[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 with solid gains, 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.

[BRIEFING.COM] The major averages continue to chart session highs as the market enters the final half hour of the session.

After the close, investors will receive a modest batch of earnings reports, which will include those from Adobe (ADBE 221.57, -11.81, -5.06%) and Lennar (LEN 93.47, +3.62, +4.03%).

Attention increasingly turns to the eagerly anticipated IPO of SpaceX, which is reportedly more than four times oversubscribed. CNBC reported that allocations have been mostly decided, with around 20% of the IPO allocated to retail.

[BRIEFING.COM] The S&P 500 (+1.4%), Nasdaq Composite (+1.8%), and DJIA (+1.7%) are charting session highs this afternoon as a cooling of geopolitical tensions between the U.S. and Iran sends oil prices firmly lower.

President Trump told New York Post that the Iran agreement is "pretty much all wrapped up" after previously posting that tonight's scheduled military strikes have been called off. Crude oil futures settled today's session $2.12 lower (-2.4%) at $87.81 per barrel, which has prompted improvements across nearly all pockets of the market, except for the energy sector (-0.9%).

The information technology sector (+2.2%) has doubled its gain for the day, while the communication services sector (-0.1%) looks to reclaim its flatline after moving more than 1.5% lower.

[BRIEFING.COM] The S&P 500 (+1.25%) is in last place on Thursday afternoon, up about 91 points with more aggressive gains elsewhere.

Briefly, S&P 500 constituents Sandisk (SNDK 1818.11, +174.88, +10.64%), Albemarle (ALB 158.00, +10.78, +7.32%), and Moderna (MRNA 49.09, +3.10, +6.74%) dot the top of the standings. SNDK is participating in the broader rally in tech, while ALB and MRNA snap a multi-session slide.

Meanwhile, PTC (PTC 122.82, -12.26, -9.08%) is one of today's worst laggards despite a dearth of corporate news.

[BRIEFING.COM] The tech-heavy Nasdaq Composite (+1.58%) is in first place, up about 397 points, after President Trump posted on his social media platform that he'd canceled planned strikes on Iran for this evening. Investors saw this and responded with the traditional Wall Street reaction to reduced geopolitical risk: buy everything and ask questions later.

Gold futures settled $19.30 lower (-0.5%) at $4,114/oz, as stronger-than-expected U.S. inflation data boosted Treasury yields and reinforced expectations that the Federal Reserve could keep interest rates higher for longer.

Meanwhile, the U.S. Dollar Index is down about -0.1% to $99.91.

[BRIEFING.COM] The Dow Jones Industrial Average (+0.56%) is in first place on Thursday afternoon, up about 282 points.

A look inside the DJIA shows that Amgen (AMGN 350.59, +12.86, +3.81%), Honeywell (HON 211.87, +5.99, +2.91%), and Boeing (BA 215.29, +6.29, +3.01%) are some of today's top gain getters.

Meanwhile, Microsoft (MSFT 384.97, -12.39, -3.12%) is today's top laggard.

The DJIA holds losses of -1.31% week-to-date.

[BRIEFING.COM] Stocks are attempting a rebound following two consecutive weaker sessions, with investors buying the recent dip across semiconductor stocks while the broader market continues to tilt mostly higher. The S&P 500 (+0.2%), Nasdaq Composite (+0.4%), and DJIA (+0.6%) currently sit closer to their session lows than their session highs, while the Russell 2000 (+1.4%) and S&P Mid Cap 400 (+1.0%) outperform.

The PHLX Semiconductor Index is currently up 3.1%, which moves it back into positive territory for the week. Notably, the index has traded in a relatively stable range so far, unlike the prior sessions which featured considerable intraday retreats. KLA Corporation (KLAC 2304.98, +169.34, +7.93%) and Lam Research (LRCX 345.60, +23.80, +7.39%) lead the advance, while Intel (INTC 111.49, +4.45, +4.16%) also trades higher after Bank of America Securities upgraded the stock to Buy from Underperform.

