Stock Market Update

[BRIEFING.COM] The S&P 500 (+0.2%), Nasdaq Composite (-0.1%), and DJIA (+0.6%) sit mostly higher shortly after midday as lingering weakness across semiconductor stocks limits gains at the index level despite broad strength elsewhere.

Nine S&P 500 sectors trade higher, and six sectors hold gains of 1.0% or wider. The broad rebound has largely been attributed to a technical bounce after considerable losses at the end of last week that saw the major averages each retreat more than 1.5% on Friday.

Corporate news flow is once again on the lighter side, and geopolitical developments surrounding Iran continue to drive headlines. President Trump wrote on Truth Social that Iran has conceded to most of the demands in the 15-point peace proposal that the U.S. set forth, though he did not provide details. Additionally, the same post included threats to destroy Iran's energy infrastructure if a deal is not struck soon.

Oil prices are higher again today, which supports the idea that the broad strength is more a reaction to oversold conditions than expectations of an imminent end to the conflict. WTI crude is currently up $3.32 (+3.3%) to $102.96 per barrel.

Adding to the whirlwind of factors affecting the market today is commentary from Fed Chair Jerome Powell (voting FOMC member), who said inflation expectations still appear to be well anchored beyond the short term. In particular, Mr. Powell noted that the Fed's tools do not have a meaningful impact on supply shocks, which has helped to quell recent fears that the Fed could raise rates later this year.

Despite the strength in the broader market, the major averages remain limited due to weakness in the top-weighted information technology sector (-0.9%), which is one of just two S&P 500 sectors that trade lower (the other being the industrials sector which is down 1.1%). The PHLX Semiconductor Index is down 3.6%, extending its month-to-date losses to 11.3%. Coherent (COHR 219.39, -24.09, -9.89%) is one of the worst-performing S&P 500 names today, while memory storage names such as Micron (MU 329.57, -27.65, -7.74%) and Western Digital (WDC 254.58, -20.76, -7.54%) are not faring much better.

Software names are helping to limit losses in the sector, with the iShares GS Software ETF (IGV) up 1.7%. Palo Alto Networks (PANW 157.18, +10.16, +6.91%), ServiceNow (NOW 105.36, +5.95, +5.99%), and CrowdStrike (CRWD 386.61, +17.03, +4.61%) occupy the top spots on the S&P 500 leaderboard, while Microsoft (MSFT 361.24, +4.47, +1.25%) is a "magnificent seven" standout amid mixed strength across the market's largest names that keeps the Vanguard Mega Cap Growth ETF flat.

Elsewhere, Meta Platforms (META 537.04, +11.32, +2.15%) is reclaiming some of last week's losses that followed a jury finding the company liable in a social media addiction trial.

Outside of the S&P 500, the Russell 2000 (-0.9%) and S&P Mid Cap 400 (-0.2%) are underperforming.