For the week the S&P 500 was up 3.4%, the best week since that original China trade framework was agreed to in Geneva in May. It was a broad-based rally in US markets with small and mid-cap indices also up ~3%. Today was the first time the Russell 2k traded above its 200d moving average since February, though it closed just below that level. It is worth noting that the index is still >10% below its post-election high. Flows related to the annual, soon to be semi-annual, Russell Reconstitution helped markets rally back into the close. Energy saw a sharp decline across assets as Middle East tensions came off the boil. Yields moved sharply lower this week driven by a mix of factors. The pullback in oil prices helped to remove some of the inflation concerns and the aforementioned SLR rule changes also helped. Fed officials also started to come out of the woodwork and the commentary highlighted the building factions within the Committee that was apparent in the DOTS last week. Next week will be very short with a half day on Thursday leading into the July 4th holiday on Friday.

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