[BRIEFING.COM] The stock market ended a volatile week on a sharply positive note, with a strong rebound across tech names and broad strength propelling the S&P 500 (+2.0%), Nasdaq Composite (+2.2%), and DJIA (+2.5%) higher.

Today's strength saw the DJIA notch fresh record highs, eclipsing and closing above the 50,000 mark for the first time. The S&P 500 reclaimed and closed above its 50-day moving average of 6,884.75. 

Small caps, semiconductors, and high-beta names were among the outperformers in today's rally, with the top-weighted information technology sector (+4.1%) finishing as the best performer across the nine S&P 500 sectors that notched gains.

Chipmaker names rebounded sharply from recent weakness, with the PHLX Semiconductor Index (+5.7%) closing the week with a modest gain following today's strength. Super Micro Computer (SMCI 34.38, +3.53, +11.44%) made back the entirety of yesterday's weakness and then some, while NVIDIA (NVDA 185.41, +13.53, +7.87%) was a mega-cap standout, moving back above its 50-day moving average (183.57). 

Microsoft (MSFT 401.14, +7.47, +1.90%) also garnered some buying interest off of recent lows, and the iShares GS Software (+3.5%) notched a much-needed gain.

While there was certainly a technical element to the tech rebound given the size of this week's pullback, AI infrastructure names received an added tailwind from massive capital expenditure plans outlined by some of the market's largest constituents.

Amazon (AMZN 210.32, -12.37, -5.55%) forecast roughly $200 billion in capital spending for 2026, and while return-on-investment concerns-along with a modest EPS miss-initially weighed on the stock, the scale of the investment is broadly viewed as constructive for the AI ecosystem, particularly across semiconductors and related infrastructure providers. 

Additionally, Alphabet (GOOG 323.10, -8.23, -2.48%) issued a similar forecast of up to $185 billion with its earnings release earlier in the week. While those two names, along with some weakness in Meta Platforms (META 661.46, -8.75, -1.31%), pushed the communication services (-1.5%) and consumer discretionary (-0.7%) sectors lower, strength across the other mega-caps saw the Vanguard Mega Cap Growth ETF (+2.2%) reclaim just under half of this week's losses. 

Strength was not just limited to mega-cap tech, as eight of the nine S&P 500 sectors that closed higher boasted gains wider than 1.0%. 

The industrials sector (+2.8%) was among the top performers, with airline names such as United Airlines (UAL 115.91, +9.82, +9.26%) and Delta Air Lines (DAL 75.30, +5.52, +7.91%) trading sharply higher. 

The financials sector (+1.8%) was supported by a rebound in Robinhood Markets (HOOD 82.82, +10.14, +13.95%) and Coinbase Global (COIN 165.12, +19.00, +13.00%) as Bitcoin prices stabilized and bounced off of recent lows, reclaiming the $70,000 mark. 

The health care sector (+1.8%) finished similarly, with broad strength outweighing Molina Healthcare's (MOH 131.56, -45.28, -25.61%) post-earnings plummet. 

Outside of the S&P 500, the Russell 2000 (+3.6%) and S&P Mid Cap 400 (+3.1%) outperformed amid the resurgence in growth stocks today. 

While improving risk sentiment helped the major averages finish the week on a higher note, it is worth noting that sizable losses earlier in the week left the S&P 500 (-0.1% week-to-date) and Nasdaq Composite (-1.8% week-to-date) with weekly declines. In contrast, the DJIA's (+2.5% week-to-date) push to fresh record highs highlights the ongoing bifurcation between value and growth stocks in early 2026.

Still, today's session underscores how quickly the broader market can advance when mega-cap and technology stocks regain momentum, and suggests they could reassert leadership as investors grow more comfortable with the scale of capital expenditure forecasts coming from mega-cap companies.

U.S. Treasuries had a quiet finish to a week that featured a volatile showing from equities, which contributed to a week of gains in most tenors. The 2-year note yield settled up one basis point to 3.51% (-3 basis points this week), and the 10-year note yield finished unchanged at 4.21% (-3 basis points this week). 

