Stock Market Update

[BRIEFING.COM] The S&P 500 (+0.4%), Nasdaq Composite (-0.1%), and DJIA (+0.5%) are mostly higher, supported by broad gains in equities amid relief in oil prices and Treasury yields today.

After tensions ratcheted up between the U.S. and Iran throughout the week, there is now some optimism that diplomatic negotiations could prevail after Reuters reported that Pakistan and Iran are considering a new path toward peace talks with the U.S. following intervention from China. Crude oil is currently down $3.84 (-4.1%) to $88.34 per barrel, and Treasury yields are lower across the curve.

All eleven S&P 500 sectors trade higher, and advancers outpace decliners by better than a 2-to-1 margin on the NYSE, while advancers edge out decliners on the Nasdaq after trailing for much of the session.

The real estate sector (+2.6%) sports the widest gain, supported by relief across Treasury yields and a beat-and-raise quarter from Digital Realty Trust (DLR 203.22, +23.88, +13.32%), which holds the widest gain among S&P 500 components.

Gains are more modest elsewhere, and the outperformance of the S&P 500 Equal-Weight Index (+1.0%) relative to the market-weighted S&P 500 (+0.4%) highlights some lingering weakness across the market's largest components following yesterday's mega-cap-led retreat. Losses are most pronounced across semiconductor names, with the PHLX Semiconductor Index down 2.8%. Intel (INTC 95.78, -4.44, -4.43%) is a laggard after beating earnings expectations but increasing its 2026 capital expenditure outlook and noting that it expects to spend even more in 2027.

AI infrastructure names such as Lumentum (LITE 772.93, -60.71, -7.28%) and memory names such as Sandisk (SNDK 1489.75, -120.58, -7.49%) are among the market's weakest performers after yesterday's increased capital expenditure forecasts from hyperscalers helped the group post modest gains.

However, the information technology sector (+0.1%) still trades modestly higher, supported by some buy-the-dip activity across several software names, including ServiceNow (NOW 97.14, +5.20, +5.66%), that lagged after earnings yesterday. The iShares GS Software ETF is up 1.2%.

Additionally, Apple (AAPL 333.15, +11.49, +3.57%) is a "Magnificent Seven" standout amid a mostly higher showing from the group. The Vanguard Mega Cap Growth ETF is up 0.3%.

Tesla (TSLA 309.10, -10.59, -3.31%), on the other hand, continues to move lower after yesterday's double-digit retreat.

Elsewhere on the earnings front, Verizon (VZ 45.42, +1.60, +3.65%) moves higher after a narrow EPS beat, while American Express (AXP 322.98, -17.86, -5.24%) lags after topping earnings expectations but keeping FY26 guidance unchanged.

For now, easing geopolitical concerns and lower oil prices are helping stabilize sentiment, though investors remain selective beneath the surface as weakness in semiconductor stocks continues to temper the broader market's advance.

Reviewing today's data:

• July S&P Global U.S. Manufacturing PMI - Prelim 53.8; Prior 53.9
• July S&P Global U.S. Services PMI - Prelim 53.6; Prior 51.2
• June New Home Sales 628K (Briefing.com consensus 620K); Prior was revised to 618K from 580K
  • The key takeaway from the report is that new home sales in May were pressured by affordability constraints tied to rising mortgage rates. Notably, the West region, which features the highest-priced homes, saw the biggest hit to sales month-over-month; however, there was also weakness in the more affordable South region, which is the nation's largest homebuilding market.