[BRIEFING.COM] Stocks had a relatively sleepy session on the heels of Monday's rally, with the DJIA (+0.6%) furthering its push into record territory as oil prices continued to fall, while the S&P 500 (-0.6%) and Nasdaq Composite (-1.2%) faced pressure amid a pullback across tech names.

The information technology sector (-2.3%) finished with the widest loss by a considerable margin after posting a 3.4% gain in the previous session. Semiconductor stocks in particular faced some profit-taking, with the PHLX Semiconductor Index (-5.7%) giving back all of yesterday's gains as stocks such as Lumentum (LITE 875.36, -81.88, -8.55%) and Monolithic Power (MPWR 1496.52, -155.77, -9.43%) were among the worst-performing S&P 500 components.

NVIDIA (NVDA 207.42, -5.03, -2.37%) was a "magnificent seven" laggard amid a mostly lower showing across the group, helping drive the Vanguard Mega Cap Growth ETF 1.1% lower.

For much of the session, it appeared that relative weakness across the mega-cap cohort would have little effect on SpaceX (SPCX 202.09, +9.59, +4.98%). After surrendering most of an early advance during the afternoon, the stock found renewed buying interest into the close and extended its powerful post-IPO run.

As tech charted a lower course, the broader market saw some rotational interest that helped soften the tech-inflicted blow on the major averages. Strength in the broader market was once again supported by a retreat in oil prices, as investors remained optimistic that Friday's planned signing of the U.S.-Iran peace agreement will result in a lasting resolution and help keep energy prices contained. Crude oil futures settled today's session $4.84 lower (-6.0%) at $76.06 per barrel, and the energy sector (-0.4%) was the only other S&P 500 sector to finish with a loss wider than 0.1%.

Meanwhile, seven S&P 500 sectors posted gains, led by the financials sector (+1.5%) as falling oil prices eased growth concerns and supported bank stocks. JPMorgan Chase (JPM 331.14, +11.74, +3.68%) was the best-performing Dow component after Bloomberg reported that L3Harris (LHX 310.45, +6.28, +2.06%) selected JPMorgan and Morgan Stanley (MS 220.83, +2.85, +1.31%) to lead a potential $2 billion IPO of its missile unit, Axyv.

Other cyclical sectors were also among today's outperformers. The majority of stocks in the industrials sector (+0.7%) traded higher, while the materials sector (+0.5%) was supported by another solid showing from construction material names as Treasury yields continued to move lower.

Outside of the S&P 500, the Russell 2000 (-0.9%) and S&P Mid Cap 400 (-0.3%) finished lower.

Corporate news flow was on the lighter side again today, though there were a few notable stock-specific moves. Moderna (MRNA 55.39, +3.26, +6.25%) surged in reaction to upbeat pipeline and commercialization updates, while CoreWeave (CRWV 117.03, +10.32, +9.67%) finished with an even wider gain after the company said it delivered the fastest DeepSeek-V3 671B training performance in the benchmark.

Altogether, today's session reflected a pause in the recent technology-led advance rather than a meaningful deterioration in sentiment. Profit-taking across semiconductor and mega-cap names weighed on the major averages, but continued weakness in oil prices helped support rotation into other areas of the market and kept the broader tone constructive.

Attention now turns to tomorrow's FOMC meeting, where the Fed is widely expected to leave rates unchanged, though investors will be closely monitoring the first meeting under Fed Chair Warsh for clues about the policy outlook and how the Committee views the recent improvement in inflation and energy prices.

U.S. Treasuries continued their upbeat start to the week, sending the 30-year yield to its lowest close since late April while yields on the 5 and 10 year note yields recorded their lowest settlements since mid-May as the market remained optimistic that geopolitical tensions with Iran will become a distant memory soon. The Treasury complex climbed past its early highs in mid-morning action, staying near their best levels after the U.S. Treasury sold $22 billion in 20-year bonds to strong demand. The 2-year note yield settled down two basis points to 4.05%, and the 10-year note yield settled down four basis points to 4.43%. 

