[BRIEFING.COM] The major averages finished mixed as renewed hostilities between the U.S. and Iran sent oil prices sharply higher, pressuring much of the market while an afternoon rebound in semiconductor stocks helped offset some of the weakness. The S&P 500 (-0.3%) closed modestly lower, while the DJIA (-1.1%) lagged amid broad cyclical weakness. The Nasdaq Composite (+0.2%) bucked the trend, climbing back into positive territory as strength across large-cap technology stocks softened the impact of the oil-driven selloff.

The U.S. struck Iranian targets in response to attacks on commercial ships in the Strait of Hormuz, prompting President Trump to declare the ceasefire effectively over and threaten additional strikes. Crude oil futures settled $3.05 higher (+4.3%) at $73.53 per barrel after being up more than 6% earlier in the session.

The surge in oil prices pressured much of the market outside of energy and technology. The materials sector (-2.5%) posted the steepest decline, with packaging companies such as Smurfit Westrock plc (SW 42.08, -2.92, -6.49%) moving lower as higher energy costs threatened margins. Sherwin-Williams (SHW 330.57, -11.69, -3.42%) was also a notable laggard, contributing to the DJIA's underperformance.

The consumer discretionary sector (-1.6%) followed close behind as travel-related stocks, couriers, and homebuilders retreated amid the surge in oil prices and Treasury yields. The iShares U.S. Home Construction ETF retreated 4.0%.

The financials (-1.9%), communication services (-1.4%), and rate-sensitive real estate (-1.6%) sectors also underperformed, while the consumer staples sector (-0.3%) held up relatively well.

Unsurprisingly, the energy sector (+1.5%) finished atop the leaderboard, though it pared stronger gains from earlier in the session after President Trump said any developments involving Iran would be resolved quickly, including any impact on oil prices, and reiterated that he does not expect the conflict to restart.

The information technology sector (+1.4%) provided an important counterweight as semiconductor stocks strengthened into the close. The PHLX Semiconductor Index climbed 2.2%, helping the market-weighted S&P 500 (-0.3%) considerably outperform the S&P 500 Equal Weight Index (-1.2%).

NVIDIA (NVDA 204.08, +7.15, +3.63%) outperformed after reports that China will allow limited H200 chip purchases for select AI firms, while Broadcom (AVGO 388.69, +17.91, +4.83%) advanced after Apple (AAPL 313.28, +2.62, +0.84%) expanded its multiyear U.S. supply agreement for wireless-connectivity components and custom silicon. Akamai Tech (AKAM 126.57, +12.20, +10.67%) was the top-performing S&P 500 stock after being selected as a strategic security partner for World Wide Technology's AI infrastructure initiative, reinforcing its expanding role in enterprise AI security deployments.

On the policy front, investors also digested the June FOMC minutes, which reinforced the Fed's data-dependent approach while acknowledging persistent inflation pressures and uncertainty tied to geopolitical developments. Participants continued to emphasize that future policy decisions will depend on incoming economic data, while noting that markets have shifted toward expecting fewer rate cuts over the coming year.

Although the surge in oil prices weighed broadly on equities, today's action ultimately did little to alter the market's recent leadership trends. Buy-the-dip interest emerged across semiconductor stocks following yesterday's sharp retreat, while favorable corporate developments involving NVIDIA and Broadcom helped cushion the major indices even as higher oil prices continued to pressure much of the broader market.

U.S. Treasuries faced another round of selling on Wednesday, which drove yields on 5-year note and shorter tenors back to their highest settlement levels of the year while yields on 10-year and 30-year remained below their May highs. The U.S. Treasury followed yesterday's good 3-year note offering with another solid 10-year note reopening ahead of tomorrow's 30-year bond reopening. The 2-year note yield settled up four basis points to 4.20%, and the 10-year note yield settled up four basis points to 4.57%. 

