[BRIEFING.COM] Stocks rallied today as leaders from both the U.S. and Iran signaled a willingness to end the ongoing conflict that has sent energy prices soaring and stocks lower over the past month.

In the final session of March, the S&P 500 (+2.9%), Nasdaq Composite (+3.8%), and DJIA (+2.5%) took back a considerable chunk of previous weakness, ultimately ending March with losses ranging from 4.8% to 5.5%. The month-to-date figure is notable given that the U.S. and Israel launched joint strikes against Iran on February 28, which was a Saturday, meaning the war in Iran has been at the forefront of the market's focus since the first opening bell of March.

Equity futures pointed to a higher opening this morning after The Wall Street Journal reported that President Trump told aides he is willing to end U.S. military operations against Iran even if the Strait of Hormuz remains closed, as reopening it could extend the conflict beyond the 4- to 6-week timeline.

Out of the gate, stocks climbed in broad fashion, with solid mega-cap leadership supporting growth at the index level, unlike yesterday's session. Gains across the major averages doubled shortly after midday following a CNBC report that Iranian state media said the country's president spoke by phone with the European Council. Iran is reportedly 'prepared to end the war' with guarantees against further attacks, a call that has been confirmed by the European Council President.

In the wake of the reports, oil prices retreated modestly after a flattish morning, ultimately settling $1.77 lower (-1.7%) at $101.15 per barrel.

The energy sector (-1.1%) was a laggard as a result, while the utilities (-0.1%) and consumer staples (flat) sectors also went overlooked as the geopolitical optimism translated into a risk-on rally.

Tech and other growth-oriented sectors posted some of the strongest gains, with communication services (+4.4%) leading the sector leaderboard. Meta Platforms (META 572.13, +35.75, +6.67%) and Alphabet (GOOG 286.90, +13.76, +5.04%) extended their recent rebounds from last week's lows that followed news that the companies were found liable in a social media addiction trial.

The information technology sector (+4.2%) posted a similar gain as NVIDIA (NVDA 174.44, +9.28, +5.62%) and other semiconductor stocks rebounded nicely after a weak showing yesterday. The PHLX Semiconductor Index (+6.2%) reclaimed all of yesterday's losses and then some, and onsemi (ON 61.92, +6.26, +11.25%) was one of the best-performing S&P 500 components.

Other outperformers included airlines and cruise lines such as United Airlines (UAL 92.07, +6.86, +8.05%) and Carnival (CCL 25.88, +1.92, +8.01%) as oil prices stabilized today, while stocks tied to bitcoin and gold also mounted solid gains.

Outside of the S&P 500, the Russell 2000 (+3.4%) and S&P Mid Cap 400 (+2.8%) finished with gains similar to those across the major averages.

All told, today's session marked a meaningful uptick in sentiment as talks of a ceasefire in the war in Iran gained traction, with Tehran now signaling a willingness to end the conflict under certain conditions-a notable shift from just days ago, when it had rejected ceasefire proposals outright. The S&P 500 captured its widest single-day gain since last May, a much-needed relief rally after several weeks of downward momentum. However, the situation in Iran has proven to be delicate, and oil remains above the $100 per barrel mark, highlighting that a definitive end to the energy shock is not yet a certainty.

The major averages will enter the first session of the second quarter pinned below their respective 200-day moving averages, though today's rally moved them significantly closer to the key technical level.

U.S. Treasuries ended March on a higher note, continuing Friday's rebound off 2026 lows. The 2-year note yield settled down three basis points to 3.80% (+42 bps in March; +32 bps in Q1), and the 10-year note yield settled down three basis points to 4.31% (+35 bps in March; +14 bps in Q1)

• S&P Mid Cap 400: +2.2% YTD
• Russell 2000: +0.6% YTD 
• DJIA: -3.6% YTD
• S&P 500: -4.6% YTD
• Nasdaq Composite: -7.1% YTD

Reviewing today's data:

• January FHFA Housing Price Index 0.1% (Briefing.com consensus 0.0%); Prior was revised to 0.3% from 0.1%
• January S&P Case-Shiller Home Price Index 1.6% (Briefing.com consensus 1.3%); Prior was revised to 1.9% from 1.4%
• March Chicago PMI 52.8 (Briefing.com consensus 54.8); Prior 57.7
• March Consumer Confidence 91.8 (Briefing.com consensus 88.0); Prior was revised to 91.0 from 91.2
  • The key takeaway from the report is that the headline numbers don't convey any abject concern among consumers about the Iran war, yet that concern showed up in higher 12-month inflation expectations, which jumped to 6.2% from 5.5% in February, marking the highest level since August 2025.
• February JOLTs - Job Openings 6.882 mln (Briefing.com consensus 6.795 mln); Prior was revised to 7.240 mln from 6.946 mln

[BRIEFING.COM] The major averages remain well positioned to take back a considerable chunk of their previous weakness in March, tracking to end the month with losses ranging from 4.8% to 5.5%.