• Russell 2000:
• S&P Mid Cap 400:
• Nasdaq Composite:
• S&P 500:
• DJIA:

Reviewing today's data:

• May Housing Starts 1.177 mln (Briefing.com consensus 1.440 mln); Prior was revised to 1.392 mln from 1.465 mln, May Building Permits 1.413 mln (Briefing.com consensus 1.410 mln); Prior was revised to 1.423 mln from 1.442 mln
  • The key takeaway from the report is that the weakness in starts was concentrated on the multi-unit side, as starts there were down 40.2% month-over-month, yet it would be remiss not to mention that single-unit starts in the South-the largest homebuilding region-were down 5.2% month-over-month.
• May Import Prices 1.9%; Prior was revised to 2.0% from 1.9%
• May Import Prices ex-oil 0.8%; Prior was revised to 0.6% from 0.8%
• May Export Prices 1.3%; Prior was revised to 3.5% from 3.3%
• May Export Prices ex-ag. 1.2%; Prior was revised to 3.7% from 3.4%

[BRIEFING.COM] The major averages remain on track for a mostly lower finish with just half an hour left in today's session.

Crude oil futures settled today's session $4.84 lower (-6.0%) at $76.06 per barrel, which contributed to some solid rotational gains in the broader market despite a weaker showing from the market's largest components today.

Before Friday's planned signing of the U.S.-Iran peace agreement, which prompted the pullback in oil prices, the market will navigate the June FOMC meeting tomorrow afternoon. While the market is fully expectant that the Fed will leave rates unchanged, the meeting will mark the first with newly minted Fed Chair Kevin Warsh at the helm. Investors will be particularly attuned to any commentary from Mr. Warsh signaling the Fed's expected policy path, particularly given that the U.S.-Iran conflict seems to be on the brink of a more permanent resolution.

[BRIEFING.COM] The S&P 500 (-0.3%) and Nasdaq Composite (-0.6%) are drifting to new session lows as the market enters the final hour of the session, though solid participation from the broader market keeps the DJIA on pace for a record closing high.

Though not a member of the information technology sector (-1.8%) or the S&P 500 for that matter, CoreWeave (CRWV 117.83, +11.12, +10.42%) trades sharply higher after the company said it delivered the fastest DeepSeek-V3 671B training performance in the benchmark, completing the training in 2.02 minutes on 8,192 NVIDIA (NVDA 208.97, -3.48, -1.64%) GB300 NVL72 GPUs.

[BRIEFING.COM] The S&P 500 (-0.28%) is in second place on Tuesday afternoon, down about 21 points.

Briefly, S&P 500 constituents Cboe Global Markets (CBOE 266.56, -26.35, -9.00%), Ciena (CIEN 432.80, -30.61, -6.61%), and Netflix (NFLX 78.26, -3.41, -4.18%) dot the bottom of the standings. CBOE slides as investors weigh the potential competitive threat from newly approved U.S.-regulated perpetual futures products, which could shift trading volume away from traditional futures exchanges and pressure growth expectations for Cboe and CME Group (CME 259.34, -6.74, -2.53%), while NFLX falls following reports that the company explored a potential acquisition of Lionsgate Studios (LION 16.31, +1.94, +13.50%) and lost out to Fox (FOXA 53.335, -1.425, -2.60%) in the bidding for Roku (ROKU 139.925, -0.975, -0.69%), with the stock also facing pressure after Netflix reportedly denied aspects of the Lionsgate acquisition speculation.

Meanwhile, Moderna (MRNA 57.5249, +5.3949, +10.35%) is firmly atop the average in reaction to upbeat pipeline and commercialization updates, including plans for multiple new product launches in 2027-2028, potential flu and COVID combination vaccines, and early-stage trial progress that reinforces longer-term growth expectations.

[BRIEFING.COM] The Nasdaq Composite (-0.53%) is in last place on Tuesday afternoon, down about 140 points.

Gold futures settled $2.80 higher (+0.1%) at $4,354.40/oz, as investors awaited the Federal Reserve's policy decision and assessed the impact of the emerging U.S./Iran peace agreement. Lower oil prices eased inflation concerns and supported expectations for a more accommodative Fed, while lingering geopolitical uncertainty and ongoing central bank buying helped sustain demand for the safe-haven metal.

Meanwhile, the U.S. Dollar Index falls -0.1% to $99.54.

[BRIEFING.COM] The Dow Jones Industrial Average (+0.92%) is up about 473 points, the only major average in the green this afternoon.

A look inside the DJIA shows that JPMorgan Chase (JPM 331.02, +11.62, +3.64%), 3M (MMM 162.67, +4.44, +2.81%), and Visa (V 332.44, +8.62, +2.66%) are some of today's best performers.