• S&P Mid Cap 400: +8.5% YTD
• Russell 2000: +7.6% YTD
• DJIA: +4.3% YTD
• S&P 500: +1.3% YTD
• Nasdaq Composite: -0.9% YTD

Reviewing today's data:

• February Univ. of Michigan Consumer Sentiment - Prelim 57.3 (Briefing.com consensus 54.3); Prior 56.4
  • The key takeaway from the report is that there was a surge in sentiment among consumers with the largest stock portfolios, whereas it remained at "dismal levels" for consumers without stock holdings. [Note: interviews for this release ended this past Monday, so with steep losses in many tech stocks since then, there is a good chance of a downward revision when the final report is released on February 20, barring a sustained rebound effort.
• Consumer credit increased by $24.0 billion in December (Briefing.com consensus: $8.4 billion) following an upwardly revised $4.7 billion increase (from $4.2 billion) in November.
  • The key takeaway from the report is that there was a healthy expansion in consumer credit in December, driven by solid pickups in both revolving and nonrevolving credit. The December expansion was the biggest since March 2025.

[BRIEFING.COM] The S&P 500 (+1.8%), Nasdaq Composite (+2.0%), and DJIA (+2.3%) continue to chart session highs with just half an hour left in today's session. 

Consumer credit increased by $24.0 billion in December (Briefing.com consensus: $8.4 billion) following an upwardly revised $4.7 billion increase (from $4.2 billion) in November.

The key takeaway from the report is that there was a healthy expansion in consumer credit in December, driven by solid pickups in both revolving and nonrevolving credit. The December expansion was the biggest since March 2025.

[BRIEFING.COM] The S&P 500 (+1.7%), Nasdaq Composite (+1.8%), and DJIA (+2.3%) continue to chart session highs this afternoon, with the DJIA eclipsing the 50,000 mark for the first time. 

The major averages are on track for a mixed finish to the week. The DJIA (+2.3% week-to-date) leads as the broader market garnered some rotational strength amid pronounced weakness across tech in previous sessions, while the Nasdaq Composite (-2.1% week-to-date) suffers the widest loss, and the S&P 500 (-0.3% week-to-date) holds a more modest loss. 

Just released, consumer credit increased by $24.0 billion in December (Briefing.com consensus: $8.4 billion) following an upwardly revised $4.7 billion increase (from $4.2 billion) in November.

[BRIEFING.COM] The S&P 500 (+1.73%) is in last place on Friday afternoon, up about 117 points.

Briefly, S&P 500 constituents Teradyne (TER 298.60, +27.47, +10.13%), Super Micro Computer (SMCI 33.82, +2.97, +9.63%), and Biogen (BIIB 200.00, +14.64, +7.90%) pepper the top of the standings. TER and SMCI rebound sharply a day after being equally pressured to the downside, while BIIB rises after beating Q4 EPS and guiding FY26 above consensus, with investors encouraged by strong pipeline momentum and upcoming key drug milestones despite a modest revenue decline. 

Meanwhile, Molina Healthcare (MOH 130.60, -46.24, -26.15%) is today's worst laggard after guiding FY26 revenue well below expectations and warning that 2026 will be a "trough year" for Medicaid margins due to a continued mismatch between rates and medical cost trends. The sharp Q4 EPS swing to a loss amplified concerns about near-term profitability, causing investors to reprice the stock despite an EPS outlook that topped consensus.

[BRIEFING.COM] The tech-heavy Nasdaq Composite (+1.86%) is firmly in second place on Friday afternoon, up about 420 points.

Gold futures settled $86.40 higher (+1.8%) at $4,975.90/oz, as safe-haven demand picked up amid geopolitical uncertainty, heightened market volatility, and renewed risk-off sentiment, while a softer U.S. dollar and falling real yields continued to support bullion. The move was amplified by speculative positioning and sharp price swings, underscored by COMEX margin hikes and expectations that the Fed will eventually ease policy.