Even with the energy sector (-1.7%) giving back some gains today, it remains the only S&P 500 sector with a gain in March (+9.7% month-to-date). The next best performer is the utilities sector, which holds a 3.7% month-to-date loss.

Like many stocks in the consumer discretionary sector (+3.4%), NIKE (NKE 52.83, +1.59, +3.10%) has struggled in March, with shares down 15%. The company will look to turn that around with its earnings release after the close. Nike heads into this report with low expectations and a growing list of challenges, making guidance the key driver of stock reaction. While management continues to express confidence that it is in the "middle innings" of its turnaround, sentiment hinges on tangible evidence of stabilization, particularly in China and margins. Investors will watch closely for commentary on tariff mitigation strategies, as this new headwind adds complexity at an already fragile point in the recovery.

[BRIEFING.COM] The S&P 500 (+2.7%), Nasdaq Composite (+3.6%), and DJIA (+2.3%) continue to chart new session highs as the market enters the final hour of the session.

So far, optimism around a potential end to the conflict in Iran has held through the early afternoon hours. Axios reported that Pakistan, which is acting as a mediator between the U.S. and Iran, along with China have proposed a ceasefire and the reopening of the Strait of Hormuz as an initiative to end the conflict.

On a related note, crude oil futures settled today's session $1.77 lower (-1.7%) at $101.15 per barrel.

[BRIEFING.COM] The S&P 500 (+2.46%) is in second place on Tuesday afternoon, up about 156 points.

Briefly, S&P 500 constituents Carnival (CCL 25.84, +1.88, +7.85%), United Airlines (UAL 91.89, +6.68, +7.84%), and Qnity Electronics (Q 114.61, +7.50, +7.00%) pepper the top of the standings. CCL and UAL rise as strong travel demand and the industry's ability to push through fare increases are helping offset concerns around rising jet fuel costs.

Meanwhile, Constellation Energy (CEG 274.56, -24.05, -8.05%) is today's worst laggard after 2026 EPS guidance of $11-$12 came in below consensus expectations, raising concerns about near-term earnings power. Additional pressure stems from a mixed long-term outlook, with earnings projections through 2029 also trailing estimates, dampening investor sentiment despite solid growth targets.

[BRIEFING.COM] The Nasdaq Composite (+3.13%) is in the lead on Tuesday afternoon, up about 650 points.

Gold futures settled $121.10 higher (+2.6%) at $4,678.60/oz, supported by renewed safe-haven demand tied to geopolitical tensions in the Middle East and a modest pullback in the U.S. dollar and Treasury yields. The move also reflects a rebound after March's sharp sell-off, as investors step back into bullion despite a still challenging higher-rate environment.

Meanwhile, the U.S. Dollar Index falls about -0.5% to $99.97.

[BRIEFING.COM] The Dow Jones Industrial Average (+2.09%) is up about 945 points this afternoon, just off session highs.

A look inside the DJIA shows that NVIDIA (NVDA 173.40, +8.23, +4.98%), Caterpillar (CAT 700.96, +33.53, +5.02%), and Amazon (AMZN 209.87, +8.92, +4.44%) are today's top gain getters.

Meanwhile, Chevron (CVX 202.51, -8.20, -3.89%) is underperforming.

The DJIA is on pace to end the month -5.75% lower.

[BRIEFING.COM] The stock market is in the midst of a solid session to end the first quarter, with the S&P 500 (+2.4%), Nasdaq Composite (+3.4%), and DJIA (+2.0%) supported by broad participation and strong mega-cap leadership amid some positive developments surrounding the war in Iran.

The final session of March comes after a month defined by rising energy prices, which have exerted broad pressure on equities as inflation concerns mounted. Today, however, there is a sense of optimism that the conflict could de-escalate in the near term, which is driving a risk-on move today.