Meanwhile, Salesforce (CRM 160.74, -3.81, -2.32%) is sliding lower.

The DJIA is +4.48% higher from last Wednesday's lows.

[BRIEFING.COM] The S&P 500 (-0.2%), Nasdaq Composite (-0.4%), and DJIA (+1.0%) sit mostly lower just after midday as tech stocks face some profit-taking following yesterday's sharp rally. It has been a relatively quiet session from a news flow perspective, though oil prices continue to move lower, prompting gains across the broader market that have the DJIA pushing deeper into record territory.

While details surrounding the U.S.-Iran peace agreement that sent oil sharply lower yesterday remain limited, The Wall Street Journal reported that the U.S. plans to incentivize Iran's participation by allowing the country to immediately resume oil exports once the agreement is signed. Crude oil is currently down $5.08 (-6.3%) to $75.67 per barrel. The energy sector (-0.5%) is unsurprisingly a laggard, though the retreat in oil prices remains a tailwind for the broader market.

Nine S&P 500 sectors trade higher, with other cyclical sectors among the top performers. The financials sector (+1.6%) holds the widest gain as investors increasingly bet that energy prices are heading back toward levels seen before the military campaign against Iran, easing concerns about economic growth and providing a more favorable backdrop for bank profitability. JPMorgan Chase (JPM 330.99, +11.59, +3.63%) is the best performing Dow component after L3Harris (LHX 309.16, +4.98, +1.64%) tapped the bank, along with Morgan Stanley (MS 220.99, +3.01, +1.38%), to lead up to a $2 billion IPO of its missile unit Axyv, according to Bloomberg.

The industrials sector (+1.3%) is another top mover, supported by broad strength, while construction material names outperform amid another drop in Treasury yields, sending the materials sector (+0.8%) higher.

Despite the strength in the broader market, the top-weighted information technology sector (-1.5%) moves firmly lower, capping gains at the index level. The PHLX Semiconductor Index (-3.3%) is facing some profit-taking after yesterday's advance, with Lumentum (LITE 891.96, -65.28, -6.82%) the worst-performing S&P 500 component today, while Intel (INTC 120.06, -7.80, -6.10%) is a large chipmaker laggard.

Relative weakness across mega-cap tech names has the Vanguard Mega Cap Growth ETF down 0.8%. The pullback across the market's largest names has not yet affected SpaceX (SPCX 216.58, +24.08, +12.51%), which moves sharply higher on its third trading day.

Even with today's weakness, the technology sector advanced 3.4% yesterday, which keeps it firmly higher on a week-to-date basis. Oil-driven enthusiasm in the broader market has the S&P 500 Equal Weighted Index (+0.2%) sitting with a modest gain for the day, keeping the broader tone constructive as the major averages remain firmly higher for the week.

Reviewing today's data:

• May Housing Starts 1.177 mln (Briefing.com consensus 1.440 mln); Prior was revised to 1.392 mln from 1.465 mln, May Building Permits 1.413 mln (Briefing.com consensus 1.410 mln); Prior was revised to 1.423 mln from 1.442 mln
  • The key takeaway from the report is that the weakness in starts was concentrated on the multi-unit side, as starts there were down 40.2% month-over-month, yet it would be remiss not to mention that single-unit starts in the South-the largest homebuilding region-were down 5.2% month-over-month.
• May Import Prices 1.9%; Prior was revised to 2.0% from 1.9%
• May Import Prices ex-oil 0.8%; Prior was revised to 0.6% from 0.8%
• May Export Prices 1.3%; Prior was revised to 3.5% from 3.3%
• May Export Prices ex-ag. 1.2%; Prior was revised to 3.7% from 3.4%

[BRIEFING.COM] The DJIA (+1.0%) continues to chart session highs, while a weaker showing across tech and mega-cap stocks keeps the S&P 500 (-0.1%) and DJIA (-0.4%) pinned modestly lower.

Corporate news flow is on the lighter side today, though Yum! Brands (YUM 158.08, +3.41, +2.20%) makes a nice move higher after announcing it has entered into definitive agreements to sell Pizza Hut for $2.7 billion. Pizza Hut, excluding Mainland China, will be acquired by LongRange Capital, while Pizza Hut in Mainland China will be acquired by Yum China (YUMC 43.95, -0.30, -0.68%).

