[BRIEFING.COM] The stock market pulled back from this morning's record-highs as oil prices bounced off their earlier lows, with broad weakness sending the S&P 500 (-0.4%), Nasdaq Composite (-0.1%), and DJIA (-0.6%) lower.

The S&P 500 and Nasdaq Composite did manage to capture fresh all-time highs, as a strong showing from software stocks and resilience across mega-cap names initially pushed the indices higher despite relative weakness in the broader market.

The information technology sector (+0.1%) managed a slightly higher finish, but gave up most of its gain that exceeded 1.0% earlier in the session. Software stocks still posted impressive gains, buoyed by several monster rallies across the latest batch of names to report earnings.

Datadog (DDOG 188.73, +45.02, +31.33%) and Fortinet (FTNT 107.97, +18.02, +20.03%) were the best-performing S&P 500 components, contributing to the iShares GS Software ETF's (+3.6%) solid gain. Meanwhile, semiconductor stocks faced some profit-taking after yesterday's rally, sending the PHLX Semiconductor Index 2.7% lower.

NVIDIA (NVDA 211.38, +3.55, +1.71%), however, managed a higher finish, which, in conjunction with Microsoft's (MSFT 420.92, +6.96, +1.68%) gain, helped the sector avoid a loss for the day.

Relative strength across other "magnificent seven" names kept the communication services sector (+0.1%) in positive territory and kept losses modest in the consumer discretionary sector (-0.2%). However, those sectors gave up most of their earlier gains following the intraday bounce in oil prices.

Crude oil traded firmly lower for much of the morning amid lingering optimism that the U.S. and Iran could soon strike a peace deal. Oil bounced off its early lows just before midday, further pressuring the broader market and eroding gains across the technology sector. Crude oil futures ultimately settled today's session $0.33 lower (-0.4%) at $94.89 per barrel.

The U.S. is still awaiting Iran's response to an updated peace proposal, though a senior Iranian official said Iran will not allow the U.S. to reopen the Strait of Hormuz with "an unrealistic plan", according to The Wall Street Journal.

Even with the intraday bounce in oil prices, the energy sector (-1.8%) finished as one of the worst-performing S&P 500 sectors.

The materials (-1.8%) and industrials (-1.6%) sectors posted similar losses. Profit-taking in Caterpillar (CAT 895.26, -31.38, -3.39%) and weakness across electrical product names weighed on industrials, while DuPont (DD 48.37, -1.70, -3.40%), Intl Flavors (IFF 78.26, -4.67, -5.63%), and other recent post-earnings winners pressured materials.

Meanwhile, the latest batch of earnings reports outside of the software space lacked the broader market impact seen earlier this week. McDonald's (MCD 283.66, -0.44, -0.15%), Arm Holdings plc (ARM 213.33, -23.97, -10.10%), and DoorDash (DASH 171.35, +3.38, +2.01%) were among the more notable names to report, though their results did little to alter the overall tone of the session.

Outside of the S&P 500, the Russell 2000 (-1.6%) and S&P Mid Cap 400 (-1.2%) finished with notably steeper losses than the major averages, reflecting the softer tone across the broader market.

Despite today's pullback, the losses remained relatively modest in the context of the market's recent run to record highs. Software stocks provided a notable area of strength following another solid round of earnings reports, though the intraday rebound in oil prices and profit-taking across cyclical areas of the market weighed on broader participation throughout the afternoon.

U.S. Treasuries tried to extend their midweek rally, but some early resistance invited an intraday pullback from two days of gains. The 2-year note yield settled up five basis points to 3.92%, and the 10-year note yield settled up four basis points to 4.39%.

