[BRIEFING.COM] The stock market ended a bumpy week on a higher note, with falling oil prices contributing to broad market gains that helped the S&P 500 (+0.5%), Nasdaq Composite (+0.3%), and DJIA (+0.7%) finish higher for the week.

Today's session included arguably the most anticipated market event of the week: the SpaceX (SPCX 160.95, +25.95, +19.22%) IPO. The stock got off to a solid start, with the 555.56 million share offering pricing at $135, opening at $150 for an 11% opening premium, and then pushing higher to trade roughly 20% above the IPO price.

There was some volatility across other mega-cap stocks following the debut of SpaceX, with some analysts positing that investors may be taking profits across the group as a source of funds for SpaceX's debut. However, it is also worth noting that the group is coming off a solid gain in yesterday's session.

Amazon (AMZN 238.55, -2.96, -1.23%) was a laggard, though Tesla (TSLA 406.43, +7.28, +1.82%) reversed an earlier loss, which helped the consumer discretionary sector (flat) reclaim its flatline late in the session. The Vanguard Mega Cap Growth ETF (+0.2%) finished little changed.

The information technology sector also faced some volatility across its largest components, but was supported by another solid showing from its semiconductor components today. Advanced Micro Devices (AMD 511.57, +23.12, +4.73%) was a chipmaker standout after Citigroup upgraded the stock to Buy from Neutral with a $575 target.

The PHLX Semiconductor Index added 1.5% to what was already a solid week.

Elsewhere in the sector, Adobe (ADBE 204.02, -14.78, -6.76%) lagged after topping earnings expectations as the strategic pivot toward freemium user acquisition and AI engagement, along with a CFO departure, weighed on the stock.

Meanwhile, stocks benefitted from another strong showing across the broader market as oil prices retreated again today. Crude oil futures settled today's session $2.93 lower (-3.3%) at $84.88 per barrel amid reports that the U.S. and Iran are nearing a peace agreement that could come into effect by next week.

Similar to yesterday's action, the materials sector (+1.8%) finished with the widest gain today, with chemical names Mosaic (MOS 22.69, +1.60, +7.59%) and Albemarle (ALB 170.42, +11.36, +7.14%) finishing as the top-performing S&P 500 names.

The financials (+1.4%), utilities (+1.1%), and real estate (+1.0%) continued this week's broadening out trend with solid gains, and only the health care sector (-0.2%) finished lower.

Outside of the S&P 500, the Russell 2000 (+0.8%) and S&P Mid Cap 400 (+0.7%) also notched solid gains.

Overall, the week ended on an encouraging note, with strength extending well beyond the technology sector as falling oil prices and easing geopolitical concerns supported risk appetite. The combination of a successful SpaceX debut, continued semiconductor leadership, and improving participation across cyclical sectors suggests investors remain willing to look through near-term volatility, particularly if developments on the U.S.-Iran front continue to move in a constructive direction.

U.S. Treasuries ended the week on a modestly lower note with the long bond dipping from its June high, though the complex remained in positive territory for the week. The 2-year note yield settled up two basis points to 4.09% (-7 basis points this week), and the 10-year note yield settled up two basis points to 4.49% (-5 basis points this week).

• Russell 2000: +18.6% YTD
• S&P Mid Cap 400: +14.9% YTD
• Nasdaq Composite: +11.4% YTD
• S&P 500: +8.6% YTD
• DJIA: +6.5% YTF

Reviewing today's data:

• June University of Michigan Consumer Sentiment - Prelim 48.9 (Briefing.com consensus 46.2); Prior 44.8
  
  • The key takeaway from the report is that the improved readings revolved around the early-month easing in gasoline prices, which was a relief factor felt by consumers across age, education, and political party. Still, there were reported concerns about higher inflation remaining stubborn.

[BRIEFING.COM] The major averages remain little changed from previous levels, keeping the indices on track for modest week-to-date gains. Meanwhile, the Russell 2000 (+0.9%) and S&P Mid Cap 400 (+0.8%) outperform on both a daily and week-to-date basis.

The Wall Street Journal reports that a deal between the U.S. and Iran is close, but upcoming negotiations will kickstart the toughest parts of nuclear negotiations.

