[BRIEFING.COM] The S&P 500 (-0.4%), Nasdaq Composite (-0.8%), and DJIA (-0.2%) finished lower as investors weighed geopolitical developments, rising yields, and a rebound in oil prices. Despite solid participation across the broader market that helped the major averages recover much of their early losses, weakness in mega-cap names prevented a sustained move above flatline levels.

Today's developments in the Middle East offered little clarity on how close an off-ramp to the Iran conflict may be. Early headlines focused on Iran's continued denial of involvement in ceasefire negotiations with the U.S., alongside reports of neighboring Gulf states supporting stricter measures against Tehran. However, Axios reported that the U.S. has at least made contact with Iran through mediators and is awaiting a response on peace talks. President Trump also reiterated to reporters that both the U.S. and Iran are eager to strike a deal. 

Oil rebounded amid the ongoing uncertainty after retreating 10% in yesterday's session, settling today's session $4.10 higher (+4.7%) at $92.29 per barrel. The energy sector (+2.1%) finished as the top-performing S&P 500 sector. 

After recovering from relatively broad opening losses, the market ultimately finished mixed despite leaning higher for most of the session. 

The materials sector (+1.7%) was another outperformer, with chemical names leading the advance. Fertilizer names such as CF Industries (CF 126.92, +6.74, +5.61%) and Mosaic (MOS 25.22, +1.14, +4.73%) were among some of the top performers as hostilities near the Strait of Hormuz continue to drive volatility. 

Elsewhere, the utilities sector (+0.7%) also posted a nice gain. Other defensive sectors, such as the consumer staples sector (+0.1%), sported gains wider than 1.0% today, though they ceded most of their strength in the afternoon. Estee Lauder (EL 71.47, -7.82, -9.86%) was one of the worst-performing S&P 500 names after the company confirmed it is in discussions about a potential business combination with Spain's Puig. 

Meanwhile, the communication services sector (-2.5%) was a laggard for the entirety of today's session. It was a tough session for mega-cap stocks, and Alphabet (GOOG 289.20, -9.82, -3.28%) bore the brunt of the weakness, with Meta Platforms (META 592.92, -11.14, -1.84%) also finishing lower. 

The Vanguard Mega Cap Growth ETF finished 1.3% lower, which contributed to the underperformance of the market-weighted S&P 500 (-0.4%) relative to the S&P 500 Equal Weighted Index (+0.1%). 

Microsoft (MSFT 372.74, -10.26, -2.68%) was another "Magnificent Seven" laggard as software names came under renewed pressure today. The iShares GS Software ETF shed 4.2%, and the broader information technology sector finished 0.7% lower. 

Losses were somewhat pared by a 1.3% gain in the PHLX Semiconductor Index and strong performances across hardware and electrical component manufacturers such as Lumentum (LITE 801.99, +73.04, +10.02%), Corning (GLW 142.09, +11.12, +8.49%), and Dell (DELL 176.98, +12.39, +7.53%). 

Outside of the S&P 500, the Russell 2000 (+0.5%) and S&P Mid Cap 400 (+0.8%) outperformed the major averages.

Overall, the market showed some resilience despite higher oil prices and ongoing geopolitical uncertainty, with strength outside mega-cap tech helping to offset losses. Still, the major averages remain capped below their 200-day moving averages, reflecting a cautious tone as the Iran situation continues to evolve.

U.S. Treasuries gave back Monday's gains during a Tuesday reversal that also produced fresh 2026 intraday highs for yields across all tenors. The U.S. Treasury started this week's note auction slate with a poor 2-year note offering that tailed by nearly two basis points. The 2-year note yield settled up 10 basis points to 3.93% and the 10-year note yield settled up six basis points to 4.39%. 

