[BRIEFING.COM] The stock market had an eventful session today, with firm inflation readings, rising Treasury yields, and higher oil prices pressuring tech and select mega-cap names, though solid rotational buying across the broader market helped the major averages finish well above their session lows. The Nasdaq Composite (-0.7%) lagged amid the weakness in growth stocks, while the S&P 500 (-0.2%) finished modestly lower, and strength in the broader market pushed the DJIA (+0.1%) to a slight gain late in the session.

Stocks opened to broad losses following the release of the April CPI report, which showed headline CPI (0.6%; Briefing.com consensus 0.6%) and Core CPI (0.4%; Briefing.com consensus 0.4%) in line with month-over-month expectations, though the year-over-year rates increased to 3.6% for headline CPI and 2.8% for core CPI, both remaining well above the Fed's 2.0% target. The increase in year-over-year inflation put upward pressure on Treasury yields, which was compounded by another surge in oil prices today (crude oil futures settled today's session $4.23 higher (+4.3%) at $102.30 per barrel).

Growth-oriented pockets of the stock market lagged as a result. In particular, the information technology sector (-1.0%) faced considerable pressure across its semiconductor components, which saw the PHLX Semiconductor Index (-3.0%) give back yesterday's gain. Qualcomm (QCOM 210.31, -27.22, -11.46%), Intel (INTC 120.61, -8.83, -6.82%), and Sandisk (SNDK 1451.94, -95.62, -6.18%) were among the worst-performing S&P 500 components after surging in yesterday's session.

However, it is worth noting that both the Semiconductor Index and the broader technology sector roughly halved their losses from session lows as investors bought into this morning's dip during the afternoon.

A late push back into positive territory from NVIDIA (NVDA 220.91, +1.47, +0.67%) added support and helped the Vanguard Mega Cap Growth ETF (-0.3%) finish well off its earlier lows.

There was some lingering weakness in Tesla (TSLA 433.44, -11.56, -2.60%) and Amazon (AMZN 265.82, -3.17, -1.18%) that kept the consumer discretionary sector (-1.0%) firmly lower, but that was the extent of considerable losses at the sector level.

The industrials (-0.4%) and materials (-0.1%) sectors also finished with losses that were tame compared to their earlier levels.

Seven S&P 500 sectors finished higher, which is relatively impressive considering eight sectors traded lower this morning. The health care (+1.9%) and consumer staples (+1.6%) sectors led the advance as investors sought more defensive holdings, padding their gains throughout the session even as the rotational buying broadened and growth stocks improved from their worst levels.

Investors also did some bargain hunting in the financials sector (+0.7%), which remains the worst-performing S&P 500 sector so far this year, while the energy sector (+0.7%) was supported by the increase in oil prices.

Outside of the S&P 500, the Russell 2000 (-1.0%) and S&P Mid Cap 400 (-0.7%) also finished well off their session lows, though both still underperformed as the market displayed a risk-off tone for much of the session.

All told, today's session felt somewhat like two distinct trading days in one. Early selling pressure tied to oil-driven inflation concerns and rising yields sent stocks sharply lower, particularly across growth and semiconductor names, but the tone improved considerably as rotational buying broadened and investors stepped back into many of the market's recent leaders. Despite the early weakness, the S&P 500 and Nasdaq Composite still finished not far below yesterday's record highs, leaving the broader uptrend largely intact and suggesting another rebound in semiconductor stocks could quickly fuel a renewed push into record territory.

The 2-year note yield settled up five basis points to 4.00%, the 10-year note yield settled up five basis points to 4.46%, and the 30-year note yield settled up five basis points to 5.03%. 