Across the two transactions, Yum! expects to receive approximately $2.3 billion of net proceeds after taxes, closing adjustments, and transaction-contingent fees, excluding the earn-out. Yum! additionally expects to incur one-time expenses of approximately $85 million during the remainder of 2026 to effectuate the separation.

[BRIEFING.COM] The major averages remain mostly lower for the day, little changed from previous levels.

Carvana (CVNA 69.92, +1.02, +1.47%) holds a nice gain, adding to yesterday's 7.5% rally. CNBC reports that the company is entering the new-vehicle market by purchasing seven new-vehicle franchises over the past year, a move that will give it greater exposure to the entire life cycle of a vehicle.

[BRIEFING.COM] The major averages are mostly lower just before midday, as a pullback in tech names after yesterday's rally pushes the S&P 500 (-0.2%) and Nasdaq Composite (-0.4%) modestly lower, while the DJIA (+0.8%) pushes further into record territory as sliding oil prices continue to prompt gains in the broader market.

The top-weighted information technology sector (-1.5%) holds the widest loss, weighed down by its semiconductor components such as Lumentum (LITE 876.00, -81.24, -8.49%), Coherent (COHR 388.15, -25.69, -6.21%), and Intel (INTC 119.69, -8.17, -6.39%) after sharp gains in yesterday's session.

Elsewhere, the energy sector (-0.5%) also retreats as crude oil moves back below the $80 per barrel mark amid optimism around the U.S.-Iran peace deal set to be signed on Friday.

Meanwhile, eight S&P 500 sectors trade at or above their baselines, with solid gains across oil-sensitive pockets of the market contributing to the broadening out of leadership today. The S&P 500 Equal Weighted Index is flat, though a 0.7% slide in the Vanguard Mega Cap Growth ETF makes it tough for the market-weighted S&P 500 to advance as its largest names take a breather after a sharp rally to start the week.

[BRIEFING.COM] The major averages remain mostly lower as tech losses continue to weigh against a broader market that trades mostly higher.

SpaceX (SPCX 209.61, +17.11, +8.89%) is extending its powerful post-IPO run after announcing an all-stock agreement to acquire Anysphere, the company behind AI coding platform Cursor, in a transaction that implies a $60.0 billion equity value for Cursor. The deal reinforces the company's broader AI platform ambitions, but it also adds dilution, integration, regulatory, and valuation risk while the stock is still in early post-IPO price discovery.

Cursor shareholders will receive SPCX Class A shares based on a seven-day VWAP before closing, making the final dilution directly sensitive to where the stock trades into completion.

Today's announcement strengthens SPCX's AI platform narrative at a time when investors are already rewarding the stock for scarcity value and long-duration optionality. The appeal is clear: Cursor adds a high-profile AI software asset with enterprise revenue potential, giving the company a more direct bridge between developer productivity, AI applications, and its broader xAI and infrastructure ambitions. However, the deal also raises the complexity of the story because investors now have to underwrite not only launch, Starlink, Starship, satellite-to-cell, defense, and orbital compute, but also a major AI software integration.

[BRIEFING.COM] The S&P 500 (-0.2%), Nasdaq Composite (-0.5%), and DJIA (+0.6%) now trade mostly lower, as losses across the information technology sector (-1.1%), and components of the PHLX Semiconductor Index (-1.4%) begin to widen.

Lumentum (LITE 881.37, -75.87, -7.93%) is the worst-performing S&P 500 name, while Intel (INTC 120.45, -7.41, -5.80%) is a chipmaking laggard.

NVIDIA (NVDA 208.82, -3.62, -1.71%) also moves lower after Bloomberg reported the company raised $25 billion through a debt sale.

[BRIEFING.COM] The S&P 500 (flat), Nasdaq Composite (+0.3%), and DJIA (+0.4%) are mostly higher this morning, with the DJIA notching a record high for the second consecutive day.

Gains are limited by some modest profit-taking in the information technology sector (-0.3%) after yesterday's 3.4% rally. Semiconductor names, which played a key role in the rally, are mixed today, with the PHLX Semiconductor Index (+0.1%) flattish.

Meanwhile, memory names Western Digital (WDC 719.76, +66.23, +10.13%) and Seagate Tech (STX 1080.50, +61.70, +6.06%) are extending yesterday's gains, once again among the top-performing S&P 500 names.