Still, stocks were supported by optimism on the geopolitical front, with crude oil futures settling today's session $2.93 lower (-3.3%) at $84.88 per barrel.

[BRIEFING.COM] The S&P 500 (+0.5%), Nasdaq Composite (+0.3%), and DJIA (+0.9%) trade in a relatively stable range as the market enters the final hour of the session.

SpaceX's (SPCX 165.55, +30.55, +22.63%) blockbuster IPO is off to a solid start, with the 555.56 mln share offering pricing at $135, opening at $150 for an 11% opening gain, and then pushing higher to trade roughly 20% above the IPO price. That is an impressive debut for what is now a staggering roughly $2.1 trillion company, but the move is perhaps not quite as spectacular as some investors may have anticipated given the intense demand, massive order book, and pre-IPO excitement surrounding the largest IPO in market history.

The focus now shifts to whether SPCX can hang onto these opening gains once the initial scarcity premium, institutional allocation scramble, and retail enthusiasm begin to settle. Fundamentally, the bull case is built around an unmatched combination of reusable launch dominance, Starlink's 10.3 million subscriber base, deep government and defense relationships, direct-to-cell connectivity, Starship optionality, and a much broader AI infrastructure vision following the xAI combination.

The caution is valuation and execution risk, as SPCX is being valued far beyond conventional earnings or revenue metrics despite posting a 2025 net loss of $4.94 bln, a 1Q26 net loss of $4.28 billion and enormous capital spending tied especially to AI infrastructure.

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

Briefly, S&P 500 constituents Seagate Tech (STX 940.04, +71.95, +8.29%), Coherent (COHR 389.04, +25.46, +7.00%), and The Trade Desk (TTD 19.38, +0.48, +2.54%) pepper the top of the standings. JP Morgan upped their target to $920 (from $775) on STX today, while TTD rallies after reports that the company had settled its dispute with Publicis (PUBGY 26.17, +0.40, +1.55%) related to ad tech fees.

Meanwhile, EchoStar (SATS 111.78, -16.35, -12.76%) slides as space-related stocks show weakness amid SpaceX's (SPCX) IPO today.

[BRIEFING.COM] The Nasdaq Composite (+0.36%) is up about 93 points this afternoon, the shallowest gains among the major averages.

Gold futures settled $126 higher (+3.1%) at $4,240/oz, down about -2.9% on the week, as easing Middle East tensions pressured the dollar and Treasury yields, boosting demand for the precious metal after its recent pullback. Despite the sharp rebound, gold's weekly losses stacked up as stronger U.S. inflation data and expectations that the Federal Reserve could keep interest rates elevated continued to weigh on sentiment.

Meanwhile, the U.S. Dollar Index is up less than +0.1% to $99.74.

[BRIEFING.COM] The Dow Jones Industrial Average (+0.81%) is in first place on Friday afternoon, up about 414 points.

A look inside the DJIA shows that Goldman Sachs (GS 1066.93, +31.29, +3.02%), Verizon (VZ 48.10, +1.16, +2.47%), and Honeywell (HON 223.47, +4.35, +1.99%) are firmly higher.

Meanwhile, Amazon (AMZN 237.15, -4.36, -1.81%) slides on Friday.

The DJIA is poised to end the week +0.78% higher.

Also, at the top of the hour, Baker Hughes (BKR 63.53, +0.05, +0.08%) announced a weekly U.S. rotary rig count of 562, -1 w/w and +7 yr/yr.

[BRIEFING.COM] Stocks are building on yesterday's rally with a mostly higher showing today, though some weakness across the market's largest names following the debut of SpaceX (SPCX 172.69, +37.69, +27.92%) has the S&P 500 (+0.5%), Nasdaq Composite (+0.4%), and DJIA (+0.7%) modestly below their session highs. Broader market strength remains solid as optimistic developments between the U.S. and Iran send oil prices lower again today.

Crude oil is currently down $2.99 (-3.4%) to $84.72 per barrel as reports from both sides indicate that a peace agreement could be reached sometime next week. Most recently, Pakistani Prime Minister Shehbaz Sharif posted on X, "we can confirm that a final, agreed upon text of the peace deal has been reached and Pakistan is now working closely with both sides to finalize the next steps. Peace has never been this close as it is now."

