The S&P 500 (SPX) gapped up to a fresh two-week high, nudging back above 200 MA.

Notably, Magnificent Seven (MAGS) is leading the way up, with Tesla (TSLA) rebounding and leading the group higher. Lagging performance from Apple (AAPL) and Microsoft (MSFT) is preventing the group from moving higher.

Nine sectors are moving higher this afternoon. Consumer Discretionary (XLY) is the clear front runner with Tesla (TSLA) and Darden Restaurants (DRI), featured on Friday’s note, being the best performing stocks in the sector. Utilities (XLU) and Consumer Staples (XLP) are the only sectors in the red, albeit marginally.

The market breadth is also broadly positive with new highs eclipsing new lows on the NYSE and improving on the Nasdaq.

Economic Data

The S&P 500 PMI rose to 53.5 in March from 51.6 in February, beating consensus of 51.3. The service sector grew to 54.3 from 51 and in line with economists’ expectations, while manufacturing declined to 49.8 from 52.7 and below consensus of 51.8.