Several cyclical sectors are also adding to yesterday's gains as oil prices continue to retreat this morning. The industrials sector (+1.0%) holds the widest gain, while the financials (+0.7%) and materials (+0.6%) sectors are also near the top of the leaderboard.

Meanwhile, the energy sector (-0.4%) is a laggard, while more defensively oriented sectors also underperform, similar to yesterday's action.

The stock market remains on track for a muted opening as momentum cools following yesterday's rally.

Import prices jumped 1.9% month-over-month in May and were up 6.7% year-over-year. Excluding fuel, import prices rose 0.8% month-over-month and were up 3.7% year-over-year. On the exports side, prices were up 1.3% month-over-month and up 11.2% year-over-year. Excluding agricultural products, export prices increased 1.2% month-over-month and were up 11.8% year-over-year.

Housing starts, meanwhile, plummeted 15.4% month-over-month to a seasonally adjusted annual rate of 1.177 million units (Briefing.com consensus: 1.440 million), with single-unit starts down 1.9%. Building permits were down 0.7% month-over-month to a seasonally adjusted annual rate of 1.413 million (Briefing.com consensus: 1.410 million), with single-unit permits up 0.6%.

The key takeaway from the report is that the weakness in starts was concentrated on the multi-unit side, as starts there were down 40.2% month-over-month, yet it would be remiss not to mention that single-unit starts in the South-the largest homebuilding region-were down 5.2% month-over-month.

The S&P 500 futures continue to trade in line with fair value. 

Equity indices in the Asia-Pacific region had a mostly higher showing on Tuesday with Japan's Nikkei (+0.1%) eking out a fresh record close while South Korea's Kospi (+2.1%) was on the verge of doing the same. The Bank of Japan raised its policy rate by 25 basis points to 1.00% while the Reserve Bank of Australia left its cash rate at 4.35%. Both moves were in line with expectations, causing a limited reaction in the market. The yen and the Aussie are essentially flat while Japan's yields are up a bit after the hike to a level not seen since 1995. The BoJ left the door open for additional hikes while the RBA noted that the economy is decelerating after this year's hikes.

• In economic data:
  • China's May Retail Sales -0.6% m/m (expected -0.3%; last 0.2%), May Industrial Production 4.5% yr/yr (expected 4.4%; last 4.1%), May Fixed Asset Investment -4.1% yr/yr (expected -2.3%; last -1.6%), and May House Prices -3.5% yr/yr (last -3.5%). May Unemployment Rate 5.1% (expected 5.2%; last 5.2%)
  • Hong Kong's May Unemployment Rate 3.7% (last 3.7%)
  • South Korea's May Import Price Index 24.8% yr/yr (last 20.5%) and Export Price Index 46.9% (last 41.3%)
  • New Zealand's May FPI 1.0% m/m (last 0.0%)

---Equity Markets---

• Japan's Nikkei: +0.1%
• Hong Kong's Hang Seng: -1.4%
• China's Shanghai Composite: -0.1%
• India's Sensex: +0.7%
• South Korea's Kospi: +2.1%
• Australia's ASX All Ordinaries: UNCH

Major European indices trade in the green. Germany rejected UniCredit's offer to acquire Commerzbank. British Chancellor Reeves said that she hopes to plan the next budget without raising taxes. Norwegian Air Shuttle will acquire Nordic Leisure Travel for $833 mln.

• In economic data:
  • Eurozone's June ZEW Economic Index 9.5 (expected -7.2; last -9.1). Q1 Eurozone Wages 3.4% yr/yr (last 3.0%) and Q1 Labor Cost Index 3.2% yr/yr (expected 3.3%; last 3.3%)
  • Germany's June ZEW Economic Sentiment 10.5 (expected -5.8; last -10.2) and ZEW Current Conditions -81.0 (expected -77.5; last -77.8)
  • Italy's May CPI 0.4% m/m, as expected (last 1.1%); 3.2% yr/yr, as expected (last 3.2%)

---Equity Markets---

• STOXX Europe 600: +0.3%
• Germany's DAX: +0.3%
• U.K.'s FTSE 100: +0.6%
• France's CAC 40: +0.7%
• Italy's FTSE MIB: +1.1%
• Spain's IBEX 35: +0.2%

The S&P 500 futures currently trade in line with fair value. 

