[BRIEFING.COM] The stock market saw another day of strong gains in mega-cap and tech stocks, pushing the S&P 500 (+0.8%) to new intraday (7,026.24) and closing (7,022.95) highs. The tech-heavy Nasdaq Composite (+1.6%) notched an even wider gain, and closed at a record high of its own.

Meanwhile, weakness in the broader market saw the DJIA (-0.2%) face a modest retreat as gains were largely confined to growth-oriented pockets of the market.

Equities remain supported by an improving geopolitical backdrop, as reports circulated that the U.S. and Iran may soon meet for another round of negotiations aimed at extending the current ceasefire. Importantly, oil prices remain stable, with crude oil futures settling today's session $0.01 lower (-0.01%) at $91.30 per barrel.

Gains were led by the top-weighted information technology sector (+2.1%), which extended its week-to-date gain to 5.6%. Software names led the advance, with Microsoft (MSFT 411.22, +18.11, +4.61%) a notable "magnificent seven" standout and packaged software names such as Datadog (DDOG 121.06, +10.49, +9.49%) and ServiceNow (NOW 94.19, +6.40, +7.29%) posting even wider gains. The iShares GS Software ETF finished 4.4% higher.

Semiconductor names were relative underperformers, though the PHLX Semiconductor Index (+0.1%) eked out a slight gain. Sandisk (SNDK 891.72, -52.74, -5.58%) deepened yesterday's reversal from a record high, while AI-infrastructure stocks such as KLA Corporation (KLAC 1748.11, -47.80, -2.66%) lagged after ASML (ASML 1481.77, -36.53, -2.41%) topped earnings estimates but lowered its Q2 guidance. Broadcom (AVGO 396.72, +15.94, +4.19%) still captured a nice gain after announcing an expanded partnership with Meta Platforms (META 673.10, +10.60, +1.60%) to support the company's rapidly scaling artificial intelligence compute infrastructure.

Meta's gain contributed to strength in the communication services sector (+1.1%), while the consumer discretionary sector (+1.4%) captured a similar gain as Tesla (TSLA 391.95, +27.75, +7.62%) moved sharply higher.

All told, the Vanguard Mega Cap Growth ETF advanced 1.9%, which contributed to the outperformance of the market-weighted S&P 500 (+0.8%) relative to the S&P 500 Equal Weighted Index (flat).

The financials sector (+0.8%) was the only other S&P 500 sector to notch a gain today, supported by a solid gain from Morgan Stanley (MS 191.60, +8.26, +4.51%) after topping earnings estimates and Robinhood Markets (HOOD 87.32, +8.23, +10.41%) finishing as one of the top-performing S&P 500 components after the SEC approved a proposal from FINRA to eliminate the current day trading margin requirements.

As for the broader market, losses were relatively modest in nature, though there were some notable underperformers.

The industrials sector (-1.2%) underperformed, with names such as Caterpillar (CAT 770.17, -24.08, -3.03%) and Carrier Global (CARR 58.55, -6.11, -9.45%) lagging. Recent Fed commentary suggests rates will remain unchanged for some time in response to oil-driven inflation, and the sector is particularly sensitive to higher rates given its capital-intensive nature and the reliance of its customers on financing for large equipment and infrastructure projects.

Elsewhere, the materials (-1.3%) sector saw a continuation of recent weakness, while the defensive utilities (-0.9%), health care (-0.7%), and consumer staples (-0.4%) underperformed amid the strength in growth stocks.

Outside of the S&P 500, the Russell 2000 (+0.3%) managed to capture a modest gain, while the S&P Mid Cap 400 (-0.3%) lagged.

Today's session marked an important milestone for the market as it looks to leave the Iran war in the rearview, with the S&P 500 eclipsing its previous record high from late January. Mega-cap and tech stocks are back in the driver's seat, which is important for index-level growth, especially since the group was off to a relatively subdued start to the year before the conflict in Iran prompted sharp losses. While the full impact of the surge in oil prices on inflation (and, in turn, rate cut expectations) remains to be seen, the market is back on firmer ground as Q1 earnings begin to ramp up.