• Russell 2000: +14.5% YTD
• Nasdaq Composite: +12.3% YTD
• S&P Mid Cap 400: +10.8% YTD
• S&P 500: +8.1% YTD
• DJIA: +3.5% YTD

Reviewing today's data:

• April NFIB Small Business Optimism 95.9 (Briefing.com consensus 96.1); Prior 95.8
• April CPI 0.6% (Briefing.com consensus 0.6%); Prior 0.9%, April Core CPI 0.4% (Briefing.com consensus 0.4%); Prior 0.2%
  • The key takeaway from the report is the elevated inflation readings, which are well above the Fed's 2.0% inflation target and a signal not to expect a rate cut anytime soon.
• The Treasury Department reported a $215.0 billion surplus for April (Briefing.com consensus: $202.5 bln), which was $43 billion less than the surplus reported for April 2025. Receipts totaled $837.3 billion, while outlays reached $622.3 billion.
  
  • The key takeaway from the report is the recognition that a healthy level of tax receipts helped fuel a narrowing in the fiscal year-to-date deficit versus the year-ago period. Moreover, the deficit for the 12-month period ending in April is down 16% from the same period a year ago.

[BRIEFING.COM] The S&P 500 (-0.3%), Nasdaq Composite (-1.0%), and DJIA (+0.2%) continue to improve as the market enters the final half hour of the session, with the indices now at their best levels since before midday.

Around session lows, decliners outpaced advancers by a greater than 3-to-1 margin on both the NYSE and Nasdaq. That ratio has changed to favor decliners by a roughly 3-to-2 clip on the NYSE and a roughly 2-to-1 clip on the Nasdaq, reflecting the rotational buying interest that the broader market has received this afternoon.

[BRIEFING.COM] The S&P 500 (-0.5%), Nasdaq Composite (-1.3%), and DJIA (+0.1%) continue to improve from session lows as participation broadens out this afternoon.

Seven S&P 500 sectors now trade at or above their baselines, with the defensive health care (+2.3%) and consumer staples (+1.9%) sectors still leading the way.

The S&P 500 Equal Weighted Index (-0.1%) is now approaching its own baseline as a result.

Meanwhile, the top-weighted information technology sector (+1.7%) remains firmly lower due to weakness across its semiconductor components, which keeps the market-weighted S&P 500 (-0.4%) pinned below its unchanged level.

[BRIEFING.COM] The S&P 500 (-0.43%) is in second place on Tuesday afternoon, having followed its major average peers higher in the last half hour following the release of the Treasury's April budget from the bottom of the hour. Stocks are edging to modest highs as markets are encouraged by President Trump signaling potential de-escalation in the Russia/Ukraine conflict, a possible Iran deal, and improved U.S./China trade engagement prospects, all of which ease geopolitical risk sentiment.

The Treasury Budget for April showed a surplus of $215.0 billion compared to a surplus of $258.4 billion in the same period a year ago.

The April surplus resulted from receipts ($837.3 billion) exceeding outlays ($622.3 billion). The Treasury Budget data are not seasonally adjusted so the April surplus cannot be compared to the March deficit of $164.1 bln.

Overall, the though the government did record its typical April surplus, the top line was down 17% from a year earlier, as higher tax refunds and rising spending, including interest costs and military outlays, offset revenues. Importantly, individual tax refunds jumped 17% due to new tax breaks, while corporate tax receipts declined and corporate refunds increased. For the fiscal year to date, the deficit has narrowed 9% to $954 billion, supported by a 7% rise in receipts even as government spending increased modestly.

[BRIEFING.COM] The tech-heavy Nasdaq Composite (-1.45%) is in last place on Tuesday afternoon, down 381 points.

Gold futures settled $42.00 lower (-0.9%) at $4,686.70/oz, as higher Treasury yields and a firmer U.S. dollar weighed on demand for the non-yielding metal. The move followed renewed inflation concerns tied to rising oil prices and expectations that the Fed could keep interest rates elevated for longer.

Meanwhile, the U.S. Dollar Index is up about +0.5% to $98.37.

[BRIEFING.COM] The Dow Jones Industrial Average (+0.02%) is up about 12 points this afternoon.