The bounce across semiconductor names results in a solid gain for the information technology sector (+0.4%), though it has experienced some choppy action so far. Oracle (ORCL 176.30, -24.96, -12.40%) leads software names lower after beating earnings expectations but issuing muted guidance, while action across mega-cap stocks remains bumpy.

Microsoft (MSFT 385.98, -11.38, -2.86%) is caught in the crossfire of both developments, but even NVIDIA (NVDA 200.38, -0.04, -0.02%) has spent time in negative territory despite the broad chipmaker strength.

Analyst commentary continues to suggest that investors may be pulling funds from some of the market leaders to reallocate capital ahead of SpaceX's IPO tomorrow. The Vanguard Mega Cap Growth ETF is down 0.3%.

To that end, Alphabet (GOOG 344.42, -8.90, -2.52%) is another "magnificent seven" laggard, keeping the communication services sector (-1.9%) pinned firmly lower despite EchoStar (b125.47, +10.23, +8.88%) leading all S&P 500 names as the SpaceX IPO adds enthusiasm to space and rocket stocks.

The real estate (-0.5%) and financials (-0.2%) sectors also move lower, but that is the extent of today's weakness at the sector level.

Meanwhile, the industrials sector (+1.5%) holds the widest gain as electrical product names such as Generac (GNRC 251.23, +12.12, +5.07%) and trucking names such as FedEx Freight (FDXF 180.74, +5.39, +3.07%) both rebound from weaker showings across the groups yesterday.

On the geopolitical front, the market's reaction remains relatively muted. While Washington continues to signal that additional military action against Iran remains possible, oil prices are just modestly higher today.

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.

[BRIEFING.COM] The major indices remain little changed from previous values just after midday.

Adobe (ADBE 222.50, -10.88, -4.66%) is a laggard ahead of its earnings report after the close, with the stock dropping to a fresh 52-week low in today's session.

Meanwhile, Navan (NAVN 23.64, +2.76, +13.25%) is sharply higher after a solid beat-and-raise earnings report of its own last night. The stock trended lower from its October 2025 debut until late March when it gapped higher on its Q4 (Jan) report, and this Q1 (Apr) report is adding more fuel to its gains.

[BRIEFING.COM] The major averages continue to trade modestly higher at midday, though steadily rising oil prices are beginning to eat into gains across the broader market.

Meanwhile, the Russell 2000 (+1.5%) and S&P Mid Cap 400 (+1.1%) are outperforming on both a daily and week-to-date basis. Both indices hold decent gains for the week, while the major averages all hold losses of 1.3% or wider.

[BRIEFING.COM] The S&P 500 (+0.3%), Nasdaq Composite (+0.5%), and DJIA (+0.6%) are modestly higher just before midday amid a rebound in semiconductor stocks and strong participation in the broader market.

The PHLX Semiconductor Index (+3.4%) is firmly higher, with Intel (INTC 112.36, +5.32, +4.97%) a notable standout after Bank of America Securities upgraded the stock to Buy from Underperform, with a target price of $135.

However, the information technology sector (+0.5%) as a whole has faced relatively choppy action as Oracle (ORCL 179.24, -22.02, -10.94%) leads software stocks lower after its earnings release, while mega-cap stocks in general continue to experience elevated volatility.

Alphabet (GOOG 344.69, -8.63, -2.44%) in particular continues to struggle, which contributes to weakness in the communication service sector (-1.8%), the only S&P 500 sector with a loss wider than 0.1%.

Meanwhile, the industrials sector outperforms (+1.6%), supported by several rebounds across underperforming groups yesterday. Electrical product names such as Generac (GNRC 253.01, +13.90, +5.81%) rise in unison with semiconductors, while Trucking names such as FedEx Freight (FDXF 186.62, +11.27, +6.43%) rebound from yesterday's losses that followed an announcement from Amazon (AMZN 236.94, -1.06, -0.45%) that the company is entering the less-than-truckload space.