• Russell 2000: +14.4% YTD
• S&P Mid Cap 400: +11.4% YTD
• Nasdaq Composite: +11.0% YTD
• S&P 500: +7.2% YTD
• DJIA: +3.2% YTD

Reviewing today's data:

• Q1 Productivity-Prel 0.8% (Briefing.com consensus 1.8%); Prior was revised to 1.6% from 1.8%, Q1 Unit Labor Costs-Prel 2.3% (Briefing.com consensus 2.7%); Prior was revised to 4.6% from 4.4%
  • The key takeaway from the report is that, while productivity undershot expectations, unit labor costs decelerated in a move that should placate inflation hawks at the Fed. That won't change the prevailing belief that the Fed isn't going to be cutting rates soon, but it will temper some of the budding fears about entertaining the idea of a rate hike.
• Weekly Initial Claims 200K (Briefing.com consensus 205K); Prior was revised to 190K from 189K, Weekly Continuing Claims 1.766 mln; Prior was revised to 1.776 mln from 1.785 mln
  • The key takeaway from the report is its quiet disposition in the sense that it isn't showing wide swings in either initial claims or continuing claims, which suggests some welcome steadiness in the labor market.
• February Construction Spending -0.2% (Briefing.com consensus 0.2%); Prior was revised to -1.9% from -0.3%, March Construction Spending 0.6% (Briefing.com consensus 0.4%); Prior 0.2%
  • The key takeaway from the report is that the strength in March was concentrated in the residential sector and particularly in new single-family construction.
• Consumer credit increased by $24.9 billion in March (Briefing.com consensus: $12.5 billion), the largest increase in a year, following a downwardly revised $8.9 billion increase (from $9.5 billion) in February.
  
  • The key takeaway from the report is the recognition that consumer credit saw its largest expansion in a year, driven by both revolving and nonrevolving credit. The former will stir some concerns about consumers perhaps needing to use credit more in the face of higher energy prices to pay for basic needs.

[BRIEFING.COM] The major averages are a touch above session lows as the market enters the final half hour of the session.

The consumer staples sector (+0.1%) now holds a slight gain, having steadily improved from a lower opening this morning, but the broader market remains lower. 

On the data front, consumer credit increased by $24.9 billion in March (Briefing.com consensus: $12.5 billion), the largest increase in a year, following a downwardly revised $8.9 billion increase (from $9.5 billion) in February.

The key takeaway from the report is the recognition that consumer credit saw its largest expansion in a year, driven by both revolving and nonrevolving credit. The former will stir some concerns about consumers perhaps needing to use credit more in the face of higher energy prices to pay for basic needs.

[BRIEFING.COM] The S&P 500 (-0.4%), Nasdaq Composite (-0.2%), and DJIA (-0.6%) remain lower as the market enters the final hour of the session.

The IGV remains % higher as software names continue to outperform, but weakness across semiconductors and other components finally pushed the information technology sector (-0.1%) below its flatline.

A senior Iranian official told Iran's state broadcaster that the U.S. will not be able to reopen the Strait of Hormuz with an unrealistic plan. Crude oil futures settled today's session $0.33 lower (-0.4%) at $94.89 per barrel, and have since moved higher toward the $96 per barrel mark.

[BRIEFING.COM] The S&P 500 (-0.40%) is in second place on Thursday afternoon, down about 30 points.

Briefly, S&P 500 constituents Zoetis (ZTS 89.28, -21.94, -19.73%), Tapestry (TPR 132.26, -16.57, -11.13%), and Ciena (CIEN 521.49, -55.30, -9.59%) pepper the bottom of the average. ZTS and TPR fall after reporting earnings, while CIEN slides off recent all-time highs (shares were up +146% YTD into this morning's open).

Meanwhile, Axon (AXON 424.45, +38.59, +10.00%) is outperforming after reporting Q1 results that slightly beat expectations and, more importantly, raising its FY26 revenue growth outlook to 30-32% from 27-30%, signaling stronger demand momentum. The company also guided to solid cash flow generation and stable margins, reinforcing confidence in its ability to fund aggressive expansion and long-term R&D investments.

[BRIEFING.COM] The tech-heavy Nasdaq Composite (-0.29%) is down the least among the major averages on Thursday afternoon, slipping about 75 points.