U.S. Treasuries dipped on Wednesday, giving back the bulk of their Tuesday gains in an otherwise quiet midweek session. The 2-year note yield settled up two basis points to 3.77%, and the 10-year note yield settled up three basis points to 4.28%. 

• Russell 2000: +9.3% YTD
• S&P Mid Cap 400: +8.0% YTD
• Nasdaq Composite: +3.3% YTD
• S&P 500: +2.6% YTD
• DJIA: +0.8% YTD

Reviewing today's data:

• Weekly MBA Mortgage Applications Index 1.8%; Prior -0.8%
• April Empire State Manufacturing 11.0 (Briefing.com consensus 0.0); Prior -0.2 March Import Prices 0.8%; Prior was revised to 0.9% from 1.3%
• March Import Prices ex-oil 0.6%; Prior was revised to 0.8% from 1.1%
• March Export Prices 1.6%; Prior was revised to 1.9% from 1.5% March Export Prices ex-ag. 1.7%; Prior was revised to 2.1% from 1.7%
• April NAHB Housing Market Index 34 (Briefing.com consensus 38); Prior 38

[BRIEFING.COM] The S&P 500 (+0.8%) and Nasdaq Composite (+1.5%) continue to chart session highs as the market enters the final half hour of the session. In addition to the S&P 500 establishing a new all-time high today, the tech-heavy Nasdaq Composite is now just 0.2% below its own record level from late October.

The DJIA (-0.1%) remains further below its respective record high, but is making a late afternoon push toward its baseline.

Investors will have just a modest batch of earnings reports to assess after the close, but tomorrow morning's action will feature some notable names, including PepsiCo (PEP 155.07, -0.65, -0.42%), Abbott Labs (ABT 101.82, +0.76, +0.76%), and Travelers (TRV 300.96, +1.37, +0.46%).

[BRIEFING.COM] The S&P 500 (+0.7%) pushed past its previous all-time high of 7,002.28, currently sitting around the 7,015 mark.

Nothing material has changed at the sector level, though the information technology sector (+1.7%) has expanded its gain for the day, with software names continuing to dot the top of the sector's leaderboard.

Microsoft (MSFT 413.25, +20.14, +5.12%) continues to move above its 50-day moving average (391.93) which it reclaimed yesterday, and the iShares GS Software ETF has widened its gain to 4.6%.

[BRIEFING.COM] The broader market is still mixed after the Fed released its April Beige Book at the bottom of the hour. The report showed that overall economic activity increased at a slight to modest pace across most Federal Reserve Districts, with some regions reporting little change or modest declines. Manufacturing rose modestly and banking conditions were steady with stable to slightly higher loan demand, while consumer spending edged up despite weather and fuel cost pressures but showed continued financial strain among lower-income households. Housing softened amid higher rates and uncertainty, commercial real estate improved in industrial and data center segments, and energy activity rose slightly as oil prices increased though producers remained cautious. Business outlooks varied amid widespread uncertainty about future conditions. Currently, the S&P 500 (+0.57%) is firmly in second place.

Overall, economic expectations were optimistic, with most Districts expecting slight to moderate growth in the coming months.

• Employment: Employment was largely stable with modest growth, as cautious hiring, improved labor supply, and selective wage pressures in healthcare and skilled trades were partly offset by AI-driven productivity gains reducing the need for additional hiring.
• Prices: Price growth remained mostly moderate, but rising input costs led by energy, tariffs on metals, and higher insurance and healthcare expenses generally outpaced selling prices, compressing margins across many Districts.

Currently, the yield on the benchmark 10-yr Treasury note is little changed post Beige Book, up about three basis points at 4.288%.

[BRIEFING.COM] The tech-heavy Nasdaq Composite (+0.96%) is in first place this afternoon, up about 226 points.

Gold futures settled $26.90 lower (-0.5%) at $4,823.60/oz, as a firmer dollar and reduced expectations for near-term Fed rate cuts weigh on prices. The pullback also reflects profit-taking and easing geopolitical tensions, which have softened safe-haven demand.

