Good morning. Tech was under pressure globally yesterday, pushing the S&P 500 down 1.4%. However the equal-weight outperformed, down only slightly, and the Russell 2000 modestly outpeformed (-1%). Momentum unwound as Memory (DRAM -14%) got smashed and semis were hit, as well as mega-caps overall (NYSX -3%). Yields, oil and metals were lower while the Dollar was higher. S&P futures are bouncing modestly this morning but have retreated from their best levels, trading in a relatively tight range. Tech names are among the leaders in the pre-market and MU is up heading into its earnings after the close.

Treasury yields are following up yesterday’s modest decline with more pronounced downside action. Yields are off ~5-7bp, beginning their decline just before Treasury Secretary Bessent spoke on TV. The US Dollar continues to strengthen, breaking above 101.5.

Brent crude is down another 3% this morning with the August contract slipping below its 200d ma ~$75. Yesterday’s API data showed a crude draw of only 765K, well below the 8.3M draw last week, chalked up to draws from the SPR and lower exports. Inventory’s have often seen draws of 4-9M since mid-April. DOE inventory data is out later this morning. US natural gas is slightly higher while European gas is a bit lower. Metals continue to fall as the Dollar strengthens. Gold is down 3% while silver falls 5%. Copper is down as well. BTC and ETH are modestly lower while Ag is up a bit.