Gold futures settled $16.60 higher (+0.4%) at $4,710.90/oz, as investors continued to lean on the metal as a safe-haven amid lingering geopolitical and policy uncertainty, with steady central bank demand also providing support. The move appeared to be more continuation-driven than event-specific, as bullion remains elevated near record levels with dips consistently attracting buyers.

Meanwhile, the U.S. Dollar Index is less than +0.1% higher to $98.10.

[BRIEFING.COM] The Dow Jones Industrial Average (-0.50%) is in last place on Thursday afternoon, down about 250 points.

A look inside the DJIA shows that Caterpillar (CAT 897.91, -29.02, -3.13%), JPMorgan Chase (JPM 308.69, -6.21, -1.97%), and Merck (MRK 111.77, -1.79, -1.58%) are some of today's top laggards.

Meanwhile, Salesforce (CRM 185.67, +4.48, +2.47%) is holding steady atop the average.

The DJIA is now +0.32% higher on the week.

[BRIEFING.COM] The S&P 500 (-0.2%), Nasdaq Composite (-0.2%), and DJIA (-0.6%) are moving lower lower just after midday, with software and select mega-cap names softening the broader market's pullback from yesterday's rally. The S&P 500 and Nasdaq Composite notched record highs with their earlier gains, but are now at session lows as selling pressure ramps up.

Currently, the information technology sector (+0.3%) is the only S&P 500 sector that holds a gain for the day. Software stocks are decisively winning the latest round of software vs. semiconductors battle that takes place following a sizable batch of earnings reports from software names. Fortinet (FTNT 107.65, +17.70, +19.68%) and Datadog (DDOG 182.94, +39.23, +27.30%) both hold impressive gains after beat-and-raise earnings reports, contributing to strength in the iShares GS Software ETF (+3.5%). Additionally, Microsoft (MSFT 421.70, +7.74, +1.87%) is one of the best-performing "magnificent seven" names.

Meanwhile, the PHLX Semiconductor Index is down 2.6% after yesterday's rally, though it remains over 5% higher for the week. There is some lingering strength across mega-cap names outside of the technology sector, but the Vanguard Mega Cap Growth ETF (+0.3%) has seen its gain considerably eroded, which now leaves the market-weighted S&P 500 (-0.3%) just modestly better off than the S&P 500 Equal Weighted Index (-0.5%) after diverging earlier in the session.

Losses were relatively modest across the other ten S&P 500 sectors for most of the session, though they are beginning to widen. The energy sector (-2.3%) holds the widest loss amid a choppy session for oil prices. After flirting with the $91 per barrel mark this morning, crude oil is now up $0.38 (+0.4%) to $95.46 per barrel, which has contributed to the broader market's move to session lows. The market is still awaiting Iran's response to the latest U.S. peace proposal.

Elsewhere, the industrials sector (-1.3%) lags as Caterpillar (CAT 897.70, -28.94, -3.12%) faces some profit-taking after yesterday's record highs, while electrical product names also underperform.

Outside of the software space, the latest batch of earnings reports lacks the market-moving weight of previous sessions this week. McDonald's (MCD 283.12, -0.98, -0.34%), Arm Holdings plc (ARM 214.14, -23.16, -9.76%), and DoorDash (DASH 167.64, -0.34, -0.20%) are among some of the notable names that reported, though their results have done little to shift the broader tone of the market.

Overall, today's action reflects a market that was primed for at least some consolidation following yesterday's record-setting rally and the recent stretch of broad gains. The reversal in oil prices from this morning's lows has contributed to the move to session lows, though continued strength across software names and select mega-cap stocks is helping limit the pullback at the index level. 