This morning, The Wall Street Journal reported that President Trump told aides he is willing to end U.S. military operations against Iran even as the Strait of Hormuz remains closed, as efforts to secure the waterway would likely push the operation beyond its 4- to 6-week timeline.

Stocks opened to broad gains and have recently pushed to fresh session highs following reports that Iran's President Pezeshkian is ready to end the war with guarantees. CNBC reports that Iran's State Media said the Iranian president spoke with the EU Council on the phone. Iran is reportedly "prepared to end war" with guarantees against further attacks, and the EU Council President has confirmed this call. Oil prices have made a sharp move lower, with WTI crude currently trading $1.24 (-1.2%) lower at $101.64 per barrel.

The move pushed the energy sector (-0.3%) into negative territory, joining the defensive utilities (+0.6%) and consumer staples (+0.4%) sectors as the only S&P 500 sectors without a gain.

Meanwhile, the other eight S&P 500 sectors trade at least 1.2% higher, with some of the weightiest sectors among the outperformers.

The communication services sector (+3.6%) holds the widest gain as Meta Platforms (META 567.58, +31.20, +5.82%) and Alphabet (GOOG 285.33, +12.19, +4.46%) continue to rebound from last week's lows.

NVIDIA (NVDA 173.02, +7.85, +4.76%) is also a mega-cap standout as semiconductor stocks rebound nicely from a sharp pullback yesterday. Sandisk (SNDK 623.40, +50.90, +8.89%) and onsemi (ON 60.39, +4.73, +8.50%) post even wider gains, and the PHLX Semiconductor Index is up 4.6%, moving it back into slightly positive territory for the week. The Vanguard Mega Cap Growth ETF is up 3.2%.

Outside of the S&P 500, the Russell 2000 (+2.9%) and S&P Mid Cap 400 (+2.2%) also hold solid gains amid a clear risk-on rally.

Overall, the session reflects a decisive risk-on tone to close the quarter, driven by easing geopolitical concerns and a rebound across tech names. Whether that optimism proves durable into April (or even today's close) remains to be seen.

Reviewing today's data:

• January FHFA Housing Price Index 0.1% (Briefing.com consensus 0.0%); Prior was revised to 0.3% from 0.1%
• January S&P Case-Shiller Home Price Index 1.6% (Briefing.com consensus 1.3%); Prior was revised to 1.9% from 1.4%
• March Chicago PMI 52.8 (Briefing.com consensus 54.8); Prior 57.7
• March Consumer Confidence 91.8 (Briefing.com consensus 88.0); Prior was revised to 91.0 from 91.2
  • The key takeaway from the report is that the headline numbers don't convey any abject concern among consumers about the Iran war, yet that concern showed up in higher 12-month inflation expectations, which jumped to 6.2% from 5.5% in February, marking the highest level since August 2025.
• February JOLTs - Job Openings 6.882 mln (Briefing.com consensus 6.795 mln); Prior was revised to 7.240 mln from 6.946 mln

[BRIEFING.COM] The S&P 500 (+1.6%), Nasdaq Composite (+2.2%), and DJIA (+1.3%) continue to chart a higher course.

The communication services (2.7%) and information technology (+2.3%) have widened their gains for the day, which are comparable to the Vanguard Mega Cap Growth ETF's 2.2% advance.

NVIDIA (NVDA 170.85, +5.68, +3.44%) is a standout, trading higher after the company and Marvell (MRVL 95.90, +8.10, +9.22%) announced a strategic partnership to connect Marvell to the NVIDIA AI factory and AI-RAN ecosystem through NVIDIA NVLink Fusion.

The market-weighted S&P 500 (+1.6%) is outperforming the S&P 500 Equal Weighted Index (+0.7%).

[BRIEFING.COM] The major averages are little changed from previous levels at midday.

Strength remains broad with weakness limited to the utilities (-0.9%) and consumer staples (-0.7%) sectors.

McCormick (MKC 50.68, -3.04, -5.66%) is one of the worst-performing S&P 500 names despite reporting a Q1 (Feb) earnings beat with upside revenue, as investor focus shifts to its transformative M&A deal with Unilever PLC (UL 56.00, -3.98, -6.64%) to combine with its Foods business (excluding India and certain other assets).