Just released, Housing starts decreased 15.4% month-over-month in May to a seasonally adjusted annual rate of 1.177 million units (Briefing.com consensus: 1.440 million) from a downwardly revised 1.392 million (from 1.465 million).

Building permits decreased 0.7% month-over-month to a seasonally adjusted annual rate of 1.413 million (Briefing.com consensus: 1.410 million).

Import prices rose 1.9% in May after an upwardly revised 2.0% increase in April (from 1.9%).

Excluding oil, import prices rose 0.8% after a downwardly revised 0.6% increase (from 0.8%) in April.

Export prices rose by 1.3% in May after an upwardly revised 3.5% increase in April (from 3.3%).

Excluding agriculture, export prices rose 1.2% after an upwardly revised 3.7% jump in April (from 3.4%).

Equity futures point to a modestly higher opening after stocks rallied yesterday in response to headlines of a peace agreement between the U.S. and Iran that sent oil prices sharply lower. Oil continues to move lower this morning, approaching the $78 per barrel mark, though stocks seem to be taking a breather after yesterday's advance.

The rally resulted in fresh record highs for the DJIA. Support was relatively broad, and mega-cap stocks provided solid leadership.

The market's newest mega-cap stock, SpaceX (SPCX 201.64, +9.14, +4.8%), jumped nearly 20% yesterday and is moving higher again in the premarket ahead of its third trading day.

On the data front, the market has several economic data releases slated for this morning, including May housing starts (Briefing.com consensus 1.440 million) and building permits (Briefing.com consensus 1.410 million) data.

In corporate news:

• NVIDIA (NVDA 211.88, -0.57, -0.3%) raises $25 billion through a debt sale, according to Bloomberg.
• Qualcomm (QCOM 231.75, +10.94, +5.0%) is in discussions to buy Tenstorrent, according to The Information.
• Robinhood (HOOD 99.33, +1.21, +1.3%) will reduce its workforce by 10%, according to Reuters.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region had a mostly higher showing on Tuesday with Japan's Nikkei (+0.1%) eking out a fresh record close while South Korea's Kospi (+2.1%) was on the verge of doing the same. Japan's Nikkei: +0.1%, Hong Kong's Hang Seng: -1.4%, China's Shanghai Composite: -0.1%, India's Sensex: +0.7%, South Korea's Kospi: +2.1%, Australia's ASX All Ordinaries: UNCH.

In news:

• The Bank of Japan raised its policy rate by 25 basis points to 1.00% while the Reserve Bank of Australia left its cash rate at 4.35%.
• Both moves were in line with expectations, causing a limited reaction in the market.
• The yen and the Aussie are essentially flat while Japan's yields are up a bit after the hike to a level not seen since 1995.
• The BoJ left the door open for additional hikes while the RBA noted that the economy is decelerating after this year's hikes.

In economic data:

• China's May Retail Sales -0.6% m/m (expected -0.3%; last 0.2%), May Industrial Production 4.5% yr/yr (expected 4.4%; last 4.1%), May Fixed Asset Investment -4.1% yr/yr (expected -2.3%; last -1.6%), and May House Prices -3.5% yr/yr (last -3.5%). May Unemployment Rate 5.1% (expected 5.2%; last 5.2%)
• Hong Kong's May Unemployment Rate 3.7% (last 3.7%)
• South Korea's May Import Price Index 24.8% yr/yr (last 20.5%) and Export Price Index 46.9% (last 41.3%)
• New Zealand's May FPI 1.0% m/m (last 0.0%)

Major European indices trade in the green. STOXX Europe 600: +0.4%, Germany's DAX: +0.4%, U.K.'s FTSE 100: +0.6%, France's CAC 40: +0.7%, Italy's FTSE MIB: +1.3%, Spain's IBEX 35: +0.4%.

In news:

• Germany rejected UniCredit's offer to acquire Commerzbank.
• British Chancellor Reeves said that she hopes to plan the next budget without raising taxes.
• Norwegian Air Shuttle will acquire Nordic Leisure Travel for $833 mln.

