This week started on a strong note as Skynet didn't become self-aware. In another miracle, both the Giants and Jets won their opening day games for the first time since 2009. Unfortunately, the expected meeting between Gulf states and Iran over the weekend was postponed and the Houthis continued to capture territory. That drove oil higher and kept the pressure on equities.

This week's big market event was the Federal Reserve’s rate decision. A 25bp rate hike was the overwhelming expectation and that is exactly what happened. The immediate result was yields ripping higher, especially on the front end. The 2y traded up 15bp from the day’s lows. The S&P fell to its 100d moving average ~7515 but support held and it recovered some of the loss into the close. The next day however the index jumped 1%, regaining the 50d and returned back into that 7600-7800 range we've been noting.

Equities ended Friday slightly higher in a huge Quad Witching expiration. The late-week rally put the S&P 500 only slightly lower for the week. Mega caps limited overall weakness, however. The equal-weight is down over 1% and small caps closer to 2% while the NYSE 100 ended up ~1%. Healthcare, Comm Services and Tech were the only sectors to see gains for the week. The main themes for the market remain: oil, yields and AI.