[BRIEFING.COM] The S&P 500 (flat), Nasdaq Composite (+0.1%), and DJIA (+0.4%) continue to move off their earlier highs as the opening strength begins to wane.

Mega-cap stocks are once again underperforming, with the Vanguard Mega Cap Growth ETF down 0.5%. The group is firmly lower for the week, with some analysts suggesting investors are taking profits across the cohort to have cash on hand for SpaceX's IPO tomorrow.

Meanwhile, satellite and space stocks such as AST SpaceMobile (ASTS 91.37, +4.05, +4.64%) and Virgin Galactic (SPCE 5.49, +0.78, +16.48%) are posting solid gains as excitement builds for the debut.

[BRIEFING.COM] The S&P 500 (+0.4%), Nasdaq Composite (+0.5%), and DJIA (+0.5%) are off their best levels of the session, but remain seated with solid gains.

Oracle (ORCL 178.02, -23.24, -11.55%) is pulling back sharply today following its Q4 (May) report last night, a disappointment after a gap higher on earnings last quarter. Oracle reported impressive EPS upside, but the revenue upside was more muted than in Q3. The Q1 (Aug) guidance was upside for EPS but just in-line for revenue. But probably the biggest disappointment was just reaffirming FY27 revenue guidance at $90 bln. With all the AI infrastructure builds, we think investors would have like to have seen a top line guidance range. Another concern was Oracle announcing that FY27 gross margin will take a step down due to timing for the ramp-up of its data center projects plus impacts from mix. While these investments are creating pressure on near term gross margins in its Infrastructure business, Oracle expects margin performance in Infrastructure to improve rapidly as it reaches full contractual revenue levels at its data centers.

Software names are under pressure as a result, with the iShares GS Software ETF down 1.7%. 

[BRIEFING.COM] The S&P 500 (+0.7%), Nasdaq Composite (+0.9%), and DJIA (+0.9%) hold decent gains shortly after the open, supported by a rebound in semiconductor stocks and solid participation across the broader market.

The top-weighted information technology sector (+1.5%) is buoyed by a 4.6% bounce in the PHLX Semiconductor Index as investors buy into the recent weakness. Intel (INTC 117.86, +10.82, +10.11%) is a standout after Bank of America Securities upgraded the stock to Buy from Underperform, with a target price of $135.

Meanwhile, Oracle (ORCL 180.20, -21.06, -10.47%) lags after its earnings, with other packaged software names trading modestly lower in sympathy.

Several cyclical sectors, including the industrials (+1.5%) and materials (+1.5%) sectors, are also rebounding nicely from sharp retreats yesterday that came amid a spike in oil prices.

Weakness is limited to the communication services sector (-1.2%) as Alphabet (GOOG 346.21, -7.11, -2.01%) continues to face pressure following last week's announcement of a nearly $85 billion equity capital raise.

The stock market remains on track for a higher opening as tech names are poised for a rebound, though futures are off their best levels as oil moves higher following threats of renewed strikes on Iran from President Trump.

Initial jobless claims for the week ending June 6 increased by 4,000 to 229,000 (Briefing.com consensus: 222,000), while continuing claims for the week ending May 30 increased by 24,000 to 1.795 million.

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.

The Producer Price Index for final demand increased 1.1% month-over-month in May (Briefing.com consensus: 0.7%) following a downwardly revised 1.1% increase (from 1.4%) in April. Excluding food and energy, the index for final demand jumped 0.4% month-over-month (Briefing.com consensus: 0.4%) following a downwardly revised 0.7% increase (from 1.0%) in April.

On a year-over-year basis, the index for final demand was up 6.5%, while the index for final demand, excluding food and energy, was up 4.9%.

