work Conference with officials pledging a continuation of fiscal expansion and more interest rate and reserve requirement ratio cuts. Japan is planning to make Hokkaido its base for advanced chip development. Large Japanese food producer Ajinomoto is raising the prices of some of its products by double digits. Banko Sentral ng Pilipinas lowered its policy rate by 25 basis points to 4.50%, as expected.

• In economic data:
  • China's November New Loans CNY390.0 bln (last CNY220.0 bln). November Outstanding Loan Growth 6.4% yr/yr (last 6.5%) and total social financing CNY2.49 trln (last CNY810.0 bln)
  • Japan's October Industrial Production 1.5% m/m (expected 1.4%; last 2.6%) and Capacity Utilization 3.3% m/m (last 2.5%)
  • South Korea's November Import Price Index 2.2% yr/yr (last 0.5%); 7.0% yr/yr (last 4.8%)
  • India's November CPI 0.71% yr/yr (expected 0.70%; last 0.25%)
  • New Zealand's November Business PMI 51.4 (last 51.2). November Electronic Card Retail Sales 1.2% m/m (last 0.2%); 1.6% yr/yr (last 0.8%)

---Equity Markets---

• Japan's Nikkei: +1.4%
• Hong Kong's Hang Seng: +1.8%
• China's Shanghai Composite: +0.4%
• India's Sensex: +0.5% 
• South Korea's Kospi: +1.4%
• Australia's ASX All Ordinaries: +1.2%

Major European indices trade in the green with banks contributing to the advance. The U.K.'s GDP contracted slightly in October, putting the Q4 reading at risk of a contraction ahead of next week's policy meeting at the Bank of England that could result in a rate cut. The EU will freeze Russian central bank assets held in Europe indefinitely and could use a large portion to fund a loan for Ukraine.

• In economic data:
  • Germany's November CPI -0.2% m/m, as expected (last 0.3%); 2.3% yr/yr, as expected (last 2.3%)
  • U.K.'s October GDP -0.1% m/m (expected 0.1%; last -0.1%); 1.1% yr/yr (expected 1.4%; last 1.1%). Construction Output -0.6% m/m (expected -0.1%; last 0.2%); 0.9% yr/yr (expected 1.6%; last 1.3%). October Industrial Production 1.1% m/m (expected 0.9%; last -2.0%); -0.8% yr/yr (expected -1.2%; last -2.5%). October Manufacturing Production 0.5% m/m (expected 1.1%: last -1.7%); -0.8% yr/yr (expected -0.1%; last -2.2%). October trade deficit GBP22.54 bln (expected deficit of GBP19.10 bln; last deficit of GBP18.88 bln)
  • France's November CPI -0.2% m/m (expected -0.1%; last 0.1%); 0.9% yr/yr, as expected (last 0.9%)
  • Spain's November CPI 0.2% m/m, as expected (last 0.7%); 3.0% yr/yr, as expected (last 3.1%). November Core CPI 2.6% yr/yr, as expected (last 2.5%)

---Equity Markets---

• STOXX Europe 600: +0.1%
• Germany's DAX: +0.3%
• U.K.'s FTSE 100: -0.1%
• France's CAC 40: +0.5%
• Italy's FTSE MIB: +0.4% 
• Spain's IBEX 35: +0.5%

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

Tech and AI names are mostly lower in response to a sharp slide in Broadcom (AVGO 382.94, -23.43, -5.8%) after the company's earnings report.

However, NVIDIA (NVDA 182.58, +1.65, +0.9%), which slid 1.6% yesterday, is higher in the premarket after Reuters reported that the company is considering increasing production of its H200 chip due to high demand from China. 

Equity futures point to a mixed opening this morning as futures tied to the DJIA trade higher after the index notched record highs yesterday, while lingering pressure in tech and AI names sends futures tied to the S&P 500 and the Nasdaq lower. 

Yesterday's action reflected a similar disposition, with small-cap, cyclical, and defensive stocks outperforming as tech names lagged in response to a disappointing earnings report from Oracle (ORCL 197.12, -1.73, -0.9%). There was a modest intraday buy-the-dip bid, which helped the S&P 500 finish slightly higher and notch a record closing high, but mega-cap and tech names were still a drag on the market. 

This morning, Broadcom (AVGO 382.89, -23.48, -5.8%) weighs on the market despite delivering an earnings report that was largely better than expectations. 

The market will not receive any economic data of note this morning but will hear from several FOMC officials throughout the day, including Chicago Fed President Austan Goolsbee (voting FOMC member), who notably dissented against Wednesday's rate cut, preferring to keep the federal funds target rate unchanged. 

In other Fed news, Barron's reports that people close to Kevin Hassett are concerned he will not be independent as Fed Chair. 