Nine S&P 500 sectors trade higher, with the materials sector (+1.8%) leading the advances, supported by strong leadership in fertilizer names such as Mosaic (MOS 22.77, +1.68, +7.97%) amid optimism around the Strait of Hormuz reopening.

Other cyclical sectors, including the financials (+1.1%) and energy (+1.0%) sectors also outperform, even with the lower price of oil.

Meanwhile, the top-weighted information technology sector (+0.2%) holds a more modest gain. Semiconductor names are extending yesterday's rally, with the PHLX Semiconductor Index up 1.9%. However, the sector's four largest components by market capitalization trade lower amid a choppy session for mega-cap stocks.

Amazon (AMZN 236.94, -4.57, -1.89%) is a notable "magnificent seven" laggard, which keeps the consumer discretionary sector (-0.7%) firmly lower.

Some of that weakness could stem from investors taking profits in order to fund positions in the newest mega-cap stock, SpaceX (SPCX 172.69, +37.69, +27.92%). The stock opened at $150 per share after pricing its IPO at $135 per share.

Despite the mixed action across mega-cap stocks, broader participation remains encouraging, with strength extending well beyond technology for a second consecutive session. The combination of falling oil prices and optimism surrounding a potential U.S.-Iran agreement continues to support cyclical areas of the market and keep the broader tone constructive.

Reviewing today's data:

• June University of Michigan Consumer Sentiment - Prelim 48.9 (Briefing.com consensus 46.2); Prior 44.8
  
  • The key takeaway from the report is that the improved readings revolved around the early-month easing in gasoline prices, which was a relief factor felt by consumers across age, education, and political party. Still, there were reported concerns about higher inflation remaining stubborn.

[BRIEFING.COM] The major averages are back in modestly positive territory after the debut of SpaceX (SPCX 164.98, +29.98, +22.20%) caused some volatility across tech names.

The information technology sector (+0.3%) has resurfaced above its flatline, though many of its largest components still trade lower.

The broader market continues to garner support from cooling geopolitical tensions, with Pakistani Prime Minister Shehbaz Sharif posting on X, "we can confirm that a final, agreed upon text of the peace deal has been reached and Pakistan is now working closely with both sides to finalize the next steps. Peace has never been this close as it is now."

[BRIEFING.COM] The S&P 500 (+0.1%), Nasdaq Composite (-0.2%), and DJIA (+0.65%) have pulled back from their session highs as SpaceX (SPCX 160.20, +25.20, +18.67%) is now trading. The stock opened at $150 per share after pricing its IPO at $135 per share.

The information technology sector (-0.2%) has retreated below its flatline as its five largest components now trade lower, suggesting investors may be rotating out of prominent mega-cap tech names as a source of funds to put towards SpaceX.

Additionally, other space and satellite stocks such as AST SpaceMobile (ASTS 82.97, -14.59, -14.95%) and Virgin Galactic (SPCE 3.71, -2.02, -35.25%) are sharply lower after rallying yesterday.

[BRIEFING.COM] Stocks are steadily moving higher, with sustained downward pressure on oil prices pushing the S&P 500 (+0.8%), Nasdaq Composite (+0.7%), and DJIA (+1.0%) to session highs just before midday.

Crude oil is currently down $3.35 (-3.8%) to $84.36 per barrel as reports from both sides indicate a peace deal could be imminent. The consumer discretionary sector (-0.5%) is the only S&P 500 sector with a loss wider than 0.1%, as Amazon (AMZN 237.13, -4.38, -1.81%) is a mega-cap laggard.

The mega-cap cohort initially struggled out of the gate, but has since moved steadily higher. Alphabet (GOOG 363.40, +6.84, +1.92%) holds a nice gain after pronounced weakness over the past week, while NVIDIA (NVDA 206.70, +1.84, +0.90%) trades higher in conjunction with another strong showing from semiconductor names today. 

In combination with lingering strength across several cyclical sectors, stocks are to another solid start that puts the major averages on track for decent week-to-date gains, though the market will face an important test when SpaceX begins trading sometime today.