• Russell 2000: +19.1%
• S&P Mid Cap 400: +13.0%
• Nasdaq Composite: +11.3%
• S&P 500: +9.3%
• DJIA: +8.9%

Reviewing today's data:

• Weekly MBA Mortgage Applications Index -2.2%; Prior 0.0%
• May Wholesale Inventories 0.1% (Briefing.com consensus 0.3%); Prior 0.6%
• Consumer credit decreased by $200 mln in May (Briefing.com consensus $18.9 bln) after increasing by a revised $20.8 bln (from $20.7 bln) in April. Revolving credit decreased by $5.3 bln while nonrevolving credit increased by $5.1 bln.

[BRIEFING.COM] The major averages remain little changed from previous values as the market enters the final half hour of the session.

Akamai Tech (AKAM 126.79, +12.42, +10.86%) is the best-performing S&P 500 name this afternoon, after being selected as a strategic security partner for World Wide Technology's AI Readiness Model for Operational Resilience, positioning its technology as part of the foundational security architecture for AI factories built by WWT and accelerated by NVIDIA (NVDA 205.00, +8.07, +4.10%).

The collaboration embeds Akami Tech's capabilities across areas such as API protection, micro segmentation, zero-trust security, and critical-infrastructure defense, helping enterprises secure AI workloads from deployment through ongoing operations. Investors are reacting positively because the partnership gives Akami Tech a clearer route into large enterprise AI infrastructure projects, potentially expanding its role beyond traditional content delivery into higher-value security and cloud services.

[BRIEFING.COM] The Nasdaq Composite has reclaimed its flatline this afternoon as semiconductors continue to garner some buying interest, while broad oil-driven pressure keeps the S&P 500 (-0.3%) and DJIA (-1.1%) lower. Crude oil futures settled today's session $3.05 higher (+4.3%) at $73.53 per barrel.

Just released, Consumer credit decreased by $0.2 billion in May (Briefing.com consensus: $18.9 billion) following an upwardly revised $20.8 billion increase (from $20.7 billion) in April.

[BRIEFING.COM] The S&P 500 (-0.34%) is in second place on Wednesday afternoon, down about 25 points; the major averages are little changed across the board following the release of the FOMC's June 16-17 meeting minutes.

The June FOMC minutes showed a Fed maintaining a data-dependent stance as elevated inflation, geopolitical tensions, and AI-driven demand continued to shape the economic outlook. Financial markets strengthened during the period, with equities reaching new highs, Treasury yields and the U.S. dollar moving higher, and longer-term inflation expectations remaining anchored despite persistent near-term price pressures.

Participants noted market pricing shifted toward fewer expected rate cuts, with survey respondents anticipating no change in the federal funds rate through early 2027 and one cut in the second quarter of next year. While a few participants acknowledged a case for raising rates, all supported leaving policy unchanged, emphasizing that future decisions will depend on incoming economic data.

On the economic backdrop, inflation remained elevated, with total PCE estimated at 4.1% in May and core PCE at 3.4%, reflecting higher energy costs, tariff effects, and AI-related demand. The labor market remained stable with unemployment at 4.3%, while GDP continued expanding at a solid pace, supported by resilient consumer spending and continued investment in AI infrastructure.

The staff outlook projected inflation to ease gradually toward the Fed's 2% target by 2028 as energy and tariff-related pressures fade, while GDP growth is expected to remain near or modestly above potential, supported by AI investment and productivity gains. However, officials continued to view risks as tilted toward higher inflation and weaker growth given uncertainty surrounding the Middle East conflict and the economic effects of AI adoption.

[BRIEFING.COM] With about two hours to go on Wednesday afternoon the tech-heavy Nasdaq Composite (-0.20%) is in "first" place, showing the shallowest losses among the major averages. Due at the top of the hour, the Fed will release Minutes from its June 16-17 meeting.

Gold futures settled $75.00 lower (-1.8%) at $4,082.40/oz, as a surge in oil prices boosted Treasury yields and the U.S. dollar, fueling expectations that the Federal Reserve could keep interest rates higher for longer. Investors also remained cautious ahead of the release of the Fed's June meeting minutes, which could provide further clues on the path of monetary policy.

Meanwhile, the U.S. Dollar Index falls less than -0.1% to $101.04.

