Stock Market Update

[BRIEFING.COM] The stock market has steadily built on its broad-based opening gains, propelling the S&P 500 (+0.7%) within striking distance of its all-time closing high (6,389.77).

The index briefly eclipsed that level (a feat it failed to accomplish yesterday) and now hovers just beneath it. The Nasdaq Composite (+0.9%) and DJIA (+0.5%) also sport healthy gains at midday.

While yesterday's opening buzz that pushed the major averages to similar levels had a news catalyst, namely the announcement of semiconductor tariff carveouts for companies committed to domestic production, today's action is largely driven by a persisting "buy the dip" mentality.

So far, stocks are better off for it, as yesterday morning's advance was quickly erased, while the major averages are steadily rising throughout today's session.

Nine S&P 500 sectors trade in positive territory, with only the utilities (-0.3%) and real estate (-0.2%) sectors facing modest losses. 

Meanwhile, the information technology (+1.1%), health care (+1.0%), communication services (+0.9%), financials (+0.8%), energy (+0.7%), materials (+0.7%), and consumer staples (+0.6%) sectors all hold gains greater than 0.5%.

Mega-cap stocks are playing a key role in today's advance, as Apple (AAPL 229.71, +9.68, +4.40%) continues to dazzle this week while Tesla (TSLA 331.39, +9.12, +2.83%) and Alphabet (GOOG 201.36, +4.08, +2.07%) also trade higher. 

The Vanguard Mega Cap Growth ETF is up 0.9%, and the market-weighted S&P 500 (+0.8%) outperforms the S&P 500 Equal Weighted Index (+0.3%). 

On the geopolitical front, Bloomberg reported that the U.S. and Russia are negotiating terms for an agreement that would cede to Russia some of the territory that it has occupied during its military occupation in Ukraine.

This was followed up by a CNBC report that a summit between President Trump and Russian President Vladimir Putin is now tentatively scheduled for later next week, though a location for the summit has not yet been disclosed. It is still unclear what role the Ukrainian President Zelenskyy will play in the negotiations.

Crude oil futures briefly moved below their opening levels in response but have since reversed and are now up $0.28 to $64.16 per barrel, an increase of 0.5%.

Meanwhile, Treasury yields are steadily climbing as markets absorb comments from St. Louis Fed President Musalem. He suggested that inflation could remain elevated due to tariffs and indicated that keeping the current policy rate appears appropriate. Musalem, a voting member of the FOMC this year, also noted that he remains open-minded. Currently, the 2-year Treasury yield is up 3 basis points at 3.76%, while the 10-year yield has risen 4 basis points to 4.28%.

There are no economic data releases today.