In corporate news: 

• Moderate House Republicans and Republican leadership are discussing adding an amendment vote to the healthcare bill that will extend Affordable Care Act subsidies. Vote on legislation is expected next week, according to Politico.
• Broadcom (AVGO 382.89, -23.48, -5.8%) beats EPS expectations by $0.08, beats revenue expectations, guides Q1 revs above consensus, and also increases its quarterly dividend.
• Costco (COST 883.00, -1.48, -0.2%) beat EPS expectations by $0.07 and reported revenues in-line. 
• lululemon athletica (LULU 205.30, +18.29, +9.8%) beat EPS expectations by $0.38, beat revenue expectations, and guided Q4 EPS below consensus with revenues in-line. The company approves a $1 billion increase to its share repurchase program, and CEO Calvin McDonald will step down
• Paramount (PSKY 14.11, -0.01, -0.1%) might increase its bid for Warner Brothers (WBD 29.94, +0.45, +1.5%) by 10%, according to The New York Post. 

Reviewing overnight developments:

Equity indices in the Asia-Pacific region had a higher finish to the week. Japan's Nikkei: +1.4%, Hong Kong's Hang Seng: +1.8%, China's Shanghai Composite: +0.4%, India's Sensex: +0.5%, South Korea's Kospi: +1.4%, Australia's ASX All Ordinaries: +1.2%.

In news:

• China held its Central Economic Work Conference with officials pledging a continuation of fiscal expansion and more interest rate and reserve requirement ratio cuts.
• Japan is planning to make Hokkaido its base for advanced chip development.
• Large Japanese food producer Ajinomoto is raising the prices of some of its products by double digits.
• Banko Sentral ng Pilipinas lowered its policy rate by 25 basis points to 4.50%, as expected.

In economic data:

• China's November New Loans CNY390.0 bln (last CNY220.0 bln). November Outstanding Loan Growth 6.4% yr/yr (last 6.5%) and total social financing CNY2.49 trln (last CNY810.0 bln)
• Japan's October Industrial Production 1.5% m/m (expected 1.4%; last 2.6%) and Capacity Utilization 3.3% m/m (last 2.5%)
• South Korea's November Import Price Index 2.2% yr/yr (last 0.5%); 7.0% yr/yr (last 4.8%)
• India's November CPI 0.71% yr/yr (expected 0.70%; last 0.25%)
• New Zealand's November Business PMI 51.4 (last 51.2). November Electronic Card Retail Sales 1.2% m/m (last 0.2%); 1.6% yr/yr (last 0.8%)

Major European indices trade in the green with banks contributing to the advance. STOXX Europe 600: +0.2%, Germany's DAX: +0.2%, U.K.'s FTSE 100: +0.1%, France's CAC 40: +0.4%, Italy's FTSE MIB: +0.4%, Spain's IBEX 35: +0.5%.

In news:

• The U.K.'s GDP contracted slightly in October, putting the Q4 reading at risk of a contraction ahead of next week's policy meeting at the Bank of England that could result in a rate cut.
• The EU will freeze Russian central bank assets held in Europe indefinitely and could use a large portion to fund a loan for Ukraine.

In economic data:

• Germany's November CPI -0.2% m/m, as expected (last 0.3%); 2.3% yr/yr, as expected (last 2.3%)
• U.K.'s October GDP -0.1% m/m (expected 0.1%; last -0.1%); 1.1% yr/yr (expected 1.4%; last 1.1%). Construction Output -0.6% m/m (expected -0.1%; last 0.2%); 0.9% yr/yr (expected 1.6%; last 1.3%). October Industrial Production 1.1% m/m (expected 0.9%; last -2.0%); -0.8% yr/yr (expected -1.2%; last -2.5%). October Manufacturing Production 0.5% m/m (expected 1.1%: last -1.7%); -0.8% yr/yr (expected -0.1%; last -2.2%). October trade deficit GBP22.54 bln (expected deficit of GBP19.10 bln; last deficit of GBP18.88 bln)
• France's November CPI -0.2% m/m (expected -0.1%; last 0.1%); 0.9% yr/yr, as expected (last 0.9%)
• Spain's November CPI 0.2% m/m, as expected (last 0.7%); 3.0% yr/yr, as expected (last 3.1%). November Core CPI 2.6% yr/yr, as expected (last 2.5%)

[BRIEFING.COM] The stock market delivered an eventful session, with cyclical and defensive names extending yesterday's rate-cut momentum to lift the DJIA (+1.3%) to a record high. At the same time, weakness in tech and other mega-cap names following Oracle's (ORCL 198.64, -24.37, -10.93%) disappointing results kept the S&P 500 (+0.2%) and Nasdaq Composite (-0.3%) subdued, though the S&P 500 still managed to log a record close. 

