[BRIEFING.COM] The stock market capped an impressive week with a strong rally as retreating oil prices, improved rate-cut odds, and broadening participation pushed stocks further into record territory. The S&P 500 (+1.2%) and Nasdaq Composite (+1.5%) notched record intraday and closing highs for the third consecutive session, with the Nasdaq Composite locking in a 13th consecutive higher finish, a feat not accomplished since 1992.

Solid participation across the broader market helped the DJIA (+1.8%) slightly outperform, while expectations for a potentially more favorable interest rate environment saw the Russell 2000 (+2.1%) and S&P Mid Cap 400 (+2.0%) capture even wider gains.

Stocks soared higher at the open following an announcement from Iran's foreign minister that the Strait of Hormuz will reopen to commercial traffic for the remainder of the U.S.-Iran ceasefire, which is set to expire on Tuesday. Additionally, The Wall Street Journal reported that the next round of talks between the two nations is likely to take place on Monday in Pakistan, and President Trump announced that Iran has indefinitely suspended its nuclear program.

Crude oil futures settled today's session $10.49 lower (-11.1%) at $84.22 per barrel, paving the way for broad participation and some impressive gains.

Airlines and cruise lines such as United Airlines (UAL 101.78, +6.75, +7.10%) and Royal Caribbean (RCL 285.48, +19.53, +7.34%) outperformed as oil retreated, contributing to strength in the consumer discretionary (+2.0%) and industrials (+1.8%) sectors.

Both sectors were also supported by solid gains across rate-sensitive stocks such as homebuilders and building supply names. The iShares U.S. Home Construction ETF finished 4.6% higher.

The pullback in oil prices has tempered the market's inflation expectations, and the CME FedWatch tool is now assigning a 50% probability to a rate cut of at least 25 basis points at the December FOMC meeting, up from around 30% yesterday.

Elsewhere, the top weighted information technology sector (+1.6%) also kept pace with the gains with semiconductor stocks leading the sector's advance, pushing the PHLX Semiconductor Index 2.4% higher.

Apple (AAPL 270.23, +6.83, +2.59%) was one of the best-performing "magnificent seven" stocks after Reuters reported China iPhone shipments increased 20% in the first quarter.

The communication services sector (+0.8%) logged one of the narrower gains today as Netflix (NFLX 97.31, -10.48, -9.72%) moved sharply lower after issuing disappointing Q2 guidance in its earnings release yesterday. Still, the sector finished well off its session lows due to strong leadership from its mega-cap components Alphabet (GOOG 339.40, +6.63, +1.99%) and Meta Platforms (META 688.55, +11.68, +1.73%). The Vanguard Mega Cap Growth ETF finished 1.4% higher.

Only the energy (-2.9%) and utilities (-0.4%) sectors finished lower.

Momentum remains firmly to the upside, with buyers continuing to push stocks into record territory with relative ease. The major averages have now notched week-to-date gains of at least 3% for three consecutive weeks, underscoring the strength of the rally as easing geopolitical tensions and improving rate-cut expectations continue to reinforce the market's bullish backdrop.

U.S. Treasuries had a strong finish to the week, pressuring yields on most tenors to their lowest closing levels in a month. The 2-year note yield settled down eight basis points to 3.70% (-10 basis points this week), and the 10-year note yield settled down six basis points to 4.25% (-7 basis points this week).

There was no economic data of note today.

• Russell 2000: +11.9% YTD
• S&P Mid Cap 400: +10.3% YTD
• Nasdaq Composite: +5.3% YTD
• S&P 500: +4.1% YTD
• DJIA: +2.9% YTD

[BRIEFING.COM] The S&P 500 (+1.1%), Nasdaq Composite (+1.4%), and DJIA (+1.7%) remain well positioned to end the week on a higher note. If the Nasdaq Composite maintains even the slightest gain into the close, it will mark the 13th consecutive higher finish, a feat not achieved since 1992.

Notably, today's rally put the potential for a December rate cut back on the table, with the implied likelihood of a reduction at that time now essentially a toss-up, up from just 30% yesterday according to the CME FedWatch tool.

[BRIEFING.COM] The S&P 500 (+1.1%), Nasdaq Composite (+1.4%), and DJIA (+1.8%) are modestly below their best levels of the session, but remain firmly higher as the market enters the final hour of this week's action.

Geopolitical developments continue to generate headlines this afternoon, with The Wall Street Journal reporting that the next round of talks between the U.S. and Iran will likely be held on Monday in Pakistan.

