Stock Market Update

[BRIEFING.COM] The S&P 500 (+0.8%), Nasdaq Composite (+1.3%), and DJIA (+0.7%) hold solid gains shortly before midday as risk sentiment improves across the market today. 

While the conflict in Iran continues, reports have begun circulating that question the country’s ability to sustain a prolonged engagement. Importantly for the market, oil prices are showing some relief today, with crude currently down $0.47 (-0.6%) at $74.09 per barrel.

The energy sector is down 1.0%, but aside from modest weakness in real estate (-0.5%) and more defensive sectors, the broader market trades higher. 

The consumer discretionary sector (+1.9%) is an early standout, with Tesla (TSLA 402.03, +9.60, +2.45%) and Amazon (AMZN 215.06, +6.33, +3.03%) providing strong leadership amid a strong day for mega-cap stocks. The Vanguard Mega Cap Growth ETF is up 1.1%. 

Elsewhere in the sector, travel-related names are among the outperformers after recent geopolitical developments weighed heavily on the industry, while Ross Stores (ROST 212.25, +14.61, +7.39%) also outperforms after earnings. 

The information technology sector (+1.3%) is not far behind, also benefiting from broad strength across its components. Memory storage names are among the top movers after particular weakness, contributing to strength in the PHLX Semiconductor Index (+1.7%), while software stocks are sustaining their own rebound from recent lows, with the iShares GS Software ETF up 1.5%.

Outside of the S&P 500, the Russell 2000 (+1.1%) is up nicely, while the S&P Mid Cap 400 (-0.2%) holds a modest loss. 

The CBOE Volatility Index is down 10.3% to 21.16, reflecting a notable easing in hedging demand as risk appetite improves and equities extend their rebound into midday trade.