Stock Market Update

[BRIEFING.COM] The stock market is having its best session of the week, with momentum returning to tech and mega-cap names as investors buy into recent weakness, while lower oil prices and Treasury yields support gains across the broader market.

The S&P 500 (+0.8%), Nasdaq Composite (+1.2%), and DJIA (+1.0%) trade firmly higher just after midday, while the Russell 2000 (+2.0%) and S&P Mid Cap 400 (+1.7%) outperform.

The major averages opened mostly higher, which was largely due to a rebound across semiconductor names after a recent stretch of weakness. The PHLX Semiconductor Index is up 3.6%, which marks a roughly 8% increase from yesterday's session lows. NVIDIA (NVDA 224.85, +4.24, +1.92%) holds a nice gain ahead of its earnings release after the close, which is arguably the most anticipated event of the week. Other large chipmakers such as Advanced Micro Devices (AMD 444.92, +30.88, +7.46%) and Intel (INTC 116.10, +5.30, +4.78%) trade even higher. 

The broader information technology sector is up 1.5%.

The consumer discretionary sector (+1.8%) was another early outperformer, as mega-cap names including Tesla (TSLA 413.61, +9.50, +2.35%) and Amazon (AMZN 262.93, +3.59, +1.38%) also garnered some buy-the-dip interest. The Vanguard Mega Cap Growth ETF is up 1.1%, leaving it just slightly lower on a week-to-date basis.

The sector, along with the broader market, surged to session highs just before midday after President Trump told reporters on Air Force One that the U.S. is in the "final stages" of talks on Iran. Oil prices and Treasury yields, which were already modestly lower, retreated sharply in response.

Crude oil is currently down $6.14 (-5.9%) to $98.01 per barrel, and the 10-year note yield is down nine basis points to 4.58%.

For the consumer discretionary sector, cruise lines such as Norwegian Cruise Line (NCLH 16.08, +1.30, +8.76%) moved sharply higher in response to the falling price of oil, while the more favorable rate backdrop supports gains across its homebuilder components. The iShares U.S. Home Construction ETF is up 3.3%.

On a similar note, airlines such as United Airlines (UAL 97.39, +8.27, +9.28%) and Delta Air Lines (DAL 73.79, +6.03, +8.90%) are now among the best-performing S&P 500 components, sending the industrials sector (+1.4%) firmly higher.

Elsewhere, the financials sector (+0.9%) is led by strength in its investment banking names, while the materials sector (+1.1%) rebounds nicely from yesterday's slide.

Unsurprisingly, the energy sector (-2.0%) lags amid the retreat in oil prices, while the defensive health care (-0.3%) and consumer staples (-0.4%) sectors face some pressure as growth stocks outperform.

The communication services sector (-0.4%) rounds out the four S&P 500 sectors that trade lower as Alphabet (GOOG 381.88, -3.02, -0.78%) is a mega-cap laggard today.

On the earnings front, TJX (TJX 160.03, +9.35, +6.21%) is a standout after topping expectations, while Target (TGT 122.72, -4.52, -3.55%) and Analog Devices (ADI 388.22, -26.09, -6.30%) move lower despite beating their own expectations.

So far, today's session reflects investors' continued willingness to buy dips across semiconductors and other AI-related plays, while the broader market is benefiting from an improved macro backdrop. Additional AI-related catalysts lie ahead, with NVIDIA reporting earnings after the close and The Wall Street Journal recently reporting that OpenAI could file for an IPO as soon as the coming days.

Reviewing today's data:

• April Pending Homes Sales 1.4% (Briefing.com consensus 1.6%); Prior was revised to 1.7% from 1.5%