LIVE MARKETS-Main US indexes retreat as the market plays defense

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MAIN US INDEXES RETREAT AS THE MARKET PLAYS DEFENSE

Wall Street's main indexes are lower early on Thursday as investors turn cautious in the run-up to Friday's crucial nonfarm payrolls report, while defense companies advance after President Donald Trump called for a $1.5 trillion military budget, which is significantly higher than the $901 billion approved by Congress for 2026.

Shortly after the open, the iShares U.S. Aerospace & Defense ETF ITA.Z is jumping more than 3%, and on track for a record closing high.

Meanwhile, a majority of S&P 500 .SPX sectors are higher. Energy .SPNY and Industrials .SPLRCI, both up around 1% or more, are posting the biggest gains. Tech .SPLRCT, off more than 1%, is the weakest group.

Under the surface, transports .DJT, banks .SPXBK, .KRX and small caps .RUT are showing strength, while chips .SOX and precious metals miners .XAU are on the weak side.

Here is a snapshot of where markets stood around 9:40 a.m. ET.

(Terence Gabriel)

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EARLIER ON LIVE MARKETS:

BENCHMARK TREASURY YIELD: PRESSURE IN THE PIPE CLICK HERE

MIXED REPORTING SEASON AHEAD FOR EUROPEAN PHARMA CLICK HERE

THE BCOM INDEX REBALANCE COULD SPELL BAD NEWS FOR GOLD CLICK HERE

TAKING A BREATHER CLICK HERE

EUROPE BEFORE THE BELL: PULLBACK SET TO CONTINUE CLICK HERE

TRUMP'S BIG TALK FALLS ON INVESTORS' DEAF EARS CLICK HERE

(Terence Gabriel is a Reuters market analyst. The views expressed are his own)