The deal is strategically sound, aligning with UL's ongoing shift away from slower-growth food categories and allowing it to sharpen its focus as a pure-play HPC company. For MKC, the acquisition meaningfully enhances its global scale and distribution, particularly in faster-growing international markets where it has historically been underpenetrated. That said, the negative stock reaction likely signals some investor disappointment around deal structure and near-term returns, particularly the sizable cash component going to UL and the majority ownership position granted to UL shareholders.

[BRIEFING.COM] Stocks are looking to end a tumultuous month of March on a higher note, with the S&P 500 (+1.4%), Nasdaq Composite (+1.8%), and DJIA (+1.1%) trading firmly higher shortly before midday. The Russell 2000 (+1.8%) and S&P Mid Cap 400 (+1.6%) are posting similar gains after underperforming yesterday.

There is some optimism on the geopolitical front after The Wall Street Journal reported that President Trump told aides he is willing to end U.S. military operations against Iran even as the Strait of Hormuz remains closed, as efforts to secure the waterway would likely push the operation beyond its 4- to 6-week timeline. President Trump reiterated that view in an interview with The New York Post, saying the war will not last 'too much longer.

In addition to hopes for a near-term end to the conflict, economic data has also supported sentiment. The Conference Board's Consumer Confidence Index increased to 91.8 in March (Briefing.com consensus: 88.0) from 91.2 in February, though it remained below the 93.9 level from the same period a year ago. The key takeaway is that the headline reading does not reflect any pronounced concern among consumers about the Iran war; however, that concern appears in inflation expectations, with 12-month expectations rising to 6.2% from 5.5% in February-the highest level since August 2025.

Meanwhile, oil prices are moving modestly higher after holding mostly flat earlier in the session, with WTI crude up $1.48 (+1.5%) to $104.36 per barrel.

Strength remains broad, with ten S&P 500 sectors trading higher and a solid rebound in tech and mega-cap names pushing the communication services (+2.3%), information technology (+1.8%), and consumer discretionary (+1.8%) sectors to the top of the standings.

[BRIEFING.COM] The S&P 500 (+1.0%), Nasdaq Composite (+1.5%), and DJIA (+0.7%) have moved off their best levels of the session, though they remain firmly higher.

The industrials sector (+1.2%) has recovered the bulk of its previous weakness after finishing as the worst-performing S&P 500 sector yesterday. Strength is broad, but engineering and construction names such as Comfort Systems (FIX 1323.03, +49.85, +3.92%) and electrical component names, including GE Vernova (GEV 843.33, +25.98, +3.18%), are among the best performers after lagging yesterday.

[BRIEFING.COM] The major averages are maintaining their solid opening gains. There is some weakness in the defensive utilities (-0.8%) and consumer staples (-0.3%) sectors as growth stocks rebound today, but strength remains broad elsewhere.

The Conference Board's Consumer Confidence Index increased to 91.8 in March (Briefing.com consensus: 88.0) from 91.2 in February. In the same period a year ago, the index stood at 93.9.

The key takeaway from the report is that the headline numbers don't convey any abject concern among consumers about the Iran war, yet that concern showed up in higher 12-month inflation expectations, which jumped to 6.2% from 5.5% in February, marking the highest level since August 2025.

[BRIEFING.COM] Stocks opened to broad gains this morning, sending the S&P 500 (+1.6%), Nasdaq Composite (+2.0%), and DJIA (+1.3%) higher.

Ten S&P 500 sectors trade higher, with tech and mega-cap stocks among the early outperformers after weighing on the major averages yesterday.

NVIDIA (NVDA 169.93, +4.76, +2.88%) and other large chipmaker names trade higher, helping the PHLX Semiconductor Index (+2.6%) take back a nice chunk of yesterday's weakness. The information technology sector (+1.8%) has reclaimed all of yesterday's slide and then some shortly after the open.

The communication services sector (+2.1%) is also off to a nice start as Meta Platforms (META 556.66, +20.28, +3.78%) continues to steadily climb from recent lows after the company was found liable in a social media addiction trial last week.

Meanwhile, the consumer discretionary sector (+2.2%) holds the widest gain, with cruise lines among the outperformers as oil prices remain flattish today.

Crude oil is currently down $0.06 (-0.1%) to $102.82 per barrel. President Trump signaled a willingness to end the war in Iran even without the Strait of Hormuz fully reopening.

