[BRIEFING.COM] The major averages finished higher as investors rotated back into semiconductor stocks while easing oil prices helped support economically sensitive areas of the market following yesterday's geopolitical-driven selloff. The Nasdaq Composite (+1.3%) led the advance as chipmakers rallied throughout the session, while the S&P 500 (+0.8%) also climbed into the close. The DJIA (+0.3%) posted a more modest gain, reflecting some weakness among several defensive-oriented sectors.

The information technology sector (+1.8%) led the market, supported by a 3.1% gain in the PHLX Semiconductor Index. Nikkei reported that Applied Materials (AMAT 588.66, +18.16, +3.18%) CEO Gary Dickerson said chipmakers are preparing for years of expansion, reinforcing optimism surrounding AI-related capital spending as investors continued buying yesterday's dip.

Memory stocks received an additional boost after Reuters reported that SK Hynix's upcoming U.S. ADS offering is more than seven times oversubscribed, highlighting continued institutional enthusiasm for AI-related semiconductor names. Leadership remained concentrated in memory stocks such as Micron (MU 991.64, +42.84, +4.52%) and Sandisk (SNDK 1857.37, +130.19, +7.54%), semiconductor equipment companies including Lam Research (LRCX 353.17, +20.02, +6.01%), and AI compute and networking names such as Advanced Micro Devices (AMD 546.72, +29.32, +5.67%), suggesting investors continue to favor the highest-conviction AI beneficiaries.

Outside of technology, easing energy prices provided a more supportive backdrop for cyclical sectors. WTI crude oil futures settled down $1.43 (-1.9%) at $72.10 per barrel despite continued exchanges of fire between the U.S. and Iran, helping Treasury yields retreat from yesterday's highs.

The consumer discretionary sector (+1.2%) strengthened into the afternoon, led by cruise operators such as Norwegian Cruise Line (NCLH 19.76, +1.29, +6.98%), while Tesla (TSLA 406.55, +12.49, +3.17%) rebounded sharply from yesterday's weakness.

The industrials sector (+0.4%) also benefited, with trucking companies, including FedEx Freight (FDXF 154.25, +10.95, +7.64%), and airlines contributing to the advance.

The financials (+1.0%) remained among the day's strongest performers as investors continued to buy yesterday's weakness.

Today's retreat in oil prices weighed on the energy sector (-1.6%), while defensive-oriented groups also underperformed amid the renewed appetite for technology stocks. The consumer staples sector (-1.8%) finished as the weakest S&P 500 sector after Costco (COST 912.97, -40.16, -4.21%) declined on softer June comparable sales growth and PepsiCo (PEP 137.86, -4.65, -3.26%) fell despite a narrow earnings beat as its North America results disappointed. The utilities (-0.6%) and health care (-0.1%) sectors also finished lower.

Outside of the S&P 500, the Russell 2000 (+1.2%) and S&P Mid Cap 400 (+1.2%) both rebounded nicely from yesterday's weakness, reflecting a broad improvement in sentiment as oil prices and Treasury yields retreated.

Today's session marked a reversal of several themes that dominated yesterday's trading. While easing oil prices helped broaden participation across portions of the market, semiconductor stocks once again provided the clearest leadership as investors looked past ongoing geopolitical tensions and renewed their focus on the long-term AI investment cycle.

U.S. Treasuries snapped their two-day skid on Thursday, spending the session in a steady bounce off their opening lows. The daylong rally received some intraday support from a strong $22 billion 30-year bond sale, which made for a good finish to this week's trifecta of solid auctions. The 2-year note yield settled down four basis points to 4.16%, and the 10-year note yield settled down three basis points to 4.54%.

• Russell 2000: +20.6% YTD
• S&P Mid Cap 400: +14.4% YTD
• Nasdaq Composite: +12.8% YTD
• S&P 500: +10.2% YTD
• DJIA: +9.2% YTD

Reviewing today's data:

• Weekly Initial Claims 215K (Briefing.com consensus 220K); Prior was revised to 217K from 215K, Weekly Continuing Claims 1.814 mln; Prior was revised to 1.806 mln from 1.814 mln
  • The key takeaway from the report is the same key takeaway as other recent reports: the low level of initial jobless claims continues to reinforce the understanding that layoff activity remains quite low overall.
• June Existing Home Sales 4.09 mln (Briefing.com consensus 4.20 mln); Prior was revised to 4.19 mln from 4.17 mln
  • The key takeaway from the report is that affordability conditions improved across all regions as wage growth outpaced home price growth; however, overall sales were still pressured by high prices and elevated mortgage rates.

