Stock Market Update

[BRIEFING.COM] The stock market is under pressure again today, with broad weakness and lingering pressure across mega-cap names putting the S&P 500 (-0.7), Nasdaq Composite (-1.1%), and DJIA (-0.7%) on track for a lower finish to the week.

Geopolitical developments are once again in full focus as the war in Iran remains a whirlwind of headlines. CBS News recently reported that Iran is expected to respond to the U.S. 15-point peace proposal sometime today, a proposal that Iranian officials have continually rejected throughout the week.

The current disposition of the stock market does not reflect a great deal of optimism regarding a possible de-escalation. Adding to the unease is a Wall Street Journal report that the Pentagon is considering sending 10,000 additional troops to the Middle East.

As for the stocks themselves, the market is off its session lows, but there is still a negative tilt, with seven S&P 500 sectors trading lower. Losses are most pronounced across tech and cyclical sectors, with the consumer discretionary sector (-1.8%) trailing the furthest. Amazon (AMZN 201.42, -6.12, -2.95%) is a mega-cap laggard amid another tough day for the group, as the Vanguard Mega Cap Growth ETF moves 1.1% lower.

Meanwhile, the information technology sector (-0.7%) has seen a modest improvement from its worst levels, which has led to some improvement at the index level. Semiconductor names are down modestly, but there is pronounced weakness across software stocks, as reflected in the iShares GS Software ETF's (-2.4%) loss.

Elsewhere, there is some solid buying interest in the defensive utilities (+1.6%) and consumer staples (+1.2%) sectors amid the risk-off tone, while the energy sector (+1.9%) outperforms as oil prices climb.