On the data front, the Chicago PMI for March contracted to 52.8 (Briefing.com consensus 54.8) from a prior level of 57.7.

The Conference Board's Consumer Confidence Index increased slightly in March to 91.8 (Briefing.com consensus: 88.0) from 91.2 in February.

The February Job Openings and Labor Turnover Survey (JOLTS) reported 6.882 million job openings (Briefing.com consensus 6.795 million), from an upwardly revised prior level of 7.24 million (from 6.946 million).

The S&P 500 futures currently trade 69 points above fair value.

Just released, the January FHFA Housing Price Index increased 0.1% in January (Briefing.com consensus 0.0%), from an upwardly revised prior increase of 0.3% (from 0.1%).

The S&P Case-Shiller Home Price Index increased 1.2% in January (Briefing.com consensus 1.3%) from a previous increase of 1.4%.

The S&P 500 futures currently trade 67 points above fair value.

Equity indices in the Asia-Pacific region ended Tuesday on a mostly lower note with South Korea's Kospi (-4.3%) falling to its lowest level since early February while India's markets were closed for a holiday. Japan's Tokyo CPI for March decelerated to 1.7% from 1.8%, but multiple companies have indicated plans for price hikes, suggesting that inflation will reaccelerate in the April reading. China's liquor giant Kweichow Moutai also announced price hikes. China's official Manufacturing (50.4) and Non-Manufacturing PMI (50.1) readings returned to expansion in March. South Korea is planning an extra budget of KRW26.2 trln to offset the impact of the war with Iran.

• In economic data:
  • China's March Manufacturing PMI 50.4 (expected 50.1; last 49.0) and Non-Manufacturing PMI 50.1 (expected 49.9; last 49.5)
  • Japan's February Retail Sales -0.2% yr/yr (expected 0.9%; last 1.8%), February Industrial Production -2.1% m/m, as expected (last 4.3%), February Unemployment Rate 2.6% (expected 2.7%; last 2.7%), March Tokyo CPI 1.4% yr/yr (last 1.6%) and March Tokyo Core CPI 1.7% yr/yr (expected 1.8%; last 1.8%). February Housing Starts -4.9% yr/yr (expected -4.5%; last -0.4%) and Construction Orders 42.7% yr/yr (last 5.7%)
  • South Korea's February Retail Sales 0.0% m/m (last 2.9%). February Industrial Production 5.4% m/m (expected 1.8%; last -2.4%); -2.2% yr/yr (expected 6.0%; last 6.8%). February Service Sector Output 0.5% m/m (last -0.2%)
  • India's Q3 trade deficit $87.40 bln (last deficit of $93.60 bln)
  • Singapore's February Bank Lending SGD893.6 bln (last SGD887.5 bln)
  • Australia's March Private Sector Credit 0.6% m/m, as expected (last 0.5%) and March Housing Credit 0.6% m/m (last 0.6%)
  • New Zealand's March ANZ Business Confidence 32.5 (last 59.2)

---Equity Markets--- 

• Japan's Nikkei: -1.6%
• Hong Kong's Hang Seng: +0.2%
• China's Shanghai Composite: -0.8%
• India's Sensex: CLOSED
• South Korea's Kospi: -4.3%
• Australia's ASX All Ordinaries: +0.3%

Major European indices trade in the green amid reports that President Trump is willing to end the war with Iran without reopening the Strait of Hormuz. Eurozone's CPI accelerated to 2.5% yr/yr from 1.9% in the flash reading for March. The U.K. reported in-line growth for Q4 (0.1% qtr/qtr) while France's Consumer Spending (-1.4% m/m) decreased more than expected in February. European Central Bank policymaker Muller said that it is probable that rates will have to rise in the coming quarters while policymaker Kazimir said that the central bank will need to act decisively if the Iran war drags on. Germany's Economic Institutes lowered their domestic growth outlook for 2026 to 0.6% from 1.3% while the forecast for 2027 was reduced to 0.9% from 1.4%. The inflation forecast for 2026 was increased to 2.8% from 2.0% while the outlook for 2027 was increased to 2.8% from 2.3%.