• S&P Mid Cap 400: +2.4% YTD
• Russell 2000: +1.0% YTD 
• DJIA: -4.0% YTD
• S&P 500: -4.2% YTD 
• Nasdaq Composite: -6.4% YTD

Reviewing today's data:

• Q4 Productivity - Revised 1.8% (Briefing.com consensus 2.5%); Prior revised to 4.9% from 2.8%, Q4 Unit Labor Costs - Revised 4.4% (Briefing.com consensus 3.1%); Prior revised to -1.9%% from 2.8%
  • The key takeaway from the report is the dichotomy of lower productivity and higher unit labor costs, the latter of which will contribute to the Fed's reticence to cut rates soon (even though this is a dated report).
• March S&P Global U.S. Manufacturing PMI - Prelim 52.4; Prior 51.6
• March S&P Global U.S. Services PMI - Prelim 51.1; Prior 51.7

[BRIEFING.COM] The major averages continue to sit mostly lower with modest losses as today's action nears its conclusion. 

Financial Times recently reported that Iran is now allowing "non-hostile" vessels to pass through the Strait of Hormuz. 

In corporate news, Bloomberg reported that Apple (AAPL 252.32, +0.83, +0.33%) is developing a dedicated Siri app, representing a shift in the company's AI strategy. Though the stock holds just a modest gain today, it is one of just two "magnificent seven" names that trades higher, the other being Tesla (TSLA 384.25, +3.40, +0.89%). 

[BRIEFING.COM] The S&P 500 (-0.1%), Nasdaq Composite (-0.5%), and DJIA (+0.1%) continue to sit mixed as the market enters the final hour of the session. 

Axios reported that the U.S. and mediators are awaiting a response from Iran to continue peace talks, which could begin as soon as Thursday. In a press conference, President Trump reiterated that negotiations are happening, and Iran is looking to strike a deal. 

On a related note, crude oil futures settled today's session $4.10 higher (+4.7%) at $92.29 per barrel. 

[BRIEFING.COM] The S&P 500 (-0.17%) is in second place on Tuesday afternoon, down about 11 points.

Briefly, S&P 500 constituents Coinbase Global (COIN 181.90, -18.72, -9.33%), The Trade Desk (TTD 22.37, -1.58, -6.60%), and Gartner (IT 152.19, -10.40, -6.40%) slide to the bottom of the standings. COIN slides as a proposed U.S. stablecoin bill could ban interest-like yields on stablecoins, undermining a key driver of retail adoption, TTD falls after Omnicom (OMC 75.52, -0.12, -0.16%) launched an audit of TTD's fees, fueling investor concern and driving the stock to new lows.

Meanwhile, Lumentum (LITE 788.14, +59.19, +8.12%) holds solid gains near the top of the average, returning to winning ways and probing new all-time highs amid broader strength in optical stocks.

[BRIEFING.COM] With about two hours to go on Tuesday afternoon the tech-heavy Nasdaq Composite (-0.91%) is leading losses, down about 200 points.

Gold futures settled $5.30 lower (-0.1%) at $4,402/oz, as a stronger U.S. dollar and elevated Treasury yields continue to weigh on demand for the non-yielding metal. At the same time, oil-driven inflation concerns tied to Middle East tensions are pushing out Fed rate-cut expectations, keeping additional pressure on prices.

Meanwhile, the U.S. Dollar Index is up about +0.4% to $99.57. 

[BRIEFING.COM] The Dow Jones Industrial Average (-0.10%) is now down about 47 points this afternoon.

A look inside the DJIA shows that Salesforce (CRM 183.31, -11.87, -6.08%), IBM (IBM 240.06, -8.38, -3.37%), and Microsoft (MSFT 372.21, -10.79, -2.82%) are underperforming.

Meanwhile, Walmart (WMT 122.78, +2.06, +1.71%) is today's top performer.

The DJIA is now +1.74% higher off last Friday's lows.

Elsewhere, U.S. Treasuries trade at their worst levels of the day after today's $69 bln 2-yr note sale met weak demand, resulting in a recent slip past morning lows. Treasuries climbed off their worst levels in mid-morning trade, but all that progress has been reversed over the past few minutes as the market responded to the disappointing 2-yr note offering. The sale drew a high yield of 3.936%, which tailed the when-issued yield by 1.8 basis points while the bid-to-cover ratio (2.44x) was below average (2.61x). Meanwhile, indirect takedown (59.4%) was a touch above average (59.3%). The U.S. Treasury will sell $70 bln in 5-yr notes tomorrow.