A look inside the DJIA shows that Salesforce (CRM 172.35, -5.14, -2.90%), Caterpillar (CAT 906.15, -20.64, -2.23%), and Amazon (AMZN 264.31, -4.68, -1.74%) are underperforming

Meanwhile, UnitedHealth (UNH 394.06, +9.62, +2.50%) bubbles to the top of the average.

The DJIA is down now about -0.82% from last week's highs.

Elsewhere, U.S. Treasuries trade on lows with yields on the 10-yr note and shorter tenors back near their March highs while the 30-yr yield is revisiting its highest level from last week. Today's selling has taken place alongside a steady retreat in equities after they soared to fresh record highs. The price of oil has remained above $101/bbl, weighing on overall sentiment on a day when the market learned that CPI accelerated to 3.8% year-over-year in April. The U.S. Treasury just completed today's $42 bln 10-yr note sale, seeing soft demand. The sale drew a high yield of 4.468%, which tailed the when-issued yield by 0.4 basis points while the bid-to-cover ratio (2.40x vs 2.50x average) and indirect takedown (64.0% vs 69.4% average) were below average. The U.S. Treasury will complete this week's auction slate with a $25 bln 30-yr bond sale tomorrow.

[BRIEFING.COM] Stocks are under pressure today amid a mix of higher oil prices, firmer inflation readings, and a backup in Treasury yields, all of which are weighing on growth stocks that have led the recent move to record highs. The S&P 500 (-1.0%), Nasdaq Composite (-2.0%), and DJIA (-0.3%) are all lower just after midday, while the Russell 2000 (-2.4%) and S&P Mid Cap 400 (-1.6%) underperform, reflecting the broader risk-off tone.

The April CPI (0.6%; Briefing.com consensus 0.6%) and Core CPI (0.4%; Briefing.com consensus 0.4%) readings were in line with month-over-month expectations, but showed an increase in the year-over-year rates (3.6% for headline CPI and 2.8% for core CPI) that remain well above the Fed's 2.0% target. Combined with the jump in oil prices (WTI crude is currently up $3.71, or 3.8%, to $101.78 per barrel), the data is reinforcing concerns that inflation progress is stalling, pushing out rate-cut expectations and adding pressure to growth and tech stocks.

Treasuries are reflecting that shift, with the 2-year note yield up five basis points to 4.00% and the 10-year note yield up five basis points to 4.46%.

To be fair, tech stocks, and in particular, semiconductors, were due for a pullback after an impressive rally that pushed the S&P 500 and Nasdaq Composite to record highs in recent sessions. The PHLX Semiconductor Index is down 6.6% today, though it remains 7.4% higher for the month of May and roughly 60% higher on a year-to-date basis.

Recent outperformers, including Qualcomm (QCOM 202.66, -34.88, -14.68%), Sandisk (SNDK 1373.51, -174.05, -11.25%), and Intel (INTC 115.01, -14.43, -11.15%), are among the worst-performing S&P 500 components today. The broader information technology sector (-2.8%) holds the widest loss as a result.

However, it is not the only S&P 500 sector under considerable pressure.

Losses are widening in the consumer discretionary sector (-1.8%) as it too faces weak mega-cap leadership from Tesla (TSLA 422.70, -22.30, -5.01%) and Amazon (AMZN 263.11, -5.88, -2.19%). The Vanguard Mega Cap Growth ETF is now down 1.2%.

Additionally, oil-sensitive stocks such as cruise lines and rate-sensitive stocks such as homebuilders are underperforming amid today's macro backdrop.

Elsewhere, the industrials sector (-1.2%) faces pressure as electrical equipment names, which surged alongside semiconductors in recent sessions, pull back, while the materials sector (-0.9%) holds a similar loss.

There is some rotational interest into more defensive holdings, with the health care (+2.4%) and consumer staples (+2.2%) sectors outperforming.

