Stock Market Update

[BRIEFING.COM] The S&P 500 (-0.4%), Nasdaq Composite (-0.2%), and DJIA (-1.2%) are lower across the board as renewed hostilities between the U.S. and Iran send oil and Treasury yields higher, putting broad pressure on the market.

The U.S. struck Iranian targets in response to strikes against commercial ships in the Strait of Hormuz, with President Trump saying the ceasefire is effectively over and threatening more strikes tonight. Crude oil is currently up $3.98 (+5.7%) to $74.43 per barrel, pushing Treasury yields higher across the curve.

While there has been plenty of churn across the market in recent sessions, the oil-driven volatility has resulted in a broader slide in equities today. Decliners outpace advancers by a roughly 3-to-1 ratio on both the NYSE and the Nasdaq, and eight S&P 500 sectors trade lower.

The materials sector (-2.3%) holds the widest loss, with container and packaging names such as Amcor (AMCR 41.90, -2.55, -5.74%) and Smurfit Westrock plc (SW 42.49, -2.51, -5.58%) down sharply amid the spike in oil prices.

The consumer discretionary sector (-1.9%) is another laggard, with couriers, travel-related stocks, and homebuilders all moving lower as oil surges today.

Elsewhere, the financials (-1.5%) and industrials (-1.2%) sectors reinforce today's trend of cyclical sectors (with the exception of the energy sector) underperforming.

Unsurprisingly, the energy sector (+0.9%) is the top performer today, though it has pared its earlier gains following comments from President Trump, who said that any developments involving Iran would be resolved quickly, including any impact on oil prices, and reiterated that he does not expect the war with Iran to restart.

The information technology sector (+0.8%) is another outperformer, though its action has been relatively choppy so far. The sector is supported by a 1.9% gain in the PHLX Semiconductor Index, which is enjoying its second stint in positive territory today after a late morning dip.

Broadcom (AVGO 394.49, +23.71, +6.39%) trades sharply higher after Apple (AAPL 313.16, +2.50, +0.80%) quantified an expanded multiyear supply agreement expected to exceed $30 billion through 2031, covering U.S.-made wireless-connectivity components and custom silicon.

Additionally, NVIDIA (NVDA 200.58, +3.66, +1.86%) is a "Magnificent Seven" outperformer after The Information reported China will allow limited NVIDIA H200 chip purchases for top AI firms amid the ongoing supply shortage.

Outside the S&P 500, the Russell 2000 (-1.3%) and S&P Mid Cap 400 (-1.5%) remain firmly lower as U.S. Treasuries hover near their session lows.

So far, today's action has been unsurprisingly choppy given the sharp surge in oil prices after several weeks of relative stability. While the broader market tilts decisively negative, the major averages are off their session lows following somewhat reassuring geopolitical commentary from President Trump and buy-the-dip support across semiconductor names.

Reviewing today's data:

• Weekly MBA Mortgage Applications Index -2.2%; Prior 0.0%
• May Wholesale Inventories 0.1% (Briefing.com consensus 0.3%); Prior 0.6%