Stock Market Update

[BRIEFING.COM] The stock market is seeing a continuation of yesterday's weakness, which has forced the S&P 500 (-0.6%), Nasdaq Composite (-0.7%), and DJIA (-0.8%) below their respective 50-day moving averages.

Weakness remains broad as the market adjusts to its already depleted rate cut expectations further dimming after yesterday's FOMC meeting. According to the CME FedWatch Tool, the probability of a 25-basis-point cut to 3.25-3.50% doesn't exceed 50% until the September 2027 FOMC meeting.

Ten S&P 500 sectors trade lower, with the materials sector (-2.2%) facing the widest loss amid a significant pullback in precious metals today, as gold is currently down over 5.5% while silver has given up over 9%. 

The industrials sector (-1.3%) also lags as aerospace and defense names face a continuation of yesterday's losses, with the iShares DJ Aerospace ETF down 2.6%. The weakness in defense names does not imply the market expects an imminent end to the war in Iran; rather, it is now viewing the conflict as a "sell the news" event. 

Oil is up $0.42 (+0.4%) to $95.88, off its earlier highs that followed reports that Iranian missiles caused extensive damage at a key hub for liquefied natural gas in Qatar. The energy sector (+1.5%) is the only S&P 500 sector that holds a gain, though the rise in oil prices continues to be a headwind for the broader market. 

Outside of the S&P 500, the Russell 2000 (-0.3%) and S&P Mid Cap 400 (-0.6%) hold losses that are comparable to those of the major averages.