The stock market navigated a busy day of earnings reports, economic data, and geopolitical developments to chart a higher finish across the major averages. An intraday surge across tech names resulted in fresh record highs for the S&P 500 (+0.6%) and Nasdaq Composite (+0.9%), while mixed strength in the broader market kept the DJIA (+0.1%) near its flatline, though its modest gain also resulted in a record closing high.

The market opened to relatively broad weakness as overnight headlines of the U.S. and Iran exchanging military strikes pushed oil past the $92 per barrel mark. Less than an hour into the session, however, Axios reported that U.S. and Iranian negotiators had agreed to a 60-day memorandum of understanding aimed at extending the ceasefire and opening negotiations over Iran's nuclear program, though the proposal still requires President Trump's approval.

Oil reversed its earlier gains, with WTI crude oil futures settling today's session just $0.32 higher (+0.4%) at $88.92 per barrel.

The retreat in oil prices helped lift the major averages from a mostly lower open to a mostly higher finish, with the information technology sector (+1.3%) making a decisive move higher.

The sector had already been hovering near its baseline as a rally in software names offset an early extension of recent semiconductor weakness.

Though not a component of the S&P 500, Snowflake's (SNOW 239.12, +63.86, +36.44%) blowout earnings report featured a ramp in monetizing AI production, which added fuel to the broader software space. Oracle (ORCL 203.68, +12.72, +6.66%) and Palantir Technologies (PLTR 143.34, +10.83, +8.17%) were among the bellwethers that traded sharply higher, while Microsoft (MSFT 426.99, +14.32, +3.47%) was a "magnificent seven" standout after The Information reported that the company will soon unveil a new AI-powered coding framework.

The iShares GS Software (IGV 95.64, +2.60, +2.79%) finished solidly higher.

Meanwhile, the reversal in oil prices spurred buying interest across semiconductor names, with the PHLX Semiconductor Index reversing its early loss to finish 1.0% higher.

The health care sector (+1.4%) finished with the widest gain, buoyed by a strong showing from its largest component, Eli Lilly (LLY 1127.45, +44.53, +4.11%), while Agilent (A 135.42, +19.58, +16.90%) surged after topping earnings estimates.

Best Buy (BBY 74.74, +10.20, +15.81%) was another standout following earnings, helping support gains in the consumer discretionary sector (+0.5%).

Gains were more modest elsewhere, with five total S&P 500 sectors finishing higher.

Losses were also relatively modest, with the exception of the defensive utilities sector (-1.1%).

The consumer staples sector (-0.5%) was another relative laggard despite post-earnings rallies from Dollar Tree (DLTR 113.00, +17.13, +17.87%) and Hormel Foods (HRL 23.59, +2.63, +12.55%), while Costco (COST 995.20, -8.49, -0.85%) traded lower ahead of its earnings report after the close.

Outside of the S&P 500, the Russell 2000 (+0.6%) and S&P Mid Cap 400 (+0.1%) reversed earlier losses as Treasury yields moved lower alongside oil prices.

Overall, today's session highlighted the market's continued sensitivity to geopolitical headlines, though the sharp reversal in oil prices ultimately helped restore risk appetite and support another push into record territory. Investors also continued to show a willingness to buy dips across semiconductor and AI-related names, reinforcing the market's underlying momentum despite elevated volatility earlier in the day.

U.S. Treasuries continued this week's rally after overcoming some early weakness on a day that was filled with data and market-moving news developments.  The market remained just below session highs after today's $44 billion 7-year note sale made for a strong finish to this week's note auction slate with the first stop-through in this tenor since December.

The 2-year note yield settled down one basis point to 4.02%, and the 10-year note yield settled down three basis points to 4.46%.

• Russell 2000: +18.3% YTD
• Nasdaq Composite: +15.8% YTD
• S&P Mid Cap 400: +12.5% YTD
• S&P 500: +10.5% YTD
• DJIA: +5.4% YTD

Reviewing today's data:

• Personal income for April decreased slightly, resulting in an unchanged month-over-month reading (Briefing.com consensus 0.5%) after a revised 0.5% increase (from 0.6%) in March. Personal spending rose 0.5% month-over-month (Briefing.com consensus 0.4%) following a revised 1.0% increase (from 0.9%) in March. The PCE Price Index increased 0.4% month-over-month (Briefing.com consensus 0.5%), leaving it up 3.8% yr/yr versus 3.5% in March. The core PCE Price Index rose 0.2% (Briefing.com consensus 0.3%), leaving it up 3.3% yr/yr versus 3.2% in March.
  
  • The key takeaway from the report is that the lack of income growth combined with an acceleration in the year-over-year core PCE Price Index (to 3.3% from 3.2%) will invite stagflationary concerns, especially if this dynamic continues in the following months.
• The second estimate of Q1 GDP showed a downward revision to an annual rate of 1.6% (Briefing.com consensus 2.0%) from 2.0% in the advance estimate. The GDP Chain Deflator was revised down to 3.5% (Briefing.com consensus 4.5%) from 3.6% in the advance estimate.
  
  • The key takeaway from the report is that investment and consumer spending in Q1 were weaker than previously estimated while government spending and the impact of trade were essentially unchanged from the advance estimate.
• Initial jobless claims for the week ending May 23 increased by 5,000 to 215,000 (Briefing.com consensus 214,000) from last week's revised reading of 210,000 (from 209,000), while continuing jobless claims for the week ending May 16 rose to 1.786 million from a revised 1.771 million (from 1.782 million) in the prior week.
  
  • The key takeaway from the report is that even with this increase in initial and continuing claims, the overall level of jobless claims remains relatively low.
• Durable goods orders surged 7.9% month-over-month in April (Briefing.com consensus 1.7%) after increasing a revised 1.1% (from 0.8%) in March. Excluding transportation, orders were up 1.1% month-over-month (Briefing.com consensus 0.5%) following an upwardly revised 1.1% increase (from 0.9%) in March.
  
  • The key takeaway from the report is that a big increase in aircraft orders from Boeing (BA) fueled the headline increase while nondefense capital goods orders excluding aircraft decreased 1.1%, reflecting some newfound softness in business spending.
• New home sales decreased 6.2% month-over-month in April to a seasonally adjusted annual rate of 622,000 from a revised 663,000 (from 682,000) in March. On a year-over-year basis, new home sales were down 11.3%.
  
  • The key takeaway from the report is that the median sales price increased even though the supply (9.4 months) of homes approached this year's high (9.9) from January.