[BRIEFING.COM] The Dow Jones Industrial Average (-1.05%) is down about 555 points this afternoon, leading losses among the major averages.

A look inside the DJIA shows that American Express (AXP 338.04, -11.54, -3.30%), Boeing (BA 225.12, -6.56, -2.83%), and Procter & Gamble (PG 149.06, -3.69, -2.42%) are underperforming.

Meanwhile, Cisco (CSCO 113.78, +1.99, +1.78%) is near the top of the standings.

The DJIA is now a clean -1.0% lower week-to-date.

Elsewhere, U.S. Treasuries hover above lows that were reached about two hours ago with the belly showing relative weakness. Thanks to today's selling, yields 5s and shorter tenors are on course to settle at fresh highs for the year while the 10-yr yield is still about ten basis points below its high from early May. The U.S. Treasury just reopened $39 bln in 10-yr notes to strong demand, making for the second solid auction in a row. Today's sale drew a high yield of 4.580%, which stopped through the when-issued yield by 0.6 basis points while the bid-to-cover ratio (2.59x vs 2.49x average) and indirect takedown (81.5% vs 69.4% average) were well above average. Tomorrow, the U.S. Treasury will reopen $22 bln in 30-yr bonds.

[BRIEFING.COM] The S&P 500 (-0.4%), Nasdaq Composite (-0.2%), and DJIA (-1.2%) are lower across the board as renewed hostilities between the U.S. and Iran send oil and Treasury yields higher, putting broad pressure on the market.

The U.S. struck Iranian targets in response to strikes against commercial ships in the Strait of Hormuz, with President Trump saying the ceasefire is effectively over and threatening more strikes tonight. Crude oil is currently up $3.98 (+5.7%) to $74.43 per barrel, pushing Treasury yields higher across the curve.

While there has been plenty of churn across the market in recent sessions, the oil-driven volatility has resulted in a broader slide in equities today. Decliners outpace advancers by a roughly 3-to-1 ratio on both the NYSE and the Nasdaq, and eight S&P 500 sectors trade lower.

The materials sector (-2.3%) holds the widest loss, with container and packaging names such as Amcor (AMCR 41.90, -2.55, -5.74%) and Smurfit Westrock plc (SW 42.49, -2.51, -5.58%) down sharply amid the spike in oil prices.

The consumer discretionary sector (-1.9%) is another laggard, with couriers, travel-related stocks, and homebuilders all moving lower as oil surges today.

Elsewhere, the financials (-1.5%) and industrials (-1.2%) sectors reinforce today's trend of cyclical sectors (with the exception of the energy sector) underperforming.

Unsurprisingly, the energy sector (+0.9%) is the top performer today, though it has pared its earlier gains following comments from President Trump, who said that any developments involving Iran would be resolved quickly, including any impact on oil prices, and reiterated that he does not expect the war with Iran to restart.

The information technology sector (+0.8%) is another outperformer, though its action has been relatively choppy so far. The sector is supported by a 1.9% gain in the PHLX Semiconductor Index, which is enjoying its second stint in positive territory today after a late morning dip.

Broadcom (AVGO 394.49, +23.71, +6.39%) trades sharply higher after Apple (AAPL 313.16, +2.50, +0.80%) quantified an expanded multiyear supply agreement expected to exceed $30 billion through 2031, covering U.S.-made wireless-connectivity components and custom silicon.

Additionally, NVIDIA (NVDA 200.58, +3.66, +1.86%) is a "Magnificent Seven" outperformer after The Information reported China will allow limited NVIDIA H200 chip purchases for top AI firms amid the ongoing supply shortage.

Outside the S&P 500, the Russell 2000 (-1.3%) and S&P Mid Cap 400 (-1.5%) remain firmly lower as U.S. Treasuries hover near their session lows.

So far, today's action has been unsurprisingly choppy given the sharp surge in oil prices after several weeks of relative stability. While the broader market tilts decisively negative, the major averages are off their session lows following somewhat reassuring geopolitical commentary from President Trump and buy-the-dip support across semiconductor names.