Though not a defensive sector itself, investors are also doing some bargain hunting in the financials sector (+0.7%), which remains this year's worst-performing sector.

Additionally, the energy sector (+0.8%) advances amid the surge in oil prices. Developments around the U.S.-Iran conflict have been relatively muted today, though President Trump is reportedly considering resuming military actions as negotiations stall.

Overall, today's action reflects a notable cooling in risk appetite following the market's recent sprint to record highs, with rising yields and renewed inflation concerns driving profit-taking across many of the market's recent leaders.

• April NFIB Small Business Optimism 95.9 (Briefing.com consensus 96.1); Prior 95.8
• April CPI 0.6% (Briefing.com consensus 0.6%); Prior 0.9%, April Core CPI 0.4% (Briefing.com consensus 0.4%); Prior 0.2%
• • The key takeaway from the report is the elevated inflation readings, which are well above the Fed's 2.0% inflation target and a signal not to expect a rate cut anytime soon.

[BRIEFING.COM] The S&P 500 (-0.9%), Nasdaq Composite (-1.7%), and DJIA (-0.4%) continue to drift lower shortly after midday.

On the earnings front, Zebra Tech (ZBRA 252.66, +35.70, +16.46%) is launching higher after delivering a strong Q1 beat and raising its FY26 EPS outlook, reinforcing confidence that demand across automation, machine vision, and AI-enabled workflow solutions remains healthy despite ongoing memory supply concerns. The company also guided Q2 and FY26 EPS above consensus expectations, supported by strong backlog trends, healthy customer pipelines, and continued momentum across manufacturing, logistics, retail, and healthcare markets.

Meanwhile, Hims & Hers Health (HIMS 24.62, -4.52, -15.49%) is sharply lower after its Q1 results highlighted the near-term cost of its weight-loss strategy shift. Revenue increased 3.8% yr/yr to $608.1 million, missing expectations. Subscribers grew 9% to nearly 2.6 million, but monthly revenue per average subscriber declined 6% to $80, while U.S. revenue fell 8% to $529.9 million. HIMS also swung to a $92.1 million loss after earning $49.5 million last year. The pressure was largely tied to HIMS' pivot away from compounded GLP-1s and toward branded products like Wegovy. Overall, the reaction appears less about weak GLP-1 demand and more about the profitability of HIMS' post-compounded GLP-1 model. Early traction in branded weight loss looks encouraging, but investors appear to be questioning how much earnings power it can preserve as the business mix shifts.

[BRIEFING.COM] The major averages are little changed from previous levels as rising oil prices, rising treasury yields, and pronounced tech weakness continue to weigh on equities.

Treasury yields are up across the curve, with the 2-year note yield up four basis points to 3.99%, and the 10-year note yield up four basis points to 4.45%.

Sector strength has improved to include five S&P 500 sectors, though that has had little effect on the major averages as semiconductors and other tech names continue to chart session lows.

The financials sector (+0.3%) has surfaced above its flat line just before midday. Major banking names are mostly lower, but payment card and insurance broker names are offsetting the weakness.

The communication services sector (+0.3%) is also slightly higher for the day as Netflix (NFLX 88.82, +3.38, +3.95%) puts together a solid showing after the stock lagged yesterday.

[BRIEFING.COM] Stocks are mostly lower today as broad weakness and a sharp pullback in semiconductor names send the S&P 500 (-0.8%), Nasdaq Composite (-1.3%), and DJIA (-0.6%) lower across the board.

The information technology sector (-1.8%) leads the decline, weighed by a 4.5% drop in the PHLX Semiconductor Index as the group cools off after a strong rally that recently pushed the S&P 500 and Nasdaq Composite to record highs. Sentiment was also pressured by comments from South Korea's policy chief suggesting an "AI dividend" funded by taxation of the industry.

