Good morning and Happy Friday. Yesterday the S&P 500, Dow and Russell 2000 all hit record closing highs, overcoming early weakness concentrated in Tech. Small caps and the S&P equal-weight outperformed and cyclicals were the strongest sectors (Materials, Financials, Industrials >1%). This morning S&P futures are hugging unchanged, a little off their highs in a tight range. The yield curve is steepening again, inline with other sovereigns, as the short end is flat while the 30y climbs several bp. The US Dollar Index is modestly higher. Fed speakers have emerged from their media blackout. Schmid published his dissent statement and Paulson, Hammack and Goolsbee are speaking this morning. Goolsbee noted that a drop in inflation should be detectable Q1. He expects the unemployment rate to be pretty stable and projects more rate cuts than the median expectation for next year. Paulson underscored the importance of brining inflation down to 2%. Yesterday saw most of the metals complex post sharp gains while Brent crude declined and briefly traded below $61. Oil is flat this morning while precious metals continue to move higher. Bitcoin and ETH are flat as well. According to a Bloomberg report, Coinbase will announce its prediction market and equity tokenization platforms next week.

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