Meanwhile, the U.S. Dollar Index is now -0.4% lower at $97.63.

[BRIEFING.COM] The Dow Jones Industrial Average (+2.09%) is up more than 1,020 points, making a play at the 50K level.

A look inside the DJIA shows that NVIDIA (NVDA 184.43, +12.55, +7.30%), Caterpillar (CAT 721.83, +43.52, +6.42%), and 3M (MMM 171.76, +6.68, +4.05%) are outperforming.

Meanwhile, Amazon (AMZN 207.63, -15.06, -6.76%) is sharply lower.

The DJIA is poised to end the week +2.12% higher.

Also, at the top of the hour, Baker Hughes (BKR 59.32, +1.96, +3.42%) announced a weekly U.S. rotary rig count of 551, +5 w/w and -35 yr/yr.

[BRIEFING.COM] The S&P 500 (+1.7%), Nasdaq Composite (+2.0%), and DJIA (+2.1%) are charting session highs amid a considerable rebound in tech and mega-cap stocks after several consecutive sessions of weakness. 

The S&P 500 has reclaimed its 50-day moving average (6,884.75) which it closed below yesterday, while the DJIA notched an all-time high, coming within 100 points of the 50,000 mark. 

Bitcoin stabilized overnight, with a sharp rebound today pushing it back above the $70,000 mark, helping ease some recent volatility across risk assets. 

While Amazon (AMZN 208.88, -13.81, -6.20%) is sharply lower after an earnings miss and a massive $200 billion capital expenditure forecast, and Alphabet (GOOG 323.09, -8.24, -2.49%) lags after issuing a comparably immense spending plan, the broader AI trade is benefitting from strong "buy-the-dip" support after a previously rough week. Still, the communication services (-1.5%) and  consumer discretionary (-1.0%) sectors trade lower

Meanwhile, the nine other S&P 500 sectors trade higher, with the top-weighted information technology sector (+3.7%) leading the strength.

While massive mega-cap spending plans prompt return on investment concerns, the development is seen as a positive for the broader AI infrastructure space, which is set to benefit from the spending. Semiconductors escaped yesterday's session relatively unscathed amid Alphabet's spending guidance and are at the forefront of today's strength. The PHLX Semiconductor Index is up 5.4%, moving it back into modestly positive territory for the week. 

NVIDIA (NVDA 184.71, +12.83, +7.46%) is a "magnificent seven" standout. CEO Jensen Huang said demand for Nvidia's AI products within Amazon Web Services is extremely strong, which helped Amazon's stock rise to its best levels of the session. 

Elsewhere, Microsoft (MSFT 398.71, +5.04, +1.28%) and other software names finally garner some buying support after a sharp retreat this week, with the iShares GS Software ETF up 2.9%. 

Outside of the tech space, the broader market is firmly higher, with several solid gains in the mix. 

The industrials sector (+2.5%) is one of the top performers, supported by strength in airline names such as United Airlines (UAL 115.47, +9.38, +8.84%) and Delta Air Lines (DAL 75.03, +5.25, +7.52%). 

The energy sector (+2.1) also sports a nice gain as the price of oil increased $1.03 (+1.6%) to $64.32 per barrel. The Wall Street Journal reported that Iran rejected the U.S. request to stop its nuclear program, but signaled willingness to keep working toward a diplomatic solution.

Outside of the S&P 500, the Russell 2000 (+3.2%) and S&P Mid Cap 400 (+2.8%) are sharply higher, underscoring the improvement in risk sentiment today as growth stocks bounce off of recent lows. 

Overall, improving risk appetite is driving broad participation beyond mega-cap tech, signaling a notable change in tone after several tough sessions. Attention now turns to whether the rebound can hold into the close or fades as investors reassess positioning after a volatile week.