Reviewing today's data:

• Weekly MBA Mortgage Applications Index -2.2%; Prior 0.0%
• May Wholesale Inventories 0.1% (Briefing.com consensus 0.3%); Prior 0.6%

[BRIEFING.COM] The S&P 500 (-0.6%), Nasdaq Composite (-0.5%), and DJIA (-1.3%) are off their session lows, with the modest bump coinciding with the conclusion of President Trump's post-NATO summit remarks, during which he called the meeting 'very successful' and praised Turkish President Erdogan. 

While losses remain relatively widespread, the information technology sector (+0.4%) is back in positive territory, as chipmakers take back some of their early gain, pushing the PHLX Semiconductor Index (+1.4%) back towards its session highs.

[BRIEFING.COM] The major averages continue to chart session lows at midday.

The consumer staples sector (+0.4%) is one of just three S&P 500 sectors that trade higher. Casey's General (CASY 844.47, +42.48, +5.30%) leads the advance, while the sector's largest component, Walmart (WMT 113.40, +1.86, +1.67%) , adds to yesterday's gain that came after the company announced rollbacks across thousands of "summer" items.

[BRIEFING.COM] The S&P 500 (-1.0%), Nasdaq Composite (-1.0%), and DJIA (-1.5%) are under pressure this morning, trading at session lows just before midday. Weakness is broad today as a resumption in the U.S.-Iran conflict has sent oil prices, and in turn, Treasury yields, considerably higher. Crude oil is currently up $4.96 (+7.0%) to $75.40 per barrel, while the 10-year note yield is up six basis points to 4.59%.

Eight S&P 500 sectors trade lower, with oil-sensitive and rate-sensitive stocks among the worst performers. The materials sector (-3.1%) holds the widest loss, with particular weakness across its container and packaging names, while the consumer discretionary sector (-2.3%) lags as homebuilders, couriers, and cruise lines face outsized losses.

The top-weighted information technology sector (-0.8%) spent much of the morning with a modest gain but has since reversed course. The PHLX Semiconductor Index was up over 1.5%, but is now down 0.5% for the day.

Meanwhile, the energy sector (+2.1%) outperforms amid the surge in oil prices, while the defensive consumer staples sector (+0.2%) also shows resilience.

Outside the S&P 500, the Russell 2000 (-1.4%) and S&P Mid Cap 400 (-1.5%) hold losses similar to those across the major averages.

[BRIEFING.COM] The major averages continue to steadily chart session lows.

NVIDIA (NVDA 198.91, +1.98, +1.01%), meanwhile, is at its best levels of the session after The Information reported China will allow limited NVIDIA H200 chip purchases for top AI firms amid the ongoing supply shortage.

Separately, Alibaba (BABA 108.64, +10.50, +10.70%) is trading higher after a Frost & Sullivan report said Alibaba Cloud held 40.1% of China's 2025 full-stack AI cloud market, exceeding the combined share of Baidu (BIDU 117.07, +4.98, +4.44%), ByteDance's Volcano Engine, and SenseTime. The report appears to be contributing to today's advance by reinforcing BABA's leadership across AI infrastructure, platform services, and model deployment, although the latest quarter still showed that strong cloud execution has not yet translated into consistently stronger consolidated earnings.

[BRIEFING.COM] The S&P 500 (-0.6%), Nasdaq Composite (-0.4%), and DJIA (-1.2%) are moving lower as early strength across technology stocks begins to narrow.

Broadcom (AVGO 386.99, +16.21, +4.37%) is trading higher after Apple (AAPL 309.54, -1.12, -0.36%) quantified an expanded multiyear supply agreement expected to exceed $30 billion through 2031, covering U.S.-made wireless-connectivity components and custom silicon. The announcement is supporting Broadcom despite mixed semiconductor trading and a risk-off backdrop, as investors view the five-year commitment as validation of Broadcom's continued importance within Apple supply chain.