Additionally, CNBC reported that the first cruise ship transited the Strait of Hormuz since the start of the War in Iran. Crude oil futures settled today's session $10.49 lower (-11.1%) at $84.22 per barrel.

[BRIEFING.COM] The S&P 500 (+1.18%) is up about 83 points this afternoon.

Briefly, S&P 500 constituents Carvana (CVNA 388.13, +25.89, +7.15%), Builders FirstSource (BLDR 89.08, +5.18, +6.17%), and Dollar Tree (DLTR 105.23, +5.30, +5.30%) pepper the top of the standings. BLDR rallies alongside fellow homebuilders in response to falling interest rates.

Meanwhile, CF Industries (CF 112.69, -12.02, -9.64%) is weaker alongside fertilizer peers as Iran agreed to open up the Strait of Hormuz, freeing up the supply chain which in theory would bring down fertilizer prices.

[BRIEFING.COM] The tech-heavy Nasdaq Composite (+1.49%) is in second place this afternoon, up about 360 points.

Gold futures settled $71.30 higher (+1.5%) at $4,879.60/oz, up then about +1.9% on the week, supported by a weaker U.S. dollar and declining oil prices as easing U.S./Iran tensions reduced inflation expectations and reinforced prospects for Fed rate cuts. The move was further underpinned by ongoing safe-haven demand and momentum buying, keeping bullion on track for a solid weekly gain despite an improving risk backdrop.

Meanwhile, the U.S. Dollar Index is down about -0.2% to $97.98.

[BRIEFING.COM] The Dow Jones Industrial Average (+1.95%) is in first place on Friday afternoon, up about 950 points.

A look inside the DJIA shows that Sherwin-Williams (SHW 347.92, +14.58, +4.37%), Home Depot (HD 349.49, +12.34, +3.66%), and 3M (MMM 155.65, +5.10, +3.39%) are solidly higher.

Meanwhile, Chevron (CVX 182.46, -5.69, -3.02%) is the sole laggard in the average on Friday.

The DJIA is poised to end +3.36% higher on the week.

Also, at the top of the hour, Baker Hughes (BKR 60.35, -0.25, -0.41%) announced a weekly U.S. rotary rig count of 543, -2 w/w and -42 yr/yr.

[BRIEFING.COM] Stocks are surging today as oil prices face a sharp pullback following an announcement from Iran's foreign minister that the Strait of Hormuz will reopen to commercial traffic for the remainder of the U.S.-Iran ceasefire, which is set to expire on Tuesday. The DJIA (+2.3%) leads the major averages due to broad strength, while the advances of the S&P 500 (+1.5%) and Nasdaq Composite (+1.7%) have the indices pushing further into record territory. 

The announcement added fuel to what was already a notably constructive week for equities, with the major averages on track for their third straight week of gains of 3% or higher. While Iran has threatened to close the Strait again if the U.S. blockade is not lifted, reports that the two nations have made progress towards peace negotiations keep the geopolitical backdrop overwhelmingly positive.

Importantly, crude oil is down $9.84 (-10.8%) to $81.33 per barrel, prompting broad strength across the market and some impressive gains.

The consumer discretionary sector (+3.0%) holds the widest gain across S&P 500 sectors, with cruise lines such as Royal Caribbean (RCL 291.65, +25.70, +9.66%) boasting gains that near double-digits. Additionally, homebuilders are sharply higher in response to falling interest rates. The iShares Dow Jones US Homebuilder ETF is up 6.0%.

A similar pattern is playing out across the industrials sector (+2.6%) as airlines such as United Airlines (UAL 103.37, +8.34, +8.77%) surge amid the oil retreat while home improvement and building products stocks outperform in response to falling rates.

Eight total S&P 500 sectors trade higher, and seven of those hold gains of 1.0% or wider.

Tech and mega-cap stocks are keeping pace, with the Vanguard Mega Cap Growth ETF up 1.6% and the PHLX Semiconductor Index up 2.2%.

Meanwhile, the energy sector (-3.6%) pulls back as oil retreats, while the defensive utilities sector (-0.8%) misses out on the risk-on rally.

The communications services sector (+0.3%) is also a relative underperformer, weighed down by Netflix (NFLX 97.20, -10.59, -9.82%) after the company topped earnings estimates but issued disappointing Q2 guidance.

Outside of the S&P 500, the Russell 2000 (+2.6%) and S&P Mid Cap 400 (+2.5%) outperform amid hopes that easing inflation tied to oil could result in a friendlier rate environment.

