The stock market saw an extension of yesterday's losses, though some late-session geopolitical developments helped the major averages finish well off their session lows. The S&P 500 (-0.3%), Nasdaq Composite (-0.3%), and DJIA (-0.4%) finished just modestly lower, though the S&P 500 failed to close above its 200-day moving average (6,619). 

The S&P 500 moved above the key technical level during the brief stint that the major averages spent in positive territory late in the session. The move was prompted by commentary from Israel's Prime Minister Benjamin Netanyahu, who stated at a press conference that Iran "can no longer enrich uranium" or "manufacture ballistic missiles," according to The Times of Israel. Mr. Netanyahu also noted that Israel is helping U.S. efforts to reopen the Strait of Hormuz, adding that the war will be over sooner than people think.

Crude oil, which settled today's session $0.29 higher (+0.3%) at $95.71 per barrel, moved lower in response, currently trading $1.32 (-1.4%) lower at $94.14 per barrel. Oil traded higher early in the session following a Wall Street Journal report that Iranian missiles caused extensive damage to a liquefied natural gas hub in Qatar. 

While stocks finished off their session lows, the energy sector (+1.5%) was the only S&P 500 sector to secure a gain today. 

The top-weighted information technology sector was able to finish flat after trading with a modest loss for most of the session. The sector was supported by another strong performance from Ciena (CIEN 412.66, +27.40, +7.11%), which extended its week-to-date gain to 22.3%.

Semiconductor stocks also performed relatively well, with the PHLX Semiconductor Index finishing 0.8% higher. Micron (MU 444.27, -17.46, -3.78%) was a laggard after its earnings report despite blowing away analyst expectations but succumbed to profit-taking after a strong rally this year and skepticism around massive capital expenditure plans. 

The financials sector also managed to finish on its flat line, with relative strength across major banking names. 

Meanwhile, the materials sector (-1.6%) faced the widest retreat. Newmont Corporation (NEM 99.13, -7.41, -6.96%) was among the worst-performing S&P 500 names today as gold futures settled $290.50 lower (-5.9%) at $4,605.70 per ounce. 

Continued geopolitical volatility around shipping in the Middle East also weighed on fertilizer names such as Mosaic (MOS 26.20, -1.58, -5.69%). 

The consumer discretionary sector (-0.9%) also saw an extension of yesterday's weakness, with Tesla's (TSLA 380.30, -12.48, -3.18%) weakness overshadowing mixed strength across the sector's other components. 

Outside of the S&P 500, the Russell 2000 (+0.7%) and DJIA (+0.3%) outperformed the major averages, ending the day in positive territory following late-session commentary from Prime Minister Netanyahu. 

The late-session bounce highlights the market's sensitivity to geopolitical headlines, but the S&P 500's failure to close back above its 200-day moving average suggests conviction remains limited as the market adjusts to the new rate cut outlook, which was significantly pushed back after yesterday's FOMC meeting. Ongoing volatility in energy prices is likely to keep investors on edge in the near term. 

U.S. Treasuries had a rough overnight session, reacting negatively to rising oil prices and the stark realization that rate cuts from the Fed (and other central banks) are going to be pushed out due to the uncertainty surrounding the war with Iran (the BOJ, BOE, Swiss National Bank, and ECB followed the Fed in voting to keep their policy rates unchanged). There was a nice reversal from early highs, however, driven by technical buying support and short-covering activity. The 2-year note yield settled up eight basis points to 3.83%, and the 10-year note yield settled up two basis points to 4.28%. 

• S&P Mid Cap 400: +2.0% YTD
• Russell 2000: +0.5% YTD
• S&P 500: -3.5% YTD
• DJIA: -4.3% YTD
• Nasdaq Composite: -5.0% YTD

Reviewing today's data:

• Weekly Initial Claims 205K (Briefing.com consensus 215K); Prior 213K, Weekly Continuing Claims 1.857 mln; Prior was revised to 1.847 mln from 1.850 mln
  • The key takeaway from the report is that the low level of initial jobless claims will keep the Fed preoccupied for now with the inflation side of its mandate, which is to say it won't be inclined to cut rates.
• March Philadelphia Fed Index 18.1 (Briefing.com consensus 4.7); Prior 16.3
• January New Home Sales 587K (Briefing.com consensus 719K); Prior was revised to 712K from 745K
  • The key takeaway from the report is that sharp declines were registered in all regions, despite declines in both median and average selling prices, which suggests some demand attrition in the face of elevated mortgage rates and perhaps burgeoning concerns about job security.
• January Wholesale Inventories -0.5% (Briefing.com consensus 0.2%); Prior was revised to -0.1% from 0.2%
• January Leading Economic Index -0.1%; Prior -0.2%