Stock Market Update

[BRIEFING.COM] The stock market is sporting broad gains shortly before midday amid optimism surrounding a peace proposal between the U.S. and Iran. The S&P 500 (+0.7%) and DJIA (+0.8%) are hovering less than 0.5% below their respective 200-day moving averages, while the Nasdaq Composite (+1.0%) outperforms amid solid tech and mega-cap leadership, though recent weakness keeps it further below its own 200-day moving average. 

It is worth noting that Iran rejected the 15-point peace proposal set forth by the U.S. and issued its own set of demands necessary for ending the conflict. While the situation remains fluid and the market remains vulnerable to near-term geopolitical volatility, stocks have rebounded today after a weaker showing in the previous session. 

Part of the optimism is likely due to a retreat in oil prices, with crude oil currently down $2.56 (-2.8%) to $89.79 per barrel. The energy sector (+0.1%) is off of its morning lows as oil reclaims some of its early losses, though strength remains broad, with only the financials (-0.3%) and real estate (-0.2%) sectors failing to chart gains. 

Meanwhile, the materials sector (+1.3%) leads the advance, with Newmont Corporation (NEM 102.60, +3.58, +3.61%) out in front as gold prices rebound from yesterday's slide. 

Mega-cap and tech stocks are also on the rebound after a weaker showing yesterday, supporting gains in the consumer discretionary (+1.2%) and information technology (+0.8%) sectors. 

NVIDIA (NVDA 180.02, +4.82, +2.75%) and Tesla (TSLA 391.89, +8.86, +2.31%) are the best-performing "magnificent seven" names that support a 0.8% gain in the Vanguard Mega Cap Growth ETF. Other chipmakers such as Intel (INTC 47.46, +3.40, +7.73%) and Advanced Micro Devices (AMD 219.07, +13.70, +6.67%) trade even higher, boosting the PHLX Semiconductor Index (+1.2%). 

Outside of the S&P 500, the Russell 2000 (+0.9%) posts a similar gain to those of the major averages, while the S&P Mid Cap 400 (+0.3%) holds a more modest gain. 

So far, stocks have rebounded nicely from a lower showing yesterday, though the major averages remain hesitant to reclaim their 200-day moving averages, reflecting a degree of caution.