Stock Market Update

[BRIEFING.COM] The S&P 500 (-0.7%), Nasdaq Composite (-0.8%), and DJIA (-1.4%) trade in a stable range just above session lows as rising oil prices and another weak showing from semiconductor stocks pressure the market ahead of a busy afternoon.

Crude oil is up $5.25 (+6.6%) to $84.51 per barrel following reports that the U.S. intercepted Iranian missiles targeting U.S. bases across the Middle East, with President Trump vowing retribution for the strikes.

As a result, the market is without the broad support that has helped offset pronounced semiconductor weakness at the index level so far this week. The energy sector (+2.6%) is a clear standout, while the defensive consumer staples (+0.6%) sector also trades higher as Coca-Cola (KO 89.84, +1.57, +1.78%) adds support by extending yesterday's post-earnings rally to another record high.

The communication services sector (+0.6%) has also climbed above its flat line as Alphabet (GOOG 335.64, +3.04, +0.91%) continues to rebound from last week's post-earnings retreat, though mega-cap tech is generally weaker today. 

Meanwhile, the industrials sector (-2.8%) bears the brunt of today's earnings-driven weakness as Lennox Int'l (LII 438.05, -106.06, -19.49%) plunges after missing revenue expectations and lowering guidance, while Vertiv (VRT 224.73, -44.83, -16.63%) also sinks after reporting weaker-than-expected revenue. The sector is also pressured by declines across electrical equipment names, which continue to track weakness in the semiconductor space.

The PHLX Semiconductor Index (-3.6%) sits firmly lower as a flattish showing from the group at the open quickly turned into another sharp retreat. KLA Corporation (KLAC 172.97, -17.83, -9.34%) moves sharply lower following its quarterly results, while NVIDIA (NVDA 191.88, -5.13, -2.60%) ranks among the weakest-performing "Magnificent Seven" components.

SK hynix Inc.'s (SKHY 127.17, -3.00, -2.30%) U.S.-listed shares are also lower despite another quarter of record results, as investors looked beyond continued strength in AI-driven HBM demand and instead focused on the company's elevated capital spending plans and aggressive capacity expansion plans.

The top-weighted information technology sector (-1.5%) lags as a result. 

Attention now turns to the 2:00 p.m. ET FOMC policy decision. The CME FedWatch Tool currently implies a 33.7% probability of a rate hike, though investors will be watching closely for any surprise from the Fed after weeks of heightened uncertainty surrounding the policy outlook. Following the decision, attention will quickly shift to earnings from Microsoft (MSFT 395.09, +1.74, +0.44%) and Meta Platforms (META 593.20, -0.20, -0.03%), with results from two of the market's largest companies poised to shape sentiment heading into the back half of the week.

Reviewing today's data:

• Weekly MBA Mortgage Applications Index -6.4%; Prior 1.9%