Reviewing today's data:

• Q1 Productivity-Prel 0.8% (Briefing.com consensus 1.8%); Prior was revised to 1.6% from 1.8%, Q1 Unit Labor Costs-Prel 2.3% (Briefing.com consensus 2.7%); Prior was revised to 4.6% from 4.4%
  • The key takeaway from the report is that, while productivity undershot expectations, unit labor costs decelerated in a move that should placate inflation hawks at the Fed. That won't change the prevailing belief that the Fed isn't going to be cutting rates soon, but it will temper some of the budding fears about entertaining the idea of a rate hike.
• Weekly Initial Claims 200K (Briefing.com consensus 205K); Prior was revised to 190K from 189K, Weekly Continuing Claims 1.766 mln; Prior was revised to 1.776 mln from 1.785 mln
  • The key takeaway from the report is its quiet disposition in the sense that it isn't showing wide swings in either initial claims or continuing claims, which suggests some welcome steadiness in the labor market.
• February Construction Spending -0.2% (Briefing.com consensus 0.2%); Prior was revised to -1.9% from -0.3%, March Construction Spending 0.6% (Briefing.com consensus 0.4%); Prior 0.2%
  • The key takeaway from the report is that the strength in March was concentrated in the residential sector and particularly in new single-family construction.

[BRIEFING.COM] The S&P 500 (-0.3%), Nasdaq Composite (-0.1%), and DJIA (-0.4%) are now lower across the board just after midday.

Sector strength has eroded, leaving only the information technology sector (+0.5%) in positive territory, and it too is well off session highs. Crude oil has moved from its earlier lows, currently down $0.57 (-0.6%) to $94.51 per barrel.

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

Fortinet (FTNT 111.01, +21.06, +23.41%) is rocketing higher after delivering a blowout Q1 beat-and-raise quarter that significantly exceeded expectations across virtually every key metric - revenue, billings, product growth, margins, EPS, and free cash flow - while issuing materially higher Q2 and full-year guidance. The results validate FTNT's long-standing investment thesis around integrated networking and security, demonstrate accelerating demand from AI infrastructure buildouts, firewall upgrade cycles, and enterprise platform consolidation, and confirm that the company's proprietary ASIC-driven hardware advantage is paying dividends in an AI-driven world.

Separately, Boeing (BA 234.27, +4.34, +1.89%) has made a nice move higher after CNBC reported that the company's CEO will join President Trump on his trip to China next week.

[BRIEFING.COM] The S&P 500 (+0.2%) and Nasdaq Composite (+0.5%) are charting fresh record highs today as software names surge higher, while the DJIA (-0.1%) is flattish as the broader market takes a step back from yesterday's rally.

Despite stocks in the PHLX Semiconductor Index (-1.2%) facing some profit-taking, the information technology sector (+1.2%) is the top-performing S&P 500 sector, as software names outperform following the latest batch of earnings. Datadog (DDOG 185.92, +42.21, +29.37%) and Fortinet (FTNT 112.08, +22.13, +24.60%) are both sharply higher, contributing to strength in the iShares GS Software ETF (+4.6%). Microsoft (MSFT 425.76, +11.80, +2.85%) is also a mega-cap standout.

Elsewhere, there is some lingering strength across other mega-cap names that helps prevent losses at the index level. Tesla (TSLA 410.00, +11.27, +2.83%) provides solid leadership for the consumer discretionary sector (+0.2%) after Reuters reported that China-produced EV sales increased 36% in April, while Meta Platforms (META 623.28, +10.40, +1.70%) helps keep the communication services sector (+0.2%) in positive territory.

The Vanguard Mega Cap Growth ETF is up 0.9%, and the market-weighted S&P 500 (+0.2%) outperforms the S&P 500 Equal Weighted Index (-0.3%).

Losses across the remaining eight S&P 500 sectors are relatively modest, except for the energy sector (-2.8%), which is pressured by a continued decline in oil prices. Crude oil is currently down $3.52 (-3.7%) to $91.56 per barrel.

The Russell 2000 (-0.5%) and S&P Mid Cap 400 (-0.4%) are also underperforming.

[BRIEFING.COM] The S&P 500 (+0.2%), Nasdaq Composite (+0.7%), and DJIA (-0.1%) continue to trade in a mixed fashion as software and select mega-cap names outperform, while the broader market takes a step back.

