The stock market faced a downward trend today as concerns surrounding geopolitical tensions weighed down investor sentiment. The Dow Jones Industrial Average slipped nearly 200 points or 0.5%, struggling to hold above its 50-day moving average after making a strong comeback last week. Meanwhile, the S&P 500 reversed earlier gains and remained essentially flat.

The tech-heavy Nasdaq Composite initially showed promising gains but later faded, ending the session with a modest 0.2% increase. Notably, artificial intelligence company Monday.com (MNDY) experienced a significant jump, while tech giants Nvidia (NVDA) and Apple (AAPL) received bullish analyst comments, boosting investor confidence. Among the top performers on the Nasdaq was AI play Super Micro Computer (SMCI), which rallied over 6%. However, new issue Grail (GRAL) struggled, falling nearly 3% but showing signs of recovery by the closing bell.

Across sectors, technology and energy stocks performed relatively well, while real estate and communication services witnessed declines within the S&P 500. The Russell 2000 experienced a sharp decline of 1%, while the mid-cap S&P 400 slid nearly 1%. Despite the overall market conditions, growth stocks displayed resilience, with the Innovator IBD 50 (FFTY) exchange-traded fund trading virtually unchanged.

Yields in the bond market saw a downward trend, with the 10-year Treasury note falling three basis points to 3.91%, and the two-year slipping two basis points to 4.03%. The decline in yields reflected market uncertainty amid the geopolitical tensions.

In corporate news, Trump Media & Technology (DJT) faced a decline in its stock price following the release of its earnings report. The parent company of Truth Social reported a narrowed loss per share of 12 cents, compared to 17 cents in the same quarter of the previous year. However, net sales fell by 30% to $836,000, marking the third consecutive quarter of approximately $800,000 in revenue. Operating costs soared to $19.5 million, significantly higher than the $4.9 million recorded a year earlier. The stock tumbled over 5% throughout the session, compounding its losses.

On a more positive note, Starbucks (SBUX) had a successful day on the stock market, seeing its shares rise nearly 4%. The coffee chain company experienced an uptick in its stock price following reports that activist investor Starboard Value has taken a stake in the company. This follows ongoing talks between Starbucks and Elliot Investment Management. The company's management has recently faced pressure due to declining sales in the vital U.S. and China markets.

As the stock market grapples with a potential pullback, investors are keeping an eye out for stocks that demonstrate relative strength near potential entry points. Defense contractor General Dynamics (GD), insurance player W.R. Berkley (WRB), and medical stock DaVita (DVA) are among the potential candidates, each having formed base patterns with notable growth metrics.

Additionally, according to the New York Fed's Survey of Consumer Expectations, consumer confidence regarding inflation has improved, with the three-year inflation outlook dropping to a record low of 2.3%. However, concerns over delinquency rates increased, as the likelihood of Americans missing a minimum debt payment in the next three months reached its highest level since April 2020, standing at 13.3%.

In banking news, KeyCorp (KEY) experienced a double-digit gain after the Bank of Nova Scotia agreed to acquire a minority stake in the company, injecting approximately $2.8 billion in cash. This positive development helped KeyCorp weather the broader market pullback seen in regional banks.

Overall, the stock market continues to navigate geopolitical uncertainties, with investors closely monitoring both corporate earnings and market indicators for potential opportunities.