[BRIEFING.COM] The major averages continue to chart session highs as midday approaches.

Adobe (ADBE 204.46, -14.34, -6.55%) is trading sharply lower despite a beat-and-raise Q2 (May) report last night. The company continued its streak of EPS upside, while revenue increased 12.7% yr/yr to $6.62 billion, its strongest growth since Q2 FY22. Q3 guidance of $6.05-6.10 in EPS and $6.67-6.72 billion in revenue, along with FY26 guidance of $24.35-24.45 in EPS and $26.50-26.60 billion in revenue, also all came in above consensus. The issue is the strategic pivot toward freemium user acquisition and AI engagement, which is expected to lower second-half ARR growth expectations from individual subscribers and defer previously planned Creative Cloud line optimizations. That trade-off may be sensible long term, but it reduces near-term visibility into monetization at a time when investors were already demanding clearer proof that AI usage can convert into durable ARR growth. The announced departure of CFO Dan Durn, along with fresh analyst downgrades this morning, is adding to the pressure.

Elsewhere, Lennar (LEN 91.63, -3.32, -3.50%) is trading lower after a mixed Q2 report in which adjusted EPS of $1.31 beat the $1.24 consensus, but revenue of $7.94 blin missed expectations and demand metrics remained soft. Deliveries rose 2% yr/yr to 20,519 homes, but new orders fell 4% to 21,749, while management lowered its FY26 delivery target to 82,000-83,000 homes from its prior target of about 85,000, reinforcing investor concern that the housing market remains stubbornly difficult.

[BRIEFING.COM] The S&P 500 (+0.2%), Nasdaq Composite (+0.1%), and DJIA (+0.4%) are now modestly higher, supported by a nice bump in the PHLX Semiconductor Index (+1.2%).

The preliminary reading for the University of Michigan Consumer Sentiment Index for June increased to 48.9 (Briefing.com consensus: 46.2) from the final reading of 44.8 for May, which was an historic low. In the same period a year ago, the index stood at 60.7.

The key takeaway from the report is that the improved readings revolved around the early-month easing in gasoline prices, which was a relief factor felt by consumers across age, education, and political party. Still, there were reported concerns about higher inflation remaining stubborn.

[BRIEFING.COM] The S&P 500 (+0.1%), Nasdaq Composite (-0.3%), and DJIA (+0.1%) are mixed just after the open as tech and mega-cap names face some modest early pressure after yesterday's rally.

The consumer discretionary sector (-1.3%) holds the widest loss as Amazon (AMZN 235.98, -5.53, -2.29%) is a "magnificent seven" laggard.

Meanwhile, the information technology sector (-0.5%) holds a more modest loss, though Microsoft (MSFT 383.03, -7.31, -1.87%) is extending yesterday's slide. The Vanguard Mega Cap Growth ETF is down 0.3%.

The materials sector (+1.3%) remains a top-performer with particular strength across chemical names, while the energy sector (+1.2%) also holds a nice gain as oil prices begin to move off their earlier lows.

Just released, the preliminary reading of the June University of Michigan Consumer Sentiment Survey checked in at 48.9 (Briefing.com consensus 46.2) from the final May reading of 44.8.

The stock market is now on track for a mixed opening as a report from an Iranian outlet has denied that a peace deal could be signed on Sunday.

Chipmakers and other tech names are facing premarket weakness, putting the Nasdaq Composite on track for a flat opening. The price action of tech and mega-cap names will be closely watched today as the market awaits the historic IPO of SpaceX.

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

Equity indices in the Asia-Pacific region ended the week on a broadly higher note, encouraged by Thursday's rebound on Wall Street. President Trump said that the U.S. made "a great settlement" with Iran while Israel's Prime Minister Netanyahu said that Israel is not a party to the U.S.-Iran agreement. The Bank of Japan is expected to announce its next rate hike next week while the Reserve Bank of Australia is expected to announce a policy hold. Elsewhere, Bank of Korea Governor Shin said that interest rates need to be raised "before it is too late."