[BRIEFING.COM] The major averages remain little changed from previous levels heading into the final half hour of the session.

Delta Air Lines (DAL 88.45, +1.16, +1.33%) kicks off Q2 earnings season for the airline industry tomorrow before the open with a constructive demand backdrop, but a more complicated earnings setup after management flagged an unprecedented jet fuel spike and guided Q2 EPS below consensus. The stock has still held up relatively well, up about 25% since mid-May, although it has pulled back from its recent 52-week high near $96. This print will set the early tone for the group and needs to show that strong premium, corporate, and loyalty demand is translating into enough pricing and margin protection to offset fuel and operational pressures.

Investors care most about whether DAL can convert healthy demand into better-than-feared earnings despite the fuel shock. The quarter is less about proving that people are still traveling and more about proving that DAL's premium mix, loyalty ecosystem, corporate demand, and capacity discipline can protect margins when fuel costs move sharply against the company.

[BRIEFING.COM] The S&P 500 (+0.7%) and Nasdaq Composite (+1.2%) continue to chart session highs this afternoon, while the DJIA (+0.2%) maintains a more modest gain.

Cerebras Systems (CBRS 199.76, +18.04, +9.93%) is sharply higher today following two company-specific announcements aimed at scaling its compute and manufacturing capacity, while also benefiting from a broad semiconductor rally. CBRS develops AI infrastructure built around its wafer-scale processors and CS-3 systems for training and high-speed inference. CBRS announced plans to bring its first European data-center capacity online by year-end 2026 and expand to 200 MW across France and the Nordics by the end of 2027. Some of that capacity is expected to support OpenAI under a multi-year agreement valued at more than $20 billion, covering 750 MW of inference capacity deployed in stages beginning in 2026.

Separately, CBRS expanded its partnership with Flex (FLEX) to scale U.S. manufacturing of its CS-3 systems. New production lines in Milpitas, California are expected to increase CS-3 production capacity approximately sevenfold through 2026, supporting CBRS's ability to scale deployments for OpenAI and other customers as inference demand grows.

[BRIEFING.COM] The S&P 500 (+0.80%) is in second place on Thursday afternoon, up about 60 points.

Briefly, S&P 500 constituents Lumentum (LITE 787.89, +80.79, +11.43%), Hewlett Packard Enterprise (HPE 49.02, +4.35, +9.75%), and Flex (FLEX 143.13, +9.76, +7.32%) dot the top of the standings. LITE, HPE, and FLEX rally as investors rotated back into AI infrastructure stocks tied to data center networking, servers, and hardware demand.

Meanwhile, APA Corp. (APA 33.68, -1.38, -3.92%) slips in the standings as investors took profits in energy names and rotated into AI and technology stocks, overshadowing the company's recent operational update ahead of earnings.

[BRIEFING.COM] The tech-heavy Nasdaq Composite (+1.22%) leads trading among the major averages on Thursday afternoon, up about 315 points.

Gold futures settled $58.40 higher (+1.4%) at $4,140.80/oz, as investors returned to the safe-haven metal amid renewed geopolitical tensions in the Middle East and a weaker U.S. dollar following Wednesday's sharp pullback. Gains were limited after the Federal Reserve's June meeting minutes reinforced expectations that interest rates could remain higher for longer, reducing the appeal of non-yielding assets such as gold.

Meanwhile, the U.S. Dollar Index is now -0.2% lower to $100.88.

[BRIEFING.COM] The Dow Jones Industrial Average (+0.35%) is in last place among the major averages, up about 185 points.

A look inside the DJIA shows that Cisco (CSCO 118.33, +4.51, +3.96%), American Express (AXP 347.11, +10.72, +3.19%), and Goldman Sachs (GS 1063.28, +33.64, +3.27%) are outperforming.