Broader market weakness is compounded by rising oil prices, with WTI crude up $3.54 (+3.6%) to $101.61 per barrel. Energy-driven inflation concerns remain in focus following the April CPI report (0.6%; Briefing.com consensus: 0.6%), which underscored that year-over-year price pressures remain above the Fed's target.

Seven S&P 500 sectors are in negative territory, with the consumer discretionary (-1.4%), industrials (-1.4%), and materials (-1.3%) sectors among the notable lagards.

Outside the S&P 500, the Russell 2000 (-1.9%) and S&P Mid Cap 400 (-1.5%) also lag, reflecting a broad risk-off tone.

[BRIEFING.COM] The S&P 500 (-0.7%), Nasdaq Composite (-1.2%), and DJIA (-0.6%) are charting session lows as losses widen across tech names.

Meanwhile, the health care (+1.3%) and consumer staples (+1.0%) sectors are charting a firmly higher course.

A host of medical specialties and pharmaceutical names dot the top of the leaderboard in the health care sector, though the gains are broad-based and relatively evenly distributed, reflecting a rotational move as investors seek more defensive positioning.

Strength is also broad in the consumer staples sector, with specialty store names such as Target (TGT 120.44, +2.00, +1.69%) and Walmart (WMT 129.75, +2.16, +1.69%)are taking back some of yesterday's losses in what was a notably weak day for retailer names.

[BRIEFING.COM] The S&P 500 (-0.5%), Nasdaq Composite (-0.7%), and DJIA (-0.7%) trade in a relatively stable range with similar losses.

Qualcomm (QCOM 219.67, -17.86, -7.52%), Sandisk (SNDK 1451.34, -96.22, -6.22%), and Corning (GLW 196.87, -10.52, -5.07%)are the worst-performing S&P 500 names this morning, reflecting some exhaustion across semiconductors and AI-related names after an impressive rally. The PHLX Semiconductor Index is down 2.5%, with the early weakness wiping out yesterday's gain and leaving the index flat on a week-to-date basis.

Meanwhile, Zebra Tech (ZBRA 257.00, +40.04, +18.46%) is the top S&P 500 mover after topping earnings estimates and issuing upside guidance.

[BRIEFING.COM] The S&P 500 (-0.5%), Nasdaq Composite (-0.7%), and DJIA (-0.7%) are under broad pressure this morning as investors weigh the April CPI report (0.6%; Briefing.com consensus: 0.6%), rising oil prices, and a pullback in semiconductor stocks.

The PHLX Semiconductor Index is down 2.5%, weighing on the broader information technology sector (-0.9%).

Electrical product names, which have rallied alongside semiconductors in recent sessions, are also lower and weighing on the industrials sector (-1.2%).

Elsewhere, the consumer discretionary sector (-1.1%) faces weak leadership from its mega-cap components, and an extension of yesterday's pressure across apparel and retail names.

Eight total S&P 500 sectors trade lower, with strength limited to the defensive health care (+1.0%) and consumer staples (+0.6%) sectors, while the energy sector (+0.3%) trades modestly higher as the price of oil increases.

Crude oil is currently up $3.52 (+3.6%) to $101.59 per barrel. Investors continue to monitor developments between the U.S. and Iran, which increasingly resembles a stalemate, with President Trump telling reporters yesterday that the current ceasefire is on "massive life support."

Equity futures point to a lower open this morning as investors react to the April CPI report and monitor rising oil prices. Tech stocks, and in particular semiconductor names, are lower in the premarket after pacing yesterday's gains that resulted in fresh record highs for the S&P 500 and Nasdaq Composite.

Total CPI increased 0.6% month-over-month in April, as expected, following a 0.9% increase in March. That left total CPI up 3.8% year-over-year versus 3.3% in March. Core CPI, which excludes food and energy, jumped 0.4% month-over-month (Briefing.com consensus: 0.4%) following a 0.2% increase in March. That left core CPI up 2.8% year-over-year versus 2.6% in March.