The smaller-cap Russell 2000 (+1.2%) and S&P Mid Cap 400 (+1.0%) continued on their run of recent outperformance as the Fed's rate cut and softer policy tone encouraged renewed interest in domestically focused, rate-sensitive names.

The information technology sector (-0.6%) spent the majority of the session as the biggest laggard, as Oracle's revenue miss and lighter-than-expected free cash flow weighed on other mega-cap names across the AI trade. 

NVIDIA (NVDA 180.96, -2.82, -1.53%) finished lower, with the broader PHLX Semiconductor Index closing with a 0.8% loss. Broadcom (AVGO 406.96, -6.01, -1.46%) also traded lower ahead of its earnings report this afternoon, which investors will look to for a boost in AI sentiment. 

While big tech certainly limited gains at the index level, it is worth noting that the information technology sector mounted an impressive intraday move after trading over 2.0% lower this morning, a move that was pivotal in getting the S&P 500 across its flatline and notching a record close. 

The communication services sector (-1.0%) finished with the widest loss, as Alphabet (GOOG 313.75, -7.25, -2.26%) was burdened by today's mega-cap weakness, without a comeback effort this afternoon.

Dow component Walt Disney (DIS 111.48, +2.64, +2.43%) still notched a solid gain after news that the company struck a licensing deal with OpenAI that will allow some 200 Disney characters to be used in the company's short-form generative AI video platform, Sora. As part of the agreement, Disney will also be investing $1 billion in OpenAI. 

The Vanguard Mega Cap Growth ETF finished 0.3% lower, contributing to the underperformance of the market-weighted S&P 500 (+0.2%) relative to the S&P 500 Equal Weighted Index (+0.8%).

Meanwhile, the energy sector (-0.4%) finished with a more modest loss as crude oil futures settled today's session $0.92 lower (-1.6%) at $57.61 per barrel.

While weakness in mega-cap tech names certainly stifled growth in the S&P 500 and Nasdaq Composite, the broader market put up another solid performance in the wake of yesterday's FOMC meeting. 

Cyclical sectors, such as the materials (+2.2%) and financials (+1.8%) sectors, outperformed again as investors rotated into sectors that benefit from a more accommodative monetary policy backdrop.

Mosaic (MOS 25.20, +1.44, +6.08%) captured one of the widest gains across S&P 500 names after reports that a Ukrainian drone strike caused a large fire at a prominent Russian mineral fertilizer plant. 

Visa (V 345.65, +19.92, +6.12%) notched a similar gain, catching an upgrade from Bank of America Securities to Buy from Neutral this morning. 

The defensive health care (+1.0%), utilities (+0.7%), and consumer staples (+0.7%) sectors also caught a solid rotational bid today amid the weakness in tech names. 

Managed care names such as Elevance Health (ELV 360.18, +19.14, +5.61%), Centene (CNC 40.47, +1.80, +4.65%), and Molina Healthcare (MOH 166.94, +6.42, +4.00%) traded sharply higher following headlines that a Republican-backed healthcare plan to redirect Affordable Care Act subsidies from insurance companies to Americans failed by a Senate vote of 51-48.

Eli Lilly (LLY 1009.14, +15.50, +1.56%) also notched a solid gain after announcing positive topline results from its Phase 3 TRIUMPH-4 clinical trial evaluating the weight-loss effects of retatrutide, its investigational "triple G" agonist.

Attention now shifts to Broadcom's earnings, which could influence the tone around chipmakers and AI, while the post-FOMC rotation into cyclicals and defensives continues to shape the market's underlying strength.

U.S. Treasuries extended their midweek bounce on Thursday, though the advance found some intraday resistance, which left yields on 5-year and longer tenors above their opening levels. The 2-year note yield settled down four basis points to 3.53%, and the 10-year note yield settled down two basis points to 4.14%.

• Nasdaq Composite: +22.2% YTD
• S&P 500: +17.3% YTD
• Russell 2000: +16.2% YTD
• DJIA: +14.5% YTD
• S&P Mid Cap 400: +8.8% YTD

Reviewing today's data:

• Weekly Initial Claims 236K; Prior was revised to 192K from 191K, Weekly Continuing Claims 1.838 mln; Prior was revised to 1.937 mln from 1.939 mln
  • The key takeaway from the report is that, on balance, it doesn't point to a material weakening in the labor market.
• September Trade Balance -$52.8 bln (Briefing.com consensus -$61.7 bln); Prior was revised to -$59.3 bln from -$59.6 bln
  • The key takeaway from the report is that the narrower deficit was the byproduct of exports being $8.4 billion more than August exports and imports being $1.9 billion more than August imports.
• September Wholesale Inventories 0.5% (Briefing.com consensus -0.2%); Prior -0.1%