The market opened higher yesterday and then marked time. The focus remains on the latest developments on the Iran conflict. Small-caps enjoyed the best gains across most factors.

The heat map was encouraging, with many “Mag Seven” and mega-cap names in the green, led by Nvidia (NVDA).

Advancers:

• S&P 400 68%
• S&P 500 64%
• S&P 600 71%

New lows on the NASDAQ suggest investors are giving up on rebounds and taking their lumps.

Hardware Rocks

Advanced Micro Devices (AMD) and Intel (INTC) were among the biggest advancers on the session after reports of 15% increase in Central Processing Unit (CPU) chips. Interestingly, until recently, CPUs were seen as a relic, making way for more advanced chips; now they are the new bottleneck due to increased demand.

Hardware cannot completely offset weaknesses in software (IGV), but it could provide the kind of leadership that lifts the broad market back above the 200-day moving average.

VanEck Semiconductor ETF (SMH) has to close above its 50-day moving average.