Stock market today: Nasdaq slide leads stocks lower with earnings, Bessent confirmation hearing in focus

Holding companies like Bank of America and Morgan Stanley benefited from a surge in deal-making and robust earnings, suggesting stability in the financial sector. Morgan Stanley's profits rose sharply, and this could indicate a continued positive trend for financial institutions amid a potential easing monetary policy. However, overall investor sentiment shifting towards bearishness could limit upside in individual stocks in the near term.

Taiwan Semiconductor Manufacturing Company's stock surged over 4.8% on strong earnings and a positive revenue outlook, despite facing new US export restrictions. This suggests that the demand for chip manufacturing, particularly for AI technology, remains robust. If these trends continue, TSM could experience sustained upward momentum.

The decline in technology stocks, led by major players like Apple and Tesla, amidst concerns over slowing sales in key markets, signals increasing bearish sentiment in the tech sector. The competitive nature of the EV market is intensifying, impacting Tesla's performance negatively. Investors should be cautious with tech stocks, given this environment.

Rising mortgage rates reaching 7% may adversely affect the housing sector, contributing to increased affordability challenges, resulting in lower home sales and potential slowdowns in associated stocks.

Given the concerns related to slowing retail sales growth and declining consumer sentiment, consumer staples may be a defensive investment. However, the shift in sentiment may lead to volatility, suggesting a cautious approach.