Meanwhile, the U.S. Dollar Index is now flat at $98.10.

[BRIEFING.COM] The Dow Jones Industrial Average (-0.34%) remains in last place on Wednesday afternoon, down 166 points.

A look inside the DJIA shows that Caterpillar (CAT 760.18, -34.07, -4.29%), Sherwin-Williams (SHW 327.13, -6.47, -1.94%), and 3M (MMM 150.41, -2.14, -1.40%) are some of today's top laggards.

Meanwhile, Microsoft (MSFT 409.44, +16.33, +4.15%) is solidly higher.

The DJIA is now +0.95% higher on the week.

[BRIEFING.COM] The stock market is seeing a continuation of recent strength in mega-cap and tech names that pushes the S&P 500 (+0.4%) and Nasdaq Composite (+0.9%) higher, though the S&P 500 has run into resistance just below its all-time high of 7,002.28. Meanwhile, weakness in the broader market keeps the DJIA (-0.4%) in negative territory, while the small-cap Russell 2000 (flat) and S&P Mid Cap 400 (-0.3%) lag modestly.

Mega-cap stocks are doing the heavy lifting again today, with the Vanguard Mega Cap Growth ETF (+1.3%) extending its week-to-date gain to 4.9%. The consumer discretionary sector (+1.1%) now holds the widest gain, boosted by a rally in Tesla (TSLA 387.73, +23.53, +6.46%).

The information technology sector (+1.0%) holds a similar gain, with software names resuming their recent rebound effort after a more subdued showing yesterday. Microsoft (MSFT 408.69, +15.58, +3.96%) is another mega-cap standout while Datadog (DDOG 119.20, +8.63, +7.81%) and ServiceNow (NOW 93.52, +5.73, +6.53%) hold even wider gains, pushing the iShares GS Software ETF 3.3% higher.

Meanwhile, the PHLX Semiconductor Index is down 1.5%. Though not a component of the S&P 500, European semiconductor giant ASML (ASML 1418.82, -99.48, -6.55%) topped earnings estimates but lowered its Q2 guidance, which weighs on related stocks such as KLA Corporation (KLAC 1681.60, -114.31, -6.37%) and Lam Research (LRCX 255.49, -16.92, -6.21%).

However, Broadcom (AVGO 389.13, +8.35, +2.19%) trades higher after announcing an expanded partnership with Meta Platforms (META 673.10, +10.60, +1.60%) to support the company's rapidly scaling artificial intelligence compute infrastructure, with Meta's gain contributing to strength in the communication services sector (+0.7%).

The financials sector (+0.8%) also holds a solid gain, supported by strength in Morgan Stanley (MS 191.03, +7.69, +4.19%) after topping earnings estimates, while asset managers such as Ares Management (ARES 119.49, +6.88, +6.11%) continue to rebound from recent lows. Robinhood Markets (HOOD 85.15, +6.06, +7.66%) is the best-performing S&P 500 name today after the SEC approved a proposal from FINRA to eliminate the current day trading margin requirements.

As for today's laggards, the industrials sector (-1.8%) holds the widest loss as machinery bellwethers such as Caterpillar (CAT 758.86, -35.39, -4.46%) and Lennox Int'l (LII 474.88, -45.54, -8.75%) are notably weaker today. The downturn coincides with a push higher in interest rates following comments from Cleveland Fed President Beth Hammack, who stated that rates are in a "good place" and that her base case is for them to remain on hold for "some time."

Elsewhere, the materials sector (-1.6%) sees a continuation of recent weakness, while the defensive health care (-1.0%), utilities (-0.8%), and consumer staples (-0.3%) sectors lag as the market favors more growth-oriented holdings today.

On the geopolitical front, reports continue to indicate that the U.S. and Iran are progressing with negotiations, with Bloomberg reporting that the U.S. and Iran are considering extending their ceasefire by two weeks. Oil prices have stayed relatively calm today, and crude oil is hovering around the $92 per barrel mark.