On the earnings front, McDonald's (MCD 284.99, +0.89, +0.31%) is trading roughly flat following its Q1 earnings report this morning. The world's largest quick-service restaurant chain reported its largest EPS beat in two years as revenue rose 9.4% year-over-year to $6.52 billion, benefiting from an aggressive push into value offerings. McDonald's delivered a solid Q1 performance with better-than-expected earnings, healthy same-store sales growth, and encouraging market share gains. Its aggressive focus on affordability appears to be resonating with consumers as economic pressures persist. However, management's cautious tone regarding consumer spending trends and the expectation for weaker Q2 comps temper some of the enthusiasm surrounding the quarter.

Meanwhile, Snap (SNAP 6.22, +0.12, +1.88%) is reversing its sharp early losses. The company delivered a modest EPS beat, in-line revenue, and solid user growth, with the early weakness attributed to slowing advertising momentum, continued North America ad weakness, restructuring charges, and only in-line Q2 guidance. Still, beneath the initial market reaction, the quarter showed meaningful progress in revenue diversification, profitability, AI-driven monetization tools, and subscription growth, while management pointed to improving trends in the North America advertising business and expanding traction with SMB advertisers.

[BRIEFING.COM] The Nasdaq Composite (+0.6%) is pushing further into record territory as software names rocket higher, while the S&P 500 (+0.1%), and DJIA (-0.2%) remain pressured by weakness in the broader market.

Construction spending increased 0.6% month-over-month in March (Briefing.com consensus: 0.4%) following a 0.2% decline in February. On a year-over-year basis, construction spending was up 1.6%.

The key takeaway from the report is that the strength in March was concentrated in the residential sector and particularly in new single-family construction.

[BRIEFING.COM] The stock market is off to a quieter start following yesterday's record-setting rally, with the S&P 500 (flat), Nasdaq Composite (+0.2%), and DJIA (-0.1%) currently mixed. Modest opening gains secured fresh record intraday highs for the S&P 500 and Nasdaq Composite.

Sector strength tilts lower, but some resilience across some of the market's largest names is helping keep things steady at the index level.

The consumer discretionary sector (+0.4%) is one of just three S&P 500 sectors that trade higher as shares of Tesla (TSLA 413.08, +14.55, +3.65%) rise after Reuters reported the company's China-produced EV sales increased 36% in April.

Meanwhile, Microsoft (MSFT 424.20, +10.24, +2.47%) holds a similar gain as software stocks benefit from a solid round of earnings results, with Datadog (DDOG 185.13, +41.42, +28.82%), Fortinet (FTNT 109.97, +20.02, +22.26%), and others moving sharply higher.

The iShares GS Software ETF is up 3.2%, which helps the information technology sector (+0.4%) stay in positive territory despite the PHLX Semiconductor Index (-1.9%) giving back some of yesterday's strength.

Losses are relatively modest, with the exception of the energy sector (-2.6%), which continues to slide as oil deepens this week's losses amid optimism around a U.S.-Iran peace agreement. Crude oil is currently down $3.91 (-4.1%) to $91.17 per barrel.

Just released, construction spending increased 0.6% in March (Briefing.com consensus 0.4%) from a 0.3% decrease in February.

The stock market remains on track for a modestly higher opening following several economic data releases this morning.

Initial jobless claims for the week ending May 2 increased by 10,000 to 200,000 (Briefing.com consensus: 205,000), while continuing jobless claims for the week ending April 25 decreased by 10,000 to 1.766 million.

The key takeaway from the report is its quiet disposition in the sense that it isn't showing wide swings in either initial claims or continuing claims, which suggests some welcome steadiness in the labor market.

Separately, nonfarm business sector labor productivity increased 0.8% in the first quarter (Briefing.com consensus: 1.8%) following a downwardly revised 1.6% increase (from 1.8%) in the fourth quarter. Unit labor costs rose 2.3% (Briefing.com consensus: 2.7%) on the heels of an upwardly revised 4.6% increase (from 4.4%) in the fourth quarter.

