Stock Market Update

[BRIEFING.COM] The stock market had an eventful start to the week, with the S&P 500 (+0.8%), Nasdaq Composite (+1.4%), and DJIA (+0.5%) rebounding from sharp early losses as oil prices made a decisive move lower this afternoon amid geopolitical developments in Iran.

Oil surged past $100 per barrel this morning, testing the $120 mark and prompting the major averages to open with losses wider than 1%. The Nasdaq Composite briefly moved below its 200-day moving average (22,101.90).

Oil stabilized around the $100 mark following headlines that the G7 will meet again tomorrow to discuss a release of global oil stockpiles to combat the surge in prices. CNBC reported that the meeting will occur tomorrow morning, with talks among G7 nations currently "positive" around a release.

The major averages spent much of the session trading with more modest losses, though weakness remained relatively broad-based. 

Crude oil futures finished today's session $3.87 higher (+4.3%) at $94.73 a barrel, though another price swing remained in store. President Trump told CBS News in a phone interview that the war in Iran "could be over soon" as the U.S. is very far ahead of his initial 4-to-5-week estimated time frame. Additionally, President Trump noted that ships are moving through the Strait of Hormuz, though he is considering "taking it over."

Oil prices fell below their flatlines, sending stocks higher in broad fashion. As of just before 4:30 p.m. ET, crude oil is currently trading $5.56 (-6.1%) lower at $85.34 a barrel. 

Nine S&P 500 sectors would finish with gains, leaving just the energy (-0.4%) and financials (-0.5%) sectors in negative territory. 

While the energy sector moved lower amid the decrease in oil prices, the financials sector was a laggard throughout the session and finished well above its session lows. Insurance names such as Arthur J. Gallagher (AJG 217.78, -10.35, -4.54%) were among the worst performers, while major banking names put up mixed performances. 

Meanwhile, the top-weighted information technology sector (+1.8%) posted the widest gain. The sector held a modest gain for much of the session even while the broader market traded lower, supported by strength in its semiconductor components. NVIDIA (NVDA 182.65, +4.83, +2.72%) was a mega-cap standout, while memory storage names such as Sandisk (SNDK 588.73, +61.40, +11.64%) posted the widest gains, helping the PHLX Semiconductor Index finish 3.9% higher. 

Elsewhere, the communication services sector (+1.1%) also notched a solid gain as Alphabet (GOOG 306.01, +7.71, +2.58%) provided strong leadership. 

Live Nation (LYV 165.80, +9.67, +6.19%) topped the sector's leaderboard after the company reached a settlement with the Department of Justice in an antitrust case that will allow the company to keep Ticketmaster. 

The health care sector (+0.9%) rounds out the top three performing sectors, supported by broad strength in its components and a strong performance from Moderna (MRNA 55.74, +3.22, +6.13%). 

Though not components of the sector, Hims & Hers Health (HIMS 22.16, +6.42, +40.79%) traded sharply higher today after confirming a strategic pivot for its U.S. weight-loss business that entails bringing FDA-approved Wegovy and Ozempic (semaglutide) medications onto its telehealth platform and moving away from broadly marketed compounded GLP-1 products, a shift that resolves a legal dispute with Novo Nordisk A/S (NVO 39.78, +1.20, +3.11%) and expands patient access.

Meanwhile, the Russell 2000 (+1.1%) and S&P Mid Cap 400 (+1.0%) notched solid gains of their own, surging higher as oil prices fell this afternoon. 

Altogether, the broader market made an impressive intraday move as oil prices stabilized and then moved lower this afternoon. While the geopolitical backdrop remains fluid, the market will look for further color from tomorrow's Group of Seven energy meeting, where officials are expected to discuss a potential coordinated release of global oil stockpiles. At the same time, developments surrounding the situation in Iran remain a key driver of price action. Ideally for equities, oil prices will continue to move lower in the near term before the recent spike begins to meaningfully weigh on corporate margins or feed through into broader inflation pressures.

There was no economic data of note today. 

U.S. Treasuries started the new week with a continuation of the recent volatility, but an intraday bounce saved the long bond from another lower finish while 5s and shorter tenors added to last week's losses. The 2-year note yield settled up three basis points to 3.59%, and the 10-year note yield finished unchanged at 4.14%. 

• S&P Mid Cap 400: +4.2% YTD
• Russell 2000: +2.9% YTD
• DJIA: -0.7% YTD
• S&P 500: -0.7% YTD
• Nasdaq Composite: -2.4% YTD