Yesterday the S&P ended about flat with mega caps mostly weaker, the equal-weight up 0.2% and the Russell fell 0.3%. A hot jobs report triggered a jump in yields but they settled off their highest levels with some bear flattening. The pressure on Bitcoin continued while Iranian tensions pushed crude up 1% and gold/silver climbed as well. Software continued to get hit, and the pressure on financial names continued, but this time seeing real estate data names among the worst hit. Meanwhile data center suppliers were very strong on earnings (VRT, GNRC, BWA). Energy, Staples, Materials led while Financials, Comm Services lagged.

Ahead of the open US futures were trading modestly higher and hit their best levels after this morning’s claims data. Both initial and continuing claims were slightly higher than expected (227k/1.862ml vs 222k/1.85ml) but continued the Low Hire Low Fire narrative. The print comes on the heels of yesterday’s hot jobs report and ahead of tomorrow’s CPI. Equities opened modestly higher, but things escalated pretty quickly to the downside. Mega-cap tech was the first to turn lower but broader markets followed suit in waves shortly thereafter.