[BRIEFING.COM] Stocks had another tough session as rising oil prices continue to put broad pressure on the market. The S&P 500 (-1.5%), Nasdaq Composite (-1.9%), and DJIA (-1.6%) finished firmly lower across the board, with each index now in negative week-to-date territory. 

Oil climbed before the stock market opened amid reports that more tankers had been struck in the Strait of Hormuz. CNBC reported that Iran's new supreme leader, Mojtaba Khamenei, seeks to keep the Strait of Hormuz closed.

Energy Secretary Chris Wright told CNBC that the U.S. Navy is not yet ready to escort tankers through the strait, though it aims to be able to do so by the end of the month.

In the meantime, the supply disruption continues to push oil prices higher, which has weighed heavily on the market's expectations for policy easing from the Fed this year. Crude oil futures settled today's session $8.84 higher (+10.2%) at $95.72 per barrel. At the same time, the market's implied probability of at least a 25-basis point rate cut does not eclipse 50% until the December FOMC meeting, according to the CME FedWatch Tool.

While the energy sector (+1.0%) notched a nice gain as oil prices surged higher, the market faced broad weakness today with eight S&P 500 sectors finishing lower. 

The industrials sector (-2.5%) logged the widest retreat as airline and trucking names such as Southwest Air (LUV 38.61, -3.24, -7.74%) and Old Dominion (ODFL 176.24, -12.54, -6.64%) continue to struggle amid rising fuel costs. 

Similarly, cruise lines such as Carnival (CCL 23.92, -2.05, -7.89%) were among the worst performers in the consumer discretionary sector (-2.2%). 

Elsewhere in the sector, homebuilder names also lagged as diminishing rate cut expectations push Treasury yields higher. The iShares U.S. Home Construction ETF finished 2.9% lower. 

Tesla (TSLA 395.01, -12.81, -3.14%) was also a "magnificent seven" laggard amid a tough day for mega-cap stocks, with the Vanguard Mega Cap Growth ETF retreating 1.8%. 

Weakness across mega-cap tech pushed the information technology (-1.7%) and communication services (-1.6%) sectors lower as well. Chipmakers were a point of significant weakness, sending the PHLX Semiconductor Index 3.4% lower. 

Elsewhere, the financials sector (-1.6%) logged a similar retreat as asset managers faced renewed pressure after Bloomberg reported that Morgan Stanley (MS 154.30, -6.59, -4.10%) and Cliffwater are capping withdrawals from private credit funds after investors rushed to redeem funds.

The defensive utilities (+0.7%) and consumer staples (+0.1%) sectors garnered some modest rotational interest today as growth and cyclical sectors lagged, though the health care sector (-1.8%) faced broad pressure.

Outside of the S&P 500, the Russell 2000 (-2.1%) and S&P Mid Cap 400 (-2.1%) trailed the major averages as growth stocks underperformed today. 

The major averages will enter the final session of the week in negative territory as rising oil prices continue to prompt inflationary concerns, creating a high-volatility environment. Investors will receive the January PCE Price Index (Briefing.com consensus 0.3%) and Core PCE Price Index (Briefing.com consensus 0.4%) tomorrow morning, and while the report will not yet reflect the surge in energy prices, expectations that future readings could run hotter due to the oil supply disruption make this release particularly important.

U.S. Treasuries retreated again on Thursday with shorter tenors leading the slide amid ongoing focus on the rising price of oil and the broader implications for the global economy. The 2-year note yield settled up 13 basis points to 3.76%, and the 10-year note yield settled up seven basis points to 4.27%.

• S&P Mid Cap 400: +1.2% YTD
• Russell 2000: +0.3% YTD
• S&P 500: -2.5% YTD
• DJIA: -2.9% YTD
• Nasdaq Composite: -4.0% YTD

Reviewing today's data:

• January Housing Starts 1.487 mln (Briefing.com consensus 1.340 mln); Prior was revised to 1.387 mln from 1.404 mln, January Building Permits 1.376 mln (Briefing.com consensus 1.392 mln); Prior was revised to 1.455 mln from 1.448 mln
  • The key takeaway from the report is that it beat expectations thanks to strong growth in multi-unit starts while single-unit housing starts were down 2.8% month-over-month.
• January Trade Balance -$54.5 bln (Briefing.com consensus -$67.9 bln); Prior was revised to -$72.9 bln from -$70.3 bln
  • The key takeaway from the report is that the monthly trade deficit returned to the $50 billion range, which has been a familiar zone since last year's implementation of tariffs.
• Weekly Initial Claims 213K (Briefing.com consensus 215K); Prior was revised to 214K from 213K, Weekly Continuing Claims 1.850 mln; Prior was revised to 1.871 mln from 1.868 mln
  • The key takeaway from the report is that claims remain just above the 200,000 mark, reflecting a low-firing environment.

[BRIEFING.COM] The major averages remain firmly lower with just half an hour left in today's session. 

The market will receive an important inflation reading tomorrow in the form of the January PCE Price Index (Briefing.com consensus 0.3%), which is the Fed's preferred inflation gauge. Though the reading will not yet reflect the recent surge in oil prices, it will be closely watched as the recent volatility has further diminished the market's rate cut expectations. The markets' implied probability of at least a 25-basis point rate cut does not eclipse 50% until the December FOMC meeting, according to the CME FedWatch Tool. 

[BRIEFING.COM] The S&P 500 (-1.3%), Nasdaq Composite (-1.6%), and DJIA (-1.4%) are back near session lows as the market enters the final hour of the session. 

Crude oil futures settled today's session $8.84 higher (+10.2%) at $95.72 per barrel amid calls from Iran's new supreme leader Mojtaba Khamenei to keep the Strait of Hormuz closed. 

Energy Secretary Chris Wright told CNBC that the U.S. Navy is not yet ready to escort tankers through the strait, though it will look to be able to do so by the end of the month. 

[BRIEFING.COM] The S&P 500 (-1.23%) is down about 83 points on Thursday afternoon, hosting the shallowest losses among the major averages.

Briefly, S&P 500 constituents Qnity Electronics (Q 106.53, -9.74, -8.38%), Fair Isaac (FICO 1075.23, -90.00, -7.72%), and SLB (SLB 44.60, -3.57, -7.41%) pepper the bottom of the average. FICO slides as investors worried that cheaper VantageScore pricing and potential GSE adoption could threaten its credit-score dominance, though analysts view these moves as largely marketing and operational, not strategic threats, while SLB falls as analysts cut Q1-Q2 EPS due to Middle East disruptions from the US/Iran conflict, though some firms raised price targets citing strong oil-service fundamentals offsetting near-term weakness.

Meanwhile, Occidental Petro (OXY 58.76, +3.18, +5.72%) is near the top of the standings as Wells Fargo and Piper Sandler upgraded the stock to Overweight on Permian capital efficiency and higher crude price forecasts amid the Iran conflict, lifting price targets to $69 and $66.

[BRIEFING.COM] The tech-heavy Nasdaq Composite (-1.44%) is in last place on Thursday afternoon, down about 326 points.

Gold futures settled $53.30 lower (-1.0%) at $5,125.80/oz, pressured by a stronger U.S. dollar and higher Treasury yields, which reduced demand for the non-yielding metal. The pullback also came as rising oil prices and persistent inflation concerns lowered expectations for near-term Federal Reserve rate cuts.

Meanwhile, the U.S. Dollar Index is up around +0.4% to $99.67.

[BRIEFING.COM] The Dow Jones Industrial Average (-1.13%) is in second place on Thursday afternoon, down 538 points.

A look inside the DJIA shows that Goldman Sachs (GS 792.56, -31.20, -3.79%), Boeing (BA 206.16, -7.94, -3.71%), and 3M (MMM 149.58, -5.59, -3.60%) are underperforming.

Meanwhile, Salesforce (CRM 200.21, +6.08, +3.13%) is today's top gain getter.

The DJIA is now -1.31% lower week-to-date.

Elsewhere, U.S. Treasuries continue trading in the red with the 2-yr note showing relative weakness as crude oil continues its push past $90/bbl while the long bond outperforms, remaining near its starting level. The long bond's outperformance received some recent assistance from today's $22 bln 30-yr bond reopening, which met strong demand. The reopening drew a high yield of 4.871%, which stopped through the when-issued yield by 0.7 basis points while the bid-to-cover ratio (2.45x vs 2.39x average) and indirect takedown (63.4% vs 63.8% average) were above average.

[BRIEFING.COM] Stocks are under relatively broad pressure today as new reports of strikes against tankers and cargo ships in the Strait of Hormuz have resulted in another sharp increase in oil prices. The S&P 500 (-1.1%), Nasdaq Composite (-1.3%), and DJIA (-1.2%) are improving from their session lows amid a modest dip in oil prices that followed comments from Iran's foreign minister that it is not laying mines in the Strait of Hormuz. 

Still, oil has made a renewed push toward $100 per barrel despite yesterday's announcement from the IEA that 400 million barrels of oil will be released from reserves. The market remains eager to see how fast the reserves will be released, which has not been clarified. Currently, oil is up $7.30, or 8.4%, to $94.54 per barrel. 

Similar to yesterday's action, the energy sector (+1.8%) is the top performer as Phillips 66 (PSX 176.92, +7.42, +4.38%), Chevron (CVX 198.23, +6.44, +3.36%), and Marathon Petroleum (MPC 234.02, +7.28, +3.21%) all rise to fresh record highs. 

However, the market is without yesterday's relative strength across the tech space, which weighs on the major averages. The information technology sector (-1.4%) lags today as chipmakers, including NVIDIA (NVDA 184.00, -2.03, -1.09%), come under pressure. The PHLX Semiconductor Index is down 2.6%. 

Other mega-cap names, including Meta Platforms (META 639.95, -14.91, -2.28%) and Tesla (TSLA 400.46, -7.36, -1.80%), are also underperforming, weighing on the consumer discretionary (-1.6%) and communication services (-1.6%) sectors.

Similar to recent sessions, lines such as Carnival (CCL 24.36, -1.61, -6.20%) are among some of the worst performers in the consumer discretionary sector as oil prices rise. 

Higher fuel prices continue to weigh on airline and trucking names as well, which seats the industrials sector (-2.0%) with the widest loss. 

Elsewhere, the financials sector (-1.5%) continues to be weighed down by weakness in its asset manager components. Bloomberg reported that Morgan Stanley (MS 154.18, -6.71, -4.17%) and Cliffwater are capping withdrawals from private credit funds after investors rushed to redeem funds.

The utilities sector (+1.5%) sees some rotational strength amid the weakness in growth stocks, while the consumer staples sector (+0.1%) also holds a narrow gain. Dollar General (DG 137.88, -6.96, -4.81%) lags after issuing cautious guidance despite topping earnings estimates. 

Outside of the S&P 500, the Russell 2000 (-1.5%) and S&P Mid Cap 400 (-1.2%) are also firmly lower, though modestly improved from their worst levels. 

For now, the market's direction remains closely tied to developments in the energy market, with investors watching whether oil can stabilize after its recent surge. Continued volatility in crude prices is likely to remain a key driver of broader market sentiment in the near term.

Reviewing today's data:

• January Housing Starts 1.487 mln (Briefing.com consensus 1.340 mln); Prior was revised to 1.387 mln from 1.404 mln, January Building Permits 1.376 mln (Briefing.com consensus 1.392 mln); Prior was revised to 1.455 mln from 1.448 mln
  • The key takeaway from the report is that it beat expectations thanks to strong growth in multi-unit starts while single-unit housing starts were down 2.8% month-over-month.
• January Trade Balance -$54.5 bln (Briefing.com consensus -$67.9 bln); Prior was revised to -$72.9 bln from -$70.3 bln
  • The key takeaway from the report is that the monthly trade deficit returned to the $50 billion range, which has been a familiar zone since last year's implementation of tariffs.
• Weekly Initial Claims 213K (Briefing.com consensus 215K); Prior was revised to 214K from 213K, Weekly Continuing Claims 1.850 mln; Prior was revised to 1.871 mln from 1.868 mln
  • The key takeaway from the report is that claims remain just above the 200,000 mark, reflecting a low-firing environment.

[BRIEFING.COM] The S&P 500 (-1.2%), Nasdaq Composite (-1.4%), and DJIA (-1.2%) trade in a relatively stable range modestly above their session lows. 

CNBC reports that the housing affordability bill, which includes a ban on investors buying single-family homes, has cleared the Senate. 

Homebuilders are among the laggards today in the consumer discretionary sector (-1.7%), with the iShares Dow Jones US Home ETF down 2.0%. 

[BRIEFING.COM] The major averages continue to trade a touch above their session lows at midday. 

The financials sector (-1.2%) is under considerable pressure again today, extending this week's losses to 3.1%. Asset manager names such as KKR (KKR 83.12, -4.01, -4.60%), Ares Management (ARES 99.10, -4.36, -4.21%), and Apollo Global Management (APO 102.14, -3.96, -3.73%) are once again among the laggards in the sector. 

Bloomberg reported that Morgan Stanley (MS 154.84, -6.05, -3.76%) and Cliffwater are capping withdrawals from private credit funds after investors rushed to redeem funds. 

[BRIEFING.COM] Stocks are facing broad pressure today as oil prices continue to surge, with mega-cap and tech names no longer showing the resilience that helped stabilize the market yesterday, sending the major averages firmly lower. The S&P 500 (-1.1%), Nasdaq Composite (-1.4%), and DJIA (-1.3%) are a touch above session lows shortly before midday, with each index now in negative week-to-date territory. 

The Russell 2000 (-2.1%) and S&P Mid Cap 400 (-1.4%) hold similar losses. 

Reports of more strikes on tankers and other cargo ships have caused oil to retest the $100 per barrel mark, currently up $9.34 (+10.7%) to $96.64 per barrel. 

The energy sector (+1.7%) tops today's leaderboard amid the increase in oil prices, adding to its week-to-date gains. 

Elsewhere, the utilities (+1.5%) and consumer staples (+0.3%) are garnering some rotational interest as more growth-oriented pockets of the market take a step back. 

The information technology sector (-1.7%) is among the worst performers as chipmakers come under pressure today, sending the PHLX Semiconductor Index 3.2% lower. 

Weakness across the mega-cap tech space sends the consumer discretionary (-2.0%) and communication services (-1.7%) sharply lower as well, while continued pressure on asset managers and airline names weighs heavily on the financials (-1.4%) and industrials (-1.9%) sectors. 

Today's pressure reflects some market disappointment, with continued geopolitical unrest largely outweighing efforts to mitigate the rise in oil prices.

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

Dollar General (DG 136.26, -8.58, -5.93%) is moving sharply lower following its Q4 (Jan) earnings report despite delivering sizable EPS upside and moderate revenue upside, while FY27 guidance came in roughly in line. Management said the company has stabilized its core business and is positioning itself for meaningful growth, highlighted by continued market share gains in highly consumable categories.

Despite the headline earnings beat and improved same-store sales trends, investors appear focused on a few forward-looking concerns. FY27 comp guidance of +2.2-2.7% looks somewhat soft following the +3.0% growth delivered in FY26, suggesting momentum may moderate. In addition, management signaled that severe winter storm disruptions in early February could weigh on Q1 sales. Investors also seem uneasy about the company's stepped-up capital spending plans, which will fund a large number of store openings and remodels along with a new store format rollout. While these investments may support long-term growth and market share gains, the higher cap-ex could pressure free cash flow in the near term, helping explain the negative reaction in the stock.

[BRIEFING.COM] The S&P 500 (-1.2%), Nasdaq Composite (-1.6%), and DJIA (-1.5%) are charting session lows an hour into the session. 

Though the materials sector (-0.2%) now faces a modest loss due to a pullback in precious and industrial metal prices today, fertilizer names such as CF Industries (CF 131.90, +11.76, +9.79%) and Mosaic (MOS 31.22, +2.06, +7.08%) are surging as the war in Iran creates a structural supply shock just as the spring planting season begins. The primary driver is the effective closure of the Strait of Hormuz, as roughly 33% of the world's fertilizer supply and 25% of the global nitrogen market pass through this waterway.

CNBC reports that the White House has floated the idea of tightening oil export restrictions, though the oil industry is against the move. 

[BRIEFING.COM] The S&P 500 (-1.0%), Nasdaq Composite (-1.2%), and DJIA (-1.1%) are firmly lower this morning as a surge in oil prices puts broad pressure on the market. 

The energy sector (+0.4%) is one of just three S&P 500 sectors to hold a gain as oil climbs $7.61 (+8.7%) to $94.86 per barrel. Bloomberg reports that Iranian Supreme Leader Mojtaba Khamenei said the Strait of Hormuz should remain closed. 

The defensive utilities sector (+0.4%) holds a modest gain while the materials sector (+0.2%) trades slightly higher. The eight other S&P 500 sectors trade lower, with some notable retreats in the mix. 

After showing some resilience yesterday and notching a modestly higher finish, the information technology sector (-1.6%) is at the bottom of today's leaderboard. Losses are particularly acute across chipmaker components, with the PHLX Semiconductor Index down 3.2% this morning. 

NVIDIA (NVDA 182.14, -3.89, -2.09%) is a "magnificent seven" laggard, though mega-caps are under pressure this morning, contributing to weakness in the communication services (-1.2%) and consumer discretionary (-1.1%) sectors as well. 

The industrial sector (-1.5%) also lags as airlines move lower amid the rise in oil prices. 

The stock market is on track for a lower opening this morning as oil prices rise due to increased hostilities in the Strait of Hormuz. 

Separately, investors have plenty of economic data to review this morning. 

Total housing starts increased 7.2% month-over-month in January to a seasonally adjusted annual rate of 1.487 million units (Briefing.com consensus 1.340 million), with single-unit starts down 2.8%. Building permits decreased 5.4% to a seasonally adjusted annual rate of 1.376 million (Briefing.com consensus 1.392 million), with single-unit permits down 0.9%.

The key takeaway from the report is that it beat expectations thanks to strong growth in multi-unit starts while single-unit housing starts were down 2.8% month-over-month.

Initial jobless claims for the week ending March 7 decreased by 1,000 to 213,000 (Briefing.com consensus 215,000). Continuing jobless claims for the week ending February 28 decreased by 21,000 to 1.850 million.

The key takeaway from the report is that claims remain just above the 200,000 mark, reflecting a low-firing environment.

The trade deficit narrowed to $54.5 billion in January (Briefing.com consensus -$67.9 billion) from a revised $72.9 billion deficit (from -$70.3 billion) in December. The narrower gap was the result of exports being $15.8 billion more than December exports and imports being $2.6 billion less than December imports.

The key takeaway from the report is that the monthly trade deficit returned to the $50 billion range, which has been a familiar zone since last year's implementation of tariffs.

The S&P 500 futures currently trade 42 points below fair value. 

Equity indices in the Asia-Pacific region ended Thursday on a lower note with rising oil prices and reports of attacks on oil tankers in the Middle East weighing on sentiment again. U.S. Trade Representative Greer said that a section 301 investigation into 16 trading partners has started. The investigation is expected to lead to a replacement of IEEPA tariffs. Japan will release 80 million barrels from state and private reserves and Prime Minister Takaichi said that there is no need for an extra budget to offset higher gasoline prices.

• In economic data:
  • Japan's Q1 BSI Large Manufacturing Conditions 3.8 (expected 5.3; last 4.7)
  • Australia's May MI Inflation Expectations 5.2% (last 5.0%)
  • New Zealand's Q4 Manufacturing Sales Volume -0.5% qtr/qtr (last 1.1%)
  • India's February CPI 3.21% yr/yr (expected 3.10%; last 2.75%)

---Equity Markets---

• Japan's Nikkei: -1.0%
• Hong Kong's Hang Seng: -0.7%
• China's Shanghai Composite: -0.1%
• India's Sensex: -1.1%
• South Korea's Kospi: -0.5%
• Australia's ASX All Ordinaries: -1.4%

Major European indices trade on a mostly lower note amid ongoing worries about oil transit through the Strait of Hormuz. British travel booking service On the Beach suspended its guidance due to a significant slowdown in travel demand across the Eastern Mediterranean. Military contractor Leonardo reported strong results for Q4 and raised its guidance. BMW reported a drop in operating profit for 2025 and issued cautious guidance for 2026.

• In economic data:
  • Italy's Q4 Unemployment Rate 5.6% (expected 6.1%; last 6.1%)

---Equity Markets---

• STOXX Europe 600: -0.4%
• Germany's DAX: UNCH
• U.K.'s FTSE 100: -0.4%
• France's CAC 40: -0.4%
• Italy's FTSE MIB: -0.8%
• Spain's IBEX 35: -1.2%

The S&P 500 futures currently trade 47 points below fair value. 

Just released, total housing starts increased 7.2% month-over-month in January to a seasonally adjusted annual rate of 1.487 million units (Briefing.com consensus: 1340K), from a downwardly revised prior level of 1.387 million (from 1.404 million). 

Building permits decreased 5.4% to a seasonally adjusted annual rate of 1.376 million (Briefing.com consensus: 1392K) from an upwardly revised prior level of 1.455 million (from 1.448 million). 

The trade deficit narrowed to $54.5 billion in January (Briefing.com consensus: -$67.9 billion) from a downwardly revised $72.9 billion deficit (from -$70.3 billion) in December.

Initial jobless claims decreased by 1,000 to 213,000 (Briefing.com consensus: 215,000) for the week ending March 7.

Continuing jobless claims decreased 21,000 to 1.850 million for the week ending February 28.

Equity futures point to a lower opening this morning as increased hostilities in the Strait of Hormuz have sent oil prices surging higher again. Stocks are coming off of a mostly lower finish yesterday that was also attributed to a rebound in oil prices. 

The Wall Street Journal reported that Iran is stepping up its efforts to halt traffic through the Strait of Hormuz after three more commercial ships were struck in the Persian Gulf. In particular, two oil tankers were attacked in Iraqi waters, according to Bloomberg. 

The fresh strikes largely offset recent measures aimed at mitigating the surge in oil prices and have prompted the market to reassess expectations for the duration of the conflict. Higher energy prices are also continuing to push back the market's expectations for the next rate cut, with the next meeting showing at least a 50% probability of a 25 basis point cut now being the September FOMC meeting, according to the CME FedWatch tool.

Oil is extending yesterday's rebound, currently up $5.23 (+6.0%) to $92.48 per barrel.

Energy developments continue to dominate headlines, though there is also a modest slate of earnings reports for investors to assess this morning. 

The market also has plenty of economic data to look forward to this morning, including January Housing Starts (Briefing.com consensus 1340K) and Building Permits (Briefing.com consensus 1392K) along with the January Trade Balance (Briefing.com consensus -$67.9 billion) and weekly initial jobless claims (Briefing.com consensus 215K). 

In corporate news:

• The Iran War could shift stock market leadership, according to Barrons. 
• Dollar General (DG 138.00, -6.84, -4.7%) beat EPS expectations by $0.27, reported revenues in-line, and guided FY EPS and revenues in-line.
• Morgan Stanley (MS 157.86, -3.03, -1.9%) and Cliffwater are capping withdrawals from private credit funds, according to Bloomberg. 

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended Thursday on a lower note with rising oil prices and reports of attacks on oil tankers in the Middle East weighing on sentiment again. Japan's Nikkei: -1.0%, Hong Kong's Hang Seng: -0.7%, China's Shanghai Composite: -0.1%, India's Sensex: -1.1%, South Korea's Kospi: -0.5%, Australia's ASX All Ordinaries: -1.4%.

In news:

• U.S. Trade Representative Greer said that a section 301 investigation into 16 trading partners has started. The investigation is expected to lead to a replacement of IEEPA tariffs.
• Japan will release 80 million barrels from state and private reserves and Prime Minister Takaichi said that there is no need for an extra budget to offset higher gasoline prices.

In economic data:

• Japan's Q1 BSI Large Manufacturing Conditions 3.8 (expected 5.3; last 4.7)
• Australia's May MI Inflation Expectations 5.2% (last 5.0%)
• New Zealand's Q4 Manufacturing Sales Volume -0.5% qtr/qtr (last 1.1%)
• India's February CPI 3.21% yr/yr (expected 3.10%; last 2.75%)

Major European indices trade on a mostly lower note amid ongoing worries about oil transit through the Strait of Hormuz. STOXX Europe 600: -0.2%, Germany's DAX: +0.2%, U.K.'s FTSE 100: -0.2%, France's CAC 40: -0.3%, Italy's FTSE MIB: -0.4%, Spain's IBEX 35: -0.8%.

In news:

• British travel booking service On the Beach suspended its guidance due to a significant slowdown in travel demand across the Eastern Mediterranean.
• Military contractor Leonardo reported strong results for Q4 and raised its guidance.
• BMW reported a drop in operating profit for 2025 and issued cautious guidance for 2026.

In economic data:

• Italy's Q4 Unemployment Rate 5.6% (expected 6.1%; last 6.1%)

[BRIEFING.COM] The stock market had a choppy midweek session amid a rebound in oil prices, with the S&P 500 (-0.1%), Nasdaq Composite (+0.1%), and DJIA (-0.6%) finishing mostly lower. 