Meanwhile, IBM (IBM 293.81, -8.24, -2.73%) falls to the bottom of the standings.

The DJIA is now +16.6% higher off the late-March 2026 lows.

[BRIEFING.COM] The S&P 500 (+0.7%), Nasdaq Composite (+1.0%), and DJIA (+0.3%) are higher across the board today, supported by continued strength across semiconductor stocks and a retreat in oil prices following yesterday's surge.

The top-weighted information technology sector (+1.6%) leads the advance, with a 4.4% gain in the PHLX Semiconductor Index helping offset weakness among the sector's "Magnificent Seven" components. Nikkei reported that Applied Materials (AMAT 608.23, +37.73, +6.61%) CEO Gary Dickerson said chipmakers are preparing for years of expansion, adding enthusiasm to the group as investors continue buying yesterday's dip.

The strongest pockets of today's rally are memory names such as Micron (MU 1014.45, +65.65, +6.92%) and Sandisk (SNDK 1879.67, +152.49, +8.83%), semiconductor equipment names such as Lam Research (LRCX 356.77, +23.62, +7.09%), and AI compute/networking names such as Advanced Micro Devices (AMD 551.70, +34.30, +6.63%), suggesting investors are rotating back into the highest-conviction AI beneficiaries rather than defensive areas.

Performance is mixed outside of the technology sector, with six S&P 500 sectors trading higher. Several cyclical sectors are rebounding from a weaker showing in the previous session as oil prices, and in turn Treasury yields, retreat from yesterday's highs. WTI crude oil is currently down $1.48 (-2.0%) to $72.04 per barrel despite the U.S. and Iran exchanging fire again today.

The consumer discretionary sector (+0.4%) is supported by gains in cruise operators such as Norwegian Cruise Line (NCLH 19.88, +1.41, +7.63%), while trucking companies, including FedEx Freight (FDXF 153.27, +9.97, +6.96%), along with airlines, are lifting the industrials sector (+0.8%).

The financials sector (+1.2%) is another standout, reflecting a more supportive backdrop today along with some buy-the-dip interest after yesterday's particularly weak showing.

Similarly, the Russell 2000 (+1.2%) and S&P Mid Cap 400 (+1.8%) are outperforming.

Unsurprisingly, the energy sector (-1.3%) is a laggard amid the pullback in oil prices, while more defensive-oriented sectors generally underperform as semiconductor stocks surge higher. The consumer staples sector (-1.6%) is particularly weak, with Costco (COST 912.68, -40.45, -4.24%) moving lower after its June adjusted comparable sales (+7%) trailed May's (+8%), while PepsiCo (PEP 137.87, -4.62, -3.25%) lags after narrowly beating EPS expectations, though its North America results were softer than expected.

While today's gains have broadened beyond technology, semiconductor stocks continue to drive the market's leadership. The combination of easing oil prices and renewed AI enthusiasm has helped investors look past ongoing geopolitical tensions for now.

Reviewing today's data:

• Weekly Initial Claims 215K (Briefing.com consensus 220K); Prior was revised to 217K from 215K, Weekly Continuing Claims 1.814 mln; Prior was revised to 1.806 mln from 1.814 mln
  • The key takeaway from the report is the same key takeaway as other recent reports: the low level of initial jobless claims continues to reinforce the understanding that layoff activity remains quite low overall.
• June Existing Home Sales 4.09 mln (Briefing.com consensus 4.20 mln); Prior was revised to 4.19 mln from 4.17 mln
  • The key takeaway from the report is that affordability conditions improved across all regions as wage growth outpaced home price growth; however, overall sales were still pressured by high prices and elevated mortgage rates.

[BRIEFING.COM] The S&P 500 (+0.7%), Nasdaq Composite (+0.9%), and DJIA (+0.4%) are charting session highs just after midday.

Crude oil continues to move off yesterday's highs, culminating in gains across a variety of oil-sensitive stocks. Within the consumer discretionary sector (+0.4%), cruise stocks such as Norwegian Cruise Line (NCLH 19.96, +1.49, +8.07%) and Carnival (CCL 26.85, +1.21, +4.72%) lead the advance.

