Briefing

Market Snapshot

• Dow: 45215.03 (+49.50, 0.11%)
• Nasdaq: 20794.65 (-153.72, -0.73%)
• SP 500: 6345.71 (-25.13, -0.39%)
• NYSE: Adv 1351, Dec 1389, Vol 1.37 bln
• Nasdaq: Adv 1992, Dec 2815, Vol 9.28 bln

Industry Watch

• Strong: Materials, Financials, Utilities, Health Care, Communications, Real Estate, Consumer Staples
• Weak: Industrials, Information Technology, Energy

Moving the Market

• Mixed signals around Iran conflict; President Trump touting negotiations while troops assemble.
• WTI crude oil rises back above $102 per barrel.
• Fed Chair Powell notes inflation expectations remain well anchored, quelling fears of a rate hike.
• Treasury yields moving lower, reflecting a potential shift from inflation concerns to growth worries.

Detailed Summary

• Stocks opened with gains but faded, leading to a mostly lower finish for major averages.
• Nasdaq Composite (-0.7%), S&P 500 (-0.4%), Russell 2000 (-1.5%), and S&P Mid Cap 400 (-0.8%) closed lower.
• DJIA (+0.1%) ended with a modest gain.
• Information Technology (-1.5%) was a laggard due to pronounced weakness in semiconductor stocks.
  • PHLX Semiconductor Index finished 4.2% lower.
  • Micron (MU -9.92%) and Coherent (COHR -9.79%) were among the worst S&P 500 performers.
  • Software stocks performed well, with ServiceNow (+5.59%) and Palo Alto Networks (+4.99%) gaining.
• Industrials (-1.6%) and Energy (-0.9%) sectors also closed lower.
• Geopolitical developments in the Middle East impacted sentiment:
  • Mixed messages from President Trump on Iran negotiations.
  • Reports of Israeli Air Force strikes on Tehran infrastructure late in the session.
  • Crude oil futures settled $3.41 higher (+3.4%) at $102.92 per barrel.
  • Gold futures jumped 2.7% on safe-haven demand.
• Fed Chair Powell's comments on anchored inflation expectations reduced the probability of a rate hike later this year (from >20% to ~5%).
• U.S. Treasuries gained, with the 10-year note yield down 10 basis points to 4.34%.
• Corporate news:
  • Sysco (SYY -15.28%) was the worst-performing S&P 500 component after a $29.1 billion acquisition.
  • Boston Scientific (BSX -9.21%) fell due to FTC concerns.
  • Arthur J. Gallagher (AJG +4.44%) rose after an Australian acquisition.
• No economic data of note.
• Market averages remain below 200-day moving averages, highlighting a challenged technical backdrop.
• The U.S. Dollar Index added about +0.3% to $100.48.