[BRIEFING.COM] The S&P 500 (-0.5%), Nasdaq Composite (-0.4%), and DJIA (-0.8%) are modestly lower this morning as a surge in oil prices puts broad pressure on the market.

Nine S&P 500 sectors trade lower, with containers and packaging companies weighing on the materials sector (-2.0%), which holds the widest loss. A host of oil-sensitive and rate-sensitive names in the consumer discretionary sector (-1.7%) are also under pressure.

Crude oil is currently up $3.214 (4.6%) to $73.68 per barrel, putting pressure on Treasury yields across the curve.

Unsurprisingly, the energy sector (+0.6%) is an outperformer, adding to yesterday's solid gain that resulted from Meanwhile, losses at the index level are being softened by a modest gain in the top-weighted information technology sector (+0.3%).

Though there was considerable weakness across the group in the premarket, semiconductor stocks are garnering some dip-buying interest after yesterday's retreat, with the PHLX Semiconductor Index up 1.6%. Memory names such as Western Digital (WDC 557.23, +25.13, +4.72%), which held some of the widest losses this morning, are now among the sector's top performers.

On the data front, wholesale inventories increased 0.1% in May (Briefing.com consensus 0.3%) after an upwardly revised prior increase of 0.7% (from 0.6%).

The stock market remains on track for a lower opening as rising oil prices and Treasury yields combine with lingering weakness across semiconductor stocks to create a hostile backdrop for stocks this morning.

This morning's developments have the CBOE Volatility Index up 7.5% to 17.34 as the market braces for what has the potential to be a bumpy session if new developments are made on the political front or if investors decide to step in on the recent weakness across semiconductor stocks. Either way, early action is likely to be more broadly weak than the back-and-forth churn that has kept the major averages moving sideways in recent sessions.

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

Equity indices in the Asia-Pacific region ended the midweek session on a mostly lower note with South Korea's Kospi (-5.4%) falling to its lowest level since late May. Meanwhile, Hong Kong's Hang Seng (+3.0%) outperformed with chip and AI-related stocks contributing to the advance amid reports that Chinese officials could restrict foreign access to the country's top AI models. The yen is back near this year's low against the dollar even though Bank of Japan policymaker Asada dropped his opposition to rate hikes, strengthening the central bank's hawkish bias. The Reserve Bank of New Zealand raised its official cash rate by 25 basis points to 2.50%, as expected.

• In economic data:
  • Japan's May Current Account surplus JPY3.06 trln (expected surplus of JPY3.19 trln; last surplus of JPY4.21 trln). June Bank Lending 5.7% yr/yr (expected 5.8%; last 5.7%). June Economy Watchers Current Index 44.0 (expected 44.3; last 43.6)
  • South Korea's May Current Account surplus $38.61 bln (last surplus of $28.29 bln)
  • Australia's May Building Approvals -1.1% m/m, as expected (last -0.2%); 5.3% yr/yr, as expected (last 10.9%)

---Equity Markets---

• Japan's Nikkei: -2.1%
• Hong Kong's Hang Seng: +3.0%
• China's Shanghai Composite: -0.5%
• India's Sensex: -2.2%
• South Korea's Kospi: -5.4%
• Australia's ASX All Ordinaries: -0.3%

Major European indices trade on a sharply lower note with some renewed pressure on sentiment from higher oil prices after Iran's continued attacks on cargo ships in the Strait of Hormuz, which prompted the U.S. Treasury to revoke Iran's permission to sell oil on the global market. In other news, President Trump called for ending all trade with Spain, calling the nation a "terrible partner in NATO." Marine Le Pen confirmed that she will run in next year's presidential election in France after an appeals court ruled that her 15-month office ban has been served.

• In economic data:
  • France's May Current Account deficit EUR100 mln (last deficit of EUR600 mln)

---Equity Markets---

• STOXX Europe 600: -1.2%
• Germany's DAX: -1.8%
• U.K.'s FTSE 100: -0.9%
• France's CAC 40: -1.7%
• Italy's FTSE MIB: -1.0%
• Spain's IBEX 35: -2.2%

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

While most mega-cap tech stocks move lower in the premarket this morning, SpaceX (SPCX 151.40 , +1.93, +1.3%) is an outlier, moving higher after The Information reported the stock is looking to launch a new model with Cursor. The stock retreated nearly 7% in yesterday's session despite a wave of bullish brokerage calls.

