Both the S&P 500 (SPX) and the Nasdaq 100 (NDX) reversed their early morning losses and closed in the green as investors digested the implications of a coordinated U.S.-Israel attack on Iran.
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News That Moved the Stock Market Today
- The U.S. eliminated Iranian Supreme Leader Ayatollah Ali Khamenei over the weekend, with Iran vowing to retaliate.
- Energy and defense stocks, like Lockheed Martin (LMT), RTX (RTX), and Exxon Mobil (XOM), moved higher on the news. Uranium exchange-traded funds (ETFs) benefited as well.
- President Trump warned that the conflict could last for several weeks and intensify. “We haven’t even started hitting them hard. The big wave hasn’t even happened. The big one is coming soon,” he told CNN.
- Former Fed Chair Janet Yellen cautioned that disruptions to the Strait of Hormuz could increase inflation and delay rate cuts.
- The odds of a rate cut at the next Federal Open Market Committee (FOMC) meeting fell to 2.5% from 7.4% on Friday.
- Apple (AAPL) introduced the iPhone 17e and the iPad Air M4, both with starting prices of $599.
- Netflix (NFLX) continued to trade higher after dropping its bid to acquire Warner Bros. Discovery (WBD). In addition, JPMorgan upgraded NFLX to “buy” from “hold” and hiked its price target to $120.
Today’s Best-Performing Sector
Energy was the best-performing sector of the day amid disruption risks to the Strait of Hormuz. The strait is responsible for roughly 20% of global oil shipments, with several shipping companies already halting activity in the passage. With supply constrained, oil companies stand to benefit from higher prices and stronger margins.
Several energy stocks led the sector’s gains, including:
- Exxon Mobil (XOM)
- Chevron (CVX)
- ConocoPhillips (COP)
- Williams Companies (WMB)
- Phillips 66 (PSX)
- Occidental Petroleum (OXY)
Today’s Worst-Performing Sector
Meanwhile, consumer discretionary was the worst-performing sector on rising inflation expectations, supply-chain risks, and general risk-off sentiment. Furthermore, higher fuel costs directly impact consumer spending, airlines, cruise lines, and other travel-related industries.
Notable consumer discretionary stocks trading lower include: