[BRIEFING.COM] The S&P 500 (-0.3%), Nasdaq Composite (-0.7%), and DJIA (flat) remain mostly lower at midday.

The health care sector (-0.1%) is modestly lower, pressured by weakness in Regeneron Pharma (REGN 625.62, -72.64, -10.40%) after the company reported that its Phase 3 trial evaluating fianlimab in combination with cemiplimab for first-line unresectable or metastatic melanoma failed to achieve statistical significance on the primary endpoint of progression-free survival versus pembrolizumab monotherapy. While the dataset showed encouraging efficacy trends in the high-dose arm, investors viewed the result as a major disappointment given expectations for a potentially important new immuno-oncology growth platform.

The sharp sell-off likely reflects concerns that REGN may now face a more complicated regulatory and commercial path in melanoma, particularly against increasingly established competitors like Keytruda and Opdualag.

[BRIEFING.COM] The stock market has seen a choppy start to the week, with the S&P 500 (-0.4%), Nasdaq Composite (-0.7%), and DJIA (-0.2%) lower across the board just before midday.

Geopolitical headlines have driven volatility in oil prices this morning. Crude initially moved lower following unconfirmed reports of a new peace proposal between the U.S. and Iran, though CNBC later reported that the two sides still remain far apart in negotiations despite exchanging commentary through Pakistan. Crude oil is currently up $1.82 (+1.8%) at $102.84 per barrel.

The broader market is holding up relatively well despite mounting weakness across tech stocks. The PHLX Semiconductor Index (-2.6%) is extending Friday's decline, weighing on the information technology sector (-1.5%). Electrical equipment names tied to the AI buildout cycle are also lower, pressuring the industrials sector (-0.7%).

Meanwhile, seven S&P 500 sectors trade at or above their flatlines, with the communication services (+1.2%), financials (+0.7%), and consumer staples (+0.7%) sectors showing relative strength amid some rotational buying. The S&P 500 Equal Weighted Index (+0.6%) is outperforming the market-weighted S&P 500 (-0.2%) as a result.

Outside of the S&P 500, the Russell 2000 (-0.3%) and S&P Mid Cap 400 (flat) are mixed.

[BRIEFING.COM] The S&P 500 (-0.1%), Nasdaq Composite (-0.3%), and DJIA (+0.3%) are mostly lower as losses widen across tech names, while the broader market maintains a positive tilt.

NextEra Energy (NEE 88.38, -4.98, -5.33%) and Dominion Energy (D 67.57, +5.84, +9.46%) announced a transformative all-stock merger that will create the world's largest regulated electric utility business, underscoring how AI-driven power demand and data center infrastructure are reshaping the utility sector. The combined company will be more than 80% regulated, serve 10 million customer accounts across Florida and the Southeast, and own 110 GW of generation capacity, giving investors exposure to one of the largest utility rate-base growth stories in the market.

This merger looks less like a traditional utility consolidation story and more like a large-scale bet on AI electrification and hyperscale data center growth. Dominion brings arguably the most strategically valuable regulated utility footprint in the country through its exposure to Northern Virginia's Data Center Alley, while NextEra contributes elite-scale generation development and infrastructure execution capabilities. The combined company should be well-positioned to capitalize on what many investors increasingly view as a multi-year utility capex supercycle driven by AI workloads and hyperscaler expansion. Regulatory scrutiny and political sensitivity around power costs will remain key risks, but the strategic logic behind the combination appears compelling given the scarcity value of large-scale utility territories with concentrated AI-related load growth.

NextEra Energy is already the largest component of the utilities sector (-0.3%), so the price action in response to the merger keeps the sector pinned lower, making it one of just three S&P 500 sectors that remain in negative territory.

[BRIEFING.COM] The S&P 500 (-0.2%), Nasdaq Composite (-0.5%), and DJIA (+0.2%) continue to sit mixed as tech losses weigh against relative strength in the broader market.

The information technology sector (-1.1%) sits at session lows, with mounting pressure across chipmaker names sending the PHLX Semiconductor Index 2.1% lower. Lumentum (LITE 871.49, -99.21, -10.22%) is one of the worst-performing S&P 500 components, as electrical equipment and optical networking names tied to the AI buildout cycle are facing heightened selling pressure alongside chipmakers.

Related names such as Vertiv (VRT 340.97, -29.97, -8.08%), GE Vernova (GEV 1000.42, -48.81, -4.65%) , and Eaton (ETN 384.33, -15.11, -3.78%) have surged in recent sessions as chipmakers have led the market to recent record highs, but today's pressure makes them among the worst-performers in the industrials sector (-0.6%).

[BRIEFING.COM] The stock market opened to mixed action this morning, though the S&P 500 (+0.1%), Nasdaq Composite (-0.1%), and DJIA (+0.3%) are now mostly higher as participation improves.

Eight S&P 500 sectors trade higher, currently led by the communication services sector (+1.4%), which is supported by a nice rebound in Alphabet (GOOG 401.31, +7.99, +2.03%) after Friday's retreat. Similar to the broader market, action across mega-cap stocks is relatively split, and the Vanguard Mega Cap Growth (+0.1%) is up just slightly.

The information technology sector (-0.7%) is a laggard because of weakness in some of its top components. Semiconductor stocks surged at the open, sending the PHLX Semiconductor Index nearly 1.5% higher, but the gains did not hold, and the index is now down 1.3%.

Elsewhere, the energy sector (-0.6%) holds a similar loss as oil prices have retreated in response to unconfirmed reports of a potential new peace agreement between the U.S. and Iran.

Just released, the NAHB Housing Market Index for May checked in at 37 (Briefing.com consensus 34), from a prior level of 34.

The stock market is now on track for a higher opening, reversing its earlier premarket losses after a leaked report from Al Arabiya detailed a potential new agreement between the U.S. and Iran.

Notably, the modified proposal includes a long-term nuclear freeze for Iran instead of a complete dismantlement, with a request to transfer enriched uranium to Russia instead of the U.S.

Oil prices have come down in response to the report, with WTI crude currently down $1.46 (-1.5%) at $99.56 per barrel.

The S&P 500 futures currently trade 21 points above fair value. 

Equity indices in the Asia-Pacific region began the week on a mostly lower note. Japanese debt saw a continuation of last week's pressure after Prime Minister Takaichi confirmed that she asked Finance Minister Katayama to plan an extra budget, contrary to recent reports. A South Korean court ruled that actions taken by Samsung's union must not significantly hinder production. The White House released a summary of agreements made between Presidents Trump and Xi, including an agreement for cooperation on rare earth elements. China's Retail Sales grew at their slowest pace since late 2022 in April.

• In economic data:
  • China's April Retail Sales 0.2% yr/yr (expected 2.0%; last 1.7%). April Industrial Production 4.1% yr/yr (expected 6.0%; last 5.7%); 5.6% yr/yr (last 6.1%). April Fixed Asset Investment -1.6% yr/yr (expected 1.7%; last 1.7%), April Unemployment Rate 5.2% (expected 5.3%; last 5.4%), and April House Prices -3.5% yr/yr (last -3.4%)
  • Singapore's April trade surplus SGD13.068 bln (last surplus of SGD11.12 bln). April non-oil exports 11.0% m/m (last 3.0%); 24.5% yr/yr (last 15.3%)
  • New Zealand's April Performance of Services Index 48.9 (last 46.2)

---Equity Markets---

• Japan's Nikkei: -1.0%
• Hong Kong's Hang Seng: -1.1%
• China's Shanghai Composite: -0.1%
• India's Sensex: +0.1%
• South Korea's Kospi: +0.3%
• Australia's ASX All Ordinaries: -1.5%

Major European indices trade on a mostly higher note. British Prime Minister Starmer is reportedly planning his exit, though he has not officially announced his resignation yet. Ryanair continues expecting passenger growth for the year, but margins are expected to be pressured by high fuel prices. G-7 finance ministers and central bankers met in Paris over the weekend. Fitch affirmed Germany's AAA rating with a Stable outlook.

• In economic data:
  • Italy's March trade surplus EUR4.709 bln (expected surplus of EUR5.25 bln; last surplus of EUR4.983 bln)
  • Swiss Q1 GDP 0.5% qtr/qtr (last 0.1%)

---Equity Markets---

• STOXX Europe 600: +0.6%
• Germany's DAX: +1.7%
• U.K.'s FTSE 100: +1.0%
• France's CAC 40: +0.3%
• Italy's FTSE MIB: -0.8%
• Spain's IBEX 35: +0.9%

The S&P 500 futures currently trade eight points below fair value amid a relatively quiet morning, with investors continuing to monitor developments between the U.S. and Iran.

A small batch of companies reported earnings this morning, including Baidu (BIDU 141.40, +6.07, +4.5%), which beat EPS expectations by RMB 0.52 and beat revenue expectations.

Equity futures point to a lower opening this morning after stocks retreated from record-highs on Friday, with the major averages finishing mostly lower for the week. Strong gains from tech and mega-cap names led last week's advance to record highs, though leadership was often narrow. Additionally, rising oil prices and Treasury yields have dampened risk sentiment and the market's expectations for any easing from the Fed in the coming months.

The U.S.-Iran conflict remains largely at a deadlock, which keeps shipping traffic through the Strait of Hormuz frozen, according to Bloomberg. Additionally, Axios reports that President Trump is waiting for a new proposal from Iranian mediators.

This week will feature earnings reports from several key companies, including NVIDIA (NVDA 227.85, +2.53, +1.1%) after the close on Wednesday.

Meanwhile, this week will be considerably lighter on the economic data front, with very few releases of note on the calendar.

In corporate news:

• SpaceX could file for IPO as soon as Wednesday, according to Bloomberg.
• Delta Airlines (DAL 72.07, +1.84, +2.6%) moves higher after Berkshire Hathaway disclosed a new position in the company.
• NextEra Energy (NEE 91.56, -1.80, -1.9%) and Dominion Energy (D 70.80, +9.07, +14.7% ) have entered into a definitive agreement to combine in an all-stock transaction.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region began the week on a mostly lower note. Japan's Nikkei: -1.0%, Hong Kong's Hang Seng: -1.1%, China's Shanghai Composite: -0.1%, India's Sensex: +0.1%, South Korea's Kospi: +0.3%, Australia's ASX All Ordinaries: -1.5%.

In news:

• Japanese debt saw a continuation of last week's pressure after Prime Minister Takaichi confirmed that she asked Finance Minister Katayama to plan an extra budget, contrary to recent reports.
• A South Korean court ruled that actions taken by Samsung's union must not significantly hinder production.
• The White House released a summary of agreements made between Presidents Trump and Xi, including an agreement for cooperation on rare earth elements.
• China's Retail Sales grew at their slowest pace since late 2022 in April.

In economic data:

• China's April Retail Sales 0.2% yr/yr (expected 2.0%; last 1.7%). April Industrial Production 4.1% yr/yr (expected 6.0%; last 5.7%); 5.6% yr/yr (last 6.1%). April Fixed Asset Investment -1.6% yr/yr (expected 1.7%; last 1.7%), April Unemployment Rate 5.2% (expected 5.3%; last 5.4%), and April House Prices -3.5% yr/yr (last -3.4%)
• Singapore's April trade surplus SGD13.068 bln (last surplus of SGD11.12 bln). April non-oil exports 11.0% m/m (last 3.0%); 24.5% yr/yr (last 15.3%)
• New Zealand's April Performance of Services Index 48.9 (last 46.2)

Major European indices trade on a mostly lower note. STOXX Europe 600: -0.4%, Germany's DAX: +0.7%, U.K.'s FTSE 100: +0.5%, France's CAC 40: -0.4%, Italy's FTSE MIB: -1.5%, Spain's IBEX 35: -0.1%.

In news:

• British Prime Minister Starmer is reportedly planning his exit, though he has not officially announced his resignation yet.
• Ryanair continues expecting passenger growth for the year, but margins are expected to be pressured by high fuel prices.
• G-7 finance ministers and central bankers met in Paris over the weekend. Fitch affirmed Germany's AAA rating with a Stable outlook.