Reviewing today's data:

• February Univ. of Michigan Consumer Sentiment - Prelim 57.3 (Briefing.com consensus 54.3); Prior 56.4
  • The key takeaway from the report is that there was a surge in sentiment among consumers with the largest stock portfolios, whereas it remained at "dismal levels" for consumers without stock holdings. [Note: interviews for this release ended this past Monday, so with steep losses in many tech stocks since then, there is a good chance of a downward revision when the final report is released on February 20, barring a sustained rebound effort.

[BRIEFING.COM] The major averages continue to steadily tick higher shortly after midday. 

Homebuilder names are moving lower after a Bloomberg report that the Trump administration is weighing an antitrust probe into major U.S. homebuilders over housing costs. 

Names such as Lennar (LEN 113.37, -2.00, -1.73%) and D.R. Horton (DHI 154.45, -3.68, -2.33%) are now firmly lower after solid earlier gains, adding to pressure in the consumer discretionary sector (-1.5%), which lags amid Amazon's (AMZN 206.18, -16.51, -7.41%) post-earnings slide. 

The iShares U.S. Home Construction ETF (+0.5%) briefly dipped into negative territory, but is now back in modestly positive territory. 

[BRIEFING.COM] The S&P 500 (+1.5%), Nasdaq Composite (+1.5%), and DJIA (+1.9%) are charting session highs at midday. 

The industrials sector (+2.5%) is among today's top performers, rebounding from a modest loss yesterday. 

Airline stocks such as United Airlines (UAL 115.66, +9.57, +9.02%) and Delta Air Lines (DAL 74.87, +5.09, +7.29%) are sharply higher, while Caterpillar (CAT 719.46, +41.14, +6.07%) also posts a solid gain. 

[BRIEFING.COM] Stocks are putting together a much-needed rebound session, with the S&P 500 (+1.4%), Nasdaq Composite (+1.5%), and DJIA (+1.8%) all firmly higher as tech names lead broad strength. After testing the $60,000 mark overnight, Bitcoin has rebounded around 11% today, back above $69,000.

Nine S&P 500 sectors trade higher, with the information technology sector (+3.2%) garnering some strong buy-the-dip interest after sizable losses in previous sessions that still leave it 2.0% lower for the week. 

NVIDIA (NVDA 183.69, +11.81, +6.87%) is a mega-cap standout, and the PHLX Semiconductor Index is 4.9% higher.

The Invesco S&P 500 High Beta ETF (+3.5%) is also outperforming, underscoring a rotation back into higher-growth, higher-risk areas of the market after three straight sessions of defensive positioning.

Even with Amazon (AMZN 204.86, -17.83, -8.01%) tumbling on an EPS miss and concerns over massive capital expenditure plans-and Alphabet (GOOG 323.10, -8.23, -2.48%) extending losses following a similarly large capex outlook-the Vanguard Mega Cap Growth ETF is still higher by 1.4%.

Meanwhile, the Russell 2000 (+2.7%) and S&P Mid Cap 400 (+2.5%) are posting even stronger gains, reflecting a broader resurgence in growth stocks.

[BRIEFING.COM] The major averages are little changed from previous levels as tech names lead a broad rebound effort. 

Amazon (AMZN 205.02, -17.67, -7.93%) is under pressure today after reporting fiscal Q4 results last night. The company missed on EPS, while revenue delivered only modest upside, rising 13.6% year-over-year to $213.39 billion. Since Amazon provides only GAAP EPS, it is also helpful to examine operating income as a clearer gauge of profitability. Q4 adjusted operating income of $27.4 billion exceeded prior guidance of $21-26 billion, while Q1 revenue guidance came in roughly in-line.

The primary concern from the report centered on capital expenditures. Amazon expects capital expenditure to reach roughly $200 billion in 2026, the majority of which will be directed toward AWS infrastructure. Management cited extremely strong demand for both core and AI workloads, noting that AWS is monetizing new capacity as quickly as it can be deployed.