The S&P 500 briefly came within 0.5 points of its all-time high earlier in the session before easing off modestly, though it remains well within striking distance, supported by recent strength across the market's largest components and a more favorable geopolitical backdrop.

Reviewing today's data:

• Weekly MBA Mortgage Applications Index 1.8%; Prior -0.8%
• April Empire State Manufacturing 11.0 (Briefing.com consensus 0.0); Prior -0.2 March Import Prices 0.8%; Prior was revised to 0.9% from 1.3%
• March Import Prices ex-oil 0.6%; Prior was revised to 0.8% from 1.1%
• March Export Prices 1.6%; Prior was revised to 1.9% from 1.5% March Export Prices ex-ag. 1.7%; Prior was revised to 2.1% from 1.7%
• April NAHB Housing Market Index 34 (Briefing.com consensus 38); Prior 38

[BRIEFING.COM] The S&P 500 (+0.5%) now sits less than five points below its all-time high of 7,002.28.

Robinhood Markets (HOOD 86.73, +7.64, +9.66%) is the best-performing S&P 500 name today after the SEC approved a proposal from FINRA to eliminate the current day trading margin requirements, including the definition of "day trading" and "pattern day trader," as well as the computation and use of day-trading buying power, and the $25,000 minimum equity requirement, and replace these provisions with new intraday margin requirements.

Elsewhere in the financials sector (+0.7%), asset managers such as Ares Management (ARES 120.18, +7.57, +6.72%) and Apollo Global Management (APO 120.26, +5.44, +4.74%) outperform, while strength is mixed across major banking names in reaction to earnings.

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

Broadcom (AVGO 392.35, +11.57, +3.04%) is trading higher following the announcement of an expanded partnership with Meta Platforms (META 675.64, +13.15, +1.98%) to support the company's rapidly scaling artificial intelligence compute infrastructure.

The collaboration centers on the deepening of AVGO's role in co-developing and supplying custom silicon (ASICs) and high-performance networking solutions specifically tailored to handle the unique demands of META's next-generation AI workloads. This extension is directly fueled by META's aggressive capital expenditure on AI infrastructure, as the company seeks to scale inference capabilities and accelerate the training of its large language models across its global data center footprint.

[BRIEFING.COM] The S&P 500 (+0.4%), Nasdaq Composite (+0.9%), and DJIA (+0.4%) are mostly higher just before midday, as continued outperformance in mega-cap and tech stocks outweighs broader market weakness.

Notably, the S&P 500 sits less than 10 points below its all-time high (7,002.28), though it continues to face resistance at the 7,000 level.

The information technology sector (+1.5%) leads gains, supported by another rebound in software names, with iShares GS Software ETF up 3.6%.

The consumer discretionary sector (+0.9%) also trades higher, helped by strength in Tesla (TSLA 387.43, +23.23, +6.38%), while the communication services sector (+0.4%) edges into positive territory on ongoing mega-cap strength. The Vanguard Mega Cap Growth ETF is up 1.3%, extending its week-to-date gain to 4.9%.

Elsewhere, Morgan Stanley (MS 191.91, +8.57, +4.67%) rises after beating earnings estimates this morning, supporting a 0.7% gain in financials.

Outside the S&P 500, the Russell 2000 is flat, while the S&P Mid Cap 400 (-0.4%) gives back some recent gains.

On the macro front, oil is stable, with crude up $1.29 (+1.4%) to $92.5. Reports continue to suggest progress in U.S.-Iran ceasefire talks, helping support a constructive backdrop for equities.

[BRIEFING.COM] The major averages are trading in a stable range, as strength in growth sectors offsets broader market weakness.

ASML (ASML 1447.71, -70.59, -4.65%) is trading lower after reporting its Q1 results this morning. The supplier of EUV lithography systems used to manufacture advanced chips beat EPS and revenue expectations, bouncing back from an EPS miss last quarter, with revenue increasing 13.2% year-over-year to 8.77 billion. It also raised its FY26 revenue guidance to 36-40 billion from 34-39 billion. However, its Q2 guidance came in below expectations at 8.4-9.0 billion. Ultimately, the company topped estimates and spoke constructively about the longer-term outlook for semiconductor growth, though shares are trading lower, which appears to mostly reflect the softer Q2 guidance.