• In economic data:
  • Eurozone's flash March CPI 1.2% m/m (last 0.6%); 2.5% yr/yr (expected 2.6%; last 1.9%). March Core CPI 0.8% m/m (last 0.8%); 2.3% yr/yr (expected 2.4%; last 2.4%)
  • Germany's February Retail Sales 0.7% yr/yr (expected 1.0%; last 0.9%). February Import Price Index 0.3% m/m (expected 0.7%; last 1.1%); -2.3% yr/yr (last -2.3%). March Unemployment Change 0 (expected 2,000; last 1,000) and March Unemployment Rate 6.3%, as expected (last 6.3%)
  • U.K.'s Q4 GDP 0.1% qtr/qtr, as expected (last 0.1%); 1.0% yr/yr, as expected (last 1.2%). Q4 Business Investment -2.5% qtr/qtr (expected -2.7%; last 1.1%), Q4 Current Account deficit GBP18.4 bln (expected deficit of GBP24.0 bln; last deficit of GBP10.7 bln). March Nationwide HPI 0.9% m/m (expected 0.0%; last 0.3%); 2.2% yr/yr (last 1.0%). Q4 Business Investment 2.0% yr/yr, as expected (last 3.5%)
  • France's flash March CPI 0.9% m/m, as expected (last 0.6%); 1.7% yr/yr (expected 1.6%; last 0.9%). February PPI -0.2% m/m, as expected (last 0.5%); -2.4% yr/yr (last -2.3%). February Consumer Spending -1.4% m/m (expected -0.3%; last 0.4%)
  • Italy's flash March CPI 0.5% m/m (expected 0.6%; last 0.7%); 1.7% yr/yr (last 1.5%). January Industrial Sales -0.3% m/m (last 0.6%); -1.0% yr/yr (last 3.5%) o Spain's January Current Account surplus EUR2.73 bln (last surplus of EUR1.80 bln)

---Equity Markets---

• STOXX Europe 600: +0.9%
• Germany's DAX: +1.3%
• U.K.'s FTSE 100: +0.8%
• France's CAC 40: +0.7%
• Italy's FTSE MIB: +1.2%
• Spain's IBEX 35: +1.3%

The S&P 500 futures currently trade 63 points above fair value. 

CBS News reporter Weijia Jiang conducted a phone interview with President Trump, in which he said that the U.S. is not pulling assets in and around the Strait of Hormuz yet. President Trump also expressed frustration towards other countries for not doing more to stabilize the waterway.

Equity futures point to a higher opening this morning after the major averages finished mostly lower to start the holiday-abbreviated week. Yesterday's session was a bit of a whirlwind as the market navigated more mixed signals surrounding the conflict in Iran. Strength was relatively broad, but renewed weakness across semiconductor names weighed heavily on the major averages.

This morning's early gains are largely being attributed to developments on the geopolitical front. In particular, The Wall Street Journal reported that President Trump has told aides he is willing to end U.S. military operations against Iran even as the Strait of Hormuz remains closed, as trying to secure the waterway would likely push the operation past its 4-to-6 week timeline.

Still, the current state of negotiations remains unclear, with The New York Times reporting that Iran's fractured leadership is making it tough for Iran to coordinate. The Pentagon will hold a briefing on Iran at 8:00 a.m. ET.

Investors will receive a few economic data points this morning, including the March Consumer Confidence report (Briefing.com consensus 88.0; prior: 91.2).

The market will also hear from Fed Governor Michelle Bowman (voting FOMC member), Fed Governor Michael Barr (voting FOMC member), and Chicago Fed President Austan Goolsbee (nonvoting FOMC member). Notably, Fed President Jerome Powell (voting FOMC member) said yesterday that inflation expectations remain well anchored beyond the near term, which resulted in a sharp drop in the market's implied probabilities for a rate hike later this year.

In corporate news:

• Airport lines are easing after TSA agents get back pay, according to Bloomberg.
• Apellis Pharmaceuticals (APLS 40.82, +23.73, +138.9%) is set to be acquired by Biogen (BIIB 186.05, -1.52, -0.8%) for $41.00 per share in cash.
• Netflix (NFLX 92.90, -0.07, -0.0%) is interested in expanding its NFL package from two games to four games, according to The Wall Street Journal. 

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended Tuesday on a mostly lower note with South Korea's Kospi (-4.3%) falling to its lowest level since early February while India's markets were closed for a holiday. Japan's Nikkei: -1.6%, Hong Kong's Hang Seng: +0.2%, China's Shanghai Composite: -0.8%, India's Sensex: CLOSED, South Korea's Kospi: -4.3%, Australia's ASX All Ordinaries: +0.3%.