• In economic data:
  • China's May New Loans CNY520.0 bln (expected CNY450.0 bln; last -CNY10.0 bln), May Outstanding Loan Growth 5.5% yr/yr, as expected (last 5.6%), and May total social financing CNY2.03 trln (expected CNY1.87 trln; last CNY620.0 bln)
  • Japan's April Industrial Production 0.5% m/m (expected 0.8%; last -0.4%) and Capacity Utilization -0.8% m/m (last -1.2%)
  • New Zealand's May Business PMI 49.9 (last 50.4)
  • India's May CPI 3.93% yr/yr (expected 4.0%; last 3.5%)

---Equity Markets---

• Japan's Nikkei: +2.8%
• Hong Kong's Hang Seng: +1.9% 
• China's Shanghai Composite: +1.1% 
• India's Sensex: +2.3% 
• South Korea's Kospi: +4.6% 
• Australia's ASX All Ordinaries: +1.9%

Major European indices are seeking a higher finish to the week, encouraged by news of a memorandum of understanding between the U.S. and Iran that is expected to result in a final peace deal. The U.K. reported weak GDP growth for April, resulting in some pressure on rate expectations. The market expects the European Central Bank to hold its policy steady in July unless there is a renewed rise in energy prices. Germany's Economic Ministry noted that momentum in the domestic economy slowed notably in Q2.

• In economic data:
  • Germany's final May CPI -0.2% m/m, as expected (last 0.6%); 2.6% yr/yr, as expected (last 2.9%)
  • U.K.'s April GDP -0.1% m/m, as expected (last 0.3%); 1.2% yr/yr (expected 1.3%; prior 1.2%). April Manufacturing Production 0.4% m/m (expected -0.2%; last 1.2%), April trade deficit GBP26.05 bln (expected deficit of GBP22.50 bln; last deficit of GBP27.22 bln), April Industrial Production 0.0% m/m (expected 0.1%; last -0.2%); -0.2% yr/yr (expected -0.1%; last 0.0%). April Manufacturing Production 0.4% m/m (expected -0.2%; last 1.2%); 1.0% yr/yr (expected 0.4%; last 1.2%)
  • France's final May CPI 0.1% m/m, as expected (last 1.0%); 2.4% yr/yr, as expected (last 2.2%)
  • Spain's May CPI 0.1% m/m, as expected (last 0.4%); 3.2% yr/yr, as expected (last 3.2%). May Core CPI 3.0% yr/yr (expected 2.9%; last 2.8%)

---Equity Markets---

• STOXX Europe 600: +1.0% 
• Germany's DAX: +1.1% 
• U.K.'s FTSE 100: +0.9%
• France's CAC 40: +1.4% 
• Italy's FTSE MIB: +1.4% 
• Spain's IBEX 35: +1.7% 

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

Bloomberg reports that the U.S. and Iran could sign a deal during the G-7 summit next week, with a senior Iranian official adding that a deal is likely.

Meanwhile, on the IPO front, SpaceX has been initiated with an Outperform at Wolfe Research, with a target price of $175.

Equity futures point to a higher opening as stocks look to expand on yesterday's rally that has the major averages back to a mostly higher week-to-date standing. The major averages were supported by a rebound across semiconductor names, while an easing of geopolitical tensions between the U.S. and Iran sent oil prices lower, paving the way for solid gains in the broader market.

Oil continues to move lower towards the $85 per barrel mark this morning on reports that the two sides could agree to a deal as early as Sunday that would include the reopening of the Strait of Hormuz and Iran's commitment to not enrich uranium for a period of years.

Today's session will also include the eagerly anticipated IPO of SpaceX. A filing yesterday showed the company will sell 555.6 million shares at $135 per share, making it the largest IPO in history and putting the company's valuation at $1.77 trillion. Enthusiasm around the IPO has sent other space and rocket names sharply higher in recent sessions, though some analysts have posited it could be responsible for the recent choppiness across tech and mega-cap names, as investors look for a source of funds to reallocate.

