Stock Market Update

[BRIEFING.COM] The stock market opened to broad gains following last night's two-week ceasefire agreement between the U.S. and Iran.

The S&P 500 (+2.1%), Nasdaq Composite (+2.5%), and DJIA (+2.2%) have all reclaimed their 200-day moving averages, though they are now off their best levels of the morning following reports of Israeli strikes against Lebanon, which threatens the ceasefire agreement. Bloomberg reported that the U.S. and Iran are set to hold talks to seek a more permanent end to the war soon.

For now, stocks are supported by a sharp retreat in oil prices, with WTI Crude currently down $17.33 (-15.3%) to $95.62 per barrel. The energy sector (-4.8%) is a notable laggard, but the ten other S&P 500 sectors trade higher with some impressive gains in the mix.

Oil-sensitive stocks such as cruise lines and airlines occupy many of the top spots on the S&P 500 leaderboard, pushing the industrials (+3.5%) and consumer discretionary (+2.9%) sectors firmly higher. Delta Air Lines (DAL 69.63, +4.01, +6.11%) adds support after topping earnings estimates, with the company emphasizing that it is not seeing any slowdown in summer travel demand despite higher ticket prices and macro headwinds.

Outside of the S&P 500, the Russell 2000 (+2.7%) and S&P Mid Cap 400 (+2.7%) sport similar gains amid the decisive upward shift in risk sentiment.