Yesterday was a record setting for the S&P 500 though there didn’t seem to be much fanfare. The index closed above 7k for the first time in history ending up 0.8%, near session highs. However, breadth was not particularly robust as the equal-weight closed unchanged, the Russell 2000 lagged and the Dow fell. It was tech that led the charge with the NYSE 100 extending its winning streak to 11 days. However, there was some bifurcation within this sector as well. The much-maligned software names extended their recent bounce (IGV +4%) while semis were weak despite strong earnings from ASML (a pattern we’ve seen quite a lot of in tech). Some higher risk thematic areas also saw continued strength, like Quantum Computing, helped by technological advancements and industry gatherings.

There have been no major updates on the Iran front, but more incremental news. Iran reportedly proposed letting ships transit Hormuz on Oman’s side of the Strait while the US looks to be leveraging more economic actions to keep the pressure on. The ceasefire is holding, the blockade remains intact and Israel and Lebanon are reportedly close to announcing a 10-day ceasefire. This continues to keep a bid under the market which is in many ways is the pain trade as portfolios were under invested and being forced to chase.