Equity futures point to a sharply lower opening this morning as an escalation in hostilities between the U.S. and Iran sends oil prices surging and puts broad pressure on stocks.

Oil-driven volatility played a role in yesterday's lower finish for the major averages, with President Trump revoking the waiver that allowed Iran to sell oil after Iran struck several commercial ships in the Strait of Hormuz. Tensions escalated further overnight, with President Trump declaring the ceasefire over and Axios reporting that fresh U.S. strikes on Iran were four or five times bigger in scope than previous strikes. WTI crude oil is currently up $3.60 (+5.1%) to $74.04 per barrel.

Elsewhere, semiconductor stocks are on track for another lower opening, with concentrated pressure across the group weighing on the major averages yesterday. Memory names are among the worst performers in the premarket.

Today will be lighter on the data side, though the market will receive the minutes for the June FOMC meeting at 2:00 p.m. ET, the first with new Fed Chair Kevin Warsh at the helm. The MBA Mortgage Applications Index for the week ended July 4 decreased 2.2%, from a previously unchanged level.

In corporate news:

• The White House is pressuring grocers to lower beef prices, according to The Wall Street Journal.
• Affordable Care Act premiums will likely rise by double digits next year, according to NBC News.
• Apple (AAPL 309.84, -0.82, -0.2%) expanded its Broadcom (AVGO 369.22, -1.56, -0.4%) agreement with a new $30 billion U.S. chip commitment.
• SK Hynix (SKHY) ADR offering is seeing strong demand, multiple times oversubscribed, according to Reuters.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended the midweek session on a mostly lower note with South Korea's Kospi (-5.4%) falling to its lowest level since late May. Japan's Nikkei: -2.1%, Hong Kong's Hang Seng: +3.0%, China's Shanghai Composite: -0.5%, India's Sensex: -2.2%, South Korea's Kospi: -5.4%, Australia's ASX All Ordinaries: -0.3%.

In news:

• Hong Kong's Hang Seng (+3.0%) outperformed with chip and AI-related stocks contributing to the advance amid reports that Chinese officials could restrict foreign access to the country's top AI models.
• The yen is back near this year's low against the dollar even though Bank of Japan policymaker Asada dropped his opposition to rate hikes, strengthening the central bank's hawkish bias.
• The Reserve Bank of New Zealand raised its official cash rate by 25 basis points to 2.50%, as expected.

In economic data:

• Japan's May Current Account surplus JPY3.06 trln (expected surplus of JPY3.19 trln; last surplus of JPY4.21 trln). June Bank Lending 5.7% yr/yr (expected 5.8%; last 5.7%). June Economy Watchers Current Index 44.0 (expected 44.3; last 43.6)
• South Korea's May Current Account surplus $38.61 bln (last surplus of $28.29 bln)
• Australia's May Building Approvals -1.1% m/m, as expected (last -0.2%); 5.3% yr/yr, as expected (last 10.9%)

Major European indices trade on a sharply lower note with some renewed pressure on sentiment from higher oil prices after Iran's continued attacks on cargo ships in the Strait of Hormuz, which prompted the U.S. Treasury to revoke Iran's permission to sell oil on the global market. STOXX Europe 600: -1.5%, Germany's DAX: -2.1%, U.K.'s FTSE 100: -1.2%, France's CAC 40: -1.9%, Italy's FTSE MIB: -1.1%, Spain's IBEX 35: -2.3%.

In news:

• President Trump called for ending all trade with Spain, calling the nation a "terrible partner in NATO."
• Marine Le Pen confirmed that she will run in next year's presidential election in France after an appeals court ruled that her 15-month office ban has been served.