Today's action solidifies the recent surge in momentum that has the S&P 500 and Nasdaq Composite venturing further into record territory with relative ease. The Nasdaq Composite is on track for its 13th consecutive higher finish, a feat not accomplished since 1992, underscoring the extent of the market's upside momentum as investors head into the weekend, which is expected to bring further U.S.-Iran negotiations.

There was no economic data of note today. 

[BRIEFING.COM] The S&P 500 (+1.4%), Nasdaq Composite (1.6%), and DJIA (+2.2%) continue to inch higher shortly after midday.

Bloomberg reports that President Trump said Iran has agreed to indefinitely suspend its nuclear program, adding to a more conciliatory tone ahead of potential U.S.-Iran negotiations this weekend.

[BRIEFING.COM] The major averages are maintaining their impressive gains at midday.

Dow (DOW 35.20, -4.72, -11.84%), LyondellBasell Industries LyondellBasell (LYB 66.50, -8.80, -11.68%), and Celanese (CE 62.30, -6.04, -8.84%) are getting hit hard today as easing geopolitical tensions with Iran-highlighted by the reopening of the Strait of Hormuz and signs of progress in negotiations-drive a sharp pullback in energy and petrochemical prices.

These developments are pressuring chemical equities because lower oil and natural gas prices typically compress spreads and reduce pricing power across key products like polyethylene and other derivatives.

The selloff also reflects a reversal of the recent bullish setup, where supply disruptions and elevated energy prices had tightened global chemical markets and supported margin expansion expectations.

Despite the pronounced weakness, the materials sector (+1.0%) still trade higher as strength is broad elsewhere. Sherwin-Williams (SHW 349.08, +15.74, +4.72%) and Amcor (AMCR 42.07, +1.89, +4.70%) are among the outperformers.

[BRIEFING.COM] The stock market is rallying today following an announcement from Iran's foreign minister that the Strait of Hormuz will reopen to commercial traffic for the duration of the ceasefire, which is set to expire on Tuesday. The announcement, which came just before the open, added even more enthusiasm to a market that was already on track for solid opening gains.

Oil prices plummeted, with crude oil hovering around the $80 per barrel mark, currently $10.60 (-11.6%) lower at $80.57 per barrel.

The S&P 500 (+1.2%) and Nasdaq Composite (+1.5%) quickly notched fresh record highs, while broad participation lifted the DJIA (+2.0%) with an even wider gain. The Russell 2000 (+2.2%) and S&P Mid Cap 400 (+2.2%) hold similar gains as the market leans into the risk-on enthusiasm. 

Oil-sensitive stocks such as airlines and cruise lines are among the top performers, while rate-sensitive pockets of the market are also benefiting. The iShares U.S. Home Construction ETF is up 5.6%.

The Nasdaq Composite is on track to extend its winning streak to 13 consecutive sessions, which is the longest streak since 1992.

[BRIEFING.COM] The major averages continue to steadily chart session highs, which in the case of the S&P 500 and Nasdaq Composite, are all-time highs.

Netflix (NFLX 98.67, -9.12, -8.46%) is missing out on today's rally following its Q1 report, as a strong headline EPS beat was overshadowed by disappointing Q2 guidance and questions around the quality of the earnings upside. Revenue grew 16.2% year-over-year (+14% CC) to a record $12.25 billion, topping expectations, while the company reaffirmed its FY26 revenue outlook of $50.70-51.70 billion and operating margin guidance of 31.5%.

Netflix delivered a headline-grabbing EPS beat, but the market is looking through much of that upside given it was primarily driven by a one-time $2.8 billion termination fee rather than core operations. The bigger issue is the softer-than-expected Q2 guidance, particularly the year-over-year decline in operating margin tied to elevated content amortization. While management is confident margins will improve in the back half of FY26, investors appear hesitant to give full credit until that inflection materializes. Additionally, the stock had a strong run into the print, climbing from the mid-$70s to around $108, leaving little room for disappointment.

[BRIEFING.COM] communication services sector (-0.1%) faces pressure in Netflix (NFLX 97.48, -10.30, -9.56%) after its earnings report.

The S&P 500 (+1.1%), Nasdaq Composite (+1.3%), and DJIA (+2.0%) are steadily ticking higher after their sharp opening gains.

Airlines such as United Airlines (UAL 104.99, +9.96, +10.48%) and Southwest Air (LUV 44.74, +4.11, +10.12%) are unsurprisingly among the top-performing S&P 500 components this morning amid the sudden retreat in oil prices. President Trump wrote on Truth Social that Iran is removing all sea mines from the Strait of Hormuz. Crude oil is hovering around the $80 per barrel mark.

