Stock Market Update

[BRIEFING.COM] The stock market is in the midst of a relatively subdued first session of the week, with the S&P 500 (+0.2%), Nasdaq Composite (+0.2%), and DJIA (+0.1%) trading in a tight range as the market awaits further developments between the U.S. and Iran.

Notably, a deadline looms overhead with President Trump threatening renewed attacks across Iran's infrastructure if a deal cannot be struck by Tuesday. Axios reported that the U.S. and Iran were engaged in negotiations for a 45-day ceasefire, though later reports suggest Iran will not agree to a ceasefire.

President Trump will hold a 1:00 p.m. ET press conference with the military. 

For the time being, the market is supported by solid participation, though the gains are largely modest. Eight S&P 500 sectors trade higher, though none hold gains wider than 1.0%.

The communication services sector (+0.8%) leads the advance as Meta Platforms (META 576.70, +2.24, +0.39%) and Alphabet (GOOG 296.58, +2.12, +0.72%) see an extension of last week's rebound from recent lows, while Paramount Skydance (PSKY 9.86, +0.34, +3.62%) trades sharply higher after The Wall Street Journal reported the company is in discussions to get equity commitments from Saudi wealth funds for the Warner Bros. Discovery (WBD 27.41, +0.09, +0.33%) deal.

The financials sector (+0.7%) holds a similar gain, supported by exchange-related names with Coinbase Global (COIN 174.97, +3.51, +2.05%) trading higher as bitcoin rises to its best level in a week.

Meanwhile, the materials (-0.6%), utilities (-0.4%), and health care (-0.3%) sectors lag.

So far, today's action reflects a degree of caution and a hesitation to extend last week's momentum as the market looks for geopolitical updates ahead of tomorrow's deadline imposed by President Trump. Crude oil is currently up $0.74 (+0.7%) to $112.28 per barrel, which is modest in comparison to recent volatility and helps keep things tame at the index level.

Reviewing today's data:

• March ISM Non-Manufacturing Index 54.0% (Briefing.com consensus 54.9%); Prior 56.1%
  
  • The key takeaway from the report is that the services sector remained in expansion, but the Employment Index returned to contraction while the Prices Index saw its biggest one-month increase in over 13 years. This combination will present a headwind to growth, especially if it persists in the coming months.