In corporate news:

• Adobe (ADBE 202.85, -15.97, -7.3%) beat EPS expectations by $0.14, beat revenue expectations, guided Q3 revenues above consensus, and guided FY26 EPS and revenues above consensus. The company's CFO is departing for a chipmaking company.
• Lennar (LEN 94.00, -0.95, -1.0%) reported EPS in-line, missed revenue expectations, reported a 2% increase in year-over-year deliveries, and expects Q3 deliveries to be between 21,000 and 22,000.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended the week on a broadly higher note, encouraged by Thursday's rebound on Wall Street. Japan's Nikkei: +2.8%, Hong Kong's Hang Seng: +1.9%, China's Shanghai Composite: +1.1%, India's Sensex: +2.3%, South Korea's Kospi: +4.6%, Australia's ASX All Ordinaries: +1.9%.

In news:

• President Trump said that the U.S. made "a great settlement" with Iran while Israel's Prime Minister Netanyahu said that Israel is not a party to the U.S.-Iran agreement.
• The Bank of Japan is expected to announce its next rate hike next week while the Reserve Bank of Australia is expected to announce a policy hold.
• Elsewhere, Bank of Korea Governor Shin said that interest rates need to be raised "before it is too late."

In economic data:

• China's May New Loans CNY520.0 bln (expected CNY450.0 bln; last -CNY10.0 bln), May Outstanding Loan Growth 5.5% yr/yr, as expected (last 5.6%), and May total social financing CNY2.03 trln (expected CNY1.87 trln; last CNY620.0 bln)
• Japan's April Industrial Production 0.5% m/m (expected 0.8%; last -0.4%) and Capacity Utilization -0.8% m/m (last -1.2%)
• New Zealand's May Business PMI 49.9 (last 50.4)
• India's May CPI 3.93% yr/yr (expected 4.0%; last 3.5%)

Major European indices are seeking a higher finish to the week, encouraged by news of a memorandum of understanding between the U.S. and Iran that is expected to result in a final peace deal. STOXX Europe 600: +1.5%, Germany's DAX: +1.6%, U.K.'s FTSE 100: +1.2%, France's CAC 40: +1.8%, Italy's FTSE MIB: +1.9%, Spain's IBEX 35: +2.2%.

In news:

• The U.K. reported weak GDP growth for April, resulting in some pressure on rate expectations.
• The market expects the European Central Bank to hold its policy steady in July unless there is a renewed rise in energy prices.
• Germany's Economic Ministry noted that momentum in the domestic economy slowed notably in Q2.

In economic data:

• Germany's final May CPI -0.2% m/m, as expected (last 0.6%); 2.6% yr/yr, as expected (last 2.9%)
• U.K.'s April GDP -0.1% m/m, as expected (last 0.3%); 1.2% yr/yr (expected 1.3%; prior 1.2%). April Manufacturing Production 0.4% m/m (expected -0.2%; last 1.2%), April trade deficit GBP26.05 bln (expected deficit of GBP22.50 bln; last deficit of GBP27.22 bln), April Industrial Production 0.0% m/m (expected 0.1%; last -0.2%); -0.2% yr/yr (expected -0.1%; last 0.0%). April Manufacturing Production 0.4% m/m (expected -0.2%; last 1.2%); 1.0% yr/yr (expected 0.4%; last 1.2%)
• France's final May CPI 0.1% m/m, as expected (last 1.0%); 2.4% yr/yr, as expected (last 2.2%)
• Spain's May CPI 0.1% m/m, as expected (last 0.4%); 3.2% yr/yr, as expected (last 3.2%). May Core CPI 3.0% yr/yr (expected 2.9%; last 2.8%)

[BRIEFING.COM] The stock market posted broad gains today, with cooling geopolitical tensions triggering an intraday slide in oil prices that helped the S&P 500 (+1.8%), Nasdaq Composite (+2.5%), and DJIA (+1.9%) chart session highs throughout the afternoon hours.

Stocks opened mostly higher following the PPI report for May (1.1%; Briefing.com consensus 0.7%), which was hotter than expected at the headline level but also included a downward revision to April's reading. Core PPI (0.4%; Briefing.com consensus 0.4%), however, was in line and likewise included a downward revision to the April figure.