[BRIEFING.COM] The S&P 500 (-0.3%), Nasdaq Composite (-0.8%), and DJIA (-0.1%) trade with modest losses, as some weakness across mega-cap tech names weighs against strong participation in the broader market that helped the major averages trade mostly higher for some time. 

Stocks opened lower across the board this morning following yesterday's rally, which was driven by optimism surrounding a potential de-escalation in the Iran conflict after President Trump indicated that the U.S. and Iran had engaged in ceasefire discussions. Iran continues to deny the claims, which has contributed to a rebound in oil prices today. Crude oil futures settled 10% lower in yesterday's session, while WTI crude oil currently trades $4.32 (+4.5%) higher at $92.45 per barrel. 

However, CBS News and other outlets have reported that the U.S. has at least reached out to Iran through mediators, with the lingering optimism of an off-ramp to the conflict helping stocks rise off their early lows despite the higher price of oil. 

Only four S&P 500 sectors remain in negative territory, though the underperformance of mega-cap stocks keeps the major averages from charting gains. The communication services sector (-1.8%) is an outlier as Alphabet (GOOG 290.95, -8.07, -2.70%) and Meta Platforms (META 595.46, -8.60, -1.42%) both trade lower, while Microsoft (MSFT 373.68, -9.32, -2.43%) is a laggard in the information technology sector (-0.5%) amid a tough day for software names. 

The iShares GS Software ETF is down 3.9%, but a 1.1% gain in the PHLX Semiconductor Index and strong gains in Corning (GLW 142.85, +11.88, +9.07%) and other electrical component stocks help limit losses in the technology sector. 

The Vanguard Mega Cap Growth ETF is down 1.0%, which contributes to the underperformance of the market-weighted S&P 500 (-0.1%) relative to the S&P 500 Equal-Weighted Index (+0.5%). 

Meanwhile, the energy sector (+2.5%) outperforms amid the rebound in oil prices, while tensions in the Strait of Hormuz also drive sharp gains across fertilizer names, which lead strength in the materials sector (+2.1%). 

Elsewhere, the defensive utilities (+1.6%) and consumer staples (+0.9%) sectors hold solid gains as mega-cap tech names trail today. 

Outside of the S&P 500, the Russell 2000 (+0.7%) and S&P Mid Cap 400 (+1.1%) have shaken off their early losses and now outperform the major averages. 

So far, the broader market has shown resilience despite the rebound in oil prices, with solid participation outside of mega-cap tech helping stocks recover from their early lows. Still, the flattish performance of the major averages suggests a cautious tone as investors await further developments surrounding Iran, while the 200-day moving averages for the major indices continue to act as resistance.

Reviewing today's data:

• Q4 Productivity - Revised 1.8% (Briefing.com consensus 2.5%); Prior revised to 4.9% from 2.8%, Q4 Unit Labor Costs - Revised 4.4% (Briefing.com consensus 3.1%); Prior revised to -1.9%% from 2.8%
  • The key takeaway from the report is the dichotomy of lower productivity and higher unit labor costs, the latter of which will contribute to the Fed's reticence to cut rates soon (even though this is a dated report).
• March S&P Global U.S. Manufacturing PMI - Prelim 52.4; Prior 51.6
• March S&P Global U.S. Services PMI - Prelim 51.1; Prior 51.7

[BRIEFING.COM] The S&P 500 (+0.1%), Nasdaq Composite (-0.3%), and DJIA (+0.3%) trade in a relatively tight range near their baselines shortly after midday. 

Coinbase Global (COIN 183.42, -17.20, -8.57%) is one of the worst-performing S&P 500 names today as Bitcoin retreats below the $70,000 mark. 

Apollo Global Management (APO 109.17, -1.28, -1.16%) is also under pressure after CNBC reported that the company's private credit fund capped withdrawals at its stated 5% limit after investors asked to redeem more than 11%.

Still, strength in major banking names like Wells Fargo (WFC 80.04, +1.76, +2.24%) helps the financials sector (+0.5%) trade modestly higher. 

[BRIEFING.COM] The major averages continue to sit mixed near their flatlines at midday. 