A similar theme is playing out across the industrials sector (+0.9%), as trucking names such as FedEx Freight (FDXF 152.61, +9.31, +6.50%) and Old Dominion (ODFL 227.14, +8.89, +4.07%) lead the strength while airlines also contribute solid gains.

[BRIEFING.COM] The major averages continue to trade higher at midday.

Paramount Skydance (PSKY 9.20, -0.54, -5.59%) is the worst-performing S&P 500 stock today after Reuters reported that states could file a lawsuit next week to block its merger with Warner Bros. Discovery (WBD 26.28, +0.12, +0.48%).

The loss weighs on the communication services sector (-1.4%), which also faces pressure from its largest component, Alphabet (GOOG 350.32, -8.38, -2.34%), as mega-cap tech names outside of the semiconductor space put up mixed performances today.

[BRIEFING.COM] The S&P 500 (+0.5%), Nasdaq Composite (+0.6%), and DJIA (+0.2%) trade higher just before midday as investors continue to buy the recent dip across semiconductor names while the broader market has improved since the open.

The PHLX Semiconductor Index is up 4.4%, buoyed by bullish commentary from Applied Materials' (AMAT 608.02, +37.52, +6.58%)CEO and enthusiasm across memory names after reports that SK Hynix's (SKHY) ADS debut is more than seven times oversubscribed. The information technology sector (+1.6%) holds the widest gain so far.

Despite the enthusiasm across semiconductor stocks today, the S&P 500 Equal Weighted Index (+0.9%) is outperforming the market-weighted S&P 500 (+0.5%). Seven S&P 500 sectors trade higher, with solid gains across cyclical sectors, including financials (+0.9%) and industrials (+0.7%), after yesterday's oil-driven retreat. Crude oil is currently down $1.40 (-1.9%) to $72.12 per barrel despite the U.S. and Iran continuing to exchange fire. The energy sector (-1.1%) is giving back some of yesterday's advance as a result.

The Russell 2000 (+1.2%) and S&P Mid Cap 400 (+0.7%) are benefiting from the retreat in oil prices, which has also pushed Treasury yields lower across the curve.

[BRIEFING.COM] The major averages remain modestly higher.

Amid the enthusiasm across semiconductor stocks today, the defensive consumer staples sector (-1.4%) is a laggard, with a few corporate news items contributing to the retreat.

PepsiCo (PEP 136.96, -5.54, -3.89%)  is trading lower after reporting a narrowly better-than-expected Q2 this morning. Core EPS of $2.20 modestly beat expectations, while revenue rose 6.4% to $24.18 billion, roughly in line. PEP also reaffirmed FY26 guidance for 5-7% core EPS growth and 4-6% reported revenue growth. However, North America was softer than anticipated, with both foods and beverages losing momentum from Q1. That overshadowed positive global volume growth and continued international strength. Management also sounded more cautious, now expecting a more gradual improvement in North America through the balance of the year.

Costco (COST 909.30, -43.83, -4.60%) holds a similar loss after reporting June adjusted comparable sales of +7%, which was lower than the 8% reported in May.

[BRIEFING.COM] The S&P 500 (+0.3%), Nasdaq Composite (+0.2%), and DJIA (+0.2%) hold on to modest early gains. Semiconductor stocks have come down some from their opening highs, but that has been balanced out by improvements in the broader market, with seven S&P 500 sectors now trading higher.

Existing home sales decreased 2.4% month-over-month in June to a seasonally adjusted annual rate of 4.09 million (Briefing.com consensus: 4.20 million) from an upwardly revised 4.19 million (from 4.17 million) in May. Sales were up 2.8% on a year-over-year basis.

The key takeaway from the report is that affordability conditions improved across all regions as wage growth outpaced home price growth; however, overall sales were still pressured by high prices and elevated mortgage rates.

[BRIEFING.COM] The S&P 500 (+0.4%), Nasdaq Composite (+0.6%), and DJIA (+0.1%) are modestly higher as another strong showing from semiconductor names outweighs mixed strength elsewhere.