The key takeaway from the report is the elevated inflation readings, which are well above the Fed's 2.0% inflation target and a signal not to expect a rate cut anytime soon.

The S&P 500 futures currently trade 17 points below fair value. 

Equity indices in the Asia-Pacific region had a mostly lower showing on Tuesday with South Korea's Kospi (-2.3%) hitting another record before reversing while Japan's Nikkei (+0.5%) settled at a fresh record high. South Korea's policy chief said that a dividend should be paid to citizens from taxes on AI profits. The Bank of Japan's Summary of Opinions from the April meeting showed that most policymakers remain open to a hike, but the timing of the next increase has become more uncertain. Alphabet will sell yen-denominated bonds with different tenors in multiple tranches. Treasury Secretary Bessent met with top Japanese officials today, repeating that excess volatility in currency markets is undesirable.

• In economic data:
  • Japan's March Household Spending -1.3% m/m (expected 0.6%; last 1.5%); -2.9% yr/yr (expected -1.4%; last -1.8%). March Leading Index 114.5 (expected 114.4; last 113.2) and Coincident Indicator 0.3% m/m (last -1.7%)
  • Australia's April NAB Business Survey 3 (last 6) and NAB Business Confidence -24 (last -29)
  • India's April CPI 3.48% yr/yr (expected 3.80%; last 3.40%)

---Equity Markets---

• Japan's Nikkei: +0.5%
• Hong Kong's Hang Seng: -0.2%
• China's Shanghai Composite: -0.3%
• India's Sensex: -1.9%
• South Korea's Kospi: -2.3%
• Australia's ASX All Ordinaries: -0.4%

Major European indices trade in the red with the U.K.'s FTSE (-0.3%) staying a bit ahead of other markets. British Prime Minister Starmer has repeated that he has no intention to quit even though more than 81 Labour MPs and six cabinet ministers have made public calls for his resignation. Gilts underperformed in overnight trade, sending the 10-yr yield toward 5.35%, a level not seen since July 2008, amid speculation about looser fiscal policy after an eventual leadership change. European Central Bank policymaker Nagel repeated that the base scenario calls for two rate hikes from the central bank.

• In economic data:
  • Eurozone's May ZEW Economic Sentiment -9.1 (expected -21.6; last -20.4)
  • Germany's April CPI 0.6% m/m, as expected (last 1.1%); 2.9% yr/yr, as expected (last 2.7%). May ZEW Economic Sentiment -10.2 (expected -19.2; last -17.2) and ZEW Current Conditions -77.8 (expected -77.5; last -73.7)
  • Italy's March Industrial Production 0.7% m/m (expected 0.2%; last 0.2%); 1.5% yr/yr (last 0.4%)
  • Swiss April PPI 0.8% m/m (expected 0.4%; last 0.2%); -2.0% yr/yr (last -2.7%)

---Equity Markets---

• STOXX Europe 600: -0.6%
• Germany's DAX: -0.8%
• U.K.'s FTSE 100: -0.3%
• France's CAC 40: -0.6%
• Italy's FTSE MIB: -0.7%
• Spain's IBEX 35: -0.9%

The S&P 500 futures currently trade 38 points below fair value.

Just released, total CPI was up 0.6% month-over-month in April (Briefing.com consensus: 0.6%) following a 0.9% increase in March.

Core CPI, which excludes food and energy, was up 0.4% month-over-month (Briefing.com consensus: 0.4%) following a 0.2% increase in March.

Total CPI was up 3.8% year-over-year, versus 3.3% in March, and core CPI was up 2.8% year-over-year, versus 2.6% in March.

Equity indices point to a lower opening this morning amid a surge in oil prices as investors await the April CPI report (Briefing.com consensus 0.6%).

