Good morning. US equities ended yesterday modestly higher but off their best levels, with the Russell 2000 outperforming the S&P 500. Semis once again were among the best performers. Crude and treasury yields rose while gold was flat but other precious metals saw gains. Energy, Materials, Industrials and Tech led while Comm Services, Staples and Discretionary lagged. Iran headlines were rather modest, with President Trump’s comments that the Iran ceasefire was on “life support” and the Iranian counterproposal were “unacceptable” the key soundbites.

S&P futures have been drifting lower throughout the overnight session after opening around unchanged, with a CNN report that Trump is more seriously considering a resumption of combat operations against Iran weighing on sentiment. Futures were at their lows ahead of the CPI print. Core was slightly higher than expected. Overall the print was largely within expectations and no large-scale outbreak of inflation seen within it, so futures are bouncing off those lows as we head to the Open.

Treasury yields were up 2-3bp heading into the print and have pulled back slightly, up 1-2bp. The US Dollar Index is trading higher. Commodities didn’t move too much post-CPI. Crude is up ~3%, just off its highs. Gold is slightly lower while Copper is a bit higher. Bitcoin and Eth are lower. The CLARITY Act is scheduled for Senate markup on Thursday.