The key takeaway from the report is that, while productivity undershot expectations, unit labor costs decelerated in a move that should placate inflation hawks at the Fed. That won't change the prevailing belief that the Fed isn't going to be cutting rates soon, but it will temper some of the budding fears about entertaining the idea of a rate hike.

The S&P 500 futures currently trade 10 points above fair value.

Equity indices in the Asia-Pacific region had a strong showing on Thursday with Japan's Nikkei (+5.7%) reaching a fresh record after returning from this week's holidays. Berkshire Hathaway has built voting stakes in two of Japan's five trading houses. Japan's officials indicated that they do not agree with the IMF's "rule" that limits the number of interventions in a six-month period. On a related note, top Japanese officials, including Prime Minister Takaichi, are expected to speak with Treasury Secretary Bessent next week. Indonesia is setting up a plan to stabilize its bond market.

• In economic data:
  • Japan's April Monetary Base -11.3% yr/yr (expected -10.5%; last -11.6%) o Australia's March trade deficit AUD1.84 bln (expected surplus of AUD4.38 bln; last surplus of AUD5.026 bln). March Imports 14.1% m/m (last -2.7%) and Exports -2.7% m/m (last 4.2%)

---Equity Markets---

• Japan's Nikkei: +5.7%
• Hong Kong's Hang Seng: +1.6%
• China's Shanghai Composite: +0.5%
• India's Sensex: -0.2%
• South Korea's Kospi: +1.4%
• Australia's ASX All Ordinaries: +1.0%

Major European indices trade with modest losses while U.K.'s FTSE (-0.6%) lags. Today's local elections are expected to be a setback for the Labour government, which has been steadily losing support since taking power in mid-2024. Germany reported strong Factory Orders growth for March (5.0%), fueling hopes for some improvement in the country's struggling manufacturing sector. Airbus received an order for 150 aircraft from AirAsia. Norges Bank unexpectedly increased its policy rate to 4.25% from 4.00% due to inflation while Riksbank left its policy rate at 1.75% but indicated readiness to act.

• In economic data:
  • Eurozone's March Retail Sales -0.1% m/m (expected -0.3%: last -0.3%); 1.2% yr/yr (expected 1.0%; last 1.3%). April Construction PMI 41.7 (last 44.6)
  • Germany's March Factory Orders 5.0% m/m (expected 1.0%; last 1.4%)
  • U.K.'s April Construction PMI 39.7 (expected 45.8; last 45.6)
  • France's March trade deficit EUR6.9 bln (expected deficit of EUR6.7 bln; last deficit of EUR5.5 bln) and March Current Account deficit EUR8.20 bln (last deficit of EUR1.50 bln)
  • Swiss April Unemployment Rate 3.0%, as expected (last 3.0%)

---Equity Markets---

• STOXX Europe 600: -0.2%
• Germany's DAX: -0.1%
• U.K.'s FTSE 100: -0.6%
• France's CAC 40: +0.1%
• Italy's FTSE MIB: -0.1%
• Spain's IBEX 35: +0.3%

The S&P 500 futures currently trade 11 points above fair value.

Just released, the preliminary Q1 productivity reading checked in at 0.8% (Briefing.com consensus 1.8%), from the revised final Q4 reading of 1.6% (from 1.8%).

The preliminary Q1 unit labor costs reading registered at 2.3% (Brefing.com consensus 2.7%) from the revised final Q4 level of 4.6% (from 4.4%).

Initial jobless claims for the week ending May 2 increased by 10,000 to 200,000 (Briefing.com consensus: 205,000), from the revised prior level of 190,000 (from 189,000).

Continuing jobless claims for the week ending April 25 decreased by 10,000 to 1.766 million from the downwardly revised prior level of 1.776 million (from 1.785 million).