Capital expenditure totaled $77.7 billion in 2024 and $128.3 billion in 2025, so the planned $200 billion capital expenditure in 2026 represents a sharp acceleration. Investors are worried about margin pressure, AI bubble risk, and potential debt or dilution, especially after AMZN filed a mixed securities shelf offering.

[BRIEFING.COM] The S&P 500 (+1.1%), Nasdaq Composite (+0.9%), and DJIA (+1.6%) are holding on to their solid early gains this morning.

Nine S&P 500 sectors remain higher. The energy sector (+2.2%) holds one of the widest gains amid an increase in the price of oil. The Wall Street Journal reported that Iran rejected the U.S. request to stop its nuclear program, but signaled willingness to keep working toward a diplomatic solution.

The preliminary final University of Michigan Consumer Sentiment reading for February increased to 57.3 (Briefing.com consensus: 54.3) from the final reading of 56.4 for January. In the same period a year ago, the index stood at 64.7.

The key takeaway from the report is that there was a surge in sentiment among consumers with the largest stock portfolios, whereas it remained at "dismal levels" for consumers without stock holdings. [Note: interviews for this release ended this past Monday, so with steep losses in many tech stocks since then, there is a good chance of a downward revision when the final report is released on February 20, barring a sustained rebound effort.]

[BRIEFING.COM] Stocks are moving higher this morning as the market finally sees some relief after what has been a particularly rough week. 

The S&P 500 (+1.1%), Nasdaq Composite (+0.8%), and DJIA (+1.6%) are higher across the board amid a rebound in tech names and solid strength in the broader market. The Russell 2000 (+2.2%) and S&P Mid Cap 400 (+2.2%) are off to an even hotter start. 

The top-weighted information technology sector is up 2.7%, taking back over half of its previous losses from this week. NVIDIA (NVDA 181.46, +9.58, +5.57%) is a mega-cap standout, and strength among other chipmaker names pushes the PHLX Semiconductor Index 4.6% higher. 

Meanwhile, the iShares GS Software ETF (+2.1%) also moves higher after immense pressure across software names this week. Gen Digital (GEN 24.74, +2.30, +10.28%) is one of the top-performing S&P 500 names after topping earnings estimates. 

Meanwhile, Amazon (AMZN 202.32, -20.37, -9.15%) is down sharply after missing EPS expectations, though the move is more likely in response to a massive $200 billion capital expenditure guidance plan. The consumer discretionary sector (-2.6%) is at the bottom of the leaderboard. 

Some lingering weakness in Alphabet (GOOG 323.75, -7.58, -2.29%) after a similar capital expenditure guide keeps the communication services sector (-1.6%) lower as well, while all other sectors trade higher after broad weakness yesterday. 

Just released, the preliminary University of Michigan Consumer Sentiment reading for February checked in at 57.3 (Briefing.com consensus 54.3) from the final January reading of 56.4. 

The stock market is on track for a higher opening this morning, with tech stocks garnering some buy-the-dip interest after what has been a particularly rough week for the market's weightiest components.

Losses in the tech and mega-cap space have the S&P 500 entering today's session down 2.0% for the week, while the Nasdaq Composite is down nearly 4.0%. Yesterday's losses saw the S&P 500 move into negative territory for the year (-0.7% year-to-date). 

While the major averages are indicated to move higher at the open, tech stocks in particular have had trouble sustaining gains throughout the duration of a session so far this year. 

The S&P 500 futures currently trade 37 points above fair value. 

Equity indices in the Asia-Pacific region ended the week on a mixed note. Japan's Lower House election will take place over the weekend with some speculating that the ruling coalition could win super majority. Reserve Bank of Australia Governor Bullock said that while inflation has fallen substantially, it will not return to target until mid-2027. The Reserve Bank of India left its policy rate at 5.25%, as expected.

