The major averages had a choppy morning as this week's optimism surrounding a potential ceasefire between the U.S. and Iran faded, although the S&P 500 (+0.1%), Nasdaq Composite (+0.2%), and DJIA (-0.1%) rebounded from their opening lows to finish little changed.

The stock market opened to broad losses after President Trump said in a speech last night that the U.S. will continue strikes against Iran if a deal is not reached. Oil prices moved sharply higher in response, with crude oil futures settling today's session $11.34 higher (+11.3%) at $111.48 per barrel.

After opening with losses of 1.0% or more, the major averages rebounded sharply to flatline levels roughly an hour into the session following a Bloomberg report that Iran and Oman are drafting a proposal related to traffic through the Strait of Hormuz.

Following the early geopolitical volatility, stocks had a relatively muted session, with the major averages drifting near their flatlines through the afternoon. Strength was mixed, with six S&P 500 sectors charting gains.

The real estate sector (+1.5%) finished as the best-performing S&P 500 sector as Treasuries stabilized from earlier losses.

Gains elsewhere were modest in comparison, though the relative outperformance of the top-weighted information technology sector (+0.7%) boosted the major averages in the final half hour of the session. The sector opened sharply lower as mega-cap and tech stocks gave back some of their prior strength this morning. Sentiment improved throughout the session, and the PHLX Semiconductor Index (+0.4%) finished modestly higher after opening to considerable losses, with Intel (INTC 50.38, +2.35, +4.89%) a standout.

Ciena (CIEN 447.83, +32.44, +7.81%), Lumentum (LITE 826.88, +62.23, +8.14%), and Coherent (COHR 258.19, +10.39, +4.19%) were the top-performing S&P 500 components today.

Elsewhere, the consumer discretionary sector (-1.5%) was unable to shake off the early weakness, which was due in part to Tesla (TSLA 360.56, -20.70, -5.43%) trading sharply lower after disappointing with its Q1 deliveries.

Outside of the S&P 500, the Russell 2000 (+0.7%) outperformed, while the S&P Mid Cap 400 (+0.1%) finished flattish.

Ultimately, the major averages finished with solid week-to-date gains, though previous weakness keeps the indices below their 200-day moving averages. This week's strength was largely a result of a short-term improvement in sentiment regarding geopolitical hostilities and a reaction to oversold conditions, but uncertainty around the situation in Iran and elevated oil prices keep the market on a cautious footing heading into the long weekend.

Next week will also feature a heavy slate of economic data that includes several key inflation readings.

To that point, the market will be closed tomorrow for Good Friday.

U.S. Treasuries recorded slim gains on Thursday, putting together a resilient showing from a modestly lower start to the trading day. The 2-year note yield finished unchanged at 3.80% (-12 basis points week-to-date), and the 10-year note yield settled down one basis point to 4.31% (-13 basis points week-to-date). 

• S&P Mid Cap 400: +3.1% YTD
• Russell 2000: +1.9% YTD
• DJIA: -3.2% YTD
• S&P 500: -3.8% YTD
• Nasdaq Composite: -5.9% YTD

Reviewing today's data:

• Weekly Initial Claims 202K (Briefing.com consensus 215; Prior was revised to 211K from 210K, Weekly Continuing Claims 1.841 mln; Prior was revised to 1.816 mln from 1.819 mln
  
  • The key takeaway from the report is that initial claims remain near the 200,000 mark, reflecting a low-firing environment.
• February Trade Balance -$57.3 bln (Briefing.com consensus -$55.8 bln); Prior was revised to -$54.7 bln from -$54.5 bln
  
  • The key takeaway from the report is that February imports grew more than exports even though February nonfuel import prices (+1.1%) increased at a slower pace than non-agricultural export prices (+1.7%).