Good morning and Happy September. Yesterday US equities ended August on down note. The US and Iran traded strikes over the weekend, oil and long-end yields rose. The S&P fell 0.3%, the equal-weight dropped 0.6% and Russell 2000 0.5%. Energy was the outperformer and Tech was modestly higher as software continues to see upside momentum and memory traded higher while the megacaps fell. Defensives performed relatively well, though Utilities got hit on unfavorable California wildfire legislation as well as the backup in yields. A late day rally off the lows on end-of-month flows and MSCI rebalancing pushed equities to end the day near their highs, though still in the red.

The flareup in Iran over the weekend continued last night after Iran struck two tankers in the Strait of Hormuz. S&P futures were trading around flat before the news broke but moved to their lows, where we are currently, down 0.6%. We’re starting out the historically worst month for stocks right on cue. Miners and AI/chip names are among the biggest decliners in the pre-market. Oil and treasury yields rose modestly higher on the tanker news.

Treasury yields are up 2-3bp across the curve but modestly off their highs while the US Dollar Index is reversing much of yesterday's drop. Economic data today comes out after the open, including ISM Manufacturing and JOLTS. Crude is up another 2% today on the tanker news. European gas up another 2% after jumping 4% yesterday. President Trump will meet with oil and gas retailers and refiners today at 1:30pm today at the White House. Let the mid-term elections push begin! Precious metals are lower, with gold trying to hold the 100d ma and $4400 level after hitting resistance at $4700 last week. Silver saw is reacting similarly after it hit $70. Copper is trading lower as well. Bitcoin and ETH are down 1% and Ag is flat to lower as well.