• In economic data:
  • Japan's December Household Spending -2.9% m/m (expected -1.3%; last 6.2%); -2.6% yr/yr (expected -0.5%; last 2.9%). December Leading Index 110.2 (expected 109.8; last 109.9) and Coincident Indicator -0.4% m/m (last -1.0%)
  • South Korea's December Current Account surplus $18.70 bln (last surplus of $12.90 bln)

---Equity Markets---

• Japan's Nikkei: +0.8%
• Hong Kong's Hang Seng: -1.2%
• China's Shanghai Composite: -0.3% 
• India's Sensex: +0.3% 
• South Korea's Kospi: -1.4% 
• Australia's ASX All Ordinaries: -2.2%

Major European indices trade on a mostly higher note. Stellantis is down nearly 30% after recording a EUR22.2 bln writedown due to mounting losses from its electric vehicle strategy. The company also guided for a big loss in the second half of the year. Societe Generale announced job cut plans. A few European Central Bank policymakers repeated that policy is in a good place at this time.

• In economic data:
  • Germany's December trade surplus EUR17.1 bln (expected surplus of EUR14.1 bln; last surplus of EUR13.6 bln). December Imports 1.4% m/m (expected 0.2%: last 0.7%) and Exports 4.0% m/m (expected 1.0%; last -2.5%). December Industrial Production -1.9% m/m (expected -0.2%; last 0.2%); -0.6% yr/yr (last 0.4%)
  • U.K.'s January Halifax House Price Index 0.7% m/m (expected 0.1%; last -0.5%); 1.0% yr/yr (last 0.4%)
  • France's December trade deficit EUR4.8 bln (expected deficit of EUR3.8 bln; last deficit of EUR4.0 bln) and December Current Account deficit EUR600 mln (last deficit of EUR300 mln)
  • Spain's December Industrial Production -0.3% yr/yr (last 4.6%)
  • Swiss January Unemployment Rate 2.9% (expected 3.0%; last 3.0%)

---Equity Markets---

• STOXX Europe 600: +0.3%
• Germany's DAX: +0.7%
• U.K.'s FTSE 100: +0.2%
• France's CAC 40: UNCH
• Italy's FTSE MIB: -0.2%
• Spain's IBEX: +0.9%

The S&P 500 futures currently trade 41 points above fair value. 

Drugmakers such as Eli Lilly (LLY 1,061.02, +40.18, +3.9%) and Novo Nordisk (NVO 46.42, +3.09, +7.1%) are higher in the premarket after the FDA announced it "will take swift action against companies mass-marketing illegal copycat drugs," according to CNBC.

Additionally, President Trump announced the launch of TrumpRx, which offers discounted pricing on select drugs.

Equity futures point to a higher opening this morning as the market attempts to stabilize after three consecutive losing sessions for the S&P 500. 

Yesterday the major averages all finished more than 1.0% lower, with significant losses across mega-cap and tech names leading a retreat that encompassed all but a couple of defensive sectors. 

Amazon (AMZN 204.70, -17.99, -8.1%) is the latest mega-cap stock to come under pressure after guiding for a massive capital expenditure plan in its earnings report. The company expects to spend around $200 billion in cap-ex across 2026, a similar figure to that of Alphabet (GOOG 327.94, -3.39, -1.0%), which shed heftier losses to close modestly lower yesterday after its own earnings report. Amazon, however, modestly missed EPS expectations. 

The massive spending plans are viewed as a positive for stocks across the AI infrastructure landscape, contributing to a rebound after several days of sharp losses. 

Bitcoin is also on the rebound this morning after testing the $60,000 mark and then moving higher overnight. 

In other news, The Wall Street Journal reports that the U.S. and Iran have met for nuclear discussions. 

On the data front, market participants will receive the preliminary University of Michigan Consumer Sentiment Index for February (Briefing.com consensus 54.3) at 10:00 a.m. ET, and the December Consumer Credit Report (Briefing.com consensus $8.4 billion) at 3:00 p.m. ET.