Corning (GLW 144.97, +14.00, +10.69%) is the best-performing S&P 500 name today, boosted by renewed investor enthusiasm around its leverage to AI and data center infrastructure, particularly demand for optical fiber and connectivity solutions supporting hyperscale build-outs. The company is increasingly viewed as a key beneficiary of accelerating network upgrades, as cloud providers invest heavily in bandwidth-intensive AI workloads that require dense fiber deployment.

Strength in its optical communications segment, coupled with improving pricing dynamics and cost discipline, is boosting confidence in margin expansion. Additionally, GLW's diversified portfolio-including specialty glass used in consumer electronics and automotive applications-adds a layer of cyclical recovery upside, reinforcing the bullish sentiment behind the move.

The stock is now up nearly 16% for the week, extending its year-to-date gain to nearly 65%, making it one of the top-performing components of the information technology sector in 2026. 

[BRIEFING.COM] The S&P 500 (+0.1%), Nasdaq Composite (-0.3%), and DJIA (+0.3%) sit mixed shortly before midday, steadily improving from their opening lows as participation broadens. The Russell 200 (+0.6%) and S&P Mid Cap 400 (+0.9%) have also shaken off their early losses and now outperform the major averages. 

The major averages saw the bulk of yesterday's gains ceded at the open as Iran continues to deny that ceasefire negotiations occurred with the U.S., leaving investors to question if yesterday's rebound rally was premature. After closing 10% lower yesterday, crude oil is up $3.10 (+3.5%) to $91.23 per barrel. 

Still, stocks have shown resilience and steadily risen off of their early lows amid solid participation. Seven S&P 500 sectors now trade higher, led by the energy sector (+2.8%) amid the rebound in oil prices. 

The materials sector (+1.8%) also holds a nice gain as tensions around the Strait of Hormuz continue to drive volatility across fertilizer names, while the defensive utilities (+1.6%) and consumer staples (+1.2%) sectors hold solid gains. 

Meanwhile, mega-cap and tech stocks are a point of weakness after outperforming in yesterday's advance. The communication services sector is a laggard due to losses in Alphabet (GOOG 292.09, -6.93, -2.32%) and Meta Platforms (META 594.84, -9.22, -1.53%), while the information technology sector (-0.4%) has pared its losses. The PHLX Semiconductor Index is up 1.5%, which helps outweigh weakness across software names that send the iShares GS Software ETF 3.8% lower. 

[BRIEFING.COM] The S&P 500 (flat), Nasdaq Composite (-0.4%), and DJIA (+0.1%) now sit mixed as strength in the broader market continues to widen, leaving just three S&P 500 sectors below their baselines. 

The consumer staples sector (+1.0%) is near the top of the leaderboard, with broad strength and solid leadership from Walmart (WMT 123.06, +2.33, +1.93%) outweighing some notable retreats in the sector. 

Estee Lauder (EL 73.46, -5.84, -7.36%) sinks after the company confirmed it is in discussions regarding a potential business combination with Puig Brands (PUGBY 10.10, +0.11, +1.1%), while Dollar General (DG 122.26, -2.84, -2.27%) is shedding some of its earlier losses after announcing a CEO transition.

[BRIEFING.COM] The Nasdaq Composite (-0.9%) now trails the S&P 500 (-0.4%) and DJIA (-0.2%) as losses widen across mega-cap and tech names against mixed strength in the broader market. 

"Magnificent Seven" stocks are mostly lower, though Tesla (TSLA 384.60, +3.76, +0.99%) continues to outperform and Apple (AAPL 252.44, +0.95, +0.38%) holds a modest gain. 

Alphabet (GOOG 293.05, -5.97, -2.00%) is a laggard, putting pressure on the communication services sector (-1.4%), while Microsoft (MSFT 372.79, -10.21, -2.67%) trades even lower amid a tough day for software stocks. The iShares GS Software ETF is down 3.9%, and the broader information technology sector is down 1.1%.

[BRIEFING.COM] The S&P 500 (-0.5%), Nasdaq Composite (-0.8%), and DJIA (-0.5%) have given up a chunk of yesterday's gains as oil volatility and geopolitical tensions continue to drive choppy action. 

