Stock Market Update

[BRIEFING.COM] The S&P 500 (+0.4%), Nasdaq Composite (+0.7%), and DJIA (+0.4%) are setting record highs today as a rally across tech stocks offsets relatively weak participation in the broader market.

The information technology sector (+1.9%) is one of just two S&P 500 sectors that hold a gain, with computer hardware names Dell (DELL 408.18, +91.13, +28.74%) and NetApp (NTAP 179.83, +37.43, +26.28%) rocketing higher after impressive earnings reports yesterday afternoon.

Software stocks are also sharply higher, with ServiceNow (NOW 123.25, +14.52, +13.35%) and Workday (WDAY 144.28, +14.27, +10.98%) posting double-digit gains of their own while Microsoft (MSFT 442.92, +15.93, +3.73%) is a mega-cap standout for the second consecutive session. The iShares GS Software ETF is 5.3% higher.

The financials sector (+0.8%) also trades higher, with strength across the majority of its largest components, while Robinhood Markets (HOOD 93.54, +8.70, +10.25%) surges higher after the company announced the official Trump Accounts app is now available for download.

Meanwhile, post-earnings weakness from Costco (COST 951.68, -43.52, -4.37%) weighs on the consumer staple sector (-1.9%), while weakness in mega-cap stocks outside of the technology sector keeps the communication services sector (-1.5%) firmly lower.

The energy sector (-1.1%) is also a laggard today as oil continues to slide amid optimism around a U.S.-Iran peace agreement. Crude oil is currently down $2.31 (-2.6%) to $86.59 per barrel.

President Trump wrote on Truth Social that he is currently meeting in the Situation Room to make a final decision on the memorandum of understanding between the U.S. and Iran, though Iranian sources have somewhat refuted the claims of recent progress.

Investors remain focused on developments surrounding a potential U.S.-Iran agreement, as a meaningful breakthrough that keeps oil prices contained and Treasury yields stable could help broaden participation across more cyclical and rate-sensitive areas of the market. Until then, leadership remains relatively narrow, with technology and software stocks continuing to drive the market's push to fresh record highs.

Reviewing today's data:

• May Chicago PMI expanded to 62.7 (Briefing.com consensus 49.5), from the prior reading of 49.2.
• Advance International Trade in Goods decreased to -$82.4 billion, from an upwardly revised prior level of -$85.3 billion (from -$87.9 billion).
• Advance Wholesale Inventories increased 0.5%, from an upwardly revised prior increase of 1.5% (from 1.3%).
• Advance retail inventories increased 0.7%, from a prior increase of 0.7%.