Stock Market Update

[BRIEFING.COM] Today's session has featured a notable reversal in the semiconductor stocks specifically and the information technology sector (-3.4%) in general. The catalyst for the reversal has been the price action itself, as it has lacked an actual news catalyst.

That can be a more trying reversal since it speaks to a shift in momentum that can lead to momentum-based selling that drives outsized losses and more corrective activity. What it has done today, however, is spur some rotational interest out of these tech stocks and into other corners of the stock market like real estate (+2.0%), health care (+1.0%), utilities (+0.9%), and consumer staples (+0.8%), some of your more defensive-oriented areas.

The CBOE Volatility Index is up 15.2% to 21.84, taking out last Friday's high and reaching its highest level since the initial ceasefire plan with Iran was announced in early April. On that note, President Trump said the U.S. has learned that Iran shot down an Apache helicopter last night and will, out of necessity, need to respond to this attack. WTI crude futures, though, remain well behaved and are down 4.0% to $87.67/bbl.

Unlike last Friday, interest rates aren't creating an excuse for the selling. The 10-yr note yield is down two basis points to 4.53%. On a related note, the $58 billion 3-yr note auction met with decent demand, although the high yield of 4.192% tailed the when-issued yield by 0.3 basis points, meaning the market expected a slightly better uptake.