In news:

• Japan's Tokyo CPI for March decelerated to 1.7% from 1.8%, but multiple companies have indicated plans for price hikes, suggesting that inflation will reaccelerate in the April reading.
• China's liquor giant Kweichow Moutai also announced price hikes.
• China's official Manufacturing (50.4) and Non-Manufacturing PMI (50.1) readings returned to expansion in March.
• South Korea is planning an extra budget of KRW26.2 trln to offset the impact of the war with Iran.

In economic data:

• China's March Manufacturing PMI 50.4 (expected 50.1; last 49.0) and Non-Manufacturing PMI 50.1 (expected 49.9; last 49.5)
• Japan's February Retail Sales -0.2% yr/yr (expected 0.9%; last 1.8%), February Industrial Production -2.1% m/m, as expected (last 4.3%), February Unemployment Rate 2.6% (expected 2.7%; last 2.7%), March Tokyo CPI 1.4% yr/yr (last 1.6%) and March Tokyo Core CPI 1.7% yr/yr (expected 1.8%; last 1.8%). February Housing Starts -4.9% yr/yr (expected -4.5%; last -0.4%) and Construction Orders 42.7% yr/yr (last 5.7%)
• South Korea's February Retail Sales 0.0% m/m (last 2.9%). February Industrial Production 5.4% m/m (expected 1.8%; last -2.4%); -2.2% yr/yr (expected 6.0%; last 6.8%). February Service Sector Output 0.5% m/m (last -0.2%)
• India's Q3 trade deficit $87.40 bln (last deficit of $93.60 bln)
• Singapore's February Bank Lending SGD893.6 bln (last SGD887.5 bln)
• Australia's March Private Sector Credit 0.6% m/m, as expected (last 0.5%) and March Housing Credit 0.6% m/m (last 0.6%)
• New Zealand's March ANZ Business Confidence 32.5 (last 59.2)

Major European indices trade in the green amid reports that President Trump is willing to end the war with Iran without reopening the Strait of Hormuz. STOXX Europe 600: +0.9%, Germany's DAX: +1.2%, U.K.'s FTSE 100: +1.0%, France's CAC 40: +0.6%, Italy's FTSE MIB: +0.9%, Spain's IBEX 35: +1.1%.

In news:

• Eurozone's CPI accelerated to 2.5% yr/yr from 1.9% in the flash reading for March.
• The U.K. reported in-line growth for Q4 (0.1% qtr/qtr) while France's Consumer Spending (-1.4% m/m) decreased more than expected in February.
• European Central Bank policymaker Muller said that it is probable that rates will have to rise in the coming quarters while policymaker Kazimir said that the central bank will need to act decisively if the Iran war drags on.
• Germany's Economic Institutes lowered their domestic growth outlook for 2026 to 0.6% from 1.3% while the forecast for 2027 was reduced to 0.9% from 1.4%.
• The inflation forecast for 2026 was increased to 2.8% from 2.0% while the outlook for 2027 was increased to 2.8% from 2.3%.

In economic data:

• Eurozone's flash March CPI 1.2% m/m (last 0.6%); 2.5% yr/yr (expected 2.6%; last 1.9%). March Core CPI 0.8% m/m (last 0.8%); 2.3% yr/yr (expected 2.4%; last 2.4%)
• Germany's February Retail Sales 0.7% yr/yr (expected 1.0%; last 0.9%). February Import Price Index 0.3% m/m (expected 0.7%; last 1.1%); -2.3% yr/yr (last -2.3%). March Unemployment Change 0 (expected 2,000; last 1,000) and March Unemployment Rate 6.3%, as expected (last 6.3%)
• U.K.'s Q4 GDP 0.1% qtr/qtr, as expected (last 0.1%); 1.0% yr/yr, as expected (last 1.2%). Q4 Business Investment -2.5% qtr/qtr (expected -2.7%; last 1.1%), Q4 Current Account deficit GBP18.4 bln (expected deficit of GBP24.0 bln; last deficit of GBP10.7 bln). March Nationwide HPI 0.9% m/m (expected 0.0%; last 0.3%); 2.2% yr/yr (last 1.0%). Q4 Business Investment 2.0% yr/yr, as expected (last 3.5%)
• France's flash March CPI 0.9% m/m, as expected (last 0.6%); 1.7% yr/yr (expected 1.6%; last 0.9%). February PPI -0.2% m/m, as expected (last 0.5%); -2.4% yr/yr (last -2.3%). February Consumer Spending -1.4% m/m (expected -0.3%; last 0.4%)
• Italy's flash March CPI 0.5% m/m (expected 0.6%; last 0.7%); 1.7% yr/yr (last 1.5%). January Industrial Sales -0.3% m/m (last 0.6%); -1.0% yr/yr (last 3.5%) o Spain's January Current Account surplus EUR2.73 bln (last surplus of EUR1.80 bln)