Equity futures point to a modestly higher opening this morning after yesterday's rally pushed the S&P 500 and Nasdaq Composite to fresh record highs, while the DJIA briefly reclaimed the 50,000 mark. Stocks were supported by another largely positive round of earnings reports, including several major semiconductor names, while additional AI-related announcements and partnerships added to the enthusiasm.

The market also received broad support from a sharp retreat in oil prices, as reports signaled the U.S. and Iran could be moving closer to striking a peace deal. The Wall Street Journal reports that the U.S. & Iran could hold talks in Pakistan next week, but major disagreements remain over nuclear enrichment limits.

In the meantime, investors are assessing another wave of earnings reports while waiting on a few economic data releases this morning.

In addition to the weekly initial jobless claims report (Briefing.com consensus 205K), the market will receive the preliminary Q1 Productivity reading (Briefing.com consensus 1.8%) and Unit Labor Costs (Briefing.com consensus 2.7%), followed by March Construction Spending (Briefing.com consensus 0.2%), and finally March consumer Credit (Briefing.com consensus $12.5 billion) this afternoon.

In corporate news:

• The U.S. and China are considering starting AI-focused talks, according to The Wall Street Journal.
• Arm Holdings (ARM 220.47, -16.83, -7.1%) beat EPS expectations by $0.02, beat revenue expectations, and guided Q1 EPS in-line, with revenues above consensus.
• Applovin (APP 474.74, +5.91, +1.3%) beat EPS expectations by $0.12, beat on revenues, and guided Q2 revenues above consensus.
• DoorDash (DASH 184.80, +16.83, +10.02) beat EPS expectations by $0.06, missed on revenues, and reported adjusted EBITDA in-line with prior guidance.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region had a strong showing on Thursday with Japan's Nikkei (+5.7%) reaching a fresh record after returning from this week's holidays. Japan's Nikkei: +5.7%, Hong Kong's Hang Seng: +1.6%, China's Shanghai Composite: +0.5%, India's Sensex: -0.2%, South Korea's Kospi: +1.4%, Australia's ASX All Ordinaries: +1.0%.

In news:

• Berkshire Hathaway has built voting stakes in two of Japan's five trading houses.
• Japan's officials indicated that they do not agree with the IMF's "rule" that limits the number of interventions in a six-month period.
• On a related note, top Japanese officials, including Prime Minister Takaichi, are expected to speak with Treasury Secretary Bessent next week.
• Indonesia is setting up a plan to stabilize its bond market.

In economic data: 

• Japan's April Monetary Base -11.3% yr/yr (expected -10.5%; last -11.6%) o Australia's March trade deficit AUD1.84 bln (expected surplus of AUD4.38 bln; last surplus of AUD5.026 bln). March Imports 14.1% m/m (last -2.7%) and Exports -2.7% m/m (last 4.2%)

Major European indices trade with modest losses while U.K.'s FTSE (-0.6%) lags. STOXX Europe 600: -0.3%, Germany's DAX: -0.3%, U.K.'s FTSE 100: -0.6%, France's CAC 40: -0.2%, Italy's FTSE MIB: -0.1%, Spain's IBEX 35: +0.1%.

In news:

• Today's local elections are expected to be a setback for the Labour government, which has been steadily losing support since taking power in mid-2024.
• Germany reported strong Factory Orders growth for March (5.0%), fueling hopes for some improvement in the country's struggling manufacturing sector.
• Airbus received an order for 150 aircraft from AirAsia.
• Norges Bank unexpectedly increased its policy rate to 4.25% from 4.00% due to inflation while Riksbank left its policy rate at 1.75% but indicated readiness to act.