In corporate news:

• Amazon (AMZN 204.70, -17.99, -8.1%) missed EPS expectations by $0.02, reported revenues in-line, and guided Q1 revenues in-line. 
• Anthropic enhancements impacted the software development industry, according to The Wall Street Journal. 
• Intel (INTC 49.23, +0.99, +2.1%) and Advanced Micro Devices (AMD 197.40, +4.90, +2.6%) told customers in China that there will be long waits for CPUs, according to Reuters. 
• Reddit (RDDT 163.80, +12.75, +8.4%) beat EPS expectations by $0.30, beat revenue expectations, guided Q1 revenues above consensus, and authorized a share repurchase program of up to $1 billion. 

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended the week on a mixed note. Japan's Nikkei: +0.8%, Hong Kong's Hang Seng: -1.2%, China's Shanghai Composite: -0.3%, India's Sensex: +0.3%, South Korea's Kospi: -1.4%, Australia's ASX All Ordinaries: -2.2%.

In news:

• Japan's Lower House election will take place over the weekend with some speculating that the ruling coalition could win super majority.
• Reserve Bank of Australia Governor Bullock said that while inflation has fallen substantially, it will not return to target until mid-2027.
• The Reserve Bank of India left its policy rate at 5.25%, as expected.

In economic data:

• Japan's December Household Spending -2.9% m/m (expected -1.3%; last 6.2%); -2.6% yr/yr (expected -0.5%; last 2.9%). December Leading Index 110.2 (expected 109.8; last 109.9) and Coincident Indicator -0.4% m/m (last -1.0%)
• South Korea's December Current Account surplus $18.70 bln (last surplus of $12.90 bln)

Major European indices trade on a mostly higher note. STOXX Europe 600: +0.4%, Germany's DAX: +0.7%, U.K.'s FTSE 100: +0.1%, France's CAC 40: UNCH, Italy's FTSE MIB: -0.3%, Spain's IBEX 35: +1.0%.

In news:

• Stellantis is down nearly 30% after recording a EUR22.2 bln writedown due to mounting losses from its electric vehicle strategy. The company also guided for a big loss in the second half of the year.
• Societe Generale announced job cut plans.
• A few European Central Bank policymakers repeated that policy is in a good place at this time.

In economic data:

• Germany's December trade surplus EUR17.1 bln (expected surplus of EUR14.1 bln; last surplus of EUR13.6 bln). December Imports 1.4% m/m (expected 0.2%: last 0.7%) and Exports 4.0% m/m (expected 1.0%; last -2.5%). December Industrial Production -1.9% m/m (expected -0.2%; last 0.2%); -0.6% yr/yr (last 0.4%)
• U.K.'s January Halifax House Price Index 0.7% m/m (expected 0.1%; last -0.5%); 1.0% yr/yr (last 0.4%)
• France's December trade deficit EUR4.8 bln (expected deficit of EUR3.8 bln; last deficit of EUR4.0 bln) and December Current Account deficit EUR600 mln (last deficit of EUR300 mln)
• Spain's December Industrial Production -0.3% yr/yr (last 4.6%)
• Swiss January Unemployment Rate 2.9% (expected 3.0%; last 3.0%)

[BRIEFING.COM] It was a tough session for stocks today as sustained pressure across mega-cap and tech stocks came without the support of the broader market from previous sessions. 

The S&P 500 (-1.2%), Nasdaq Composite (-1.6%), and DJIA (-1.2%) finished lower across the board, with the Russell 2000 (-1.8%) and S&P Mid Cap 400 (-0.5%) closing with losses as well. Today's weakness moved the S&P 500 into negative territory for the year and saw the index close below its 50-day moving average (6,882.21).

Much of today's coverage revolved around the price action of Alphabet (GOOG 331.33, -2.01, -0.60%) after its earnings report yesterday afternoon. While the company decidedly topped earnings estimates, a massive FY26 capital expenditure plan of $175-$185 billion prompted some questions about if the company can continue to generate meaningful returns with that level of spending. Though the stock was down as much as 5% this morning, it battled back throughout the session, an encouraging sign given the size and scope of losses across other mega caps.

Despite sharp early losses, the communication services sector (-0.3%) finished as one of the better-performing S&P 500 sectors today. 

The same cannot be said of the consumer discretionary sector (-2.6%), which lagged as a majority of its components traded lower, while Amazon (AMZN 222.69, -10.30, -4.42%) and Tesla (TSLA 396.93, -9.08, -2.24%) provided weak leadership ahead of Amazon's earnings after the close. 

The information technology sector (-1.7%) also logged another disappointing finish after a choppy session. Alphabet's massive capital expenditure plans were touted by many analysts as a positive for select semiconductor and AI infrastructure names, which saw the sector open to a modest gain. Despite a midday run back towards its opening levels, the sector plotted a steady retreat throughout the afternoon. 

Broadcom (AVGO 310.51, +2.46, +0.80%) ceded nearly all of its solid early gain, while NVIDIA (NVDA 171.81, -2.38, -1.37%) also finished lower after spending time in positive territory. The PHLX Semiconductor Index (-0.1%) closed with a modest loss. 

Meanwhile, software stocks continued to freefall, with the iShares GS Software ETF finishing 5.0% lower. Microsoft (MSFT 393.67, -20.52, -4.95%) was yet again a "magnificent seven" laggard. 

The Vanguard Mega Cap Growth ETF closed 1.9% lower, adding to its early losses for the year. 

Outside of the mega-cap space, the market was devoid of the rotational strength that helped somewhat limit losses in the previous two sessions. 

The materials sector (-2.8%) finished as the worst-performing S&P 500 sector, garnering some profit-taking after a hot start to the year. 

Meanwhile, the financials sector (-1.2%) also had a rough session after a solid gain yesterday.  Coinbase Global (COIN 146.12, -22.50, -13.34%) and Robinhood Markets (HOOD 72.68, -7.94, -9.85%) finished sharply lower as Bitcoin extended its recent losses with another sizable slide today, which added to the stock market's intraday volatility. Bitcoin is currently down about 13% for the day, moving below the $64,000 mark. 

Only the consumer staples (+0.3%) and utilities (+0.1%) sectors managed meager gains.  Walmart (WMT 126.94, -1.06, -0.83%) finally saw a touch of profit-taking, though the move was negated by broader strength in the sector. 

Hershey Foods (HSY 224.38, +18.59, +9.03%) made a solid upward move after a beat-and-raise earnings report, while Estee Lauder (EL 96.75, -22.86, -19.11%) was the worst-performing S&P 500 name despite topping earnings estimates of its own. 

Overall, today's action reflects the recent heightened volatility across risk assets. Alphabet's battle from session lows was an encouraging sign for the stock, but the market could be in for more volatility tomorrow in reaction to Amazon's earnings. The CBOE Volatility Index surged over 20% during the session and remains elevated at 21.59 (+15.8%), suggesting an uneasiness throughout the market as some of its weightiest names continue to face pressure this year. 

U.S. Treasuries followed their two days of quiet sideways trade with a Thursday rally that took place alongside continued weakness in tech stocks. The 2-year note yield settled down seven basis points to 3.49%, and the 10-year note yield settled down seven basis points to 4.21%. 

• S&P MidCap 400: +5.3% YTD
• Russell 2000: +3.9% YTD
• DJIA: +1.8% YTD
• S&P 500: -0.7% YTD
• Nasdaq Composite: -3.0% YTD

Reviewing today's data:

• Weekly Initial Claims 231K (Briefing.com consensus 210K); Prior 209K, Weekly Continuing Claims 1.844 mln; Prior was revised to 1.819 mln from 1.827 mln
  • The key takeaway from the report was the jump in initial claims, which hit their highest level since early December. That created some headline surprise, but to be fair, the absolute level isn't that bad.
• December JOLTS - Job Openings 6.542 mln; Prior was revised to 6.928 mln from 7.146 mln