Stock Market Update

[BRIEFING.COM] The S&P 500 (+0.8%), Nasdaq Composite (+1.0%), and DJIA (+0.4%) are higher this morning as the market looks to rebound from yesterday's post-FOMC meeting weakness through a combination of tech leadership and lower oil prices.

The information technology sector (+1.9%) is leading the advance as semiconductor stocks see an extension of yesterday's gains. Intel (INTC 129.58, +8.48, +7.00%) is a standout after President Trump said Apple (AAPL 298.79, +2.84, +0.96%) will collaborate with the company to produce its chips in the U.S., and the PHLX Semiconductor Index is 4.9% higher.

Memory names such as Western Digital (WDC 788.07, +75.94, +10.66%) and Sandisk (SNDK 2129.75, +170.95, +8.73%) are also sharply higher.

Elsewhere, the industrials sector (+1.6%) also outperforms, with electrical product names such as Vertiv (VRT 331.75, +14.17, +4.46%) keeping with their recent trend of trading higher in conjunction with semiconductor names.

Construction-related stocks are also surging higher, supported by retreating oil prices and Treasury yields following news that President Trump signed a 60-day memorandum of understanding with Iran.

Crude oil is currently down $2.70 (-3.6$) to $73.31 per barrel, and yields are at least five basis points lower across the curve.

The lower price of oil weighs on the energy sector (-2.2%), while several more defensive-oriented sectors hold modest losses as tech names move higher.

However, mega-cap tech stocks outside of the information technology sector continue to face weakness, with Alphabet (GOOG 358.91, -3.19, -0.88%) and Meta Platforms (META 566.75, -0.83, -0.15%) weighing on the communication services sector (-0.9%).

Just released, the Leading Economic Index increased 0.1% in May (Briefing.com consensus 0.1%) from a prior increase of 0.1%.