Stock Market Update

[BRIEFING.COM] The major indices have opened the session on a weak note, tripped up by geopolitical angst after Israel launched airstrikes on Iran's nuclear facilities without any direct U.S. involvement. Iran has vowed retaliation for those attacks and has also threatened U.S. interests. President Trump warned Iran that it will face more attacks by Israel if it doesn't agree to a nuclear deal, but Israel itself has said its operation will take as many days as needed to remove the threat of Iran developing a nuclear weapon.

Not surprisingly, oil futures have spiked on the attack news, although Iran's oil infrastructure has not been harmed, according to reports. WTI crude futures are up 7.3% to $73.03 per barrel, but they had been as high as $77.50 per barrel. The move in oil is underpinning the outperformance of the energy sector (+0.9%), which is currently the only sector in positive territory.

Treasuries have been on the defensive, with inflation concerns tied to the higher price of oil acting as a selling catalyst, along with the notion that the Fed could see the jump in oil prices as another basis for holding off on a rate cut. The 2-yr note yield is up three basis points to 3.94%, and the 10-yr note yield is up three basis points to 4.39%.

The financials sector (-2.0%) is the worst-performing sector to start the day, followed by information technology (-1.0%) and real estate (-0.8%).