Stock Market Update

[BRIEFING.COM] The stock market had a choppy session today, with ongoing geopolitical and energy developments triggering several broader-market moves throughout the day. The S&P 500 (-0.2%), Nasdaq Composite (flat), and DJIA (-0.1%) finished near their flatlines as afternoon developments largely negated earlier progress. The Russell 2000 (-0.2%) and S&P Mid Cap 400 (-0.5%) followed a similar trajectory. 

Oil prices retreated sharply after comments from President Trump yesterday evening suggested the conflict involving Iran may be approaching a resolution. The president also floated the possibility of the U.S. “taking over” the Strait of Hormuz, which helped spark yesterday’s sharp decline in crude.

Crude extended those losses earlier today, although the initial relief in equities was somewhat muted as investors questioned whether tensions in the region could truly ease in the near term. Reuters reported that Iranian officials indicated the blockade would remain in place unless U.S. and Israeli strikes come to an end.

The major averages made a decisive move higher roughly an hour into the session after reports that the International Energy Agency had called an emergency meeting with member nations to review supply conditions and discuss whether strategic reserves could be released to stabilize the market if necessary.

Developments continued to emerge throughout the afternoon. Energy Secretary Chris Wright wrote on X that the U.S. Navy had escorted a tanker safely through the Strait of Hormuz, though CNBC later disputed that claim while separately reporting that a Ghana-flagged tanker had successfully transited the waterway.

Meanwhile, CBS reporter Jennifer Jacobs reported on X that U.S. intelligence has observed signs Iran may be preparing to place naval mines in the shipping lanes of the strait, using smaller vessels capable of carrying several mines. CNN later corroborated the report.

Even with the ongoing uncertainty, crude oil futures settled sharply lower on the day, dropping $10.88 (-11.5%) to $83.85 per barrel.

The energy sector (-1.3%) was a laggard again today, extending this week's losses. It was not the only sector to finish in negative territory, however, as this afternoon's developments pressured the broader market from its mid-morning highs. 

The health care sector (-0.7%) also lagged, with CNC finishing as the worst-performing S&P 500 name after the company's CEO said at a conference that Affordable Care Act membership declines could be worse than previously projected.

The utilities sector (-0.7%) logged a similar loss, while relative weakness across software stocks pressured several pockets of the market. 

Meanwhile, the information technology sector (+0.1%) spent considerable time atop the sector leaderboard with a solid gain amid strength in its chipmaker components, though the gains were whittled away throughout the afternoon, leaving the PHLX Semiconductor Index (+0.7%) with a more modest gain. 

The iShares GS Software ETF finished 2.3% lower as software names came under considerable pressure. Oracle (ORCL 149.49, -2.07, -1.37%) retreated ahead of its earnings release this afternoon. 

Weakness across other packaged software names, along with financial publishing stocks, pushed the financials (-0.6%) and industrials (-0.6%) sectors near the bottom of today's standings. 

The communication services sector (+0.3%) escaped with the widest gain as modest strength in Meta Platforms (META 654.07, +6.68, +1.03%) and Alphabet (GOOG 306.93, +0.92, +0.30%) outweighed broader weakness in the sector, including a particularly sharp slide in Paramount Skydance (PSKY 10.33, -0.86, -7.69%). 

While weakness was broad today, it was also relatively modest. Only the energy sector (-1.3%) closed with a loss wider than 1.0%.

Reports that Iran is deploying naval mines in the Strait of Hormuz added another layer of uncertainty to the situation late in the session, reminding investors that conditions in the region remain fluid even as oil prices pulled back sharply today. The prospect of disruptions to shipping through one of the world’s most important energy chokepoints continues to leave markets sensitive to any new developments on the geopolitical front.

U.S. Treasuries were mixed on Tuesday with 5s and shorter tenors recording modest gains while the long bond lagged after outperforming during the market's recent slide from February highs. Treasuries reached highs in late morning action but faced some pressure after a weak $58 billion 3-year note sale. The 2-year note yield settled down two basis points to 3.57%, the 10-year note yield finished unchanged at 4.14%, and the 30-year note yield settled up three basis points to 3.77%. 

