Happy not jobs Friday, The weakness in equity markets broadened out beyond tech yesterday with the S&P 500 falling 1.2% bringing losses to 2% for the week. The index closed below its 50d ma but held at its 100d which also coincided with the January low. Alphabet had very strong earnings, but investors focused on the massive increase in the company’s capex guidance, more on that in a minute. Treasury yields moved lower during the session after a trifecta of disappointing jobs data reversing the post ISM Manufacturing move higher. The big story of the day was the continued pummeling in the crypto complex. Bitcoin and Ethereum were both down >10% bringing WTD losses north of 20% - the beatings will continue until morale improves.

Well, morale is improving this morning as some delicious snacks are making their way around the trading floor ahead of Once Upon a Farm’s IPO. Futures are moving higher with the S&P 500 looking up ~0.5% while the Russell 2k is up >1%. Overnight crypto continued to be under pressure despite Strategy’s CEO Michael Saylor trying to calm the mood highlighting the supportive regulatory environment, political support and adoption by the financial sector. He also tried to calm fears of forced liquidation noting that Bitcoin would need to trade down to $8,000 before the company wouldn’t be able to service its debt. Bitcoin traded down to ~$60k last night before finally turning higher, and is currently trading around $67k. We’ll have to see if that can hold as there are some headlines hitting now that China reiterated that the crypto business is illegal in the county and RWAs tokenization activities are banned. Amazon (-7%) was the other big earnings report overnight and was the most recent mega-cap to put up very solid numbers but shock the street with the amount of Capex spending.

Crude is slightly lower, following yesterday’s slide. It had moved up to ~$69 before heading to $67 currently, near its lows of the day as the first round of indirect talks between Iran and the US concluded but set up a second round to follow. Commod-itility is subsiding this morning, with precious metals slightly lower but silver and gold off their lows. Silver is trying to regain its 50d ma currently. Crypto is seeing a bit of bounce.