Stocks are coming off a modestly higher session that saw the S&P 500 and Nasdaq Composite reach fresh record highs, as continued strength across semiconductor and AI-related names outweighed escalating tensions between the U.S. and Iran. CNN reports that President Trump is seriously considering resuming combat operations in Iran due to recent negotiations falling apart. Additionally, The Wall Street Journal reports that the UAE has secretly been conducting attacks on Iran.

Crude oil is currently up $3.39 (+3.5%) to $101.46 per barrel.

The 8:30 a.m. release of the April CPI report will be closely watched for signs that higher oil prices are beginning to exert broader inflationary pressure across the economy.

Elsewhere on the economic data front, the NFIB Small Business Optimism Index for April checked in at 95.9 (Briefing.com consensus 96.1), up from the prior level of 95.8.

Earnings reports continue to trickle in, though at a much slower pace than in recent weeks now that the bulk of the S&P 500 has reported results.

In corporate news:

• eBay (EBAY 107.50, -0.63, -0.6%) rejected the unsolicited acquisition proposal from GameStop (GME 22.48, -0.69, -3.0%).
• Hims & Hers Health (HIMS 25.96, -4.19, -14.4%) missed revenue expectations and guided Q2 and FY26 revenues above consensus.
• Qnity Electronics (Q 157.50, +4.26, +2.8%) beat EPS expectations by $0.16, beat revenue expectations, and raised its FY26 guidance.
• Wendy's (WEN 7.95, +1.19, +17.60%) is higher in the premarket after Financial Times reported Trian Fund Management is considering taking the company private.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region had a mostly lower showing on Tuesday with South Korea's Kospi (-2.3%) hitting another record before reversing while Japan's Nikkei (+0.5%) settled at a fresh record high. Japan's Nikkei: +0.5%, Hong Kong's Hang Seng: -0.2%, China's Shanghai Composite: -0.3%, India's Sensex: -1.9%, South Korea's Kospi: -2.3%, Australia's ASX All Ordinaries: -0.4%.

In news:

• South Korea's policy chief said that a dividend should be paid to citizens from taxes on AI profits.
• The Bank of Japan's Summary of Opinions from the April meeting showed that most policymakers remain open to a hike, but the timing of the next increase has become more uncertain.
• Alphabet will sell yen-denominated bonds with different tenors in multiple tranches.
• Treasury Secretary Bessent met with top Japanese officials today, repeating that excess volatility in currency markets is undesirable.

In economic data:

• Japan's March Household Spending -1.3% m/m (expected 0.6%; last 1.5%); -2.9% yr/yr (expected -1.4%; last -1.8%). March Leading Index 114.5 (expected 114.4; last 113.2) and Coincident Indicator 0.3% m/m (last -1.7%)
• Australia's April NAB Business Survey 3 (last 6) and NAB Business Confidence -24 (last -29)
• India's April CPI 3.48% yr/yr (expected 3.80%; last 3.40%)

Major European indices trade in the red with the U.K.'s FTSE (-0.4%) staying a bit ahead of other markets. STOXX Europe 600: -0.7%, Germany's DAX: -1.1%, U.K.'s FTSE 100: -0.4%, France's CAC 40: -0.6%, Italy's FTSE MIB: -0.7%, Spain's IBEX 35: -1.0%. 

In news:

• British Prime Minister Starmer has repeated that he has no intention to quit even though more than 81 Labour MPs and six cabinet ministers have made public calls for his resignation.
• Gilts underperformed in overnight trade, sending the 10-yr yield toward 5.35%, a level not seen since July 2008, amid speculation about looser fiscal policy after an eventual leadership change.
• European Central Bank policymaker Nagel repeated that the base scenario calls for two rate hikes from the central bank.