In economic data:

• France's May Current Account deficit EUR100 mln (last deficit of EUR600 mln)

[BRIEFING.COM] The major averages finished lower today, slipping back toward their session lows as semiconductor weakness and rising oil prices weighed on sentiment. The S&P 500 (-0.5%), Nasdaq Composite (-1.2%), and DJIA (-0.3%) all ended lower, while the Russell 2000 (-0.9%) and S&P Mid Cap 400 (-1.2%) faced even sharper losses.

Semiconductor stocks remained under pressure after Samsung Electronics' preliminary second-quarter results sparked renewed profit-taking across the group. While Samsung reported operating profit that was more than 1,800% higher than a year ago, revenue came in just shy of elevated expectations, reinforcing concerns that much of the optimism surrounding the semiconductor industry may already be reflected in valuations.

The PHLX Semiconductor Index fell 4.7%, as names such as Teradyne (TER 343.11, -36.41, -9.59%) and Intel (INTC 110.39, -11.81, -9.66%) were among the worst-performing S&P 500 components. The weakness weighed heavily on the information technology sector (-1.6%), though losses were not uniform across mega-cap technology.

NVIDIA (NVDA 196.93, +1.38, +0.71%) managed to finish higher, but the Vanguard Mega Cap Growth ETF still declined 0.9%, reflecting broader pressure across several large growth names.

The industrials sector (-1.7%) also lagged as electrical equipment names including Generac (GNRC 235.76, -22.05, -8.55%) continued to move in tandem with semiconductor stocks.

The consumer discretionary sector (-0.4%) finished lower as Tesla (TSLA 402.90, -16.87, -4.02%) fell sharply, while cruise lines and other oil- and rate-sensitive stocks came under pressure amid the surge in oil prices.

The energy sector (+3.0%) was the clear standout as geopolitical tensions pushed crude oil sharply higher. Crude oil futures settled today's session $1.93 higher (+2.8%) at $70.48 per barrel following reports of attacks on three separate ships in the Strait of Hormuz. Oil prices continued to climb after the settlement after CNBC reported, citing a U.S. official, that the Treasury Department is revoking the waiver allowing Iran to sell its oil in response to the strikes.

The communication services sector (+0.6%) was another relative bright spot, supported by broad gains across its components. Meta Platforms (META 615.58, +15.29, +2.55%) was a mega-cap standout after announcing the release of Muse Image, the first image generation model from Meta Superintelligence Labs.

Defensive sectors continued to hold up relatively well, with the health care (+1.6%), utilities (+0.9%), consumer staples (+1.0%), and real estate (+1.5%) sectors maintaining much of their midday strength as investors rotated away from semiconductor stocks.

Today's session reflected a somewhat more cautious tone than was evident earlier in the day. Semiconductor stocks remained the primary source of pressure, while the late-day surge in oil prices added another headwind for smaller-cap stocks and other economically sensitive areas of the market.

Even so, the broader market once again benefited from rotational buying, allowing the S&P 500 to close above the 7,500 level (7,503.85) after spending much of the session below that key technical mark. That resilience has become a defining theme to start the month, with the S&P 500 up 0.1% since the beginning of July despite the PHLX Semiconductor Index falling 13.7% over the same period, underscoring that strength elsewhere in the market continues to offset the semiconductor group's pullback.

U.S. Treasuries retreated on Tuesday, giving back their slim gains from the start of the week and finishing on lows even though the Treasury launched this week's note and bond auction slate with a solid $58 billion 3-year note sale. The 2-year note yield settled up four basis points to 4.16%, and the 10-year note yield settled up five basis points to 4.53%.

• Russell 2000: +20.2% YTD
• S&P Mid Cap 400: +14.2% YTD
• Nasdaq Composite: +11.1% YTD
• DJIA: +10.1% YTD
• S&P 500: +9.6% YTD 

Reviewing today's data:

• May Trade Balance -$77.6 bln (Briefing.com consensus -$78.8 bln); Prior was revised to -$54.6 bln from -$55.9 bln
  • The key takeaway from the report is that it reflected stronger demand for goods in the U.S. versus elsewhere, evidenced by the wide gap between exports and imports in May.