[BRIEFING.COM] Stocks opened with broad gains following Friday's sharp sell-off and a relatively quiet weekend on the Iran front. However, the major averages were unable to hold most of those gains amid pronounced weakness in semiconductor stocks and another day of sharply higher oil prices, ultimately leading to a mostly lower finish.

The Nasdaq Composite (-0.7%) lagged for most of the session amid the weakness in tech names, while the S&P 500 (-0.4%) moved lower in the afternoon, and strength in the broader market helped the DJIA (+0.1%) squeak out a modest gain. The smaller-cap Russell 2000 (-1.5%) and S&P Mid Cap 400 (-0.8%) moved lower earlier in the session, and finished with wider losses.

Much of the early strength in equities was attributed to a technical bounce in the wake of Friday's sell-off. All eleven S&P 500 sectors traded higher out of the gate, but losses across tech names quickly capped gains at the index level.

The top-weighted information technology sector (-1.5%) was one of the first S&P 500 sectors to move into negative territory as semiconductor stocks saw an extension of recent weakness. The PHLX Semiconductor Index finished 4.2% lower as names such as Micron (MU 321.80, -35.42, -9.92%) and Coherent (COHR 219.65, -23.83, -9.79%) were among the worst-performing S&P 500 names today.

It is worth noting that losses in the broader technology sector were somewhat lessened due to a strong showing from software stocks that sent the iShares GS Software ETF (IGV) 1.0% higher. ServiceNow (NOW 104.97, +5.56, +5.59%) was the top-performing S&P 500 component while Palo Alto Networks (PANW 154.35, +7.33, +4.99%) captured a similar gain after disclosing that its CEO purchased approximately $10 million worth of shares late Friday.

The industrials sector (-1.6%) was also a laggard today, while the energy sector (-0.9%) also finished lower despite crude oil futures settling today's session $3.41 higher (+3.4%) at $102.92 per barrel.

There was some early optimism on the geopolitical front after President Trump wrote on Truth Social that Iran has conceded most of the demands in the 15-point peace proposal that the U.S. set forth, though he did not provide details. Additionally, the same post included threats to destroy Iran's energy infrastructure if a deal is not struck soon. A lack of clarity and climbing oil prices kept the market's enthusiasm in check, while reports circulated late in the session that Israel's Air Force completed a wave of attacks on infrastructure sites in Tehran, suggesting a resolution remains distant.

However, the market received some encouraging news today regarding the Fed's view of the situation in Iran. Fed Chair Jerome Powell (voting FOMC member) said inflation expectations remain well anchored beyond the short term and noted that the Fed's tools do not have a meaningful impact on supply shocks. This commentary had a notable impact on market-implied rate expectations, with the probability of a rate hike later this year falling to around 5% from over 20% on Friday, according to the CME FedWatch Tool.

Corporate news flow was on the lighter side today, though there were a few notable moves. Sysco (SYY 69.30, -12.50, -15.28%) was the worst-performing S&P 500 component after agreeing to acquire Jetro Restaurant Depot in a $29.1 billion deal.

With tomorrow marking the final trading day of the quarter, positioning dynamics could come into focus. However, the major averages remain firmly below their 200-day moving averages, highlighting a still-challenged technical backdrop as oil prices continue to climb. 

Unlike stocks, U.S. Treasuries began the week with strong gains across the curve, bouncing off their lowest levels of the month ahead of tomorrow's final session of Q1. The 2-year note yield settled down nine basis points to 3.83%, and the 10-year note yield settled down 10 basis points to 4.34%. 

There was no economic data of note. 

• S&P Mid Cap 400: -0.7% YTD
• Russell 2000: -2.7% YTD
• DJIA: -5.9% YTD
• S&P 500: -7.3% YTD
• Nasdaq Composite: -10.5% YTD