Crude oil futures settled today's session $3.03 higher (+3.6%) at $86.88 per barrel amid reports of difficulties in the Strait of Hormuz, with CNBC reporting that three cargo ships had been hit by projectiles and the U.S. has sunk several Iranian vessels. 

The IEA confirmed that member countries will release 400 million barrels of oil from their reserves, but the news was largely priced in since the recommendation was made known yesterday. 

In related news, the broader market dipped this afternoon following an ABC News report that the FBI warned California law enforcement that Iran had allegedly aspired to launch a surprise drone attack from a vessel off the U.S. West Coast targeting unspecified locations in the state if the U.S. conducted strikes against the country.

The recent volatility in the energy market was not reflected in the February CPI (0.3%; Briefing.com consensus: 0.3%) and Core CPI (0.2%; Briefing.com consensus: 0.2%) readings, which came in line with expectations, a modestly positive development given next month's reading likely will reflect the increase across fuel prices. 

Still, the broader market trended lower today, with just three S&P 500 sectors capturing a gain. 

The energy sector (+2.4%) unsurprisingly notched the widest gain amid the rebound in oil prices, moving into positive week-to-date territory. 

This week's top performer, the information technology sector (+0.3%), also finished modestly higher. Oracle (ORCL 163.09, +13.69, +9.16%) was among the best-performing S&P 500 stocks today after an impressive beat-and-raise earnings report. However, software names dotted the bottom of the sector's standings, with the iShares GS Software ETF (+0.1%) finishing flattish. 

The recent software weakness has also resulted in renewed pressure across asset managers amid persistent concerns about private credit quality after Financial Times reported that JPMorgan has begun marking down some private credit portfolios linked to software debt, which could reduce the borrowing capacity of affected companies.

Separately, Bloomberg reported that Cliffwater's flagship private credit fund received redemption requests exceeding 7%, serving as another piece of evidence that the group is under pressure.

The financials sector (-0.8%) was a laggard today as a result. 

Other underperformers included the consumer staples sector (-1.3%), which faced particular weakness across its food names after Campbell Soup (CPB 22.94, -1.74, -7.05%) missed earnings estimates, while the real estate (-1.1%) and utilities (-0.8%) sectors logged similar losses. 

Losses were modest elsewhere, which helped the major averages log a mixed finish despite relatively broad weakness. 

Outside of the S&P 500, the Russell 2000 (-0.2%) and S&P Mid Cap 400 (-0.3%) logged similar losses.

Overall, the session reflected a cautious tone as investors monitored developments in the Strait of Hormuz and the potential for further disruptions to energy markets. With oil volatility rising again, geopolitical headlines will likely continue to influence market direction in the near term.

U.S. Treasuries faced renewed pressure on Wednesday, which sent yields on 10s and 30s to their highest levels since early February while the 2-year yield settled at its highest level since late September. The 2-year note yield settled up six basis points to 3.63%, and the 10-year note yield settled up seven basis points to 4.21%. 

• S&P Mid Cap 400: +3.4% YTD
• Russell 2000: +2.5% YTD
• S&P 500: -1.0% YTD
• DJIA: -1.3% YTD
• Nasdaq Composite: -2.3% YTD

Reviewing today's data:

• Total CPI increased 0.3% month-over-month in February (Briefing.com consensus 0.3%) and was up 2.4% year-over-year, versus 2.4% for the 12 months ending in January. Core CPI, which excludes food and energy, increased 0.2% month-over-month (Briefing.com consensus 0.2%) and was up 2.5% year-over-year, versus 2.5% for the 12 months ending in January.
  
  • The key takeaway from the report is that it matched expectations at the headline and core levels, which is mildly positive, given the recent surge in energy prices that will increase the market's expectations for a hotter reading in March.
• The weekly MBA Mortgage Index was up 3.2% after increasing 11.0% a week ago. The Purchase Index was up 7.8% while the Refinance Index increased 0.5%.
• The Treasury reported a $307.5 billion deficit for February (Briefing.com consensus -$170.0 bln), which was much wider than expected and it was a bit wider than the $307.0 billion deficit reported for February 2025. Receipts totaled $313.1 billion, while outlays reached $620.6 billion.
  
  • The key takeaway from the report is that while the February deficit was much larger than expected, the year-to-date deficit is nearly $150 billion smaller than it was at this time last year, reflecting some fiscal improvement.