The broader market continued yesterday's trend of solid participation, while semiconductor stocks garnered some buy-the-dip interest after several consecutive weaker sessions. However, action remained somewhat choppy during the first half of the session as other tech names and mega-cap stocks elsewhere struggled. Oracle (ORCL 184.10, -17.16, -8.53%) was a laggard after issuing underwhelming guidance alongside last night's earnings beat, while Alphabet (GOOG 356.56, +3.24, +0.92%) traded more than 2% lower before paring its loss.

Even NVIDIA (NVDA 204.87, +4.45, +2.22%) spent time in negative territory, and by the early afternoon, the S&P 500 was defending its flat line.

The market made a sharp move higher in the early afternoon after President Trump said tonight's round of strikes against Iran had been called off due to progress in finalizing a deal. CBS News later reported that "a memorandum of understanding between the U.S. and Iran is likely to be signed early next week, paving the way for further negotiations on a long-term deal."

Crude oil futures settled today's session $2.12 lower (-2.4%) at $87.81 per barrel, leading to improvements across most pockets of the market.

The information technology sector (+2.9%) finished sharply higher, buoyed by a 7.9% gain in the PHLX Semiconductor Index. Memory names such as Sandisk (SNDK 1881.51, +238.28, +14.50%) and Micron (MU 995.87, +103.99, +11.66%) were among the top movers, while machinery names such as Lam Research (LRCX 362.52, +40.72, +12.65%) and Applied Materials (AMAT 552.64, +55.63, +11.19%) also notched double-digit gains.

Elsewhere, the industrials sector (+3.3%) surged as airlines such as United Airlines (UAL 112.61, +9.83, +9.56%) moved sharply higher amid the retreat in oil prices, while electrical product names posted gains in sympathy with semiconductors. The materials sector (+3.3%) captured a similar gain on broad strength, while cruise lines and homebuilders led the consumer discretionary sector (+2.4%) higher in a classic "oil down, rates down, stocks up" fashion.

Tesla (TSLA 399.15, +17.56, +4.60%) provided solid mega-cap leadership, and the Vanguard Mega Cap Growth ETF (+1.8%) shook off its early weakness to chart a gain similar to those across the major averages.

Weakness was largely limited to the energy sector (-2.1%), while the consumer staples sector (-0.5%) faced some selling after several sessions of strong rotational buying. The real estate sector (-0.1%) finished slightly lower.

Outside of the S&P 500, the Russell 2000 (+3.0%) and S&P Mid Cap 400 (+2.6%), which were already outperforming, finished sharply higher amid the afternoon slide in oil prices and interest rates.

Altogether, it was a productive day for stocks, with the retreat in oil prices helping transform an already constructive session into a broad-based rally. The major averages now enter the final session of the week mostly higher, while investors turn their attention to Friday's highly anticipated SpaceX IPO. According to a regulatory filing, the company is offering 555.6 million shares at $135 per share, a development that helped fuel gains across space and rocket-related stocks today. At the same time, some analysts continue to suggest that preparations for the offering may be contributing to recent volatility across mega-cap and technology stocks as investors raise cash and reposition portfolios ahead of the debut.

U.S. Treasuries recorded solid gains on Thursday after an early continuation of this week's sideways drift gave way to a late rally that sent yields toward their closing levels from last Thursday. The 2-year note yield settled down seven basis points to 4.07%, and the 10-year note yield settled down eight basis points to 4.46%. 

• Russell 2000: +17.7% YTD
• S&P Mid Cap 400: +14.1% YTD
• Nasdaq Composite: +11.1% YTD
• S&P 500: +8.0% YTD
• DJIA: +5.8% YTD

Reviewing today's data:

• May PPI 1.1% (Briefing.com consensus 0.7%); Prior was revised to 1.1% from 1.4%, May Core PPI 0.4% (Briefing.com consensus 0.4%); Prior was revised to 0.7% from 1.0%
  • The key takeaway from the report is that producers aren't finding much price relief; hence, consumers won't find much price relief in the near-term either, unless producers choose to absorb the higher costs.
• Weekly Initial Claims 229K (Briefing.com consensus 222K); Prior was revised to 225K from 215K, Weekly Continuing Claims 1.795 mln; Prior was revised to 1.771 mln from 1.786 mln
  • Jobless claims were higher in the latest week, but the key takeaway remains that they are not at levels that would connote a material degradation of the labor market.