[BRIEFING.COM] The stock market opened to sharp gains after Iran's foreign minister announced that the Strait of Hormuz will reopen to all tanker traffic for the remainder of the ceasefire period, which ends on Tuesday. The S&P 500 (+1.1%) and Nasdaq Composite (+1.2%) quickly notched fresh all-time intraday highs for the third consecutive session, while strength on the broader market has the DJIA (+1.7%) seated with an even wider gain.

Eight S&P 500 sectors trade higher, with the consumer discretionary sector (+2.2%) leading the advance as gains across cruise line names near double-digits and mega-cap names are off to a solid start.

The top-weighted information technology sector (+1.4%) is also higher, with particular strength across software names, sending the iShares GS Software ETF 2.0% higher.

Meanwhile, the energy sector (-4.8%) is sharply lower as the price of oil plummets, with crude oil down $9.45 (-10.4%) to $81.79 per barrel.

The defensive utilities sector (-1.1%) is also lower amid the risk-on rally, while the communication services sector (-0.1%) faces pressure in Netflix (NFLX 97.76, -10.02, -9.30%)after its earnings report.

The stock market is now on track for a sharply higher opening after Iranian Foreign Minister Seyed Abbas Araghchi said via X "In line with the ceasefire in Lebanon, the passage for all commercial vessels through Strait of Hormuz is declared completely open for the remaining period of ceasefire, on the coordinated route as already announced by Ports and Maritime Organisation of the Islamic Rep. of Iran"

Crude oil moves sharply lower in response, currently down $8.69 (-9.5%) to $82.58 per barrel.

The S&P 500 futures currently trade 52 points above fair value.

Equity indices in the Asia-Pacific region had a mostly lower showing to end the week with Japan's Nikkei (-1.8%) backing down from record territory. Expectations for an April rate hike from the Bank of Japan have continued receding with the market growing concerned that the lack of a hike could spark a drop in the yen. The People's Bank of China increased the cap on bank lending to offshore entities. Fitch noted that China's credit outlook remains bogged down by weak domestic demand.

• In economic data:
  • Singapore's March trade surplus SGD11.22 bln (last surplus of SGD4.57 bln). March non-oil exports 3.0% m/m (last 3.9%); 15.3% yr/yr (last 4.0%)
  • New Zealand's March Electronic Card Retail Sales 0.7% m/m (last 1.4%); 2.7% yr/yr (last 1.5%). March FPI -0.6% m/m (last -0.1%)

---Equity Markets---

• Japan's Nikkei: -1.8% 
• Hong Kong's Hang Seng: -0.9% 
• China's Shanghai Composite: -0.1% 
• India's Sensex: +0.7%
• South Korea's Kospi: -0.6%
• Australia's ASX All Ordinaries: -0.1%

Major European indices are seeking a mostly higher finish to the week. French train manufacturer Alstom has fallen about 30% after withdrawing its free cash flow guidance. European Central Bank policymaker Muller said that it should not be assumed that the energy shock will be temporary, adding that he is not ruling out a rate hike this month.

• In economic data:
  • Eurozone's February trade surplus EUR11.5 bln (expected surplus of EUR11.7 bln; last deficit of EUR1.0 bln). February Current Account surplus EUR24.9 bln (expected surplus of EUR29.8 bln; last surplus of EUR40.4 bln)
  • Italy's February trade surplus EUR4.944 bln (expected surplus of EUR3.83 bln; last surplus of EUR1.13 bln)

---Equity Markets---

• STOXX Europe 600: +1.2% 
• Germany's DAX: +1.9% 
• U.K.'s FTSE 100: +0.4%
• France's CAC 40: +1.6% 
• Italy's FTSE MIB: +1.6% 
• Spain's IBEX 35: +1.4%

The S&P 500 futures currently trade 34 points above fair value.

Software names such as Oracle (ORCL 183.70, +5.36, +3.0%) and ServiceNow (NOW 98.60, +2.16, +2.2%) are on track to extend their recent rebound effort.

The iShares Expanded Tech-Software Sector ETF enters today's session with a 13% week-to-date gain, outperforming the broader information technology sector (+6.4%) and the S&P 500 (+3.3%) over the same time period.

Equity futures point to a higher opening this morning after the S&P 500 and Nasdaq Composite set fresh record highs for the second consecutive session in yesterday's action. Though the gains at the index level were more modest compared to recent sessions, participation broadened out, and investors were quick to buy the dip on early tech weakness, which helped the Nasdaq Composite notch its 12th straight session of higher finishes.

