Stock Market Update

[BRIEFING.COM] The S&P 500 closed Friday at 5,967.84, yet the geopolitical upset over the weekend has not stopped it from reclaiming the 6,000 level. It is below that mark now, but it got up to 6,005.58, with participants savoring another Fed official (Fed Governor Bowman) coming to the fore with an acknowledgment that she could be open to cutting rates at the July FOMC meeting if certain conditions are met. Recall that Fed Governor Waller on Friday stated his belief that the Fed could cut rates in July.

The consumer discretionary sector (+1.8%) has jumped out to provide early leadership thanks in large part to Tesla (TSLA 350.90, +28.74, +8.92%), which rolled out its robotaxi service in Austin, TX.

Separately, there is some early relative strength in rate-sensitive sectors like utilities (+0.9%) and real estate (+1.0%), as the Treasury market has also picked up on Ms. Bowman's comments. The 2-yr note yield is down six basis points to 3.85%, and the 10-yr note yield is down six basis points to 4.32%.

The CME FedWatch Tool shows a 22.7% probability of a 25-basis point rate cut at the July meeting, up from 14.5% on Friday.