After retreating 10% yesterday, oil is back up $4.04 (+4.6%) to $92.12 per barrel. The New York Times reported that the Crown Prince of Saudi Arabia has urged President Trump to further escalate the war in Iran, citing regional security risks and strategic opportunity. Iran continues to deny President Trump's claims that negotiations have occurred, leaving the market to question if an off-ramp is really a near-term possibility. 

Seven S&P 500 sectors trade lower, with early weakness in mega-cap stocks sending the information technology (-0.9%) and communication services (-0.9%) sectors to the bottom of the leaderboard. Growth stocks outperformed in yesterday's rally, but the Vanguard Mega Cap Growth ETF (-1.0%) is under pressure this morning. 

Meanwhile, the energy sector (+2.0%) surges higher amid the increase in oil prices, while the utilities sector (+1.1%) also outperforms as the market displays a more risk-off tone this morning. 

The preliminary S&P Global U.S. Manufacturing PMI checked in at 52.4, up from a prior level of 51.6. 

The preliminary S&P Global U.S. Services PMI came in at 51.1, from a prior reading of 51.7. 

Equity futures now point to a lower opening as yesterday's rally is not garnering much follow-through interest today. Oil continues to tick higher, currently up $4.12 (+4.7%) to $92.25 per barrel as the market waits for any update on potential negotiations between the U.S. and Iran.

Q4 productivity was revised down to 1.8% (Briefing.com consensus: 2.5%) from the preliminary estimate of 2.8%, while unit labor costs were revised up to 4.4% (Briefing.com consensus: 3.1%) from the preliminary estimate of 2.8%.

The key takeaway from the report is the dichotomy of lower productivity and higher unit labor costs, the latter of which will contribute to the Fed's reticence to cut rates soon (even though this is a dated report).

Equity indices in the Asia-Pacific region had a broadly higher showing on Tuesday. China's National Development Reform Commission said that fiscal and tax support will be implemented if crude oil prices remain high. Alibaba, Baidu, and Tencent are planning capital expenditures of about $84 bln for 2027. Japan is planning to spend JPY800 bln on gasoline subsidies and may also intervene in the oil market through futures.

• In economic data:
  • Japan's February National CPI -0.2% m/m (last -0.2%); 1.3% yr/yr (last 1.5%). February National Core CPI 1.6% yr/yr (expected 1.7%; last 2.0%). Flash March Manufacturing PMI 51.4 (expected 53.2; last 53.0) and flash Services PMI 52.8 (last 53.8)
  • South Korea's February PPI 0.6% m/m (last 0.7%); 2.4% yr/yr (last 1.9%)
  • Australia's flash March Manufacturing PMI 50.1 (last 51.0) and flash Services PMI 46.6 (last 52.8)
  • India's flash March Manufacturing PMI 53.8 (expected 56.8; last 56.9) and flash Services PMI 57.2 (expected 58.3; last 58.1)

---Equity Markets---

• Japan's Nikkei: +1.4%
• Hong Kong's Hang Seng: +2.8%
• China's Shanghai Composite: +1.8%
• India's Sensex: +1.9%
• South Korea's Kospi: +2.7%
• Australia's ASX All Ordinaries: +0.2%

Major European indices trade lower. Flash March PMI readings from major regional economies showed unexpected expansion in the manufacturing sector while growth in services undershot expectations. European Central Bank policymaker Vujcic acknowledged that the risk of stagflation has increased.

• In economic data:
  • Eurozone's flash March Manufacturing PMI 51.4 (expected 49.4; last 50.8) and flash Services PMI 50.1 (expected 51.1; last 51.9)
  • Germany's flash March Manufacturing PMI 51.7 (expected 49.6; last 50.9) and flash Services PMI 51.2 (expected 52.5; last 53.5)
  • U.K.'s flash March Manufacturing PMI 51.4 (expected 50.0; last 51.7) and flash Services PMI 51.2 (expected 52.8; last 53.9). March CBI Distributive Trades Survey -52 (expected -40; last -43)
  • France's flash March Manufacturing PMI 50.2 (expected 49.4; last 50.1) and flash Services PMI 48.3 (expected 49.2; last 49.6)

---Equity Markets---

• STOXX Europe 600: -0.5%
• Germany's DAX: -0.7%
• U.K.'s FTSE 100: -0.3%
• France's CAC 40: -0.5%
• Italy's FTSE MIB: -0.5%
• Spain's IBEX 35:  -0.7%

The S&P 500 futures currently trade 27 points below fair value. 