Headlines are relatively quiet again today, though the path of least resistance continues to point higher as stocks have yet to face any real selling interest since the major averages finished recovering losses incurred since the start of the war in Iran. The geopolitical backdrop remains constructive, with the U.S. and Iran likely to resume talks over the weekend, while Israel and Lebanon agreed on a 10-day ceasefire. {resident Trump reiterated his view that the war should be over soon at an event in Las Vegas.

Oil prices moved higher yesterday, but WTI crude is currently down $3.21 (-3.5%) to $87.96 per barrel.

Corporate news flow is on the lighter side this morning, though the market has another slate of earnings reports to assess.

There are no economic data releases scheduled for today.

In corporate news:

• Apple (AAPL 267.25, +3.85, +1.5%) saw iPhone shipments increase 20% in China in Q1, according to Reuters.
• Netflix (NFLX 96.36, 11.43, -10.6%) is sharply lower in the premarket after the company beat EPS expectations by $0.47, reported revenues in-line, guided Q2 EPS and revenues below consensus, and reaffirmed its FY26 guidance.
• Truist Financial (TFC 49.0, -0.43, -0.9%) beat EPS expectations by $0.09, reported revenues in-line, guided Q2 revenues below consensus, and guided FY26 revenues in-line.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region had a mostly lower showing to end the week with Japan's Nikkei (-1.8%) backing down from record territory. Japan's Nikkei: -1.8%, Hong Kong's Hang Seng: -0.9%, China's Shanghai Composite: -0.1%, India's Sensex: +0.7%, South Korea's Kospi: -0.6%, Australia's ASX All Ordinaries: -0.1%.

In news:

• Expectations for an April rate hike from the Bank of Japan have continued receding with the market growing concerned that the lack of a hike could spark a drop in the yen.
• The People's Bank of China increased the cap on bank lending to offshore entities.
• Fitch noted that China's credit outlook remains bogged down by weak domestic demand.

In economic data:

• Singapore's March trade surplus SGD11.22 bln (last surplus of SGD4.57 bln). March non-oil exports 3.0% m/m (last 3.9%); 15.3% yr/yr (last 4.0%)
• New Zealand's March Electronic Card Retail Sales 0.7% m/m (last 1.4%); 2.7% yr/yr (last 1.5%). March FPI -0.6% m/m (last -0.1%)

Major European indices are seeking a mostly higher finish to the week while the U.K.'s FTSE (-0.4%) lags amid weakness in miners, energy, and consumer names. STOXX Europe 600: +0.1%, Germany's DAX: +0.5%, U.K.'s FTSE 100: -0.3%, France's CAC 40: +0.4%, Italy's FTSE MIB: +0.6%, Spain's IBEX 35: UNCH.

In news:

• French train manufacturer Alstom has fallen about 30% after withdrawing its free cash flow guidance.
• European Central Bank policymaker Muller said that it should not be assumed that the energy shock will be temporary, adding that he is not ruling out a rate hike this month.

In economic data:

• Eurozone's February trade surplus EUR11.5 bln (expected surplus of EUR11.7 bln; last deficit of EUR1.0 bln). February Current Account surplus EUR24.9 bln (expected surplus of EUR29.8 bln; last surplus of EUR40.4 bln)
• Italy's February trade surplus EUR4.944 bln (expected surplus of EUR3.83 bln; last surplus of EUR1.13 bln)

• Russell 2000: +9.6% YTD
• S&P Mid Cap 400: +8.2% YTD
• Nasdaq Composite: +3.7%
• S&P 500: +2.9%
• DJIA: +1.1%

[BRIEFING.COM] Reviewing today's data:

• April Philadelphia Fed Index 26.7 (Briefing.com consensus 12.7); Prior 18.1
• Weekly Initial Claims 207K (Briefing.com consensus 215K); Prior was revised to 218K from 219K, Weekly Continuing Claims 1.818 mln; Prior was revised to 1.787 mln from 1.794 mln
  • The key takeaway from the report is that it refutes any notion that the labor market is cracking in a way that will lock up discretionary spending. Initial jobless claims-a leading indicator-continue to run at historically low levels.
• March Industrial Production -0.5% (Briefing.com consensus 0.1%); Prior was revised to 0.7% from 0.2%, March Capacity Utilization 75.7% (Briefing.com consensus 76.4%); Prior was revised to 76.1% from 76.3%
  • The key takeaway from the report is that the headline decline is not as bad as it looks when taking into account the large upward revision to industrial production in February, which effectively offsets the decline in March.