Stock Market Update

[BRIEFING.COM] The S&P 500 (+0.2%) and Nasdaq Composite (+0.2%) are extending their push into record territory as semiconductor stocks extend their recent rally, while mixed strength in the broader market keeps the DJIA (-0.1%) near its flat line.

The PHLX Semiconductor Index is up 2.1% to start the week, supported by gains in names such as Lumentum (LITE 1063.00, +159.20, +17.61%) and Coherent (COHR 376.98, +41.72, +12.44%), which are also the best-performing S&P 500 components today. Corning (GLW 205.40, +18.46, +9.87%)also holds a nearly double-digit gain, while NVIDIA (NVDA 220.92, +5.73, +2.66%) is a "magnificent seven" standout.

Strength across semiconductor names decisively outweighs some weakness in software, and the information technology sector (+0.8%) holds a nice gain as a result.

Elsewhere, the energy sector (+2.4%) holds the widest gain amid an increase in oil prices today. President Trump labeled Iran's latest peace proposal as "totally unacceptable" this morning, with oil jumping to session highs after the president recently told reporters that the ceasefire with Iran is now on "massive life support." Crude oil is currently up $4.10 (+4.3%) to $99.52 per barrel, though the market's reaction has been relatively muted.

The materials sector (+1.5%) also outperforms, supported by strength across chemical and precious metals producers, while continued gains in electrical equipment names amid the AI rally lift the industrials sector (+1.0%) as well.

Meanwhile, five S&P 500 sectors trade lower, though the losses are largely modest. The communication services sector (-1.5%) is pressured by weakness in mega-cap names outside of the technology sector and a sharp retreat in The Trade Desk (TTD 21.40, -1.68, -7.30%) after HSB downgraded the stock, while the consumer staples sector (-1.3%) faces weakness across its discount store names.

Outside of the S&P 500, the Russell 2000 (+0.7%) outperforms, while the S&P Mid Cap 400 (-0.1%) lags.

Overall, the market appears to be looking past the spike in oil prices as semiconductor strength continues to drive fresh record highs. 

Reviewing today's data:

• April Existing Home Sales 4.02 mln (Briefing.com consensus 4.05 mln); Prior was revised to 4.01 mln from 3.98 mln
  
  • The key takeaway from the report is that affordability conditions improved, with mortgage rates lower than a year ago and average income gains exceeding home price gains, yet overall sales activity remained tepid. The exact reason why is hard to pinpoint. A range of factors could be pertinent, from tight supply and not being able to find the right home to a bet that mortgage rates will come down more or to fraying confidence in job security.