That seems to be weighing on related AI-infrastructures names such as KLA Corporation (KLAC 1726.02, -69.89, -3.89%), Applied Materials (AMAT 386.74, -8.90, -2.25%), and Lam Research (LRCX 262.94, -9.47, -3.48%).

The PHLX Semiconductor Index is down 0.3%, as several large chipmakers, including NVIDIA (NVDA 199.54, +3.02, +1.54%) and Broadcom (AVGO 394.63, +13.85, +3.64%), help pare broader losses across the group.

[BRIEFING.COM] The S&P 500 (+0.4%), Nasdaq Composite (+0.7%), and DJIA (-0.3%) continue to chart a mostly higher course, with the S&P 500 now just 0.1% below its all-time high of 7,002.28.

Sector strength still has a negative tilt, though growth and select cyclical sectors are outperforming.

Morgan Stanley (MS 193.05, +9.71, +5.30%) is trading higher after reporting healthy EPS upside with its Q1 results, marking its tenth consecutive double-digit EPS beat. Revenue grew a robust 16.0% year-over-year to $20.58 billion, coming in nearly $1 billion above expectations, driven by strong performance in trading operations and elevated client engagement. The firm is clearly benefiting from elevated market activity, AI-driven themes, and increased client engagement amid geopolitical uncertainty. Its Institutional Securities segment stood out, particularly with robust growth in equities and fixed income trading. Meanwhile, Wealth Management continues to provide a stable and growing revenue base, supported by strong asset flows and market appreciation.

Bank of America (BAC 54.28, +0.93, +1.74%) is also trading with a positive reaction following its 1Q26 report, as the company exceeded EPS and revenue expectations, continuing the broader trend of outperformance for the banking sector. The company delivered 1Q26 net income of $8.6 billion (+17% year-over-year) and diluted EPS of $1.11 (+25% year-over-year) on revenue of $30.3 billion (+7% year-over-year), driven by broad-based growth across all business segments.

[BRIEFING.COM] The S&P 500 (+0.1%), Nasdaq Composite (+0.5%), and DJIA (-0.3%) trade mostly higher this morning, though the S&P 500 has run into some resistance near its all-time high level.

Strength is limited to just a few sectors, though the top-weighted information technology sector (+0.8%) is helping offset the broader weakness.

Software stocks are resuming their recent rally after a more subdued showing yesterday that followed several sessions of sharp gains. Datadog (DDOG 118.54, +7.98, +7.21%) and ServiceNow (NOW 93.42, +5.62, +6.41%) are among the top-performing S&P 500 components, Microsoft (MSFT 403.54, +10.43, +2.65%) is an early mega-cap standout, and the iShares GS Software ETF is up 2.8%.

NVIDIA (NVDA 198.37, +1.86, +0.95%) and Broadcom (AVGO 395.97, +15.19, +3.99%) also trade higher despite relative weakness across chipmaker names.

Mega-cap stocks are waking up from a mixed opening, which pushes the consumer discretionary (+0.3%) and communication services (+0.3%) sectors into modestly positive territory as well.The Vanguard Mega Cap Growth ETF is up 0.8%

The financials sector (+0.4%) also holds a gain, with Morgan Stanley (MS 191.00, +7.66, +4.18%) trading sharply higher after topping earnings estimates this morning.

Losses are widening elsewhere, with the energy sector (0.6%) trading lower as crude oil hovers around the $91 per barrel mark, while the materials (-1.0%), consumer staples (-1.0%), and utilities (-0.6%) sectors face a continuation of recent weakness.

Just released, the NAHB Housing Market Index contracted to 34 in April (Briefing.com consensus 38) from a prior reading of 38.

The stock market is on track for a flattish opening, though the S&P 500 needs just modest gains to establish a new all-time high.

Oil prices remain stable this morning around the $91 per barrel mark as reports circulate that the U.S. and Iran are courting a ceasefire extension.