The top-weighted information technology sector (+1.4%) leads the advance, buoyed by a 5.1% gain in the PHLX Semiconductor Index, which now trades firmly higher for the week. Applied Materials (AMAT 625.76, +55.26, +9.69%) is extending yesterday's rally, while Lam Research (LRCX 364.52, +31.36, +9.41%) and KLA Corporation (KLAC 244.59, +23.41, +10.58%) hold similar gains.

Gains are more modest elsewhere, though several cyclical sectors that traded lower yesterday, such as the industrials (+0.6%) and financials (+0.5%) sectors, are rebounding today.

Meanwhile, PepsiCo's (PEP 135.38, -7.12, -4.99%) earnings weigh on the consumer staples sector (-1.7%), while Paramount Skydance (PSKY 8.94, -0.81, -8.32%) is the worst-performing S&P 500 name, weighing on the communication services sector (-1.4%) amid reports that states could sue to block the merger with Warner Bros. Discovery (WBD 26.30, +0.14, +0.55%).

The energy sector (-1.1%) is also a laggard as crude oil gives back some of yesterday's gains, though reports indicate shipping through the Strait of Hormuz remains at a near standstill.

Just released, existing home sales decreased 2.4% month-over-month in June to a seasonally adjusted annual rate of 4.09 million (Briefing.com consensus 4.20 million) from an upwardly revised 4.19 million (from 4.17 million) in May.

The stock market is on track for a higher open as continued enthusiasm across semiconductor stocks helps offset some oil-driven volatility in the broader market.

For the week ending July 4, initial jobless claims decreased by 2,000 to 215,000 (Briefing.com consensus: 220,000), which is the same level they were at in December 2025. For the week ending June 27, continuing jobless claims increased by 8,000 to 1.814 million, which is roughly where they stood in March.

The key takeaway from the report is the same key takeaway as other recent reports: the low level of initial jobless claims continues to reinforce the understanding that layoff activity remains quite low overall.

The S&P 500 futures currently trade 12 points above fair value.

Equity indices in the Asia-Pacific region had a mostly higher showing on Thursday. South Korea's Kospi (+0.6%) hit a seven-week low before bouncing. Shares of SK Hynix will begin trading in the U.S. tomorrow with the listing reportedly oversubscribed by more than 7x. Alibaba's preliminary Q1 results showed renewed growth in the company's e-commerce business. China's June CPI was cooler than expected, continuing a prolonged trend. Former Bank of Japan official Watanabe said that the BoJ could raise its policy rate above 2.0%. New Zealand's Manufacturing PMI for June expanded at its fastest pace since 2021.

• In economic data:
  • China's June CPI -0.3% m/m (expected -0.2%; last -0.1%); 1.0% yr/yr (expected 1.1%; last 1.2%). June PPI 4.1% yr/yr, as expected (last 3.9%)
  • Japan's June Machine Tool Orders 0.9% m/m (expected -0.3%; last 0.8%)
  • New Zealand's June Manufacturing PMI 59.7 (last 51.3)

---Equity Markets---

• Japan's Nikkei: +1.4%
• Hong Kong's Hang Seng: -0.7%
• China's Shanghai Composite: +1.7%
• India's Sensex: +0.3%
• South Korea's Kospi: +0.6%
• Australia's ASX All Ordinaries: -0.2%

Major European indices trade in the green while the U.K.'s FTSE (-0.6%) lags with AstraZeneca down nearly 10% after a drug in its pipeline failed clinical trials. The U.K.'s probable next prime minister will reportedly focus on aiding small businesses and improving the cost of living. Hugo Boss rejected a $2.2 bln takeover offer from Frasers.

• In economic data:
  • Germany's May trade surplus EUR19.1 bln (expected EUR14.9 bln; last EUR14.7 bln). May Imports -2.5% m/m (expected 0.1%; last 1.1%) and Exports 0.9% m/m (expected -0.3%; last 0.8%)

---Equity Markets---

• STOXX Europe 600: +0.4%
• Germany's DAX: +0.5%
• U.K.'s FTSE 100: -0.6%
• France's CAC 40: +0.6%
• Italy's FTSE MIB: +0.8%
• Spain's IBEX 35: +1.2%

The S&P 500 futures currently trade 18 points above fair value.