Just released, the Q4 productivity change was revised down to 1.8% (Briefing.com consensus 2.5%) following a preliminary increase of 2.8% and a 4.9% increase in the third quarter. 

Q4 unit labor costs were revised up to a 4.1% increase (Briefing.com consensus 3.1%) following a preliminary increase of 2.8% and a 1.9% decline in the third quarter. 

Equity futures point to a slightly lower opening after stocks rallied to start the week following President Trump's claim that the U.S. and Iran have engaged in productive negotiations to end all hostilities. While the claims continue to be denied by Iran, reports of backchannel negotiations and President Trump's eagerness to reach a deal prompted a rebound rally that saw the S&P 500 and DJIA move above their 200-day moving averages, though they failed to close above the key technical level. 

The Wall Street Journal reports that the UAE and Saudi Arabia are supporting tougher measures against Iran, potentially moving closer to military intervention. 

Crude oil retreated 10% yesterday, which helped fuel yesterday's rally. Crude oil is currently back above the $90 per barrel mark, trading $2.80 (+3.2%) higher at $90.93 per barrel. CNBC reports that Chevron CEO Mike Wirth said oil markets have not fully priced in the effect of the Strait of Hormuz closure. 

Headlines are relatively quiet elsewhere, with little in the way of economic data or earnings releases this morning. 

In corporate news:

• Apollo Global Management (APO 107.82, -2.63, -2.4%) is capping redemptions at one of its largest private credit funds, according to Bloomberg. 
• CoreWeave (CRWV 83.40, +1.44, +1.8%) was upgraded to Buy from Neutral at BofA Securities with a target price of $100. 
• Gilead Sciences (GILD 137.13, -0.21, -0.2%) is set to acquire Ouro Medicines for as much as $2.1 billion. 

Reviewing overnight developments:

Equity indices in the Asia-Pacific region had a broadly higher showing on Tuesday. Japan's Nikkei: +1.4%, Hong Kong's Hang Seng: +2.8%, China's Shanghai Composite: +1.8%, India's Sensex: +1.9%, South Korea's Kospi: +2.7%, Australia's ASX All Ordinaries: +0.2%.

In news: 

• China's National Development Reform Commission said that fiscal and tax support will be implemented if crude oil prices remain high.
• Alibaba, Baidu, and Tencent are planning capital expenditures of about $84 bln for 2027.
• Japan is planning to spend JPY800 bln on gasoline subsidies and may also intervene in the oil market through futures.

In economic data:

• Japan's February National CPI -0.2% m/m (last -0.2%); 1.3% yr/yr (last 1.5%). February National Core CPI 1.6% yr/yr (expected 1.7%; last 2.0%). Flash March Manufacturing PMI 51.4 (expected 53.2; last 53.0) and flash Services PMI 52.8 (last 53.8)
• South Korea's February PPI 0.6% m/m (last 0.7%); 2.4% yr/yr (last 1.9%)
• Australia's flash March Manufacturing PMI 50.1 (last 51.0) and flash Services PMI 46.6 (last 52.8)
• India's flash March Manufacturing PMI 53.8 (expected 56.8; last 56.9) and flash Services PMI 57.2 (expected 58.3; last 58.1)

Major European indices trade near their flat lines. STOXX Europe 600: +0.2%,
Germany's DAX: UNCH, U.K.'s FTSE 100: +0.2%, France's CAC 40: +0.1%, Italy's FTSE MIB: +0.3%, Spain's IBEX 35: UNCH.

In news:

• Flash March PMI readings from major regional economies showed unexpected expansion in the manufacturing sector while growth in services undershot expectations.
• European Central Bank policymaker Vujcic acknowledged that the risk of stagflation has increased.

