Stock Market Update

[BRIEFING.COM] The stock market is riding yesterday's wave of optimism around a potential ceasefire between the U.S. and Iran in the first session of the second quarter, with the S&P 500 (+1.0%), Nasdaq Composite (+1.5%), and DJIA (+0.9%) supported by broad strength and lower oil prices.

The early strength has the DJIA back above its 200-day moving average (46,698), while the S&P 500 is now less than 1.0% below its own 200-day moving average of 6,642.

The state of negotiations in Iran remains somewhat unclear, with U.S. officials claiming that negotiations are taking place in exchange for the Strait of Hormuz reopening, while Reuters reports that Iran said claims that it requested a ceasefire are false.

Still, President Trump's earlier comments that the U.S. could end its military operations in the next two to three weeks have left the market hopeful that an end to the conflict could be near. Crude oil is currently down $1.25 (-1.2%) to $100.16, which is above its lowest levels of the morning.

The energy sector (-3.8%) still faces a sharp pullback today. The consumer staples sector (-0.7%) and the utilities sector (flat) are also missing out on gains as the market sees an extension of yesterday's risk-on rally.

The Vanguard Mega Cap Growth ETF is up 1.3%, supporting gains at the index level as the market's weightiest components continue to rebound from recent lows.

Similar to yesterday's session, semiconductor names are among the outperformers, with memory storage stocks such as Western Digital (WDC 301.36, +30.87, +11.41%) and Micron (MU 372.20, +34.36, +10.17%) approaching double-digit gains. The PHLX Semiconductor Index is up 3.5%.

Outside of the S&P 500, the Russell 2000 (+1.5%) and S&P Mid Cap 400 (+1.4%) also outperform amid improvements to risk sentiment.