In economic data:

• Eurozone's May ZEW Economic Sentiment -9.1 (expected -21.6; last -20.4)
• Germany's April CPI 0.6% m/m, as expected (last 1.1%); 2.9% yr/yr, as expected (last 2.7%). May ZEW Economic Sentiment -10.2 (expected -19.2; last -17.2) and ZEW Current Conditions -77.8 (expected -77.5; last -73.7)
• Italy's March Industrial Production 0.7% m/m (expected 0.2%; last 0.2%); 1.5% yr/yr (last 0.4%)
• Swiss April PPI 0.8% m/m (expected 0.4%; last 0.2%); -2.0% yr/yr (last -2.7%)

[BRIEFING.COM] The stock market had a somewhat choppy start to the week, with mixed strength in the broader market weighing against another session of semiconductor leadership. The S&P 500 (+0.2%), Nasdaq Composite (+0.2%), and DJIA (+0.1%) finished modestly higher, though it was enough to secure record highs for the S&P 500 and Nasdaq Composite.

The PHLX Semiconductor started the week with a 2.3% gain, helping the top-weighted information technology sector (+0.8%) secure a higher finish. Lumentum (LITE 1053.09, +149.29, +16.52%) was the best-performing S&P 500 component after headlines that the stock will join the Nasdaq 100 Index next Monday, May 18, while Coherent (COHR 379.69, +44.43, +13.25%) and Qualcomm (QCOM 237.53, +18.44, +8.42%) advanced after Bloomberg reported executives from both companies were invited to President Trump's China trip later this week.

Memory names also posted impressive gains, and NVIDIA (NVDA 219.44, +4.24, +1.97%) was a "magnificent seven" standout amid a mostly lower session for the group. Tesla (TSLA 445.08, +16.73, +3.91%) was another notable exception to this trend, limiting broad losses in the consumer discretionary sector (-0.6%).

Electronic production equipment names such as Vertiv (VRT 367.92, +27.95, +8.22%) also traded higher as investors increasingly view the AI-buildout cycle as a catalyst for the group, helping the industrials sector (+1.0%) notch a solid gain today.

The materials sector (+1.4%) was another top mover as chemical and precious metal companies outperformed, while the energy sector (+2.6%) captured the widest gain amid an increase in oil prices.

President Trump lamented Iran's response to the latest U.S. peace proposal as "totally unacceptable", later telling reporters that the ceasefire with Iran is now on "massive life support." Crude oil futures settled today's session $2.68 higher (+2.8%) at $98.07 per barrel.

Five S&P 500 sectors traded lower today, though the losses were relatively modest. Only the communication services sector (-2.3%) finished with a loss of 1.0% or wider, facing pressure across multiple notable components. Alphabet (GOOG 386.77, -10.28, -2.59%) was a mega-cap laggard, while Netflix (NFLX 85.45, -2.04, -2.33%) moved lower after the Texas Attorney General filed a suit against the company, and The Trade Desk (TTD 21.52, -1.56, -6.76%) faced pressure after HSBC downgraded the stock to Reduce from Hold.

Meanwhile, Fox (FOX 61.18, +4.58, +8.09%) outperformed after topping earnings estimates.

This week is notably lighter on the earnings front, with only 11 S&P 500 companies set to report results. While earnings growth has largely exceeded expectations and provided the market with a major tailwind, focus could shift back towards geopolitical volatility and energy prices, especially given tomorrow's release of the April CPI report (Briefing.com consensus 0.6%). Despite the relatively subdued finish, continued semiconductor leadership and resilience at the index level kept the broader uptrend intact.

U.S. Treasuries started the week on a lower note with the belly leading a Monday slide that lifted yields back to levels from last Tuesday. The U.S. Treasury kicked off this week's note auction slate with a weak sale of $58 bln in 3-year notes ahead of tomorrow's $42 bln 10-year note auction. The 2-year note yield settled up six basis points to 3.95%, and the 10-year note yield settled up five basis points to 4.41%.

• Russell 2000: +15.7% YTD
• Nasdaq Composite: +13.1% YTD
• S&P Mid Cap 400: +11.6% YTD
• S&P 500: +8.3% YTD
• DJIA: +3.4% YTD

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.