Major indices are mostly moving higher, as semiconductor names come back and dot the top advancers list alongside other AI related plays. Advanced Micro Devices (AMD) leads the pack after getting a price target upgrade from Goldman Sachs (GS).

The strong performance in chip names is pushing Technology (XLK) to lead the way, followed by other growth sectors such as Communication Services (XLC) and Consumer Discretionary (XLY). Communication Services (XLC) and Consumer Discretionary (XLY) are both getting a boost from their mega-cap components, with outsized gains from Tesla (TSLA) helping the Consumer Discretionary sector despite the vast majority of its components trading lower. Tesla’s (TSLA) news of a further robo-taxi rollout in Miami and a new bigger Model Y are giving a broad rebound in the electric-vehicle space and contributing to Tesla’s outperformance today. Meanwhile, more defensive sectors of Consumer Staples (XLP), Health Care (XLV), and Utilities (XLU) are at the bottom of the list as investors rotate back into growth.

Notably, Software (IGV) is moving higher and holding its 50-day moving average. This comes in spite of a notable downgrade on Datadog (DDOG).

Cybersecurity (HACK) names are continuing to push the software niche higher today following their breakout to new highs last week.

The Ten Year Treasury Yield (TNX) is holding below the 4.5% level and edging lower alongside oil prices.

Economic Data

ISM Services PMI for June fell to 54 from 54.5, in-line with market expectations. While new orders and business activity decelerated, Employment swung to expansion from contraction and backlogs expanded. Notably, prices also increased slower as the Iran Conflict winds down.