In economic data:

• Eurozone's June ZEW Economic Index 9.5 (expected -7.2; last -9.1). Q1 Eurozone Wages 3.4% yr/yr (last 3.0%) and Q1 Labor Cost Index 3.2% yr/yr (expected 3.3%; last 3.3%)
• Germany's June ZEW Economic Sentiment 10.5 (expected -5.8; last -10.2) and ZEW Current Conditions -81.0 (expected -77.5; last -77.8)
• Italy's May CPI 0.4% m/m, as expected (last 1.1%); 3.2% yr/yr, as expected (last 3.2%)

[BRIEFING.COM] The stock market started a holiday-abbreviated week on a sharply higher note as a pullback in oil prices culminated in relatively broad gains and strong leadership from mega-cap and tech names. The S&P 500 (+1.7%), Nasdaq Composite (+3.1%), and DJIA (+0.9%) traded in a narrow range after the initial oil-driven opening gains, with the DJIA securing fresh all-time high levels.

Yesterday's announcement from President Trump that the U.S. and Iran have reached a peace agreement, which will include the reopening of the Strait of Hormuz and lifting Iran's naval blockade, provided the spark for a constructive session today. The deal is expected to be signed on Friday in Switzerland, and while questions remain around some of the tougher issues, including Iran's nuclear program, the market was satisfied by the progress and the subsequent slide in oil prices. Crude oil futures settled the session $3.98 lower (-4.7%) at $80.90 per barrel.

Importantly, mega-cap and tech stocks took part in the rally after some choppiness across the group last week. The information technology sector (+3.4%) finished with the widest gain, supported by a 5.5% advance across components of the PHLX Semiconductor Index. NVIDIA (NVDA 212.45, +7.26, +3.54%) reclaimed its 50-day moving average (207.60), while memory names Western Digital (WDC 653.53, +90.60, +16.10%), Micron (MU 1087.99, +106.38, +10.84%), and Seagate Tech (STX 1018.80, +87.76, +9.43%) were among the top-performing S&P 500 names.

Meta Platforms (META 593.48, +26.50, +4.67%) and Amazon (AMZN 246.10, +7.55, +3.16%) were among the other mega-cap standouts, which helped the communication services (+2.4%) and consumer discretionary (+1.9%) sectors also finish near the top of the leaderboard. The Vanguard Mega Cap Growth ETF finished 2.8% higher.

Though not yet a component of the S&P 500, SpaceX (SPCX 192.50, +31.55, +19.60%) traded sharply higher again in its second trading day, putting its total gain at roughly 40% above its IPO price.

Outside of the mega-cap realm, oil- and rate-sensitive stocks contributed to today's rally amid the pullback in crude prices. DoorDash (DASH 168.09, +17.51, +11.63%) was an S&P 500 standout, while a host of cruise lines and other travel-related names also contributed to the strength in the consumer discretionary sector.

The industrials sector (+1.4%) was another top mover, bolstered by solid performances across airline names and electrical product names, which have become increasingly linked to semiconductor performance.

Meanwhile, the energy sector (-3.6%) faced a sharp retreat amid the oil pullback, while the more defensive-oriented real estate (-0.9%), health care (-0.7%), and consumer staples (-0.5%) sectors also underperformed as growth stocks surged today.

Altogether, it was a relatively quiet session, as a lack of corporate news kept the major averages trading near their opening highs for most of the day. The retreat in oil prices improved sentiment across the market and helped alleviate some inflation and growth concerns, while mega-cap and technology stocks regained their footing after a volatile previous week

U.S. Treasuries started the week on a positive note, though some intraday backtracking left the complex with only a portion of its initial gains. The 2-year note yield settled down two basis points to 4.07%, and the 10-year note yield settled down two basis points to 4.47%.

• Russell 2000: +19.5% YTD
• S&P Mid Cap 400: +15.2% YTD
• Nasdaq Composite: +14.8% YTD
• S&P 500: +10.4% YTD
• DJIA: +7.5% YTD

Reviewing today's data:

• June Empire State Manufacturing 5.7 (Briefing.com consensus 12.5); Prior 19.6
• May Industrial Production 0.1% (Briefing.com consensus 0.2%); Prior was revised to 0.9% from 0.7%, May Capacity Utilization 76.2% (Briefing.com consensus 76.2%); Prior 76.1%
  • The key takeaway from the report is that manufacturing output moved sideways in May, reflecting a cooling down after some solid activity in April.
• June NAHB Housing Market 35 (Briefing.com consensus 37); Prior 37