Stocks have rallied to start the week, building on gains over the past two weeks that quickly negated losses incurred since the start of the war in Iran. With headlines relatively quiet ahead of the open, the market appears poised to test and potentially break above its all-time highs.

Equity indices in the Asia-Pacific region had a strong sowing on Wednesday with South Korea's Kospi (+2.1%) nearing its record from late February. China's Foreign Ministry vowed to implement countermeasures if the U.S. raises tariffs on China due to the conflict with Iran. IPO proceeds in China were up 60% yr/yr in Q1, according to Shanghai Securities News. China's President Xi met with Russia's Foreign Minister Lavrov. New Zealand's Prime Minister Luxon said that the country's refined fuel supplies for May are secure.

• In economic data:
  • Japan's April Reuters Tankan Index 7 (last 18). February Core Machinery Orders 13.6% m/m (expected -1.1%; last -5.5%); 24.7% yr/yr (expected 8.5%; last 13.7%)
  • South Korea's March Unemployment Rate 2.7% (last 2.9%). March trade surplus $26.24 bln (expected $25.74 bln; last $15.38 bln). March Imports 13.2% yr/yr, as expected (last 7.5%) and Exports 49.2% yr/yr (expected 48.3%; last 28.7%). March Import Price Index 18.4% yr/yr (last 1.6%) and Export Price Index 28.7% yr/yr (last 11.1%)
  • India's March WPI Inflation 3.88% yr/yr (expected 3.00%; last 2.13%). March trade deficit $20.67 bln (expected deficit of $32.75 bln; last deficit of $27.10 bln)

---Equity Markets--- 

• Japan's Nikkei: +0.4%
• Hong Kong's Hang Seng: +0.3%
• China's Shanghai Composite: UNCH
• India's Sensex: +1.6%
• South Korea's Kospi: +2.1%
• Australia's ASX All Ordinaries: +0.2%

Major European indices are mixed with luxury goods names seeing a continuation of recent weakness after Hermes reported disappointing results. Meanwhile, chip fabrication equipment giant ASML reported strong results, raised its guidance, and increased its dividend. European Central Bank President Lagarde repeated that the ECB is in a good position to respond to the Iran conflict, but also said it is too early to determine the full impact of the energy price shock.

• In economic data:
  • Eurozone's February Industrial Production 0.4% m/m (expected 0.3%; last -0.8%); -0.6% yr/yr (expected -1.0%; last -0.6%)
  • France's March CPI 1.0% m/m (expected 0.9%; last 0.6%); 1.7% yr/yr, as expected (last 0.9%)

---Equity Markets---

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

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

Just released, the Empire State Manufacturing Index expanded 11.0% April (Briefing.com consensus 0.0) from a downwardly revised prior decrease of -0.2% (from 0.0%).

Import prices increased 0.8% in March following a downwardly revised prior increase of 0.9% (from 1.3%).

Excluding oil, import prices increased 0.6% after a downwardly revised previous increase of 0.8% (from 1.1%).

Export Prices increased 1.6% in March following an upwardly revised prior increase of 1.9% (from 1.5%).

Excluding agriculture, export prices increased 1.7% after an upwardly revised previous increase of 2.1% (from 1.7%).

Equity futures point to a flattish opening this morning after stocks rallied in the previous two sessions this week, leaving the S&P 500 just 0.5% below its all-time high of 7,002.28.

Oil prices have stabilized as the market remains optimistic that the U.S. and Iran will soon negotiate a more lasting ceasefire agreement. President Trump told Fox Business that the war is 'very close to being over,' with negotiations set to resume on Thursday. The Associated Press reported that mediators are making progress on extending the ceasefire.

The energy sector and a handful of more defensive pockets of the market are down this week, but the broader market has posted broad gains, with strong leadership from mega-caps and other growth areas boosting the major averages.

Earnings reports from the big banks continue to roll in, with Morgan Stanley (MS 188.30, +4.96, +2.7%) making a nice move higher this morning after topping earnings estimates.

The market will receive a sizable batch of economic data this morning, though none of it is considered to be of high trading impact.

