Stocks Turn "Defensive" as U.S.-Iran Headlines Retake Market Focus

• Mega 7 and memory stocks are dragging the market down, with defensive sectors like healthcare, consumer staples, and energy showing relative strength.
• The 30-year bond yield is at a 19-year high, and the 10-year Treasury is showing signs of 'unraveling,' indicating potential long-term bond market issues.
• Geopolitical concerns over Iran, including President Trump's statement about pausing an attack, are causing volatility in energy markets, alongside a significant draw from the US Strategic Petroleum Reserve.
• April pending home sales increased by 1.4% month-over-month, exceeding estimates, but rising inventory and days on market suggest potential price reductions by sellers.

The market is experiencing a 'defensive' session with the S&P 500 and Nasdaq-100 lower for a third straight session, driven by pressure on mega-cap tech and memory stocks. Geopolitical tensions surrounding Iran and rising bond yields are contributing to market volatility, while April pending home sales data showed a slight increase.