In economic data:

• Eurozone's flash March Manufacturing PMI 51.4 (expected 49.4; last 50.8) and flash Services PMI 50.1 (expected 51.1; last 51.9)
• Germany's flash March Manufacturing PMI 51.7 (expected 49.6; last 50.9) and flash Services PMI 51.2 (expected 52.5; last 53.5)
• U.K.'s flash March Manufacturing PMI 51.4 (expected 50.0; last 51.7) and flash Services PMI 51.2 (expected 52.8; last 53.9). March CBI Distributive Trades Survey -52 (expected -40; last -43)
• France's flash March Manufacturing PMI 50.2 (expected 49.4; last 50.1) and flash Services PMI 48.3 (expected 49.2; last 49.6)

[BRIEFING.COM] The stock market saw broad gains today in reaction to developments on the geopolitical front, helping the S&P 500 (+1.2%), Nasdaq Composite (+1.4%), and DJIA (+1.4%) rise from their worst levels of the year. 

Equity futures reversed their overnight losses after President Trump said on Truth Social that the U.S. and Iran have engaged in productive discussions to end all hostilities and that strikes on Iranian energy targets will be paused for five days to allow for negotiations. Oil prices retreated sharply, and the major averages opened to gains that eventually saw the S&P 500 and DJIA briefly reclaim their 200-day moving averages. 

The major averages could not sustain all of their early gains, which saw them close below their respective 200-day moving averages. Enthusiasm was somewhat tempered by multiple reports that Iranian officials denied any negotiations with the U.S., leaving the market to question the validity of an off-ramp to the conflict. 

Still, President Trump's desire to negotiate a deal reflects a clear shift in rhetoric, which helped underpin today's risk-on move and ease some near-term concerns about further escalation in the conflict, even as uncertainty around the situation remains elevated.

All eleven S&P 500 sectors finished at or above their flatlines. The health care sector (flat) was the only sector that failed to secure a gain, as today's improvement in risk sentiment saw more defensive pockets of the market lag, with the consumer staples sector (+0.4%) logging a modest gain. 

Even the energy sector (+1.1%) captured a nice gain despite crude oil futures settling today's session $9.93 lower (-10.1%) at $88.19 per barrel.

Meanwhile, the consumer discretionary sector (+2.5%) notched the widest gain, with cruise lines such as Norwegian Cruise Line (NCLH 20.13, +1.18, +6.23%) among the outperformers amid the falling price of oil. 

Tesla (TSLA 380.83, +12.87, +3.50%) was a "magnificent seven" standout in a solid day for mega-cap stocks, with the Vanguard Mega Cap Growth ETF finishing 1.5% higher. 

Elsewhere, the top-weighted information technology sector (+1.5%) also outperformed today. Strength across Palantir Technologies (PLTR 160.90, +10.22, +6.78%) and other software names pushed the iShares GS Software ETF 1.8% higher. 

Semiconductor names surged out of the gate, with the PHLX Semiconductor Index trading more than 3.0% higher this morning. The index finished with a more modest 1.3% gain as weakness across Micron (MU 404.35, -18.55, -4.39%) and other memory storage names tempered gains. 

Outside of the S&P 500, the Russell 2000 (+2.3%) and S&P Mid Cap 400 (+1.9%) outperformed as the uptick in risk sentiment favored growth stocks today. 

All told, today's session reflected a market eager to respond to any signs of de-escalation, with the sharp pullback in oil prices fueling a broad risk-on move. Still, the inability to hold key technical levels highlights lingering uncertainty, leaving investors sensitive to further geopolitical headlines in the near term.

U.S. Treasuries began the week with gains across the curve, pressuring yields from Q1 highs, amid some improvement in geopolitical sentiment. The 2-year note yield settled down six basis points to 3.83%, and the 10-year note yield settled down six basis points to 4.33%. 

• S&P Mid Cap 400: +1.6% YTD
• Russell 2000: +0.5% YTD
• S&P 500: -3.9% YTD
• DJIA: -3.9% YTD
• Nasdaq Composite: -5.6% YTD

Reviewing today's data:

• January Construction Spending -0.3% (Briefing.com consensus 0.1%); Prior was revised to 0.8% from 0.3%
  
  • The key takeaway from the report is that the weakness was paced by a decline in private residential spending, which is believed to be a knock-on effect of labor constraints and higher interest rates.