Major indices are holding modest losses today, as weakness in mega-cap names forced them lower, after spending the morning in green territory.

Tesla (TSLA) is the only magnificent seven name holding onto gains, despite all seven names trading in the green just before the open.

Four sectors are higher this afternoon. Energy (XLE) is once again in the lead as oil prices continue to rise. The defensive sectors of Utilities (XLU) and Consumer Staples (XLP) are also seeing some action as the Street rotates from growth plays. Meanwhile, Communication Services (XLC) and Technology (XLK) are lagging as investors take some profits. Communication Services is led lower in part by Take Two Interactive (TTWO), which delayed the release of “Borderlands 4” on the Switch.

Fear Mongers Back Track

On Monday, Goldman Sachs (GS) lifted its S&P 500 price target for the end of the year to 6,800 from 6,600, contrasting to their tariff fearmongering target issued in March of 6,200. They also raised their 6- and 12-month forecasts to 7,000 and 7,200 respectively. This comes as earnings remain resilient, and the bank expects the Fed to continue cutting rates during the next two meetings.

Economic Data

New single-family home sales surged 20.5% to a seasonally adjusted annualized rate of 800K units in August from a 1.8% drop to 664K units in July and above estimates of a decrease to 650K units.