Good morning. US equities were modestly higher yesterday outside of small caps. The S&P and equal-weight gained ~0.2% despite most sectors lower, while the Russell 2000 fell 0.5%, weighed down by higher oil and yields. Crude rose ~5% as the geopolitical news see-saw continued. Treasury yields were up over 5bp at one point before fading after Iran negotiation news took a more optimistic turn mid-day. Tech led the way with software continuing to do its best ‘90s WWE Undertaker impersonation. Jensen Huang’s positive comments on the group during his keynote at the Computex conference provided much of the tailwind.

S&P futures are trading slightly lower this morning. All’s (relatively) quiet on the Iran front, for now. Like yesterday the major news this morning centers around tech. Alphabet (-3% pre-market) cannonballed into the ECM pool after announcing an $80 billion equity raise to funds its AI buildout. Fresh off yesterday’s announcement that its’s buying homebuilder Taylor Morrison, Berkshire Hathaway will be taking down $10 billion of the raise to boost its current stake in the tech giant. One thing to note though, is that ~$30B of the raise will be used to meet tax obligations for employee equity awards.

HPE is seeing a huge post-earnings jump (+25%) after reporting a big beat-and-raise last night. MRVL is flying as well, up ~20% after AI Pope Jensen blessed the company as “the next trillion dollar company” at a tech conference. Software may be taking a break from its rally as the IGV ETF trades down 3% in the pre-market. In other earnings, Dollar General is up 5% and Victoria’s Secret isn’t so covert today, ripping over 40% after earnings.

Oil slightly lower, helping treasury yields fall about 2bp across the curve and the Dollar is modestly lower as well. JOLTS job data will be released after the open.