Stock Market Update

[BRIEFING.COM] The S&P 500 (+0.4%), Nasdaq Composite (+0.7%), and DJIA (flat) are showing resilience to this weekend's geopolitical developments and subsequent bounce in oil prices, with tech leadership helping offset early weakness.  Outside of the S&P 500, the Russell 2000 (+0.8%) and S&P Mid Cap 400 (+0.5%) also sport solid gains.

The major averages opened to broad losses this morning as the U.S. and Iran walked away from negotiations in Pakistan without a more permanent ceasefire. Additionally, the U.S. has implemented a blockade on all ships entering or leaving Iranian ports.

Stocks quickly bounced off their opening lows, and a lack of further geopolitical headlines has helped keep the major averages in a relatively stable range.

Sector performance is now mixed, with leadership from the top-weighted information technology sector (+0.9%) contributing to the mostly higher standing across the major averages. Software names in particular are posting wide gains today as the group rebounds from a sharp sell-off last week. Oracle (ORCL 153.36, +15.27, +11.06%) is the top-performing S&P 500 name today, while Fair Isaac (FICO 1003.56, +81.19, +8.80%), Cadence Design (CDNS 285.56, +19.90, +7.49%), and others also hold solid gains. The iShares GS Software ETF is up 5.0%.

Software-adjacent names in the financials sector (+1.0%), such as FactSet (FDS 224.71, +13.11, +6.20%) and Fidelity Nat'l Info (FIS 45.76, +2.40, +5.52%), contribute to the sector's outperformance.

The sector has shaken off an early loss, though Goldman Sachs (GS 889.57, -18.23, -2.01%) remains firmly lower despite topping earnings estimates, which continues to weigh on the DJIA.

Elsewhere, the energy sector (+0.3%) still holds a modest gain, though action has been choppy as oil prices have retreated from their earlier highs. Crude oil is back below the $100 per barrel mark, currently up $2.60 (+2.7%) to $99.16 per barrel.

Mega-cap stocks are also moving higher after a more subdued start this morning, which has the communication services (+0.4%) and consumer discretionary (+0.4%) sectors at session highs. The Vanguard Mega Cap Growth ETF is up 1.0%.

Meanwhile, five S&P 500 sectors remain in negative territory, though only the defensive utilities (-1.3%) and consumer staples (-1.2%) sectors trade more than 0.3% below their baselines. Conagra (CAG 14.42, -0.76, -5.04%) is one of the worst-performing S&P 500 names after announcing that CEO Sean Connolly will step down on May 31, 2026, with John Brase set to take over as President and CEO effective June 1.

So far, the market is taking this weekend's geopolitical developments in stride, with continued strength across mega-cap and tech names helping offset weakness tied to a higher price of oil. To that end, oil prices have also seen a considerable intraday pullback from opening highs, which has boosted participation in the broader market.

Reviewing today's data:

• Existing home sales decreased 3.6% month-over-month in March to a seasonally adjusted annual rate of 3.98 million (Briefing.com consensus 4.01 million) from an upwardly revised 4.13 million (from 4.09 million) in February. Sales were down 1.0% on a year-over-year basis.
  
  • The key takeaway from the report is that existing home sales were pressured at the start of the peak selling period by higher mortgage rates, higher prices, limited inventory, lower consumer confidence, and softer job growth.