Stock Market Update

[BRIEFING.COM] The major averages are off their session lows following a report from The New York Times that an Iranian delegation is slated to head to Islamabad for the next round of talks with the U.S., which is contingent on participation from Vice President JD Vance.

Cleveland-Cliffs (CLF 9.72, -0.22, -2.21%) is trading lower despite delivering a modest EPS beat and a solid revenue upside in Q1, as investor focus shifts to rising energy costs, particularly crude-linked inputs, which are emerging as a key earnings headwind. Management highlighted that extreme cold weather and a spike in energy prices created an $80 million drag on EBITDA in the quarter, overshadowing otherwise improving fundamentals. While results marked the start of a "sustained improvement progression" through 2026, the market appears more focused on cost inflation risks tied to fuel, freight, and broader energy inputs.

Q1 steel shipments reached 4.1 million net tons, with average selling prices rising to $1,048/ton, up approximately $55 sequentially, reinforcing improving price realization despite extended contract lags. Against this backdrop, peers such as Nucor (NUE 202.71, +6.84, +3.49%) and Steel Dynamics (STLD 211.18, +10.86, +5.42%) are outperforming, reflecting relative strength in their lower-cost, scrap-based electric arc furnace models, which are viewed as more insulated from energy-driven margin pressure.

The materials sector (+0.7%) is one of the best-performing S&P 500 sectors as a result.