The key takeaway from the report is that producers aren't finding much price relief; hence, it is expected that consumers won't find much price relief in the near-term either, unless producers choose to absorb the higher costs.

The S&P 500 futures currently trade 36 points above fair value.

Equity indices in the Asia-Pacific region had a mixed showing on Thursday with most markets ending the session within 0.5% of their flat lines. There was ongoing focus on the Middle East after the U.S. bombed multiple targets in Iran, though oil has remained below $90/bbl. Bank of Japan Governor Ueda will miss next week's policy meeting due to hospitalization, but the market remains confident that a rate hike will be announced. South Korea's exports were up 86% yr/yr through the first ten days of June with chip exports jumping 206%.

• In economic data:
  • Japan's Q2 BSI Large Manufacturing Conditions -1.8 (expected 4.2; last 3.8)
  • South Korea's May Unemployment Rate 2.8% (last 2.8%)
  • Australia's June MI Inflation Expectations 5.5% (last 5.6%)

---Equity Markets---

• Japan's Nikkei: +0.1%
• Hong Kong's Hang Seng: -0.7%
• China's Shanghai Composite: -0.2% 
• India's Sensex: -0.2%
• South Korea's Kospi: +0.4%
• Australia's ASX All Ordinaries: -0.2%

Major European indices trade in the green ahead of the European Central Bank's rate decision at 8:15 ET, which is expected to be a hike. The market will be curious to hear whether ECB President Lagarde hints at additional increases in the coming months or signals that a one-time adjustment is seen as sufficient. Germany's farm cooperative increased its wheat harvest forecast for the year due to good weather.

• No data today

---Equity Markets---

• STOXX Europe 600: +0.8%
• Germany's DAX: -0.1%
• U.K.'s FTSE 100: +0.7%
• France's CAC 40: +0.7%
• Italy's FTSE MIB: +1.2%
• Spain's IBEX 35: +1.0%

The S&P 500 futures currently trade 29 points above fair value.

Just released, the producer price index for final demand increased 1.1% month-over-month in May (Briefing.com consensus: 0.7%) following a downwardly revised 1.1% increase (from 1.4%) in April.

Excluding food and energy, the index for final demand jumped 0.4% (Briefing.com consensus: 0.4%) on the heels of a downwardly revised 0.7% increase (from 1.0%) in April.

Initial jobless claims for the week ending June 6 increased by 4,000 to 229,000 (Briefing.com consensus: 222,000) from an upwardly revised prior level of 225,000 (from 215,000).

Continuing jobless claims for the week ending May 30 increased by 24,000 to 1.795 million from a downwardly revised prior level of 1.771 million (from 1.786 million).

Equity futures point to a higher opening this morning as stocks look to bounce back from their worst session of the week. Yesterday's action was defined by another intraday sell-off in tech names without broader market support to offset the losses.

Tech and particularly semiconductor stocks are moving higher in the premarket, though the recent shakiness across the group makes their ability to maintain the early strength a barometer of sentiment.

Elsewhere on the tech front, Oracle (ORCL 184.90, -16.36, -8.1%) is sharply lower after reporting earnings last night, beating expectations but prompting return on investment concerns after announcing an additional $20 billion in equity financing.

Stocks are supported by a modest pullback in oil prices, which comes despite a flare-up in hostilities between the U.S. and Iran. The Wall Street Journal reports that the U.S. attacked Iranian defenses and radar sites near the Strait of Hormuz, while Iran launched strikes against Kuwait, Bahrain, and Jordan.

On the data front, the market has another inflation reading due at 8:30 a.m. ET in the form of the PPI (Briefing.com consensus 0.7%) and Core PPI (Briefing.com consensus 0.4%) releases. Yesterday's release of the Consumer Price Index was largely in-line and did not alter the market's expectations of the Fed's policy path.