The MBA Mortgage Applications Index for the week ended April 11 increased 1.8%, from a prior decrease of 0.8%.

In corporate news:

• The Trump administration is expected to start accepting claims for tariff refunds next week, according to The Wall Street Journal.
• Anthropic could be valued at $800 billion, according to Bloomberg.
• ASML (ASML 1,495.39, -22.91, -1.5%) beat EPS expectations by 0.55, beat revenue expectations, guided Q2 revenues below consensus, and guided FY26 revenues in-line.
• Bank of America (BAC 53.84, +0.49, +0.9%) beat EPS expectations by $0.10 and beat revenue expectations.
• Morgan Stanley (MS 188.30, +4.96, +2.7%) beat EPS and revenue expectations.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region had a strong sowing on Wednesday with South Korea's Kospi (+2.1%) nearing its record from late February. Japan's Nikkei: +0.4%, Hong Kong's Hang Seng: +0.3%, China's Shanghai Composite: UNCH, India's Sensex: +1.6%, South Korea's Kospi: +2.1%, Australia's ASX All Ordinaries: +0.2%.

In news:

• China's Foreign Ministry vowed to implement countermeasures if the U.S. raises tariffs on China due to the conflict with Iran.
• IPO proceeds in China were up 60% yr/yr in Q1, according to Shanghai Securities News.
• China's President Xi met with Russia's Foreign Minister Lavrov.
• New Zealand's Prime Minister Luxon said that the country's refined fuel supplies for May are secure.

In economic data:

• Japan's April Reuters Tankan Index 7 (last 18). February Core Machinery Orders 13.6% m/m (expected -1.1%; last -5.5%); 24.7% yr/yr (expected 8.5%; last 13.7%)
• South Korea's March Unemployment Rate 2.7% (last 2.9%). March trade surplus $26.24 bln (expected $25.74 bln; last $15.38 bln). March Imports 13.2% yr/yr, as expected (last 7.5%) and Exports 49.2% yr/yr (expected 48.3%; last 28.7%). March Import Price Index 18.4% yr/yr (last 1.6%) and Export Price Index 28.7% yr/yr (last 11.1%)
• India's March WPI Inflation 3.88% yr/yr (expected 3.00%; last 2.13%). March trade deficit $20.67 bln (expected deficit of $32.75 bln; last deficit of $27.10 bln)

Major European indices are mixed with luxury goods names seeing a continuation of recent weakness after Hermes reported disappointing results. STOXX Europe 600: UNCH, Germany's DAX: +0.2%, U.K.'s FTSE 100: +0.2%, France's CAC 40: -0.5%, Italy's FTSE MIB: UNCH, Spain's IBEX 35: -0.5%.

In news:

• Meanwhile, chip fabrication equipment giant ASML reported strong results, raised its guidance, and increased its dividend.
• European Central Bank President Lagarde repeated that the ECB is in a good position to respond to the Iran conflict, but also said it is too early to determine the full impact of the energy price shock.

In economic data:

• Eurozone's February Industrial Production 0.4% m/m (expected 0.3%; last -0.8%); -0.6% yr/yr (expected -1.0%; last -0.6%)
• France's March CPI 1.0% m/m (expected 0.9%; last 0.6%); 1.7% yr/yr, as expected (last 0.9%)

[BRIEFING.COM] The stock market continued its strong start to the week as a sharp retreat in oil prices created a favorable backdrop for equities, while mega-cap stocks provided an additional boost by extending yesterday's rally. The S&P 500 (+1.2%), Nasdaq Composite (+2.0%), and DJIA (+0.7%) posted gains that were nearly identical to yesterday's advance, with the major averages now all in positive year-to-date territory.

Lingering optimism around a more permanent ceasefire continues to support the market's sharp rebound over the past several weeks. President Trump told The New York Post that in-person negotiations between the U.S. and Iran could occur within the next two days.

So far, the temporary ceasefire and the U.S. blockade of Iranian ports are holding. Crude oil futures settled today's session $7.66 lower (-7.7%) at $91.31 per barrel.

