Stock Market Update

[BRIEFING.COM] After two consecutive higher finishes to start the week, stocks are under broad pressure today, with the S&P 500 (-0.5%), Nasdaq Composite (-0.5%), and DJIA (-0.8%) currently moving off of their session lows. The Russell 2000 (-0.7%) holds a comparable loss, while the S&P Mid Cap 400 (+0.1%) is a relative outperformer. 

The market faces a combination of pressures this morning. Escalating tensions pertaining to the war in Iran have sent oil prices climbing higher, with crude oil currently up $2.44 (+2.6%) to $97.97 per barrel. Bloomberg reported that Iran has threatened to strike various energy sites throughout the Persian Gulf region after Israel attacked its energy infrastructure. 

On the macro front, a hotter-than-anticipated PPI report for February (0.7%; Briefing.com consensus 0.3%) has added to recent inflation concerns, especially since the report does not yet reflect the recent surge in oil prices. Market participants are eager for this afternoon's FOMC meeting for further clarity on how rising energy costs will affect the expected policy outlook. 

For the time being, stocks are under broad pressure, with only the energy sector (+0.1%) trading slightly higher. Losses are particularly acute in the defensive consumer staples (-1.8%) and health care (-1.3%) sectors. 

A pullback in gold and silver prices sends the materials sector (-1.5%) lower as well, while the consumer discretionary sector (-1.2%) faces broad pressure despite solid post-earnings gains from Lululemon Athletica (LULU 163.83, +4.56, +2.86%) and Williams-Sonoma (WSM 191.58, +9.42, +5.17%). 

Following the initial retreat this morning, stocks have traded in a relatively tight range, suggesting a degree of caution ahead of the FOMC meeting this afternoon.