In corporate news:

• OpenAI is mulling large price reductions, according to The Wall Street Journal.
• Intel (INTC 112.20, +5.16, +4.8%) was upgraded to Buy from Underperform at Bank of America Securities, with a target price of $135.
• Oracle (ORCL 184.90, -16.36, -8.1%) beat EPS expectations by $0.15, reported revenues in-line, guided Q1 EPS above consensus with revenues in-line, and guided FY27 EPS above consensus while reaffirming FY27 revenue guidance.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region had a mixed showing on Thursday with most markets ending the session within 0.5% of their flat lines. Japan's Nikkei: +0.1%, Hong Kong's Hang Seng: -0.7%, China's Shanghai Composite: -0.2%, India's Sensex: -0.2%, South Korea's Kospi: +0.4%, Australia's ASX All Ordinaries: -0.2%.

In news:

• There was ongoing focus on the Middle East after the U.S. bombed multiple targets in Iran, though oil has remained below $90 per barrel.
• Bank of Japan Governor Ueda will miss next week's policy meeting due to hospitalization, but the market remains confident that a rate hike will be announced.
• South Korea's exports were up 86% yr/yr through the first ten days of June with chip exports jumping 206%.

In economic data:

• Japan's Q2 BSI Large Manufacturing Conditions -1.8 (expected 4.2; last 3.8)
• South Korea's May Unemployment Rate 2.8% (last 2.8%)
• Australia's June MI Inflation Expectations 5.5% (last 5.6%)

Major European indices trade in the green ahead of the European Central Bank's rate decision at 8:15 ET, which is expected to be a hike. STOXX Europe 600: +0.9%, Germany's DAX: +0.2%, U.K.'s FTSE 100: +1.0%, France's CAC 40: +1.0%, Italy's FTSE MIB: +1.4%, Spain's IBEX 35: +1.5%.

In news:

• The market will be curious to hear whether ECB President Lagarde hints at additional increases in the coming months or signals that a one-time adjustment is seen as sufficient.
• Germany's farm cooperative increased its wheat harvest forecast for the year due to good weather.

There is no economic data today.

[BRIEFING.COM] The major averages finished lower today, with another abrupt reversal across technology stocks proving too much for the market to overcome despite opening strength that followed a relatively benign inflation report. Rising oil prices and renewed geopolitical concerns added to the pressure, sending the S&P 500 (-1.6%), Nasdaq Composite (-2.0%), and DJIA (-1.9%) sharply lower.

Stocks showed resilience at the open, as a somewhat better-than-feared May CPI report kept expectations for the Fed's policy path largely unchanged. Headline CPI rose 0.5% month-over-month (Briefing.com consensus 0.5%), while Core CPI increased 0.2% (Briefing.com consensus 0.3%). However, the year-over-year rate for both measures accelerated, with headline CPI reaching 4.2%, marking its first move above 4.0% in three years.

The major averages even spent some time in positive territory as technology stocks oscillated through a choppy opening stretch. The top-weighted information technology sector traded nearly 1% higher within the first hour of action. As they did yesterday, tech stocks eventually rolled over, charting a firmly lower course for the major averages.

The information technology sector (-2.0%) finished as one of the worst-performing S&P 500 sectors, with particular weakness once again coming from semiconductor and other AI-related names. The PHLX Semiconductor Index finished 3.6% lower, with Broadcom (AVGO 372.10, -20.06, -5.12%) a notable laggard among large chipmakers after partnering with Apollo Global Management (APO 131.14, -1.56, -1.18%)on an AI platform backed by an initial $35 billion commitment, while Taiwan Semiconductor Manufacturing (TSM 408.91, -19.01, -4.44%) suffered a similar loss despite reporting record May revenue.

Like the previous session's retreat, today's selloff came without a clear catalyst, suggesting that technology stocks may simply be working through a period of near-term profit-taking after an extended run higher. Some investors may also be raising cash ahead of Friday's highly anticipated SpaceX IPO.

