Late Tech Bid Lifts Nasdaq as Broader Market Struggles for Direction

The stock market traded lower on a broad basis for most of the session, but a late-afternoon rebound in select technology and mega-cap stocks helped the Nasdaq Composite finish modestly higher, limiting what otherwise would have been a uniform decline across the major averages.

The S&P 500 slipped 0.2%, while the DJIA fell 0.6%, with both indices spending only a brief window in positive territory early in the day before turning lower. Market participation was notably thin, marking a sharp departure from the broad rotational strength seen in recent sessions when weakness in technology had been offset by gains elsewhere. Small- and mid-cap stocks also lagged, with the Russell 2000 down 0.3% and the S&P Mid Cap 400 lower by 0.5%.

Eight S&P 500 sectors closed in negative territory, though most declines were contained. The energy sector was a clear outlier, tumbling 3.0% as crude oil prices slid on growing optimism surrounding a potential Russia–Ukraine peace deal. Investors began to price in the possibility of additional Russian supply returning to global markets, sending crude oil futures down $1.53, or 2.7%, to $55.29 per barrel, the lowest settlement since early 2021. Refiners were hit particularly hard, with Phillips 66 and Marathon Petroleum among the weakest performers in the index.

Health care was another notable laggard, falling 1.3% after outperforming in the prior session. Managed care names came under pressure following reports that the House will not vote on extending Affordable Care Act subsidies, effectively confirming their expiration at year-end. Humana and Centene were among the sector’s biggest drags. Pfizer also weighed on the group after reaffirming its FY25 earnings outlook while trimming revenue guidance and issuing a weaker-than-expected FY26 EPS forecast.

Losses in the remaining declining sectors were generally limited to less than 1.0%, and several areas showed improvement late in the day. In fact, the late-session action in technology, consumer discretionary, and communication services resembled a modest rally rather than simple stabilization. Each sector briefly traded higher earlier in the session, but buying intensified in the final hour as investors selectively stepped back into mega-cap names.

The information technology sector finished up 0.3%, with its seven largest constituents closing higher. Oracle and Broadcom led the rebound, finding some relief after sharp post-earnings pullbacks last week. Consumer discretionary also gained 0.3%, supported by Tesla, which stood out for a second consecutive session and reached a new all-time high. Communication services added 0.2%, paced by strength in Meta Platforms, while Comcast surged after commentary suggested the presence of an activist investor.

The late push into mega-cap growth helped the Vanguard Mega Cap Growth ETF rise 0.4%, allowing the market-weighted S&P 500 to outperform the equal-weighted version of the index, which declined 0.7%. This divergence underscored the concentrated nature of the afternoon rebound.

Recent market action highlights an ongoing tug-of-war as investors search for fresh catalysts following the December FOMC meeting. Yesterday featured broad-market strength alongside technology weakness, while today saw the opposite dynamic, with tech and select mega-caps providing late support as the broader market faltered. The alternating leadership suggests a market still probing for direction as year-end approaches.

On the data front, investors finally received the delayed November Employment Situation report, which showed payroll growth of 64,000, well above expectations, though it followed a steep decline in October employment. The October Retail Sales report showed flat headline growth, while sales excluding autos rose modestly. Despite offering a fuller picture of recent economic conditions, the data did little to alter expectations for further monetary easing in the near term.

Our FTinvest 11 model portfolio posted a modest pullback on the session, declining 0.3% and closing at 927.46. The index traded lower alongside a mixed and choppy broader market, where late-session strength in select mega-cap names was not enough to fully offset earlier weakness across several sectors.

After recent gains and fresh all-time highs, today’s move largely reflected short-term consolidation rather than a material shift in trend. Market action was characterized by selective profit-taking and uneven participation, with leadership narrowing as investors rotated between growth and defensive pockets. FTinvest 11 components followed this pattern, with gains in a few names unable to counterbalance broader softness across the portfolio.

Despite the decline, FTinvest 11 remains near record levels and continues to show relative resilience compared with the major benchmarks, which also struggled to find direction. The index remains well-positioned heading into the next sessions, with the pullback appearing orderly and consistent with normal digestion after a strong advance.