Initial jobless claims for the week ending July 4 declined by 2,000 to 215,000 (Briefing.com consensus: 220,000) from an upwardly revised previous level of 217,000 (from 215,000).

Continuing jobless claims for the week ending June 27 increased by 8,000 to 1.814 million from a downwardly revised previous level of 1.806 million (from 1.814 million).

Equity futures point to a mixed opening this morning as the stock market is poised to see a continuation of yesterday's trends.

While oil prices are just modestly higher after yesterday's spike, the U.S. and Iran continue to exchange fire, with Bloomberg reporting that traffic in the Strait of Hormuz remains at a near standstill. The re-escalation in tensions put broad pressure on the market yesterday, and sent many oil-and rate-sensitive stocks sharply lower.

The S&P 500 and DJIA retreated, though the Nasdaq Composite logged a modestly higher finish due to a solid rotation back into semiconductor stocks. So far, chipmakers are seeing a continuation of that momentum, with futures tied to the Nasdaq firmly higher as a result.

On the data front, the market is set to receive weekly initial jobless claims data at 8:30 a.m. ET (Briefing.com consensus 220,000) followed by June existing home sales (Briefing.com consensus 4.20 million) at 10:00 a.m. ET.

In corporate news:

• AstraZeneca (AZN 174.22, -15.07, -8.0%) is sharply lower after a drug in its pipeline misses its primary endpoint in a clinical trial.
• Levi Strauss (LEVI 23.35, -1.02, -4.2%) beat EPS expectations by $0.04, beat revenue expectations, raised its FY26 EPS expectations, and increased its dividend.
• Meta Platforms (META 587.74, -15.38, -2.6%) will place AI chip into production in September as it aims to double computing capacity, according to Reuters.
• PepsiCo (PEP 140.00, -2.49, -2.1%) beat EPS expectations by $0.02, reported revenues in-line, and reaffirmed FY26 guidance.
• SK Hynix's (SKHY) U.S. listing is more than 7 times oversubscribed, according to Bloomberg.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region had a mostly higher showing on Thursday. Japan's Nikkei: +1.4%, Hong Kong's Hang Seng: -0.7%, China's Shanghai Composite: +1.7%, India's Sensex: +0.3%, South Korea's Kospi: +0.6%, Australia's ASX All Ordinaries: -0.2%.

In news:

• South Korea's Kospi (+0.6%) hit a seven-week low before bouncing.
• Shares of SK Hynix will begin trading in the U.S. tomorrow with the listing reportedly oversubscribed by more than 7x.
• Alibaba's preliminary Q1 results showed renewed growth in the company's e-commerce business.
• China's June CPI was cooler than expected, continuing a prolonged trend.
• Former Bank of Japan official Watanabe said that the BoJ could raise its policy rate above 2.0%.
• New Zealand's Manufacturing PMI for June expanded at its fastest pace since 2021.

In economic data:

• China's June CPI -0.3% m/m (expected -0.2%; last -0.1%); 1.0% yr/yr (expected 1.1%; last 1.2%). June PPI 4.1% yr/yr, as expected (last 3.9%)
• Japan's June Machine Tool Orders 0.9% m/m (expected -0.3%; last 0.8%)
• New Zealand's June Manufacturing PMI 59.7 (last 51.3)

Major European indices trade in the green while the U.K.'s FTSE (-0.6%) lags with AstraZeneca down nearly 10% after a drug in its pipeline failed clinical trials. STOXX Europe 600: +0.1%, Germany's DAX: +0.3%, U.K.'s FTSE 100: -0.6%, France's CAC 40: +0.5%, Italy's FTSE MIB: +0.8%, Spain's IBEX 35: +1.2%.

In news:

• The U.K.'s probable next prime minister will reportedly focus on aiding small businesses and improving the cost of living.
• Hugo Boss rejected a $2.2 bln takeover offer from Frasers.

In economic data:

• Germany's May trade surplus EUR19.1 bln (expected EUR14.9 bln; last EUR14.7 bln). May Imports -2.5% m/m (expected 0.1%; last 1.1%) and Exports 0.9% m/m (expected -0.3%; last 0.8%)

[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.