Stock Market Update

[BRIEFING.COM] The S&P 500 (+1.8%), Nasdaq Composite (+2.9%), and DJIA (+1.4%) have spent the session in a relatively narrow range with relatively wide gains following a retreat in oil prices.

President Trump announced on Truth Social yesterday that the U.S. and Iran have reached a peace agreement that would include the reopening of the Strait of Hormuz and lifting Iran's naval blockade, with the deal to be signed on Friday in Switzerland. Crude oil is down over 5%, holding around the $80.50 per barrel mark.

Oil-and-rate-sensitive stocks, including airlines, homebuilders, couriers, and other travel-related names, are posting solid gains, with DoorDash (DASH 166.19, +15.61, +10.37%) among the top-performing S&P 500 components today.

Additionally, the market is supported by strong leadership from mega-cap and tech names, which are shaking off some of last week's volatility amid the retreat in oil prices. The information technology (+3.3%), communication services (+2.9%), and consumer discretionary (+2.0%) sectors lead the seven S&P 500 sectors that trade higher as all of the Magnificent Seven cohort hold gains, with five trading more than 2% higher.

Meta Platforms (META 596.17, +29.19, +5.15%) is a particular standout, and the Vanguard Mega Cap Growth ETF is up 2.8%.

Elsewhere in the technology sector, semiconductor names are expanding upon last week's rally, with the PHLX Semiconductor Index up 5.0%. Memory names such as Micron (MU 1073.05, +91.44, +9.32%) and Western Digital (WDC 648.33, +85.40, +15.17%) are among the S&P 500's top-performing components today.

Meanwhile, the energy sector (-3.0%) is a laggard, while more defensive pockets of the market, including the health care (-0.5%), real estate (-0.6%), and consumer staples (-0.2%) sectors underperform as growth stocks surge.

Overall, today's session reflects a renewed appetite for risk as falling oil prices ease concerns about inflation and economic growth. With investors rotating back into mega-cap technology stocks while maintaining participation across much of the broader market, the major averages remain on track for a strong start to the holiday-shortened week.

Reviewing today's data:

• June Empire State Manufacturing 5.7 (Briefing.com consensus 12.5); Prior 19.6
• May Industrial Production 0.1% (Briefing.com consensus 0.2%); Prior was revised to 0.9% from 0.7%, May Capacity Utilization 76.2% (Briefing.com consensus 76.2%); Prior 76.1%
  • The key takeaway from the report is that manufacturing output moved sideways in May, reflecting a cooling down after some solid activity in April.
• June NAHB Housing Market 35 (Briefing.com consensus 37); Prior 37