In economic data:

• Italy's March trade surplus EUR4.709 bln (expected surplus of EUR5.25 bln; last surplus of EUR4.983 bln)
• Swiss Q1 GDP 0.5% qtr/qtr (last 0.1%)

[BRIEFING.COM] Stocks ended a record-setting week on a lower note, with the S&P 500 (-1.2%), Nasdaq Composite (-1.5%), and DJIA (-1.1%) retreating from recent record highs amid a surge in oil prices and Treasury yields.

Crude oil futures settled today's session $4.33 higher (+4.3%) at $105.49 per barrel amid fears that the U.S. could re-engage in military operations against Iran after the summit between President Trump and President Xi failed to produce any meaningful policy changes.

The lack of surprises from the summit also included no mention of NVIDIA (NVDA 225.32, -10.42, -4.42%) H200 chip sales to China, while China's pledge to purchase 200 Boeing (BA 220.49, -8.72, -3.80%) jets was largely in line with expectations.

More important than any individual stock move, though, was the upward pressure on Treasuries that sent yields to fresh highs for the year amid renewed inflation concerns tied to the rise in oil prices. The 2-year note yield settled up nine basis points to 4.08%, while the 10-year note yield settled up 13 basis points to 4.60%.

Higher interest rates reduce the present value of future cash flows, and the market has clearly been placing a significant premium on the long-term earnings potential tied to the AI buildout.

The PHLX Semiconductor Index finished 4.0% lower today, ending the week with a loss after several choppy sessions. Corning (GLW 191.92, -16.36, -7.85%) and Micron (MU 724.66, -51.35, -6.62%) were among the worst-performing components of the information technology sector (-1.6%).

However, the sector was supported somewhat by relative strength in software stocks, with the iShares GS Software ETF finishing 1.3% higher. Microsoft (MSFT 421.92, +12.49, +3.05%) was a "Magnificent Seven" standout after CNBC reported that Pershing Square has built a position in the company.

Meanwhile, Tesla (TSLA 422.04, -21.26, -4.79%) was a notable laggard, which pressured the consumer discretionary sector (-1.8%).

The sector also faced weakness across its homebuilder components due to rising interest rates, which weighed on building products names in the industrials sector (-1.8%) as well.

The rate-sensitive utilities (-2.4%) and real estate (-1.6%) sectors also underperformed, while the materials sector (-2.7%) finished with the widest loss amid broad weakness in metals and mining names.

Only the energy sector (+2.3%) managed to finish higher amid the surge in oil prices today.

Outside of the S&P 500, the Russell 2000 (-2.4%) and S&P Mid Cap 400 (-1.7%) underperformed amid the broad risk-off tone and renewed pressure on economically-sensitive and rate-sensitive stocks.

Overall, today's session was a reminder that the macro backdrop remains a meaningful headwind for equities even after a strong AI-fueled earnings season helped drive the market to repeated record highs in recent weeks. The market entered the year expecting roughly two Fed rate cuts in 2026, but persistent inflation pressures and the recent surge in oil prices have now shifted expectations toward the possibility of a rate hike next January. The question now is whether investors will once again step in to buy today's weakness across tech and semiconductor stocks, or if rising yields and inflation concerns begin to weigh more meaningfully on the market's momentum.

• Nasdaq Composite: +12.8% YTD
• Russell 2000: +12.6% YTD 
• S&P Mid Cap 400: +9.2% YTD
• S&P 500: +8.2% YTD
• DJIA: +3.0% YTD

Reviewing today's data:

• May Empire State Manufacturing 19.6 (Briefing.com consensus 6.2); Prior 11.0
• April Industrial Production 0.7% (Briefing.com consensus 0.2%); Prior was revised to -0.3% from -0.5%, April Capacity Utilization 76.1% (Briefing.com consensus 75.7%); Prior 75.7%
  
  • The key takeaway from the report is that it was underpinned by solid manufacturing output that was led by the production of durables. Excluding motor vehicles and parts, manufacturing output was up 0.3% month-over-month.