Elsewhere in the technology sector, Super Micro Computer (SMCI 29.27, -11.37, -27.98%) was the worst-performing S&P 500 name after announcing a series of concurrent equity and equity-linked financing transactions totaling $7 billion.

Unlike yesterday's session, the major averages were left largely without support from the broader market, which was further pressured by rising oil prices. Crude oil futures settled today's session $1.77 higher (+2.0%) at $89.93 per barrel amid an escalation in hostilities between the U.S. and Iran, which included President Trump saying more military strikes are planned for today.

The industrials sector (-3.4%) finished with the widest loss, pressured by a variety of factors, including the spike in oil prices, which weighed heavily on airline stocks such as United Airlines (UAL 102.78, -6.85, -6.25%).

Elsewhere in the sector, Amazon's (AMZN 237.93, -6.26, -2.56%) expansion into the less-than-truckload space sent names such as FedEx Freight (FDXF 175.19, -13.27, -7.04%) and Old Dominion (ODFL 235.95, -12.78, -5.14%) sharply lower.

Additionally, electrical product names such as Generac (GNRC 239.11, -21.88, -8.38%), which have become increasingly linked to semiconductor performance, charted a lower course as tech pulled back.

The consumer discretionary sector (-2.2%) faced a similar combination of pressures, with cruise lines and other travel-related names retreating amid higher oil prices, while the pullback across tech included Tesla (TSLA 381.51, -15.17, -3.82%) and Amazon.

Meanwhile, the energy sector (+1.5%) unsurprisingly outperformed, while the consumer staples sector (+1.7%) also notched a solid gain as it extended yesterday's rotational strength. Casey's General (CASY 915.60, +154.42, +20.29%) was the best-performing S&P 500 name after topping earnings estimates, while J.M. Smucker (SJM 116.98, +4.59, +4.08%) extended its own post-earnings rally and Coca-Cola (KO 83.59, +2.25, +2.77%) traded to a new all-time high.

Overall, today's session reinforced the market's recent struggle to sustain upside momentum in technology stocks after an extended rally. Looking ahead, attention now turns to Oracle's (ORCL 201.26, -4.55, -2.21%) earnings after the close and Friday's highly anticipated SpaceX IPO as key catalysts that could further shape near-term sentiment.

U.S. Treasuries recorded slim midweek losses after spending another day inside a narrow trading range even though today's session saw the release of the May CPI report (0.5%; Briefing.com consensus 0.5%). Treasuries reached fresh lows in the early afternoon even though today's $39 bln 10-year note reopening was well received with foreign demand coming in firmly above average. The 2-year note yield settled up one basis point to 4.13%, and the 10-year note yield settled up one basis point to 4.54%. 

• Russell 2000: +14.3% YTD
• S&P Mid Cap 400: +11.2% YTD
• Nasdaq Composite: +8.3% YTD
• S&P 500: +6.2% YTD
• DJIA: +3.9% YTD

Reviewing today's data:

• Weekly MBA Mortgage Applications Index 10.8%; Prior -2.3%
• May CPI 0.5% (Briefing.com consensus 0.5%); Prior 0.6%, May Core CPI 0.2% (Briefing.com consensus 0.3%); Prior 0.4%
  • The key takeaway from the report is that core CPI was not as bad as feared, but that doesn't mean it was good. Core CPI is still running well above the Fed's 2.0% inflation target, so this report was by no means a game-changer in terms of the prevailing view that the Fed won't be cutting rates anytime soon.
• The Treasury Department reported a $292.6 billion deficit for May (Briefing.com consensus: $202.5 bln), which was $23 billion less than the deficit reported for May 2025. Receipts totaled $335.5 billion, while outlays reached $628.2 billion.
  
  • The key takeaway from the report, for some, will be the decline in customs duties, but even more important is the continued increase in the outlay for net interest ($107 billion), which was 47% more in May than the outlay for national defense.