Today's advance was supported by broad-based strength, with all but the energy (-2.2%), materials (-0.3%), and consumer staples (-0.2%) sectors finishing higher.

Growth-oriented areas led the way, with communication services (+3.2%) and consumer discretionary (+2.5%) sectors posting outsized gains behind continued mega-cap leadership. Meta Platforms (META 662.46, +27.92, +4.40%) was a "magnificent seven" standout, while Amazon (AMZN 248.97, +9.08, +3.79%) traded higher after reports that the company is set to acquire Globalstar (GSAT 79.91, +7.02, +9.63%).

NVIDIA (NVDA 196.46, +7.15, +3.78%) captured a similar gain, and the information technology sector (+1.7%) also finished near the top of today's leaderboard. Micron (MU 465.66, +39.10, +9.17%) was one of the best-performing S&P 500 names today, and the PHLX Semiconductor Index (+2.0%) steadily charted session highs throughout the session.

All told, the Vanguard Mega Cap Growth ETF finished 2.0% higher, helping the market-weighted S&P 500 (+1.2%) outperform the S&P 500 Equal Weighted Index (+0.4%).

Elsewhere, investors had plenty of earnings and corporate news items of note today. The financials sector (+0.2%) captured a modest gain as the market had mixed reactions to the earnings reports of several major banking names. Citigroup (C 129.65, +3.37, +2.67%) was a standout after topping earnings expectations and issuing upside Net Interest Income guidance, while JPMorgan Chase (JPM 311.12, -2.56, -0.82%) also beat expectations but issued a modest downward revision to its FY2026 net interest income.

Meanwhile, Wells Fargo (WFC 81.73, -4.91, -5.67%) was one of the worst-performing S&P 500 components after narrowly topping EPS estimates but missing on revenues.

Airlines also had an eventful session after Bloomberg reported that United Airlines (UAL 97.17, +1.97, +2.07%) floated the possibility of a merger with American Airlines (AAL 12.13, +0.90, +8.01%).

Outside of the S&P 500, the Russell 2000 (+1.4%) captured another solid gain as the market leans into a risk-on tone, while the S&P Mid Cap 400 (+0.5%) finished with a more modest gain.

After two solid days of broad strength, the major averages are back into positive territory for the year as the market shakes off losses tied to the war in Iran. This morning's release of the March PPI report added further support to the rebound narrative, with both the headline (0.5%; Briefing.com consensus 1.2%) and core (0.1%; Briefing.com consensus 0.4%) readings coming in cooler-than-expected.

While there has yet to be a conclusive end to the conflict, the market remains confident that disruptions across global oil markets will pressure Iran into a more durable ceasefire agreement sooner rather than later.

Overall, the tone remains constructive as falling oil prices, easing inflation pressures, and renewed mega-cap leadership continue to support the market's advance. With Q1 earnings season beginning to ramp up, strength in mega-cap names is once again playing an outsized role in driving index performance, leaving the S&P 500 just 0.5% below its all-time high and within striking distance of record territory.

U.S. Treasuries had a solid outing on Tuesday, making for a continuation of an upbeat start to the week amid a growing sense that the Iran conflict will conclude soon. The 2-year note yield settled down three basis points to 3.75%, and the 10-year note yield settled down four basis points to 4.26%. 

• Russell 2000: +9.0% YTD
• S&P Mid Cap 400: +8.3% YTD
• S&P 500: +1.8% YTD
• Nasdaq Composite: +1.7% YTD
• DJIA: +1.0% YTD

Reviewing today's data:

• March NFIB Small Business Optimism 95.8 (Briefing.com consensus 98.0 mln); Prior 98.8
• March PPI 0.5% (Briefing.com consensus 1.2%); Prior was revised to 0.5% from 0.7%, March Core PPI 0.1% (Briefing.com consensus 0.4%); Prior was revised to 0.3% from 0.5%
  • The key takeaway from the report is that the inflation seen at the wholesale level in March was driven largely by energy prices and gasoline prices (+15.7%) in particular. The index for final demand services was unchanged, so the market is giving itself some latitude to look through the energy price shock as something that is temporary.