• S&P Mid Cap 400: +3.7% YTD
• Russell 2000: +2.7% YTD
• DJIA: -0.7% YTD
• S&P 500: -0.9% YTD
• Nasdaq Composite: -2.3% YTD

Reviewing today's data:

• February NFIB Small Business Optimism 98.8 (Briefing.com consensus 99.5); Prior 99.3
• February Existing Home Sales 4.09 mln (Briefing.com consensus 3.88 mln); Prior was revised to 4.02 mln from 3.91 mln
  
  • The key takeaway from the report is that sales increased despite continued pressure on affordability as median prices grew for the 32nd month in a row.

[BRIEFING.COM] The major averages are now defending their unchanged levels as the market enters the final half-hour of the session. 

Investors will receive a modest batch of earnings reports after the close, including that of Oracle (ORCL 151.05, -0.51, -0.34%). 

Oracle's earnings reaction will likely hinge less on the Q3 results themselves and more on forward commentary around AI demand, CapEx spending, and free cash flow. While strong OCI growth and a massive RPO backlog highlight robust demand for Oracle's AI infrastructure, investors remain uneasy about the pace of spending required to build that capacity. The key debate centers on whether Oracle can generate enough AI-driven revenue to justify the sharp rise in capital expenditures while maintaining balance sheet discipline. As such, guidance for MayQ, along with commentary on CapEx and free cash flow trends, will be the primary catalysts for the stock following the report.

The information technology sector (flat) has spent much of today's session atop the sector leaderboard but is now defending its flatline. Software stocks have been a point of weakness, with the iShares GS Software ETF down 2.3%. 

[BRIEFING.COM] The S&P 500 (+0.1%), Nasdaq Composite (+0.2%), and DJIA (+0.2%) continue to hold modest gains this afternoon, though sector strength is more of a mixed bag. 

Geopolitical developments involving Iran continue to generate headlines as the market enters the final hour of the session. 

Energy Secretary Chris Wright said via X that the U.S. Navy has successfully escorted a tanker through the Strait of Hormuz, though CNBC refuted the claim shortly after. CNBC also reported that a Ghana-flagged tanker successfully passed through the strait. 

However, CBS reporter Jennifer Jacobs said via X that "U.S. intelligence assets have begun to see indications Iran is taking steps to deploy mines in Strait of Hormuz shipping lane. Iran is using smaller crafts that can carry 2 to 3 mines each."

Crude oil futures settled today's session $10.88 lower (-11.5%) at $83.85 per barrel. 

[BRIEFING.COM] The S&P 500 (-0.09%) has slipped below flat lines in recent trade in reaction to reports that Iran may be deploying mines in the Strait of Hormuz, which in turn is sending oil prices higher.

Briefly, S&P 500 constituents Vertex Pharma (VRTX 499.26, +38.39, +8.33%), Corning (GLW 137.16, +8.11, +6.28%), and Tapestry (TPR 149.50, +4.00, +2.75%) pepper the top of the standings. VRTX rises after the company reported positive interim Phase 3 RAINIER trial results for povetacicept in IgA nephropathy, while GLW advances on optimism from Citigroup analysts following management meetings, highlighting strong near- and mid-term growth prospects, double-digit sales expansion through 2028, and potential for significant free cash flow, with additional support from large U.S. telecom CAPEX plans boosting optical demand.

Meanwhile, Fair Isaac (FICO 1307.38, -133.82, -9.29%) is one of today's top laggards despite a dearth of corporate news.

[BRIEFING.COM] The tech-heavy Nasdaq Composite (+0.73%) is in second place on Tuesday afternoon, up about 165 points.

Gold futures settled $138.40 higher (+2.7%) at $5,242.10/oz, as a weaker U.S. dollar and renewed safe-haven demand tied to ongoing Middle East tensions lifted prices. The move also reflects continued central-bank buying and lingering expectations that the Federal Reserve could still ease policy later this year.

Meanwhile, the U.S. Dollar Index is down less than -0.1% to $98.67.