In economic data:

• Eurozone's March Retail Sales -0.1% m/m (expected -0.3%: last -0.3%); 1.2% yr/yr (expected 1.0%; last 1.3%). April Construction PMI 41.7 (last 44.6)
• Germany's March Factory Orders 5.0% m/m (expected 1.0%; last 1.4%)
• U.K.'s April Construction PMI 39.7 (expected 45.8; last 45.6)
• France's March trade deficit EUR6.9 bln (expected deficit of EUR6.7 bln; last deficit of EUR5.5 bln) and March Current Account deficit EUR8.20 bln (last deficit of EUR1.50 bln)
• Swiss April Unemployment Rate 3.0%, as expected (last 3.0%)

[BRIEFING.COM] The stock market had no shortage of catalysts in today's session, with earnings growth, falling oil prices, and a series of AI-related announcements and partnerships highlighting robust demand, pushing the S&P 500 (+1.5%) and Nasdaq Composite (+2.0%) further into record territory. Strength was broad, and the DJIA (+1.2%) finished with a similar gain, reclaiming the 50,000 mark on an intraday basis.

Semiconductor stocks once again provided solid leadership, with the PHLX Semiconductor Index finishing 4.5% higher and the broader information technology sector (+2.6%) ranking as one of the best-performing S&P 500 sectors. Advanced Micro Devices (AMD 421.47, +66.21, +18.64%) posted a standout Q1 earnings report, triggering a wave of brokerage upgrades and sending peers such as Arm Holdings plc (ARM 237.30, +28.46, +13.63%) and Intel (INTC 113.01, +4.86, +4.49%) higher as well.

Super Micro Computer (SMCI 34.65, +6.82, +24.51%) also posted a double-digit gain after earnings, while Corning (GLW 181.54, +19.44, +11.99%) surged higher after announcing a long-term partnership with NVIDIA (NVDA 207.66, +11.16, +5.68%) to strengthen U.S. manufacturing for AI infrastructure.

Meanwhile, the iShares GS Software ETF finished 0.6% lower as software names lagged amid the enthusiasm for semiconductor stocks.

While strength in the top-weighted technology sector certainly contributed to the index-level advance, participation was broad-based, with nine S&P 500 sectors finishing higher and several notable gains in the mix.

The industrials sector (+2.6%) tied for today's widest gain, with Uber (UBER 79.08, +6.14, +8.41%) leading the advance after a stellar earnings report, while home improvement and airline names were buoyed by the retreat in oil prices.

Crude oil futures settled today's session $6.94 lower (-6.8%) at $95.22 per barrel amid optimism that followed President Trump's decision to suspend U.S. naval escorts through the Strait of Hormuz due to progress in negotiations that could result in a deal soon. Oil reclaimed some of its earlier losses as Iranian officials claimed Washington's negotiation demands are unrealistic, but President Trump told Fox News that he is "cautiously optimistic" a deal will be struck.

Unsurprisingly, the energy sector (-4.1%) moved sharply lower, but strength across cruise lines and homebuilders supported gains in the consumer discretionary sector (+1.4%).

Elsewhere, Walt Disney's (DIS 107.99, +7.51, +7.47%) first earnings release under new CEO Josh D'Amaro led strength in the communication services sector (+2.1%), while Intl Flavors (IFF 82.99, +12.22, +17.27%) logged a monster post-earnings gain to lead the materials sector (+1.9%).

Aside from the energy sector (-4.1%), only the defensive utilities sector (-1.4%) finished lower. Outside of the S&P 500, the Russell 2000 (+1.4%) and S&P Mid Cap 400 (+1.8%) notched gains comparable to the major averages, reflecting the market's broad risk-on tone today.

Today's action underscored the strength of the ongoing earnings cycle and continued AI-driven leadership, with broad participation reinforcing the durability of the rally. With momentum remaining firmly positive and buyers in control, the major indices continue to press deeper into record-high territory.

• Russell 2000: +16.3% YTD
• S&P Mid Cap 400: +12.9% YTD
• Nasdaq Composite: +11.2% YTD
• S&P 500: +7.6% YTD
• DJIA: +3.8% YTD

Reviewing today's data:

• Weekly MBA Mortgage Applications Index -4.4%; Prior -1.6%
• April ADP Employment Change 109K (Briefing.com consensus 79K); Prior was revised to 61K from 62K