The headlines continue to hit the tape and push around asset prices. Right before the Open the NYT reported that Saudi Crown Prince Mohammed bin Salem has been pushing Trump to continue the war. The S&P opened down 0.4% and bottomed out at -0.8% (~6525), testing the Oct/Nov lows once again. After that level held, the index erased the early weakness, getting back to unchanged, before fading again, with more downside coming after a WSJ report that the 82nd Airborne is about to deploy to the region. The S&P 500 is back to around opening levels (-0.2%). The equal-weight though, is outperforming and slightly positive as mega caps are weak, and the Russell 2000 is also slightly higher. As we head to print, however, Axios reported that the US and Iran may hold high level talks as soon as Thursday and Trump is speaking at the White House.

It feels like it’s been a while since we got an AI news-triggered selloff in software. Today Anthropic took care of that: a new release that allows users to enable Claude to use their computers to complete tasks, including assignment via your phone. The IGV software ETF is down 4%. Cybersecurity stocks are also weak- HACK and CIBR ETFs down 3%. Not everything in Tech is under pressure- hardware is trading higher with the ICE Semis index up ~1%. Crypto-focused equities are getting hit after the text of the proposed CLARITY Act- long held up by contentious negotiations- was released. According to the legislation, stablecoins can not offer yield on balances (like a savings account). The crypto industry was pushing hard for that ability. The banking industry pushed hard against it- or at least wanted stablecoins to come under the bank regulatory framework if allowed. The banks seem to have come out on top on this part. However, stablecoins can reward users that engage in defi protocols (lending, liquidity provision, etc) using the stablecoin.

Treasury yields are higher again, following global yields initially, then taking another leg up following a weak 2yr auction that tailed by 1.8bp. Brent crude is up 3%, having moved steadily off its lows. Precious metals are mixed with gold lower and silver higher. The crypto complex is mostly lower. Bitcoin and Ether are down 2% with bitcoin slipping below $70k again.