Although today’s session initially featured encouraging rotational strength outside of technology, renewed selling across semiconductor stocks has gradually pulled the major averages back toward their session lows.
Defensive sectors, the equal-weighted S&P 500, and small- and mid-cap stocks continue to outperform, though persistent weakness across chipmakers remains the market’s dominant influence.
PHLX Semiconductor Index -4.2%
The information technology sector (-1.7%) worst-performing S&P 500 sector, pressured by the decline.
Today’s weakness follows another double-digit overnight slide in SK hynix Inc.’s (SKHY 160.50, -15.96, -9.04%) Korean-listed shares
Taiwan Semiconductor Manufacturing (TSM 406.76, -12.72, -3.03%) has faced sell-the-news pressure despite delivering a beat-and-raise earnings report.
Memory stocks continue to bear the brunt of the selling,
Sandisk (SNDK 1451.37, -163.63, -10.13%)
Western Digital (WDC 462.40, -51.44, -10.01%)
Corning (GLW 156.76, -17.65, -10.12%) is another notable laggard,
NVIDIA (NVDA 207.43, -5.07, -2.39%) is the weakest-performing “Magnificent Seven” component.
Weakness has also spread across other growth-oriented stocks as the session has progressed.
The Vanguard Mega Cap Growth ETF is down 0.9%, while Tesla (TSLA 388.78, -5.68, -1.44%) and Meta Platforms (META 670.47, -10.84, -1.59%) have also turned lower.
The health care (+2.2%) and consumer staples (+2.1%) sectors lead the advance, supported in part by strong post-earnings gains in UnitedHealth (UNH 432.41, +13.89, +3.32%) and Abbott Labs (ABT 99.22, +9.95, +11.15%).
The real estate sector (+1.6%) is another relative standout,
The energy sector (+0.9%) remains higher despite crude oil trading modestly lower amid a relatively quiet day of geopolitical headlines.
The S&P 500 Equal Weight Index (+0.7%) continues to considerably outperform the market-weighted S&P 500 (-0.3%), while the Russell 2000 (+0.2%) and S&P Mid Cap 400 (+0.3%) also remain modestly higher, reinforcing the broader rotational nature of today’s action.
Industrials sector (-0.3%) is another laggard following several notable earnings reactions. GE Aerospace (GE 340.78, -19.56, -5.43%) trades lower despite delivering a solid beat-and-raise earnings report, while United Airlines (UAL 118.58, -2.40, -1.98%) is under pressure after third-quarter guidance came in just below consensus despite a second-quarter earnings beat.
Offsetting some of that weakness, Uber (UBER 73.54, +0.87, +1.20%) remains higher after formally announcing a cash offer for Delivery Hero valued at approximately $14.8 billion.